Harnessing Public Procurement for the Green Transition

Peru

Framework, scope, action-plans

In Peru, there is not an active national policy or strategic framework specific to GPP. Nevertheless, the National Supply System has a series of principles, among which are included Environmental, Social and Economic Sustainability principles, which are oriented towards respect for the environment, social and economic development, in order to strategically prioritise the needs of citizens and the efficient use of public resources.

In addition, the Public Procurement National Law, Law No. 30225, contemplates the "principle of environmental and social sustainability", promoting during the design and development of public procurement, criteria and practices that contributes to both environmental and social protection and human development. It also contemplates the "principle of technological validity" which stipulates that goods, services and works must meet the conditions of quality and technological modernity necessary to effectively fulfil the public purpose for which they are required, for a specific and foreseeable duration, with the possibility of adapting, integrating and upgrading, if necessary, with scientific and technological advances.

Similarly, in accordance with Article 29 of the regulations of Law No. 30225, also known as the Public Procurement Law, the stipulated requirements must encompass the specifications outlined in laws, technical regulations, metrological and/or sanitary standards, as well as other regulations governing the subject of procurement on a mandatory basis. Consequently, when public institutions formulate requirements for the procurement of goods, services, and works, it is imperative to incorporate regulatory provisions pertaining to environmental management. This includes adherence to stipulations in laws such as the General Law on Solid Waste No. 27314 and its corresponding Regulations, particularly when contracting services related to the collection, transportation, and final disposal of solid waste.

Likewise, Article 51.2 (b), 51.3 and 51.4 (d) of Article 51 of the regulations of Law No. 30225, provides for the inclusion of evaluation factors related to environmental or social sustainability in the selection procedure documents.

Furthermore, through Legislative Decree No. 1018 the Public Procurement Central - PERÚ COMPRAS was created, which fundamental purpose is to optimise public procurement, promoting the use of tools such as the Electronic Catalogues of Framework Agreements, the Technical Sheets for Electronic Reverse Auction and the Homologation Sheets; as well as the purchasing strategies, under the axes: Efficiency, Transparency and Technology. Through these tools, the public procurement regime aims to promote sustainability requirements aligned with national and sectoral policies of public institutions. The use of Electronic Catalogues of Framework Agreements, Technical Sheets for Electronic Reverse Auctions, and Homologation Sheets is mandatory for the public sector.

Furthermore, to achieve a national policy on sustainable public procurement, Supreme Decree No. 016-2021-MINAM was approved. That regulation sets the provisions for the Management of Eco-efficiency in Public Administration Entities and creates the Multisectoral Commission for Sustainable Public Procurement (CPS) with the task to analyse and seek technical agreements to make sustainable purchases operational.

Implementation

The national legislative and policy landscape includes the following provisions to promote environmental and social considerations in public tenders:

• Law No. 30225 - the Public Procurement Law, includes the principle of environmental and social sustainability. Accordingly, in the design and development of public contracting, criteria and practices that contribute to environmental and social protection and human development should be included;

• Policy measure 6.7: Quality standards and environmental sustainability in public procurement – which was incorporated into the National Plan for Competitiveness and Productivity. This policy measure assigns to INACAL the task of developing Technical Standards, which must be incorporated into the standardisation processes carried out by PERU COMPRAS.

• Law No. 28611 - General Environmental Law. It establishes guidelines on responsible consumption, and it requires the rules, provisions, and resolutions on public procurement and contracting to consider the use of natural resources. Moreover, it indicates that the production of goods, the provision of services and the exercise of trade must be executed in adequate environmental conditions.

• Ministerial resolution No 161-2016-MINAM – approve the Green Growth Guidelines, whose objective is to promote the rational and sustainable use of our natural resources and natural heritage, by generating new growth opportunities, the efficient management of emissions and the implementation of sustainable consumption and production modalities, guaranteeing social welfare, through financing mechanisms for the promotion of sustainable investments.

• Supreme Decree No. 237-2019-EF that approves the National Competitiveness and Productivity Plan, which establishes concrete short, medium and long-term measures to sustainably increase the well-being of all Peruvians. This Plan is the result of the joint effort of various entities from the public sector, private sector, academia, and civil society, who have worked together in the Public-Private Technical Committees led by the National Council for Competitiveness and Formalization. 

• Supreme Decree No. 023-2021-MINAM, that approved the National Environmental Policy, which considers the desired future situation by 2030 to be that Peru should reduce the fragility of its ecosystems, conserve its biodiversity and recover ecosystem services, in such a way as to contribute to improving people's quality of life.

• Supreme Decree No.064-2010-EM, that approve the National Energy Policy 2010 - 2040, which is focused on promoting sustainable development that strikes a balance between economic progress and care for the planet and the population.

Measurement and impact

Contracting authorities are required to report on public tendering procedures through a digital platform that is linked to the eProcurement system. Moreover, entities are required to use the SEACE (Peru’s e-Procurement system) to display any tender procedure, which may include evaluation criteria related to environmental sustainability.

In addition, the Public Procurement Central - PERU COMPRAS, launched the Sustainable Public Procurement dashboard: environmental dimension, which presents updated information on the acquisitions made through the Electronic Catalogues, corresponding to goods approved with environmental care criteria.

Through that dashboard the society, public entities, suppliers, and other interested individuals can review the contracted amounts per month, per brand, and per supplier condition, such as SME (Micro and Small Enterprises) or non-SME. This pertains to the purchase of approved bond paper, air conditioning equipment and printer consumables.

Recent developments

Through Directive N° 001-2019-OSCE/CD, approved by Resolution N° 013-2019-OSCE/PRE, which develops the content of the Bases and Request for Standard Expression of Interest for the selection procedures to be convened within the framework of Law No. 30225, various provisions have been implemented on practices and criteria that promote sustainable public procurement, which are detailed below:

• In the standard conditions for the procurement of goods and the supply of goods, in the section on the Requirement provided for in numeral 3.1 of Chapter III states the following: "Thus, for example, in the case of timber procurement, its legal origin must be verified in accordance with Article 183 of the Forestry Management Regulations, requiring the contractor to submit for 100% of the timber to be delivered: a) Forestry Transport Guides, in accordance with the Format approved by SERFOR, and b) Invoice with detailed information on the volume, quantity or pieces, as well as the species of timber". 

• In Chapter IV of the standard bidding conditions, for Public Bidding and Simplified Awarding for the procurement of goods, supply of goods, services in general, consultancy in general, works consultancy and execution of works, the evaluation factors "Environmental and social sustainability" and "Social protection and human development" are included, which have the purpose of assigning points to those bidders that accredit good environmental and social practices.

• Chapter IV of the above-mentioned standard bases for goods and services includes in the factor "Improvements to the technical specifications" or "Improvements to the terms of reference", clarifications to the effect that these factors may include aspects related to environmental or social sustainability.

Furthermore, Peru Compras, responsible for the Public Procurement Central, incorporates specific environmental criteria into its procurement processes. This includes criteria for electronic catalog product sheets, homologation sheets, and reverse auction sheets. For instance, in product categories like air conditioning equipment, bond paper, printer consumables (toner), and sawn wood products, environmental considerations such as energy efficiency, sustainable sourcing, and recycling plans are emphasised. The contracted amounts in various categories highlight Peru Compras' commitment to sustainable public procurement.