On June 24, 2024, Law No. 32069 approving the General Law on Public Procurement (the «Law») was published in the Official Gazette «El Peruano», which has included, among other aspects, provisions on Government-to-Government («G2G») contracts.
Among the main provisions on this matter, we have the following:
Despite the fact that G2G contracting is excluded from the scope of application of the Law, it is specified that the principles governing public contracting, such as the principles of legality, effectiveness and efficiency, value for money, competition, sustainability of public contracting, among others established in the Law, will be applicable.
G2G procurement allows the acquisition of goods, the contracting of services, and the execution of works, their maintenance or operation, where the other State participates through its own agencies, including public or private, national or foreign companies. It should be noted that this mechanism may only be used when (i) dealing with highly complex contractual objects; or (ii) for strategic goods and services for national defense and internal order, declared as such by the competent sectors.
The authorization to use this contracting mechanism is made through a supreme decree countersigned by the minister of the competent sector. For such purposes, the public entity must comply with the following requirements:
Prepare a report supporting the scope, objective advantages and cost-benefit analysis for the Peruvian State of contracting with the State, comparing it with other contracting mechanisms.
Prepare a report identifying potential governments that can meet the requirements of the contracting entity.
In the case of investment projects or programs within the framework of the National System of Multiannual Programming and Investment Management, to have the opinion of the Multiannual Investment Programming Office of the sector functionally responsible.
To have a favorable opinion from the General Directorate of Public Budget of the Ministry of Economy and Finance regarding the budgetary capacity of the bid.
Additionally, in the case of highly complex contracts, certain investment amounts must be met. Thus, the investment cost must be equal to or greater than 40,000 and 600,000 UIT for investment projects and investment programs, respectively.
Finally, it is important to note that the provisions on G2G procurement will enter into force ninety (90) calendar days after the day following the publication of its regulations.
For further information, please contact Diana Briones (dbriones@estudiorodrigo.com), Hugo Silva (hsilva@estudiorodrigo.com) and/or Adriana Chavez (achavez@estudiorodrigo.com).
