Centralized purchasing in Paraguay

analysis of the legal framework, challenges and implementation

Abstract

Centralized procurement in Paraguay, especially under the mandatory joint procurement (CCO) model, is a strategic tool for optimizing the management of public resources and increasing administrative efficiency in public procurement. The current legal framework—Law No. 7021/22, Decree No. 2264/24, and MEF Resolution No. 227/25—provides a suitable legal framework that distributes responsibilities among the Ministry of Economy and Finance (MEF), the National Directorate of Public Procurement (DNCP), and the Procurement Unit (UEC), establishing an institutional governance structure geared toward the implementation of centralized procurement. However, the success of the CCO will depend largely on defining appropriate special procedures, strengthening the technical capacity of the UEC, and, especially, on the effective collaboration of participating public institutions, overcoming institutional resistance that could weaken the mechanism. Comparative experience from countries like Chile and Uruguay demonstrates that centralization can generate significant savings and improve the quality of management, provided that the goods and services targeted for centralized purchasing are appropriately selected, prioritizing those with budgetary relevance, potential for economies of scale, and in sectors where the market can satisfactorily meet demand. Both countries have recorded successful cases in the acquisition of medical supplies and food, with high savings rates. Centralized purchasing in Paraguay represents a strategic opportunity for the modernization of the State, although it faces the challenge of effective implementation that will require political leadership, inter-institutional cooperation, and sustained commitment.