Electronic Purchases in Costa Rica Frozen

Mer-Link, a system that handles 80% of government purchases, is not able to grant awards because of a legal action brought by the competing system CompraRed, which is also state run.

Friday, June 22, 2012

Hundreds of purchases involving amounts of millions of dollars and which are vital for state agencies such as the Instituto Costarricense de Electricidad, the University of Costa Rica and the National Insurance Institute, have been paralyzed.

An article in Nacion.com reports that the Constitutional Chamber of Costa Rica "has received for consideration a constitutional motion filed by attorney Jorge Enrique Romero Perez declaring that the regulations for the use of online public procurements, Mer-Link, are unconstitutional...... Romero said yesterday that he is a specialist in electronic public procurement ... and was an advisor to the Inter American Development Bank (IDB) for the implementation of Compra Red, another public procurement system. "

There is no specific data stating the development and implementation costs of these electronic procurement systems, but it is noted that more than $ 40 million has been invested in Mer-Link.

Apparently in Costa Rica there are no standards establishing one single source of information and processes for government purchases, which does not contribute to the transparency that should exist.

More on this topic

Electronic Purchases Reactivated in Costa Rica

June 2012

In order to avoid chaos in contracting procedures, the Constitutional Court has allowed the resumption of normal operation of the state procurement system Mer-Link.

In order to avoid disruption to the operation of administrative contracts, the court authorized the re start of operations until the final resolution has been declared.

Lack of transparency in Digital Purchases?

February 2014

The Board of Directors of Consejo Nacional de Vialidad has not yet authorized the agency to use the electronic procurement system Mer -Link .

Although the National Roads Authority (Conavi) is now ready to use the electronic procurement system Mer -Link , the Board of Directors of the company has not granted permission, as they are still studying the contract.

Electronic Procurement: Transparency and Savings

July 2012

In just a year and a half the Instituto Costarricense de Electricidad has saved $ 5.6 million by making purchases through the Mer-Link system.

According to an article in Nacion.com "At present, the Instituto Costarricense de Electricidad (ICE) handles 80% of its expenses in this way and its expected that this figure will reach 100% this year. If this goal is met, the institution’s savings would increase to $30 million. "

Costa Rica Seeks to Unify State Purchases

April 2013

The struggle between the two main systems used for Costa Rican government purchases could end with Mer-Link being the winner.

From a press release issued by the President of Costa Rica:

In order to facilitate the establishment of a National System of Public Procurement, the president of the Republic, Laura Chinchilla Miranda, signed this morning a guideline for all the institutions which make up the Civil Service to unify their methods of procuring goods and services.

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