El Salvador New Public Procurement Law

On January 25, 2023, the Legislative Assembly approved the Public Procurement Law that will regulate the procurements of government agencies, autonomous entities, and municipalities with public funds.   This law replaces the Procurement and Contracting of the Public Administration Law (LACAP) and entered into force on March 10, 2023.

The Public Procurement Law creates the new autonomous regulatory entity, the National Directorate of Public Procurement (DINAC – Direccion Nacional de Compras Públicas), that will be responsible for all government procurement policies and regulations, including the administration of the Electronic System of Public Procurements (COMPRASAL), which will require that all national and foreign companies interested in selling to the government be registered in the Unique Registry of Providers of the State (RUPES), except during a period of national emergency or urgency (as defined by the law).  Strategic projects and procurements done by the Directorate of Municipal Works (DOM) are excluded from the new law.  

The law incorporates new government procurement methods: (a) Competitive Bidding, (b) Price Comparison, (c) Direct Purchasing, and (d) Low Amount; stipulates that high technology should be used; and that criterion of sustainability and innovation should be taken into consideration.  The threshold for competitive bidding is $87,600, under this amount a price comparison from at least three suppliers can be used. Direct purchases will be allowed during a national emergency or urgent situation. Purchases tied to the current State of Exception enacted in March 2022 operate under the exemptions noted above. 

More information on the implementation will be described in the regulation of the law, currently under development.  A copy of the Public Procurement Law and the Law for the Creation of the National Directorate of Public Procurement was published in El Salvador’s Official Gazette on March 2, 2023, and entered into force eight days after publication.

For more information, contact the U.S. Commercial Service Office in San Salvador at office.sansalvador@trade.gov.