Panamanian authorities are still in the process of reversing the amendments made to the Public Procurement Act 22 during the government of Ricardo Martinelli, such as the "abbreviated tenders" or "less pressing contracts".

Since 2009, the law was changed at least nine times, which led to procurement processes being much more flexible in terms of timing and selection of suppliers. However, since last March, the new administration began the consultation process to repeal those changes and reform, once again, the controversial piece of legislation.

It is for this reason that the Directorate of Public Procurement in Panama announced that 70 more amendments will be presented to the National Assembly in the first month of the year as well as 14 new items and others that will be repealed.

Eduardo Corro, director of Public Procurement, told Prensa.com that reforms include "... the removal of abbreviated tenders, "less pressing" purchases, the inclusion for the first time of the system Panama Compra ´Community Boards and Social Assistance Division (DAS), previously known as the National Support Program ".

Source: Prensa.com

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Changes to the management of "turnkey" contracts and elimination of abbreviated tenders are part of the changes included in the bill which has already been approved by the Executive in Panama.

The bill was sent by the government to the National Assembly, where it will be discussed for approval.

Panama: Changes to Law on Public Procurement

January 2016

In addition to forbidding the participation of companies whose representatives have committed crimes against the public administration, a proposal has been made to eliminate hidden costs in tenders and modify the advance payment bonds to the companies awarded contracts.

The bill amending the Public Procurement Law 22 was prepared by the Ministry of Economy and will be presented to the Cabinet on 19 January, and then submitted for discussion to the National Assembly. One of the new features in it is the elimination of the hidden prices in tenders for best value with separate evaluation.

Martinelli's Changes to Procurement Law to be Appealed

July 2015

The elimination of the abbreviated tenders is part of the search for greater transparency, although it will mean more red tape.

The first major change in the law is the elimination of the changes made to it during the Martinelli administration which will return the law practically to its original features.

Panama: Backwards Step in Procurement Law

March 2015

An initiative in the Legislature is attempting to remove modifications made to the law during the Martinelli administration, which currently allows more flexible processes, such as abbreviated tenders.

Since 2009, Law 22 of 2006 on public procurement has been amended nine times, which is why an attempt is being made to go "back to basics" of the legislation by removing some of the changes.