Paraguay: How open data has transformed Paraguay’s public procurement

A years-long campaign to provide access to government information resulted in open data across the full procurement cycle, enabling journalists and CSOs to monitor government spending. The country’s procurement agency DNCP modernized its system including tools such as a policy on buying frequently purchased goods and a red flags dashboard. The agency’s open and data-driven approach continues to underpin its digitization efforts and has set them up to respond quickly to needs for example during the pandemic.

Key open contracting strategies

A central open contracting e-procurement platform	Timely open data including enables procurement agency can monitor and maintain efficiency and value for money even during a crisis	SMEs awareness campaigns	Civil society and journalists are empowered for monitoring public procurement	Students are enabled to track budgets and contracts to increase spending to most needed schools

Challenge
Inefficiency and corruption plague Paraguay’s public spending. In one example, inflated contracts for basic goods at the Ministry of Education triggered widespread protests.

Open contracting approach
A years-long campaign to provide access to government information resulted in open data across the full procurement cycle, enabling journalists and CSOs to monitor government spending. The country’s procurement agency DNCP modernized its system including tools such as a policy on buying frequently purchased goods and a red flags dashboard. Building on its existing open contracting ecosystem, Paraguay made publicly available information and dashboards on emergency procurement within weeks of the pandemic starting as well as offering new guidance and coordination for all procuring agencies. The government implemented more controls in COVID-19 purchases and included COVID-19-related items in their virtual catalog for faster and better emergency purchasing. Most recent reforms include opening up opportunities for small businesses. Buying fast, and transparently, is possible with open contracting.

Results:

• Prices for protective equipment became 10x cheaper & tendering 10x faster than at the beginning of the pandemic.
• Early open contracting reforms increased savings and value for money, as well as reduced failed tenders. Amendments to contracting processes dropped from 19% to just 3% after the 2015 open procurement reforms.
• More than 80% of the schools most in need now receive funding, compared to fewer than 20% in 2015.
• Participation by smaller businesses has steadily increased since the reforms started. By end of 2023, nearly half of all tenders were tagged with the new “suitable for MSMEs” label (introduced as part of the Lift project), and around one in four of these procedures were awarded to an MSME.