Amendments to the Law of the National Public Procurement System Regulations

Through Executive Decree 206 of March 21, 2024 (“Presidential Decree”), published in the Third Supplement of the Official Registry 524 of March 22, 2024, the President amended the Law of the National Public Procurement System Regulations (“Regulations”).

The key amendments to the Regulations are summarized below:

  1. It regulates infrastructure projects contracted under engineering, procurement, and construction mechanisms.
  2. A confidential and special regime will be applied for the procurement of works, goods, and services for (i) national defense and external security of the State; (ii) public order, internal protection, citizen security, and internal security of the State; and (iii) social rehabilitation.
  3. Government providers must adopt compliance management systems for anti-bribery, anti-money laundering, anti-corruption, and others needed to control their resources.
  4. If the bidder is required to make submit to the Financial Analysis Unit (“UAFE”) by law, they cannot participate in any public procurement procedures until obtaining the UAFE Compliance Certificate.
  5. In procurement procedures which require the bidder to be registered and enabled in the Unique Suppliers Registry, contracting entities will verify the registration only at the opening of bids and at the contract signing date.
  6. When bidders are entities or consortium, contracting entities will verify their partners, shareholders, or participants eligibility according to article 250 of the Regulations at the opening of the bids and at the contract signing date.
  7. An individual will be considered the beneficiary owner when: (i) he owns or controls a company through a chain of ownership or any other means; (ii) on whose behalf a transaction is conducted; and/or (iii) who exercises effective control over an entity, national or foreign, or other legal structure. Rules for determining beneficial ownership are specified.
  8. The date of electronically signed contracts will be the date of the last electronic signature. For reception reports, the date stated in the document will apply, regardless of the electronic signature date.
  9. Contractors must submit monthly account statements reflecting the movements of the account designated to receive payments derived from the contract to the contract administrator.
  10. Disputes arising during the execution of a contract can be resolved through a Dispute Resolution Board.
  11. Appeals against administrative acts issued during contract execution shall be subject to the provisions of the Administrative Code.
  12. Establishment of an administrative body within the National Public Procurement Service (“SERCOP”) responsible for reporting unusual and unjustified operations and transactions to the UAFE.
  13. By April 30, 2024, SERCOP and the Ministry of Public Health must prepare a proposal to facilitate the acquisition of medicines and strategic health goods.
  14. By May 7, 2024, the Central Bank of Ecuador, the Tax Authority, and the Ministry of Economy must issue the necessary regulations to implement the Tenth General Provision of the Law of the National Public Procurement System, requiring payments received by contractors and subcontractors to be made public through an information portal or website.
  15. Procurement procedures in the preparatory or pre-contractual phase shall conclude by the regulations with which they commenced.
  16. Contracts entered into before March 22, 2024, will be subject to the regulations in force at the time of signing, without prejudice to the parties agreeing to apply any of the reforms provided for in the Decree.
DISCLAIMER: The previous text has been prepared for informational purposes. CorralRosales is not responsible for any loss or damage caused as a result of having acted or stopped acting based on the information contained in this document. Any additional determined situation requires the specific opinion and concept of the firm.