The Inter-American Development Bank (IDB) has launched Procure+, a comprehensive reform of its procurement system affecting some US$4.5 billion annually in projects across Latin America and the Caribbean. The initiative aims to improve the efficiency of processes, enhance transparency and increase competition in tendering. To this end, it introduces changes throughout the entire project cycle, promoting a better balance between quality and price, more robust risk management and higher standards in project delivery.

One of the key elements is the introduction of an approach that prioritizes technical quality alongside price when evaluating bids. This means that factors such as previous experience, implementation capacity and a track record on similar projects take precedence over purely financial criteria. According to IDB data, this approach can reduce total costs by between 5% and 20%, as well as minimizing delays and cost overruns.

The reform also aims to boost competition. It is estimated that each new entrant could reduce prices by between 2% and 8%, so wider participation will be encouraged.

Furthermore, Procure+ is driving concrete changes to the way tenders are conducted. Key measures include requiring a minimum proportion of local labour to boost employment and skills development in the region, greater engagement with the market at an early stage to attract qualified bidders, strengthening contract management, and introducing digital tools to monitor procurement performance.

Another key element is the strengthening of transparency. The reform introduces stricter controls on the beneficial ownership of companies and potential conflicts of interest, with the aim of protecting public resources and ensuring fair competition.

In addition, the sector’s professionalisation is being promoted through further training and certification, and the regulatory framework is being modernised to bring it into line with the practices of other multilateral development banks.

For businesses, this new model means a more competitive environment, where technical quality, visibility on the international market and the ability to form strategic alliances – such as consortia that combine global expertise with local knowledge – will be key factors.

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