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Public Procurement in Paraguay
Public procurement in Paraguay is a central pillar of public sector operations, enabling the government to acquire goods, execute infrastructure projects, and contract essential services required for economic development and public service delivery. The procurement system is institutionally centralized, legally codified, and supported by a mature electronic procurement platform.
Government tenders in Paraguay represent a significant channel of public expenditure and market access for suppliers, contractors, and service providers. Procurement activities are carried out by central government entities, municipalities, public enterprises, and autonomous institutions under a unified regulatory framework.
For domestic companies and international businesses, the public procurement market in Paraguay offers transparent access to opportunities through a single national portal, clearly defined procedures, and comprehensive public disclosure of procurement data.
Country & Economic Overview
| Region | Latin America and the Caribbean |
| Population (2022) | 6,929,153 (2024) |
| Income Level | Upper middle-income economy |
| Base Currency | Paraguayan Guaraní (PYG) |
| Average Exchange Rate (PYG/USD) | 6,982.752378 (2024) |
| Gross Domestic Product (USD) | USD 44.46 billion (2024) |
| Gross National Income (USD) | USD 43 billion (2024) |
| GNI per Capita (USD) | USD 6,290 (2024) |
Public procurement expenditure represents approximately 7.2% of GDP, underscoring the importance of government procurement in Paraguay’s fiscal framework.
Public Procurement Governance Framework
- Public Procurement Agency (PPA): DNCP
- PPA Website: https://www.contrataciones.gov.py/
- Central Purchasing Body: No formally designated CPB
The DNCP is responsible for regulating public procurement, issuing secondary regulations, managing the national eProcurement system, monitoring compliance, resolving complaints at administrative level, and publishing procurement statistics and analytical reports.
Legal & Regulatory Framework
Public procurement in Paraguay is governed by a multi-instrument legal framework consisting of primary legislation, implementing decrees, and DNCP resolutions.
- Law No. 2051 - Public Procurement Law
- Law No. 7021 - Public Supply and Procurement Law
- Decree No. 2992 - Implementing Regulation
Key Legal Principles and Clauses
- Total Cost of Ownership - Law 2051, Article 15
- Value for Money - Decree 2992, Article 35
- Sustainability - Decree 2992, Article 36 and DNCP Resolution No. 3746/22
- SME participation - Law 2051, Article 7
- Bid securities - Law 2051, Article 39; Decree 2992, Articles 54 and 89
- Public bid openings - Law 2051, Article 24
- Domestic preference - Decree 2992, Article 64(b)
Complaint resolution procedures are regulated under Law 2051 and Decree 2992, with clearly defined administrative review stages.
Procurement Procedures & Thresholds
| Procurement Method | Legal Threshold (Law 2051, Article 16) |
| Public Tender (Licitación Pública) | More than 10,000 minimum daily wages |
| Competitive Bidding (Concurso de Ofertas) | 2,000 - 10,000 minimum daily wages |
| Direct Contracting | Less than 2,000 minimum daily wages |
Advertisement timelines for goods, works, and services contracts are regulated under Articles 28, 29, and 30 of Law 2051. Bid validity periods for all categories are defined under Decree 2992, Article 46.
The average duration from advertisement to contract award is 46 days, with an average bid evaluation period of 26 days.
E-Procurement System in Paraguay
| System Name | Public Procurement Information System |
| System Website | https://www.contrataciones.gov.py/ |
| Launch Year | 2004 |
| Ownership Model | Government owned and operated |
| Supported Languages | Spanish (Castilian) |
| Supported Currencies | Guaraní, US Dollar |
| Core Functionalities | ePlanning, ePublishing, eTendering, eReverse Auctions, eCatalogues, ePurchasing (P2P), Vendor Management, eContract Management, eComplaints |
The platform supports electronic signing, downloadable tender documents, and publishes procurement data aligned with the Open Contracting Data Standard.
Procurement Market Characteristics
| Category | Number of Awards | Value (USD) |
| Goods | 3,971 | 2,048,537,135 |
| Works | 1,817 | 758,581,570 |
| Services | 2,682 | 568,447,264 |
Domestic suppliers dominate the procurement market, accounting for the vast majority of contract awards. International suppliers participate primarily in higher-value and specialized contracts.
Evaluation methods are predominantly based on the Lowest Price criterion.
Transparency, Complaints & Oversight
- Accepted complaints: 408
- Rejected complaints: 782
- Average complaint resolution period: 66 days
- Cancelled procurement procedures: 286
Procurement statistics, tender notices, and annual reports are publicly available through DNCP portals.
Sustainability & Green Public Procurement
Paraguay has formally adopted a sustainable public procurement strategy approved in 2022.
- Green public procurement strategy: Yes
- Mandatory green procurement: No
- Lead agency: DNCP
- Green procurement monitoring tools: Yes
- Supplier green certifications: Yes (use of GPP tags)
- Disposal and recycling requirements: Yes
Environmental criteria may be applied across goods, works, and services procurement, supported by official guidelines.
Social & Ethical Procurement Considerations
The legal framework encourages inclusive procurement practices without fixed spend targets.
- SME participation is explicitly supported by law
- No mandatory quotas for women-owned or disadvantaged-group-owned businesses
- Ethical and sustainability considerations may be incorporated in tender documents
Key Challenges & Practical Insights for Bidders
Key Challenges
- High reliance on lowest-price evaluation
- Complex legal framework with multiple instruments
- Strict procedural and documentation requirements
Practical Tips for Bidders
- Register early on the national procurement portal
- Monitor procurement plans and framework agreements
- Prepare documentation in Spanish
- Understand minimum wage-based thresholds when selecting procedures
Public Procurement in Paraguay offers a transparent, data-rich, and electronically advanced procurement environment. For suppliers seeking government tenders in Paraguay, familiarity with DNCP procedures, legal thresholds, and electronic tools is essential for successful participation.
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