Chile's public procurement systemis considered generally free of corruption, supported byprobity of the civil servants, decentralization, and goodbudgetary and control systems. However, it is affected bydeficiencies that the government recognizes, and is takingaction to overcome, particularly with respect to procurementof goods and services. There is no unified comprehensive,and public procurement system in Chile. The procurement ofpublic works on the one hand, and the purchase of goods andservices on the other, have traditionally been carried outunder separate legal, procedural and organizationalframeworks. In 1998, the Government established Chilecompraas an information platform for state procurement of goodsand services. Chilecompra was a pioneer effort one-procurement and had been generally considered a model tofollow. However, its initial operation did not meetexpectations. In response, the Government took a number ofpolicy, institutional and administrative actions designed tointroduce transparency to the procurement function andstrengthen Chilecompra, which are reflected in the PublicProcurement System Strategic Plan (PSSP) for 2000-2004,currently under implementation. Within this background, thisCountry Procurement Assessment Report (CPAR) reviews theprocurement aspects as it concerns public works, selectionof consultants, construction and consulting industries, and,control and audit, while focusing on the performance ofprocurement in Bank projects. It states the overallprocurement risk in Chile is low, provided that theindividual risks are properly managed. The overallconclusion of this report is that Chile has adopted a wellthought and comprehensive strategy and action plan forprocurement of goods and services, that is a best practiceexample to be followed. The strength of the strategy is thatit openly recognizes existing shortcomings, builds on pastexperience, and enjoys ownership at the highest levels ofgovernment, as well as a committed and competent teamresponsible for its implementation. Recommended actions areto: issue a comprehensive regulatory decree to theprocurement law and complementary norms and standarddocumentation; unify and revisit existing regulation forprocurement and management of public works contracts;harmonize procedures and documents of general use by allagencies; provide continued budget support in order toensure the financial sustainability of Chilecompra,particularly during the initial years of implementation ofthe new platform; revisit existing registration andprequalification procedures for public works contractors;and, provide full support to capacity building and humanresources development within the Government's Programof Excellence.
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