How the Proposed Changes to Peruvian Procurement Law Affect the National Infrastructure Authority (ANIN)

2023-06-12 17:01:30

In the midst of this, is establishing the National Infrastructure Authority (ANIN) and at the same time making changes to the Procurement Law (N° 30225) that carries nine years.

Although various modifications have been made during this time, some players in the sector, such as the Peruvian Chamber of Construction (Capeco), have insisted that a new law should be put on the table now.

The executive branch, says Management he Minister of Economy and Finance, Álex Contreras, advances in that sense. It is true that the Government is promoting the creation of the National Infrastructure Authority (ANIN), however, it cannot be ignored that the current regulations are an obstacle on some occasions. What will the Government do?

“There is already almost a closed version at the level of the Executive Branch that we hope to send to Congress of the Republic in the following weekscomments Minister Contreras on a new Procurement Law.

For the head of Economy, the proposal that will be brought to Parliament “It will make it possible to optimize the purchasing processes that were created in recent years with the aim of reducing corruption. Unfortunately they did not achieve that objective and, on the contrary, generated more inconveniences in the execution”.

READ ALSO: MEF: “There is a possibility that Peru will stand out from Brazil and Argentina” in entering the OECD.

The situation of the new Procurement Law

The proposal for the new Procurement Law has already been discussed at the level of vice ministers. Contreras says that there are observations from the Housing and Transportation sectors that they want to raise. “With that we would have a good, modern law, with clear controls, but above all flexible that allow execution and processes to be more expeditious, with a leading role for the Comptroller’s Office”underline.

The process -says the minister- is that this week the observations with Housing and the MTC are lifted.

“More reasonable terms will be sought and the purchase limits are being raised. But above all the most important element is expeditious processes. That is much more relevant, the regulations are being updated because the law is very old, it was already becoming anachronistic in a certain way ”, pointed out.

Despite the fact that expeditious processes are sought, Minister Contreras remarks that It does not imply relaxing controls, but optimization of purchasing times and processes”. “We will give a conference I calculate in two weeks when this is approved by the Council of Ministers”comments.

READ ALSO: Moody’s sees no immediate pressure to change Peru’s rating: what are your concerns?

Effect of the El Niño Phenomenon on the Peruvian economy

In almost half a year, Peru was hit by Cyclone Yaku, the coastal El Niño phenomenon, and is now getting ready for the arrival of a global El Niño.

Faced with this, the Minister of Economy and Finance told Management They have two Emergency Decrees (DU) in process to continue strengthening the capacity and response to the emergency. And, he urged Parliament to soon approve the ANIN.

“We had planned an expense of S/ 4,000 million for the emergency. To date, already in execution they are regarding S/ 1,500 million and what we are looking for is to finance everything from the acquisition of machinery to targeted interventions with the objective of preparing ourselves. I am referring to river defenses, cleaning of canals, rivers, and at the same time, we are not only concerned regarding the risks of flooding, but also the enormous risk of drought that it will generate”remember.

Until now, he says, everything will be financed with part of the resources of the supplementary credit approved by Congress and some reallocations. But if necessary, we will reallocate more resources because in the short term, emergency care is the priority. and we already have lessons from the past that will be very useful to minimize the effects of El Niño in Peru”point.

READ ALSO: BCR on Global El Niño: there is a high probability that it will be weak, but one should be cautious.

It is pending to spend close to S/ 2,500 million of the emergency budget. And, there is a space of S/ 1,500 million more for reallocation of the budget that will not be spent this year and that will be used in the emergency.

Remember that the GDP growth projection already contemplated some adjustments in sectors affected by El Niño but a new projection and the final review will be given in August (in the Multiannual Macroeconomic Framework).

Despite what was mentioned by the MEF, Management He reported that 99% of executives surveyed in the CEO Barometer -of Ipsos and this newspaper- believe that the Government is not prepared to face El Niño. Faced with this, the minister pointed out that the previous climatic phenomena have left the population “hopeless” because of how they were treated. And that they will seek to add to their prevention and mitigation tasks, those of communication, to inform regarding the work.

Will there be bonuses? Contreras pointed out that for now this type of measure is not contemplated, but rather is betting on other actions such as the protein voucher (‘Vale pollo’). But, that if a bonus is necessary, it will be targeted.

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