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Base Line Study

Transparency in the Public Construction Sector in Guatemala

Multi Stakeholder Group CoST Initiative - Guatemala

November 2010

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ABSTRACT

This study examined the level of transparency in the public construction sector in Guatemala to create a benchmark for the implementation of the CoST Initiative in the country. It was based on an analysis of the disclosure of 31 indicators of Material Project Information (MPI), as defined by the CoST Initiative. The study showed that disclosure of Material Project Information in Guatemala is supported significantly by the national legal framework. The law mandates online disclosure of almost 87% of the MPI required by the CoST Initiative. This is the highest percentage among countries participating in the CoST Initiative to-date. Yet, an analysis of 16 projects selected randomly in seven Procurement Entities (PEs) – four at the central level and three at the local level – revealed that actual information disclosure only amounts, on average, to 38% of the MPI required by law. This represents 34% of the MPI required by the CoST Initiative. PEs at the central government level disclose on average 40% of the MPI required by the law online in the GUATECOMPRAS system; PEs at the local level disclose 35%. In the project cycle, the stages registering the lowest levels of information disclosure were: Design (6.29% of the MPI required by the law), Execution (5.50%), Supervision (4.13%) and Post-Contract (19.25%). Road infrastructure projects under analysis underwent, on average, 17 variation orders, with additional times and price amounting to 123% and 103%, respectively. Based on the results of the study, the Guatemalan CoST Initiative will collaborate in its pilot phase with selected PEs to facilitate the analysis and disclosure of MPI throughout the project cycle.

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Acknowledgements

The Baseline Study was prepared within the framework of the Construction Sector Transparency Initiative (CoST) in Guatemala. After the Initiative was launched by the Guatemalan President in November 2009, it has been implemented with funding from the Spanish Government, the technical assistance of the World Bank, and the governance of the Multi-Stakeholder Group (MSG). As a result, Guatemala is the first country in Latin America to benefit from the Initiative.

The baseline study was undertaken by a local expert and revised by the MSG, the governing body of the CoST Initiative in Guatemala. Several officials in the Ministry of Public Finance and the Ministry of Communications, Infrastructure and Housing facilitated the information collection for this study. In addition, a significant enabling factor for collecting information were the letters from the Vice-President of Guatemala, who asked PEs to collaborate by facilitating MPI for the projects included in the Study.

We appreciate the comments and inputs from the World Bank in Guatemala, the CoST International Secretariat and the CoST Guatemala Coordinator.

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CoST Guatemala Structure

Members of the Multi-Stakeholder Group (MSG):

Public Sector

Ministry of Public Finance Ministry of Communications, Infrastructure and Housing Private Sector Guatemalan Construction Chamber Guatemalan Chamber of Industry

Civil Society Architecture School of the San Carlos de Guatemala University (National Public University) Acción Ciudadana (local chapter of Transparency International) Observers World Bank

Institutions Included in the Study

Institution Procurement Entities (PEs) Ministry of Communications,

Infrastructure and Housing, Government of Guatemala

Dirección General de Caminos (DGC), Fondo de Conservación Vial (COVIAL), Fondo Social de Solidaridad (FSS), Fondo Guatemalteco para la Vivienda (FOGUAVI)

Presidency of the Republic of Guatemala Fondo Nacional para la Paz (FONAPAZ) Guatemala City Hall Financial Directorate, Procurement Department

Municipality of San Juan Sacatepéquez, Guatemala

Municipal Treasury Office

Municipality of Antigua Guatemala, Sacatepéquez


We appreciate the collaboration of officials from the institutions included in the Baseline Study, including the provision of information required by CoST, comments and/or participation in interviews.

CoST Champion Minister of Public Finance

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ACRONYMS AND ABBREVIATIONS

ACRONYMS / ABBREVIATIONS MEANING

ANAM

Guatemalan Association of Municipalities

Admon. Administration BANVI National Housing Bank

CENTRARSE Centre for Action on Corporate Social Responsibility in Guatemala CERIGUA

CIV Centre of Information Reports on Guatemala Ministry of Communications, Infrastructure and Housing

CGC General Comptrollership of Accounts of Guatemala COCODES Community Development Councils CODEDES Department Development Councils

CoST Construction Sector Transparency Initiative COVIAL Fund for Road Conservation; Ministry of Communications,

Infrastructure and Housing CSR Corporate Social Responsibility

CVLP Construction of Housing in Landsite of Beneficiary DEPT. Department DEPTL Departmental

DFID United Kingdom Department for International Development DGC General Directorate of Roads; Ministry of Communications,

Infrastructure and Housing DNCAE Regulatory Directorate for Contracting and Procurement by the State

EIS Environmental Impact Study EITI Extracting Industries Transparency Initiative ERP Enterprise Resource Planning

FAPU Trust Fund for Support to Urban Planning FOGUAVI Guatemalan Housing Fund; Ministry of Communications, Infrastructure

and Housing FONAPAZ National Fund for Peace

FSS Social Solidarity Fund GOV. Government

GT Guatemala GUATECOMPRAS Contracting System of the State of Guatemala

IAG International Advisory Group INFOM National Institute for Municipal Public Works

LCS Landsite with services LCV Landsite with housing

MARN Ministry of the Environment and Natural Resources MPI Material Project Information

MINFIN Ministry of Public Finance MSG Multi-Stakeholder Group

NGOs Non-Governmental Organizations NOG Operation Number in GUATECOMPRAS ORG Organization

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ACRONYMS / ABBREVIATIONS MEANING

PEs Procurement Entities Q Symbol for Quetzals (Currency of the Republic of Guatemala )

RN Denomination of the Classification of National Routes SAGSI Administrative System for Management of Information Requests

SAT Superintendence of Tax Administration SEGEPLAN General Secretariat for Planning and Programming of the Presidency of

the Republic of Guatemala SICOIN WEB Integrated Accounting System

SINAFIP National System for Funding of Public Pre-Investment SNIP National System for Public Investment

UCEE Unit for Construction of State Buildings UNDP United Nations’ Development Fund

US$ Symbol of Dollars of the United States of America USAID United States Agency for International Development

VAT Value Added Tax WEB SITE Internet site

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EXECUTIVE SUMMARY

METHODOLOGY

1. Methodology of the Baseline Study: The Baseline Study was undertaken in accordance with the CoST International methodology, and is the first of two phases in the implementation of the CoST Initiative. While the second phase, the Information Disclosure Assurance Process, focuses on projects in execution, the Baseline Study analyzed information disclosure of completed projects. For this purpose, CoST has formulated 31 Material Project Information (MPI) indicators covering the entire project cycle, from project identification to post-completion contract details. These indicators allow for an analysis of the transparency and conformity of a public construction project. For the baseline study, information disclosure1 of the 31 indicators was analyzed for a randomly selected sample of 16 projects completed between January 2008 and June 2010. Nevertheless, during the development of the study it was observed that several road infrastructure projects had started before the aforementioned period. The analysis comprised seven Procurement Entities (PEs), four at the central level and three at the local government level. As a caveat to this analysis, it should be highlighted that CoST neither represents a juridical convention against corruption nor has punitive or investigative functions.

2. Definition of the sample of PEs: For the year 2009, Guatemala’s General Audit Institution counted a total of 11,201 Procurement Entities in the country. In line with CoST International criteria, the sample of PEs was selected from this universe according to three objectives: (i) include PEs that report the highest commitments in new contracts; (ii) include PEs such that the sample comprises a variety of types of infrastructure and execution models; and (iii) include PEs from the central and local governments. The table below summarizes the resulting PE sample.

Central Government Local Governments2

Institution Procurement Entity Institution Procurement Entity

Ministry of Communications, Infrastructure and Housing

General Directorate of Roads (DGC)

Guatemala City Finance Directorate, Procurement Department

Fund for Road Conservation (COVIAL)

Municipality of San Juan Sacatepéquez, Guatemala


Social Solidarity Fund Municipality of Antigua Guatemala, Sacatepéquez

Municipal Treasury Office FONAPAZ Administration

NGOs

1 For the purpose of the study, disclosure refers to all information in the public domain. The concept of public

domain refers to any information made available proactively by PEs to a citizens in media (via press, online, etc.), thus dispensing with the necessity to directly approach a PE with an information request. 2 Methodology for selection of PEs at local level: Guatemala City, as it corresponds to the capital of the

Republic of Guatemala; the Municipality of Antigua Guatemala, since it is a sui generis entity due to the fact that it is part of the Cultural Heritage of Humanity; and the Municipality of San Juan Sacatepéquez, of the department of Guatemala, which was selected randomly.

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3. Criteria for selection of Projects to be included in the Base Line Study: The 16 randomly selected projects for the study cover the roads, education, health, water and sanitation, and social housing sectors. For the sample, the projects were stratified into medium-sized projects (between Q.90,000 to Q.900,000.00) and large projects (exceeding Q.900,000.00 or approx. $112,000). Twelve (12) projects were selected from the universe of projects executed by the four PEs at the central level, and four projects from the three PEs at the local level.

FINDINGS OF THE STUDY 1. Legal Requirements for Disclosure of Material Project Information (MPI) The legal sources for the disclosure of project-related information in Guatemala are primarily the Constitution of the Republic of Guatemala, the Law on Contracting by the State (Decree No. 57-1992) and its regulations (Government Agreement No. 1056-92), and the Law on Access to Public Information (Decree No. 57-2008). In accordance with this legal framework, PEs must register project-related information in the National System for Public Investment (SNIP), the System for Contracting and Procurement by the State (GUATECOMPRAS), and the registry of contracts of the General Comptrollership of Accounts. NGOs and Trust Funds, which are excluded from the Law on Contracting by the State, follow their own regulations for contracting works. Nevertheless, the Budget Law obliges them to disclose procurement processes in GUATECOMPRAS and register information on financial and physical progress of the works in the SNIP. Nine out of the ten stages of the project cycle defined by the CoST Initiative are considered by the Guatemalan laws; solely the execution of the supervision contract stage is not considered in the law. As such, the implementation of the CoST Initiative in the country has a significant legal backing: the disclosure of 27 of the 31 indicators (or 87%) of the Material Project Information (MPI) required by CoST is similarly required by national regulations. This is the highest percentage globally. In the remaining seven CoST pilot countries, disclosure of less than 14 out of 31 indicators (or 44%) of MPI is, on average, required by the law.

2. Sources to Access Material Project Information Means for Disclosure of MPI: In general, PEs use electronic means to register and disclose MPI. In this regard, the GUATECOMPRAS system is the main source for public access to information, and the SNIP the main source for quantity and type of information – while requiring access codes for consultation, however. The sources for information per stage of the project cycle are detailed as follows:

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Project Identification Most of the information is registered electronically, but needs to be searched for or requested to the PEs or the SNIP.

Project Budget Information available in the electronic records of the SNIP and in the PEs, except for the Estimated price of the project.

Processes for

Contracting Designs

In general, designs are elaborated by the PEs and are contracted in specific cases. The records for these contracting processes and the contracts must be requested directly to the PEs. In emergency situations, designs of road works are elaborated by contractors. Alternately, the PE can provide the project profile to be reviewed by the Contractor. This information must be requested directly to the PEs. In cases of external contracting of designs, the name of the Main Consultant and the contract are recorded in GUATECOMPRAS. It is not feasible to relate the design to the main works unless the interested party has specific information from the PE, since they usually have different records.

Processes for

Contracting Supervision

In most of the cases of the PE sample, supervision is performed by PE staff. In cases of contracting of external supervision, the name of the Main Consultant and the Contract are recorded in GUATECOMPRAS. It is feasible to relate the supervision to the main works only if the interested party has specific information from the PE, since they usually have different records.

Processes for

Contracting Works

This is one of the stages of the project cycle where PEs disclose the most information in GUATECOMPRAS, except in the case of road infrastructure projects since specific contracting procedures are implemented for emergency situations. Data related to contracting through short lists were not identified. Models of letters of invitation to bid were included in documents disclosed by NGOs and Trust Funds (which is considered indicative of this form of contracting).

Details of the Contract

for Works

Stage of the project cycle where PEs disclose the most information in GUATECOMPRAS. Information must also be recorded in the SNIP and the General Comptrollership of Accounts. It is feasible to consult data in these systems if the interested party has specific information on the Contract or the SNIP access code.

Details of the

Supervision Contract

This information was collected through direct consultations to the PEs. The DGC and COVIAL provided records for these contracts (changes in prices, other payments made and pending to be made, times, etc.).

Execution of the

Contract for Works:

Details of the Contract

for Works

The GUATECOMPRAS website enables the interested party to consult operations that affected the contract for works; the number of tender process and the contract number are required for consultation. The SNIP also serves as an information source, but the interested party must have specific information of the contract and the access code for the system.

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3. Disclosure of Material Project Information by PEs and Stage of the Project Cycle

The average percentage of MPI disclosed by the analyzed PEs represented 38% of the information required by Guatemalan laws. PEs of the Central Government disclose on average 40% of the MPI required by law, whereas PEs of Local Governments disclose 35%. In terms of MPI required by CoST International, these percentages represent 35% for the Central Government and 30% for Local Governments.

PEs disclose MPI mainly in the following stages: (i) Project Identification (54% of the required information); (ii) Process for Contracting Works (95.75%); and (iii) Details of the Contract for Works (91.50%). In contrast, information disclosure is limited in: (i) Process for Contracting Design for Works (6.29%), (ii) Process for Contracting Supervision of Works (4.13%) (iii) Execution of the Contract for Works (5.50%); and (iv) Post-Contract (19.25%). As a caveat, these lower percentages are in part due to the elaboration and performance of PEs of their proper design and supervision processes.

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Post-Contract information disclosure is in part limited due to the fact that municipalities register information in their own accounting systems. Moreover, two indicators of MPI are not disclosed at all: (i) Project funds; and (ii) Execution of Supervision Contract. Information on project funds is not disclosed because it is recorded in the SNIP, and information on the execution of the supervision contract remains undisclosed as disclosure is not required by the Law.

4. Comparative Analysis of MPI Disclosed by PEs:

The DGC registers the highest percentage of information disclosure (44% of the MPI required by the law), followed by: (i) FONAPAZ and Guatemala City, with 43%; (ii) FSS with 41%; (iii) COVIAL with 32%; (iv) the Municipality of San Juan Sacatepéquez with 32%; and (v) the Municipality of Antigua Guatemala with 30%. As a caveat to this ranking, all of the PEs disclosed less than half of the MPI legally required. As such, no best practice case can be identified in the country.

The DGC achieved a higher percentage primarily as it disclosed, in contrast to most other PEs, the MPI related to three of the stages of the project cycle: (i) Process for contracting Project Supervision (bidding process and name of the main consultant for supervision), (ii) Details of Supervision Contract (Contract Price), and (iii) Execution of the Contract for Works (Individual changes that affect the price and reason for these changes). FONAPAZ and Guatemala City achieved higher-than-average percentages due to the disclosure of more MPI related to the stages of the project cycle corresponding to: (i) Project Identification (Purpose, Location, Beneficiaries; and for Guatemala City: Specifications and the Project Feasibility Study); (ii) Process for Contracting Project Design (Name of the main consultant for Design); and (iii) Details of the Contract for Works (Name of the contractor, Contract price, Work and Scope of works; Work Schedule). The lower percentages of information disclosure in the cases of COVIAL, Municipality of San Juan Sacatepéquez and the Municipality of Antigua Guatemala are due to the lack of disclosure in GUATECOMPRAS related to the following stages of the project cycle: (i) Process for Contracting Project Design, (ii) Execution of the Contract for Works, (iii) Post-Contract and, in part, (iv) Project Identification.

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5. Barriers to the Disclosure of Material Project Information (MPI) Culture: The disclosure of all CoST MPI items is challenging in that it requires the willingness and conviction of PEs to expand disclosure practices, and as such a cultural change towards appropriation of the CoST transparency objectives. This requires sensitization and a perceptual and cultural shift away from the misconception that “as more information is disclosed, transparency requirements increase” towards the concept that “with increased disclosure comes enhanced transparency, and with enhanced transparency an improved institutional image.” Technology: The existence and parallel use of several e-government systems complicates the identification of MPI throughout the project cycle by fragmenting the information available about a project. Similarly, access to several of the systems requires codes and protocols which are not accessible to the general public. In this context, it is advisable to set up two-way links between the platforms of existing electronic systems. This could facilitate interaction in information consultation, assessment of progress towards transparency and MPI disclosure by PEs. Administrative: Enhanced information disclosure enhances administrative burdens for PEs, in particular in view of the multiplicity of e-government systems.

6. Indicative Analysis of Disclosed Material Project Information3

Design and Supervision: In the sample of PEs analyzed, 75% of the PEs at the central government and 100% at the local level elaborated the designs for their works. Fifty eight (58%) percent of the PEs of the central government and 100% of the PEs at the local level perform the supervision of their works. For supervision contracts, the most significant variations in time and amounts are identified in the PEs of the central government that execute road infrastructure works (DGC). These PEs report average increases of over 40% of the original amounts and terms. No significant variations were identified in PEs at the local level.

Contracting Works: Fifty eight (58%) percent of the PEs of the Central Government in the sample

follow processes for contracting works through NGOs and Trust Funds; 25% of them execute them

pursuant to the Law on Contracting by the State. At the local level, 75% of the cases follow the Law

on Contracting by the State and 25% execute through Trust Funds. For contracting works, the most

significant variations were identified in PEs that execute road infrastructure, with average increases

of 123% in time and 103% in execution amounts At the local level, variations were identified in one

of the four analyzed projects, with increases of 35% in time and 17% in the execution amount. In

road infrastructure projects, variation orders summed up to 26, with the analyzed cases registering

on average 17 orders.

3 The sample size of projects in the baseline study allows for indicative results as to the disclosure and analysis

of MPI. However, the results should not be interpreted as statistically representative.

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RECOMMENDATIONS FOR THE ASSURANCE PROCESS

Collaboration with PEs:

In view of the differential information disclosure in the various stages of the project cycle, CoST should focus its collaboration with PEs on the information disclosure in the stages of the project cycle where no information or the least information is registered.

The strategy for collecting information from the PEs in the baseline study (written communications from high-level authorities to Directors of PEs) should be followed as early as possible in the assurance process to enhance the likelihood of receiving information on time.

Enhancing awareness among PEs forming part of the assurance process would be advisable to facilitate achieving CoST objectives. Ideally, PEs should be informed early on in workshops about CoST, the importance of its contribution and expected results.

The collaboration with PEs would be facilitated if CoST Guatemala could be established as a proper legal entity to carry out its actions.

Expansion of MPI for CoST Guatemala:

The MPI should include project plans. Being able to consult these via Guatecompras would decrease the number of direct requests to the PEs, lead to a higher numbers of bidders, optimize the time required to prepare bids, in addition to enhancing the information available to the public in general.

The inclusion of Environmental Impact Assessments (EIA) in the MPI should be examined. EIAs would facilitate the disclosure and evaluation of the project at an early phase as well as the enforcement of the Law for Protection and Improvement of the Environment. EIAs entail technical evaluations and social audits before the approval of the assessment (and execution of the project) as well as technical and environmental recommendations with implications for the quality and cost of works.

Limitations of the Impact of CoST:

CoST will require strong support and cooperation from staff in PEs in order to achieve an increase in the percentage of disclosed MPI, in particular in those institutions that follow their own regulations or are not ruled by the Law on Contracting by the State.

CoST will in its pilot phase focus on information disclosure rather than on other aspects related to governance in the construction sector. To illustrate, CoST will not contribute to the revision of procedures aimed at increasing control and quality in the pre-qualification of state contractors.

In view of the limitations of the initiative, CoST will seek to promote coordination with other transparency initiatives in the country, in particular those aimed at building links between e-government systems in order to enable the consultation of consolidated information on projects.

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Base Line Study for Guatemala ------------------------------------------------------------------------------------------------------------------------------------

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Table of Contents

Structure of the Report .............................................................................................................. 4 1. Introduction ........................................................................................................................... 5

1.1 What is CoST? ................................................................................................................... 5 1.2 CoST Base Line Study......................................................................................................... 8 1.3 Pilot Plan .......................................................................................................................... 8 1.4 Objectives of the CoST Base Line Study .............................................................................. 8

2. Methodology ........................................................................................................................ 9 2.1 Preliminary Tasks .............................................................................................................. 9 2.2 Identification of Selected Procurement Entities and Projects ............................................ 10 2.3 Data Base for Stage One: Identification of Disclosed MPI ................................................. 10 2.4 Data Base for Stage Two: Procurement Statistics ............................................................. 10

3. Supporting Information for the Base Line Study ................................................................... 12 3.1 Procurement Entities (PEs) in the country ........................................................................ 12 3.2 Summary of Laws that rule procurement processes ......................................................... 13 3.3 Legal Requirements for disclosure of MPI ........................................................................ 15

3.3.1 Systems for recording and disclosing MPI ......................................................................... 15 3.3.2 Relevant aspects of the main laws in regard to disclosure of MPI .................................... 16 3.3.3 Chart of Legal Requirements for Disclosure of MPI .......................................................... 20

3.4 Other current initiatives on transparency / anti-corruption or governance that support the construction sector ............................................................................................................... 29 3.5 Recommendations on how CoST can complement or integrate to current initiatives and create added value in Guatemala .......................................................................................... 33 3.6 Constraints to the access to MPI ...................................................................................... 33 3.7 Selection of PEs and Projects to be included in the Study ................................................. 34

3.7.1 PEs of the Central Government ......................................................................................... 35 3.7.2 PEs from Local Governments ............................................................................................. 38 3.7.3 Selection of Projects .......................................................................................................... 39 3.7.4 Methodology for collecting information from selected PEs ............................................. 41

4. Analysis of PEs, MPI and selected projects ............................................................................. 41 4.1 Summary of Projects included in the CoST Base Line Study .............................................. 42 4.2 Detail of projects included in the CoST Initiative Base Line Study ...................................... 44

4.2.1 Detail of projects included in the Central Government .................................................... 44 4.2.2 Detail of projects included in the Local Government - Municipalities .............................. 46

4.3 PE Analysis ...................................................................................................................... 47 4.3.1 Analysis of PEs of the Central Government ....................................................................... 47 4.3.2 Analysis of PEs of Local Governments ............................................................................... 61


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4.4 Sources for access to disclosed MPI .................................................................................. 70 4.5 Comparative Summary of MPI disclosed by PEs on line ...................................................... 73

4.5.1 Comparative Analysis of MPI Disclosed by PEs ................................................................. 76 4.5.2 Analysis of MPI for the different stages of the CoST project cycle, identified as disclosed by PEs…….. .................................................................................................................................. 79

4.6 Indicators of MPI Disclosed by PEs .................................................................................... 87 4.6.1 Summary – Analysis of MPI Disclosed by PE and by Central and Local Governments ...... 89

5.1 Conclusions and Recommendations .................................................................................. 91 5.2 Recommendations for the Pilot Phase .............................................................................. 93

6. Reference Sources ................................................................................................................ 94 ANNEXES ................................................................................................................................. 97

ANNEX A - Detail of projects included in the study .................................................................. 97 ANNEX B - FOGUAVI ............................................................................................................ 122 ANNEX C - Excel Spreadsheet ............................................................................................... 123 ANNEX D -Details of Laws Related to Contracting Processes .................................................. 123 ANNEX E - Institutional Commitments for Contracts Before or in 2010 ................................... 126


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Structure of the Report

The Report of the Base Line Study is divided into five sections. The summary of its contents is as

follows:

Section No. 1 includes an overall introduction to present background, objectives, structure and

composition of CoST Guatemala, as well as the objectives of the Base Line Study.

Section No. 2 presents detailed information on the Methodology applied for the selection of Procurement Entities (PEs) and Projects included in the Base Line Study. It collects data from secondary sources of information and verifies processes for contracting and executing works, from direct sources.

Section No. 3 provides information collected in relation to the number and categories of PEs and a summary of laws, rules and regulations linked to transparency. It also provides information on current initiatives for their enforcement and the constraints to disclosure of Material Project Information (MPI). Selected PEs and projects to be included in the study are also presented under this section.

Section No. 4 focuses on the percentages of access to MPI of the projects selected for the study.

The conclusions of the study are presented under Section No. 5, as well as an assessment of the

applied methodology and recommendations for the Pilot Phase.


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Section 1

1. Introduction

1.1 What is CoST4?

CoST (Construction Sector Transparency Initiative) is a multi-stakeholder, multi-party5 pilot

initiative, designed to increase transparency and accountability of publicly financed infrastructure

projects. Its ultimate aim is to enhance the accountability for the cost and quality of public sector

construction projects and that the State “Gets What It Paid For”. Thus, CoST actions and

methodologies are based on accompaniment to projects during the planning, awarding, execution

and monitoring phases, through public disclosure of MPI. CoST has formulated 31 MPI indicators

for the whole project cycle; whereas the Guatemalan laws require disclosure of 27 of these

indicators. It should be highlighted that CoST is not a legal convention against corruption, but

rather an international transparency initiative that requires quality information, statistics, and

access to information.

Guatemala, a CoST Associate Country6: On November 2009, the Guatemalan President officially launched the Construction Sector Transparency Initiative in Guatemala, a program sponsored by the World Bank, with funding from the Spanish Government. Guatemala is the first country in Latin America to implement this Initiative.

The Guatemalan President, the Minister of Public Finance (MINFIN for its acronym in Spanish) and the Minister of Communications (CIV for its acronym in Spanish) stated that this was a milestone for the country, before the Chairman of the CoST International Advisory Group, Mr. Christiaan Poortman.

The governing body of the CoST Guatemala Initiative is the Multi Stakeholder Group (MSG), which comprises representatives from the following sectors:

- Government: the Ministry of Public Finance (MINFIN for its acronym in Spanish) and the Ministry of Communications, Infrastructure and Housing (CIV for its acronym in Spanish).

4 Taken from document entitled “Methodology and Criteria for Project Selection”, Ministry of Public Finance,

Government of Guatemala, July 2010. 5 Multi-stakeholder because it is made up by different social sectors (government, private entities and civil

society) and multi-party since two entities of each of the aforementioned sectors take part in it. 6 Terms of Reference for carrying out the Base Line Study for the CoST Initiative in Guatemala, July 2010,

World Bank.


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- Private sector: Guatemalan Construction Chamber and the Guatemalan Chamber of Industry. - Civil society: Architecture School of the San Carlos University (the only public university and the

largest in the country) and Acción Ciudadana (the national chapter of Transparency International in Guatemala).

The MSG leads the Initiative in-country, by making institutional policy decisions for its assurance and identifying projects included in the Base Line Study and lessons learned that will be used as reference for the upcoming phase, or Pilot Plan.

The national CoST Champion is the high-level CoST advocate in the country. In Guatemala, the Minister of Public Finance was elected as the CoST Champion7.

7 Translation, Pilot Phase Design, July 2007; and documents prepared by CoST Technical Advisor on October

2009, provided by World Bank.


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Structure of the CoST Initiative in Guatemala8:

Guatemala Base Line Study

---------------------------- Other International Studies

CoST will be implemented in two phases, the first comprising the Base Line Study and the second phase defined as the Pilot Plan.

8 Based on the Terms of Reference for the Base Line Study for Guatemala, interpretation of the Consultant for

the Base Line Study.

CoST Initiative Guatemala Sponsored by

DFID – United Kingdom and World Bank

MSG Guatemala

Assurance

Team

Central Government,

Decentralized Entities

and Local Government

Procurement Entities

Exchange of ideas,

Lessons Learned,

Achieved Results,

Induction.

Sponsors

Coordinator CoST Leader Guatemala


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1.2 CoST Base Line Study

The Base Line Study focuses mainly on disclosed MPI that is of public domain9. For the purposes of this study, activities were carried out based on 16 finalized projects, which were randomly selected from a sample of seven PEs, selected from the Central Government and Local Governments, according to specific criteria.

PEs are units, offices or divisions that, being part of the organizational structure of a public entity, are responsible for executing or implementing processes for contracting works and services.

It should be highlighted that any public, centralized, autonomous, semi-autonomous or decentralized institution may have several divisions and, consequently, there will be one PE in every one of them.

1.3 Pilot Plan

This second phase focuses on technical assistance to PEs since it is based on the disclosure of selected MPI for this stage; the verification of the information disclosed in mass media or through consultation; monitoring and evaluation of projects in execution or formulation; the interpretation of data and reports for the MSG during the different stages of the project cycle10.

This phase will base its work on the information collected for the Base Line Study, which will be used as the starting point by formulating recommendations for the disclosure of MPI, following-up the process for formulation, implementation and evaluation of projects.

1.4 Objectives of the CoST Base Line Study

The specific objectives of the Base Line Study, as set forth in the Terms of Reference, are the following:

1. Identify which MPI is disclosed to the public through information means, by administrative offices or units responsible for procurement and contracting construction projects.

2. Determine, through sampling of PEs, which MPI is currently being disclosed. 3. Identify (within the same sample of PEs) the constraints (legal and/or administrative) that

hinder disclosure of MPI.

9 The concept of public domain refers to any information available for the regular citizen (press, on line,

newsletters, etc.) 10

Presentation prepared by Mr. William D.O. Paterson, CoST Technical Advisor, World Bank; October 2009.


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4. Develop indicators on the status of disclosure of MPI, based on a sample of PEs and a specific number of projects, which will be used as reference for a pilot phase.

5. Provide information to other initiatives in regard to how completion and management of construction contracts is affected; as well as how activities could be complemented and supported by the CoST Initiative.

Section 2

2. Methodology

The Terms of Reference for carrying out the Base Line Study define the methodological procedures to be followed to achieve the objectives of the study. The following is a summary of these activities:

2.1 Preliminary Tasks

1. Determine the number and types of PEs in Guatemala, especially within the government, both at national and local levels.

2. Summary of laws and regulations related to tender and quotation processes or to which these processes are subject to, especially processes implemented for the execution of infrastructure works.

3. Identify other transparency and anti-corruption initiatives or plans or good practices that might have a positive effect in the construction sector; focusing on processes and their results in order to determine how they relate to CoST.

4. Identify legal requirements for the disclosure of some part or the total MPI. 5. Identify constraints to the disclosure of MPI. 6. Recommendations on how CoST can complement or integrate current initiatives or provide

added value in Guatemala. 7. In consultation with the MSG, establish a data base to record information collected during the

Base Line Study, applying the methodology and following the structure recommended by CoST.


10

G U A T E M A L A

2.2 Identification of Selected Procurement Entities and Projects

The MSG agreed to the application of the criteria presented in Section 3.7 in order to identify the PEs and projects to be included in the Base Line Study. Detailed information on the analysis of each project is presented in Annex A.

2.3 Data Base for Stage One: Identification of Disclosed MPI

This stage of the Base Line Study comprised recording project information on the spreadsheet provided by the CoST International Secretariat.

Information related to MPI required by CoST for each one of the PEs included in the sample was recorded, based on the following:

1. Information filed by the PE, stating whether it is: - Copy available in file. - Hard copy available upon request; and/or - Available in digital format as information source.

2. Information re-sent by PEs but filed or recorded by others, for example: project implementation agency, entity responsible for overseeing tender or procurement process.

3. Information disclosed to the public, for example through Internet (website). A scale of four options was defined for identifying the frequency of consultations: always, most of the time, a few times, or never.

4. Information disclosed to the public upon request. A scale of four options was defined for identifying the frequency of consultations: always, most of the time, a few times, or never.

5. Information required by Guatemalan laws to be disclosed to the public. 6. Disclosure to the public prevented by the law. 7. Prevented by other factors (political, cultural, management and administrative) to be disclosed

to the public.

2.4 Data Base for Stage Two: Procurement Statistics

The indicators of the Base Line Study linked to collection of data in each one of the completed projects are included in the following spreadsheets (see Annex C):


11

G U A T E M A L A

2.4.1 Pre-qualification and Tender:

1. Number of companies that express interest in the main contract for works. 2. Number of companies included in the short list or pre-selected companies. 3. Number of companies included in the short list or pre-selected companies that submit bids for

the main contract for works. 4. Number of companies that express interest in submitting a bid for the contract for project

monitoring. 5. Number of pre-selected companies or companies included in the short list. 6. Individual consultants or companies included in the short list or pre-selected to submit bids for

the contract for supervision of works. 7. Number of companies that express interest in the project design contract. 8. Number of companies comprised in the short list. 9. Number of companies comprised in the short list that submit a bid for the project design

contract.

2.4.2 Project Term:

1. Estimated Project Term (Period from the start-up date of the contract to the termination date, counted in weeks).

2. Actual Project Term (Period from the start-up date of the contract to the termination date, counted in weeks).

3. For in-site supervision contracts: (a) initial estimated price, (b) contract price on start-up date of works, and (c) price of contract on termination date.

4. For the main contract for works: (a) initial estimated price, (b) contract price on start-up date of works, and (c) price of contract on termination date.

5. In cases of re-awarding of the main contract for works: documented reasons. 6. The amount and value of formal instructions for repairing defective works (a) issued, (b)

executed or implemented. 7. Any other recorded instructions (for example: in project completion reports) of the contractor

that did not achieve the quality stated in the specifications, provide information source and brief comment on the nature and severity of the failure or fault.


12

G U A T E M A L A

Section 3

3. Supporting Information for the Base Line Study

Information sources that were consulted to collect data for the Base Line Study are stated in the footnotes of this document. The main sources for information include the following: (i) websites of the System for Contracting by the State of Guatemala (GUATECOMPRAS), (ii) the websites of each one of the selected PEs, (iii) publications of the General Comptrollership of Accounts, disclosed on the Internet, and (iv) information provided by the MINFIN in regard to the GUATECOMPRAS database11. In order to complement or verify information collected from electronic means, direct requests to PEs were made to provide: Lists of executed projects, specific information on selected projects (mainly information that could not be collected in consulted information sources), and a direct interview with the PE. It should be highlighted that the disclosure analysis for each MPI indicator focused on compliance with legal requirements for disclosure. This means that, for the 27 MPI indicators legally required to be disclosed on line, pursuant to Guatemalan laws (See Section 3.3), only the information available on line was included as disclosed or of Public Domain. MPI that was received upon request, but not disclosed on line, was not considered as disclosed since its disclosure on line was not identified.

3.1 Procurement Entities (PEs) in the country12: For the year 2009, a total of 11,201 PEs were accounted for in the institutions comprised by the Guatemalan State (including the three branches: Executive, Legislative and Judicial), according to the report of the General Comptrollership of Accounts, the entity of the government which legal

mandate is to control and oversee state resources. 13,14

11

For further information, see Section 6 – Reference Sources. 12

Constitution of the Republic of Guatemala. Decree No. 31-2002 / Organic Law of the General Comptrollership of Accounts of Guatemala, Article No. 232 General Comptrollership of Accounts. Report of Entities Audited in 2009 by the General Comptrollership of Accounts. 13

Based on Chapter III of the Constitution of Guatemala in relation to the Control and Oversight Regime, Article 232, which defines the function of said entity. 14

Report of Entities Audited in 2009 by the General Comptrollership of Accounts.


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G U A T E M A L A

3.2 Summary of Laws that rule procurement processes

Activities linked to the procurement of goods, contracting works and services for the public sector are ruled by the Law on Contracting by the State, and its Regulations15. Among the relevant aspects of contracting processes, the role of the System for Contracting and Procurement by the State (GUATECOMPRAS for its name in Spanish) should be highlighted. The website of said system states that it is based on several regulations. The following chart presents a summary, including the category and number of quoted regulations. It should also be highlighted that the Law on Access to Public Information16 sets forth the obligation for all entities that manage public resources, including PEs, to provide, at any time and according to their functions, and at the availability of any interested party, updated and available information, including the following:

Procedure Manuals, both administrative and operational.

15

Decree No. 57-92 of the Congress of the Republic of Guatemala, Law for Contracting by the State. Government Agreement No. 1056-92, Regulations of the Law for Contracting by the State. 16

Decree No. 57-2008 of the Congress of the Republic of Guatemala, Law on Access to Public Information. One of its objectives is to enhance accountability by the State-

Type of Procurement Entities1

Total

National Central Government 46

Decentralized and Autonomous 44

Development Councils 22

Special Entities

- Associations, foundations, NGOs 1,885

- Cocodes/Codedes 3,182

- Development Councils 4,587

- Cooperative Institutes 1,002

Total Special Entities 10,656

Trust Funds 100

Local Municipal 333

Total Procurement Entities in Guatemala

11,201


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G U A T E M A L A

Information on the budget of income and expenditures allocated for every fiscal year; the

programmes which elaboration and/or execution is under their responsibility; and any

modifications to the same.

The list of works that are in execution or have been partially or totally executed with public

funding, or resources linked to loans granted to any of the State entities, stating the exact

location, the total cost of the works, the financing source, the period of execution,

beneficiaries, executing company or entity, name of the officer in charge of the works;

contents and specifications of the corresponding contract.

Information on all the contracting processes performed through quotation or tender, and

the corresponding contracts; identifying the corresponding operation number under the e-

systems for recording processes for contracting goods or services; award date; name of

supplier; award amount; term of the contract; and date of approval of the corresponding

contract.17

The following chart shows a summary of the category and amount of quoted regulations.

3.2.1 Summary of regulations linked to procurement processes18 (See Annex D)

17

The websites of the PEs provide a link to the GUATECOMPRAS website, to disclose information required by the Law on Access to Public Information. 18

System for Contracting and Procurement by the State of Guatemala (legal basis), http://www.GUATECOMPRAS.gt

del Estado de Guatemala (base legal)

No.

Category of the regulation

Amount

1 Constitution of Guatemala 1

2 Codes 2

3 Applicable laws 6

4 Specific Regulations 1

5 Government Agreements 5

6 Ministerial Agreements 5

7 Resolutions 5

8 Circulars and notifications 6

http://www.guatecompras.gt/info/legislacion.aspx


15

G U A T E M A L A

3.3 Legal Requirements for disclosure of MPI

Legal requirements for the disclosure of MPI are presented in four sections: (i) the list of public institutions which manage MPI generated by PEs; (ii) the main legal basis that supports the disclosure of MPI and, in general, the procurement and contracting processes; (iii) relevant aspects of the laws that regulate disclosure of information linked to procurement and contracting processes; and (iv) legal requirements for the disclosure of MPI. It should be highlighted that, for the purposes of the CoST Initiative, the legal requirements for disclosure is linked to the disclosure of MPI made by PEs pro-actively on line (e-systems), rather than the one they disclosed on a reactive basis, i.e., upon request of interested parties.

3.3.1 Systems for recording and disclosing MPI

1. National Public Investment System –SNIP (for its acronym in Spanish) of the Secretariat for

Planning and Programming of the Presidency of the Republic of Guatemala.19 2. System for Contracting and Procurement by the State of Guatemala –GUATECOMPRAS- (for its

name in Spanish). Ministry of Public Finance. 3. Integrated Accounting System -SICOIN WEB-, Ministry of Public Finance. 4. SIGES-SICOIN-GUATECOMPRAS link, by Ministerial Agreement No. 1-2006 of the Ministry of

Public Finance. The aforementioned systems use computerized systems for recording and disclosing MPI.

19 Based on regulations set forth in the second paragraph of Article 51 of Decree 70-2007, Law of the General

Budget of Income and Expenditures of the State of Guatemala; Central Administration; Decentralized and Autonomous Entities (including municipalities and its companies as well as those stated by the law), the aforementioned entities must record physical and financial progress of their projects in the physical and financial follow-up module of the National Public Investment System, on a monthly basis.

9 Guidelines 2

10 Ethical Standards 1

11 Inter-institutional Agreements 3

Total 37


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G U A T E M A L A

3.3.2 Relevant aspects of the main laws in regard to disclosure of MPI

No. Regulation

Relevant Aspects

1 Constitution of the Republic of Guatemala

Article 30. PUBLICATION OF ACTIONS OF THE ADMINISTRATION. All the actions of the administration are public. Interested persons have the right to get, at any time, the reports, copies, reproductions and certifications they request, and to have access to files required for consultation, except in the case of military or diplomatic affairs of national security or data provided by individuals on a confidential basis.

2 Law on Probity and Duties of Public Officers and Employees

DECREE NO. 89-2002, LAW ON PROBITY AND DUTIES OF PUBLIC OFFICIALS AND EMPLOYEES: The objective of this law is to create regulations and procedures to enhance transparency in the public administration and ensure strict observance of constitutional and legal precepts in the execution of State public functions, to prevent diversion of resources, goods, funds and securities in detriment of the interests of the State. Therefore, all persons working for the State are subject to administrative, civil and penal sanctions. Regulates negotiations for procurement, sale and contracting of goods and supplies, works and services required by the State, decentralized and autonomous entities, implementing units, municipalities, and public, state or municipal companies. Sets forth legal processes and sanctions to which state officers and employees, as well as those who act against the regulations set forth by the Law on Contracting and Procurement by the State.

3 Law on Contracting by the State

Decree No. 57-92 LAW ON CONTRACTING BY THE STATE AND ITS REFORMS: Under SECTION III, REGIME FOR PUBLIC TENDER AND QUOTATION; CHAPTER I, TENDER REGIME, Articles 17 thru 34, set forth the amounts and procedures required for contracting through tender. These apply to works or services higher than Q.900,000.01. CHAPTER II, Articles 38 thru 42, in regard to the QUOTATIONS REGIME of the aforementioned law, set forth the basis on which procurement processes ranging from Q.90,000.01 to Q.900,000.00 are to be regulated. Processes below Q.90,000.00 are subject to price comparison processes. Technical studies and minor works are included in this category. In CHAPTER III, EXCEPTIONS, articles 43 thru 45, which regulate procurement or contracting activities performed directly for amounts less than or up to Q.90,000.00 and in the cases of lack of bids, it is the responsibility of the Higher Administrative


17

G U A T E M A L A

No. Regulation

Relevant Aspects

Unit to take into account price, quality and delivery terms. Article 45 regulates contracting of goods or services in cases of exception, where there is a single supplier, in cases where public services have been suspended or its suspension is imminent, or when urgent contracting is required to respond to situations of national interest or social benefit. Likewise, this law regulates all issues regarding works, contracts, oversight and payments, insurance, bails, advances and reception, fines for late delivery and liquidation of contract. Articles Nos. 19, 23 and 39 refer to the publication of purchasing and contracting processes through GUATECOMPRAS.

4 Regulations of the Law on Contracting by the State

Governmental Agreement No. 1056-92, entitled REGULATIONS OF THE LAW ON CONTRACTING BY THE STATE, issued on December 22, 1992, rules administrative processes and procedures to be implemented for contracting purposes; as well as for the execution of works and payment of over costs. (Articles 4 Bis, 7, 8, 10, 12, 12 Bis, 16 Bis, 25 and 54 Bis, make reference to the use of GUATECOMPRAS in contracting processes).

5 Organic Law of the Budget

Decree No. 101-97, MODIFICATIONS Decree 71-98, ORGANIC LAW OF THE BUDGET: Its aim is to rule budgetary systems as well as systems for governmental integrated accounting, treasury and public credit; with the objective of developing and maintaining integrated systems that provide timely and reliable information on the performance of physical and financial execution of the public sector. The following entities are subject to the regulations of this law:

a. State bodies; b. Decentralized and autonomous entities; c. Companies which capital is comprised in its majority by State investments; d. Other institutions that are part of the public sector.

It also sets forth the accountability of public officers who manage funds or securities of the State or perform functions of Directors or Managers, at least once a year. An important aspect is the continuity of the execution of the budget, which


18

G U A T E M A L A

No. Regulation

Relevant Aspects

applies when budgets of public bodies and entities include credits to contract works or procure goods and services, which execution term exceeds one fiscal year20.

6 Law on Access to Public Information

Decree No. 57-2008 LAW ON ACCESS TO PUBLIC INFORMATION: Its purpose is to: (i) ensure the right to request and have access to information; (ii) ensure transparency; (iii) set forth as mandatory the principle of maximum disclosure and transparency; (iv) to set forth, as exception and in a limited manner, the cases in which access to information is restricted; and (v) to promote State accountability to the population in general so individuals can audit performance. In order to achieve this, it sets forth the principles of: maximum disclosure; transparency in management and execution of public resources and acts of public administration; and free access to public information. Article 15. Use and dissemination of information. Interested parties will have penal and civil liability for the use, management or dissemination of public information to which they have access, pursuant to this law and other applicable laws. Articles 21 thru 23 of the law refer to confidential and reserved information, limits of the right to access to information, confidential information and reserved information.

7 Law for Protection and Improvement of the Environment

Decree No. 68-86 Congress of the Republic of Guatemala. Its purpose is to ensure the ecological balance and the quality of the environment to improve the life conditions of the population and the participation of the civil society and/or citizens, submitting the project for approval through public consultation.

20

This aspect of the law provides continuity to committed funds for contracts of works that last more than one fiscal year or that are implemented throughout several fiscal years, reason for the magnitude of the amounts presented in the chart entitled “Institutional Commitments due to Contracts before and during 2010, for the four entities that report the highest expenditures”.


19

G U A T E M A L A

No. Regulation

Relevant Aspects

8 SNIP, SEGEPLAN Joint Circular21

Circular dated November 5th, 2008, addressed to State Ministries, Secretaries, Specific and Social Funds, Decentralized and Autonomous Institutions, Municipalities and the public sector in general: “The main objective of this commitment is to promote and facilitate free access to public information. Within this framework and in compliance with what is set forth in the Fiscal Pact, the Government of Guatemala enables availability of the information of the National Public Investment System (SNIP), under the responsibility of the Secretariat for Planning and Programming of the Presidency (SEGEPLAN – for its acronym in Spanish).”

9 Law for the Creation of the SNIP

Article 51, Decree No. 70-2007, Law for the Creation of the SNIP, published on June 28th, 2000. Second paragraph: “The entities of the Central Administration and Autonomous Entities, as well as any national or foreign individual who, by delegation of the State, receives or manages public funds according to signed agreement or contract, or executes projects through trust funds, shall record the physical and financial progress of the projects under his/her responsibility in the physical and financial follow-up module of the National Public Investment System (SNIP), on a monthly basis”.

10 Law on the General Budget of State Income and Expenditures for the Fiscal Year

DECREE NO. 72-2008, LAW ON THE GENERAL BUDGET OF STATE INCOME AND EXPENDITURES FOR THE FISCAL YEAR 2009. Article 13. Budget Execution through Agreements. “Projects implemented under this model (NGOs) and its progress and results must be recorded in the National Public Investment System – SNIP (for its acronym in Spanish).” Article 50. Refers to the obligation of the use of GUATECOMPRAS for, among others, NGOs and Trust Funds, to disclose processes linked to tender and quotation of goods, works and services in the Guatecompras system.

21

Law for the Creation of the SNIP: Published on June 28th, 2000, modified by Laws N° 28522 (May 25th, 2005), 28802 (July 21st

, 2006), by Law Decree N° 1005 (May 3

rd, 2008) and 1091 (June 21

st, 2008), Regulations of the SNIP: Approved by DS N° 102-2007-EF (July 19

th, 2007). Enforced since August 2

nd,

2007 and modified by DS N° 038-2009-EF (February 15th

, 2009).

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/ley_28522.pdf

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/ley_28802.pdf

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/DL_1005.pdf

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/DL1091-2009pertinente-2009.pdf

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/DS038_2009EF.pdf


20

G U A T E M A L A

3.3.3 Chart of Legal Requirements22 for Disclosure of MPI

Stage in the project cycle

Initial List of Disclosures Publication Related Laws and Regulations

Comments

Required by Law

Means E= Electronic (website) P= Press

Pre

vio

us

Dis

clo

sure

s in

sup

po

rt t

o

Co

ST

Ide

nti

fica

tio

n o

f th

e p

roje

ct Project Specifications Yes E Required for tender, in Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 18, Tender Documents.

Available for all acquisition processes in GUATECOMPRAS (Quotes and tender). Technical, environmental and general information is regularly recorded in the SNIP and detailed information on the contracting process for works is provided through GUATECOMPRAS or upon request of parties interested in submitting bids.

Purpose Yes E Required by the National Public Investment System, pursuant to Circular dated

Information that PEs record electronically in the SNIP. The SNIP registry code or information Location Yes E

22

Article 55 of Decree No. 72-2008 states that it is mandatory for NGOs and Trust Funds to publish acquisition and contracting processes in

GUATECOMPRAS and Article 58 makes reference to the obligation that any national or foreign individual who, by delegation of the State receives, invests or manages public funds, pursuant to signed agreement or contract or that implements projects through trust funds, has to record on a monthly basis the physical and financial progress of the projects he/she is in charge of in the Physical and Financial Module of the SNIP. The procedures related to tender (invited to bid or short list, times for submission of bids, criteria for awarding and payments) are set forth by their own regulations.


21

G U A T E M A L A



Comments

Required by Law


Expected Beneficiaries Yes E November 5th

, 2008 and Decree 70-2007. Law for the Creation of the SNIP, Law Decree No. 1005 and 1091.

related to the project, such as location, name, etc. is required for consulting information. Feasibility Study Yes E

Fun

ds

for

the

Pro

ject

Financing Agreement Yes E LAW Decree No. 70-2007. LAW OF THE GENERAL BUDGET OF INCOME AND EXPENDITURES OF THE STATE FOR THE FISCAL YEAR, Article 51. Information of the National Public Investment System - SNIP.

Information that PEs record electronically in the SNIP. The SNIP registry code or information related to the project, such as location, name, etc. is required for consulting information.

Budget Yes E

Estimated Project Cost (Base Price)

No E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE, Article 29. Integration of the Official Price. Used to calculate the definite total official cost.

The information is disclosed until bids are received; information is in reserve in the previous phase. The base price is recorded in the Bid Evaluation Certificate, a document that is published in GUATECOMPRAS. In addition, the Law on Access to Information enables access to this indicator upon request, but not on line.

Pro

cess

fo

r

con

trac

tin

g

Pro

ject

de

sign

Tender Process

Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE, Article 44. Cases of Exception. 1.9 Hiring individual professional services in general. 2.2 Contracting studies, designs, works oversight and contracting technical services, pursuant to procedures…

The law poses the possibility of making exceptions in contracting this service. It can be contracted directly through a short list of three (3) bidders. The process is published in GUATECOMPRAS as a restricted contest.

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/DL_1005.pdf

http://www.mef.gob.pe/DGPM/docs/normas/normasv/snip/DL1091-2009pertinente-2009.pdf


22

G U A T E M A L A



Comments

Required by Law


Name of main consultant Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Articles 74 and 75, related to Registry of Contracts.

The name of the main consultant must be recorded in GUATECOMPRAS.

Mai

n D

iscl

osu

res

sup

po

rtin

g

Co

ST

Pro

cess

fo

r co

ntr

acti

ng

Pro

ject

sup

erv

isio

n

Tender Process

Yes E Governmental Agreement No. 1056-92 REGULATIONS OF THE LAW ON CONTRACTING BY THE STATE: Article 22. This article refers to contracting of studies, designs and supervision of works and technical services. For contracting activities under item 2.2 of article 44 of the law, it shall be proceeded as follows: a) The interested State body, office or entity, shall put out to tender … b) When due to the nature of required services or due to special circumstances, the interested body or office will not put out to tender, it will request proposals and bids directly …

The law poses the possibility of making exceptions in contracting this service. It can be contracted directly through a short list of three (3) bidders. The process is published in GUATECOMPRAS as a restricted contest.

Name of main consultant Yes E ARTICLE 12 Bis. Approval of award. Any approval or disapproval, to which article 36 of the law makes reference to, shall be published in GUATECOMPRAS, Articles 74 and 75 in regard to Registry of Contracts.

The name of the main consultant must be recorded in GUATECOMPRAS.


23

G U A T E M A L A



Comments

Required by Law


Ten

de

r p

roce

ss f

or

con

trac

t o

f m

ain

pro

ject

wo

rks

Tender process Yes E, P Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 23. Publications. The call for tender shall be published at least two times in the official newspaper and two times in another high-circulation newspaper and in GUATECOMPRAS.

Information that PEs record electronically in the SNIP and GUATECOMPRAS. Among others, the name of the project, the SNIP and GUATECOMPRAS registry codes, or the NOG (Guatecompras’ operation number) are required for consulting information.

List of bidders Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE Article 39 bis. Modifications to the quote form. When a contracting entity, during the course of a quotation process modifies the conditions for quotes, it shall provide said information to all bidders, competitors and suppliers participating in the …

In the case of tender or quotation, information is disclosed until bids are opened. In the case of restricted processes or processes with exceptions according to the law, the names of those invited to submit bids, which make up the short list, must be published.


24

G U A T E M A L A



Comments

Required by Law


Report on tender evaluation Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 12 Bis. Approval of award. Any approval or disapproval, to which article 36 of the law makes reference to, shall be published in GUATECOMPRAS. Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Articles 74 and 75 in regard to Registry of Contracts. The Registry of Contracts, ascribed to the General Comptrollership of Accounts, shall be created for oversight purposes…

PEs publish the result in GUATECOMPRAS, and afterwards, the corresponding Contract and Approval Agreement. PEs record information electronically. The GUATECOMPRAS registry code is required for consulting information.

Co

ntr

act

det

ails

fo

r o

vers

igh

t

pro

ject

Contract Price Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 12 and Article 74; quoted above. Governmental Agreement No. 1056-92 REGULATIONS OF THE LAW ON CONTRACTING BY THE STATE. Article 12 Bis. Approval of Award. Any approval or disapproval, to which article 36 of the law makes reference to, shall be published in GUATECOMPRAS.

Recorded electronically for public consultations. Information can be consulted if interested party has the name of the contractor or his Tax Identification Number.

Contract of working environment

Yes E The information is part of the wording of the contract; it shows the terms of reference and activities to be implemented.

Contract schedule Yes E Appears in the contract as start-up and end dates.


25

G U A T E M A L A



Comments

Required by Law


De

tails

of

mai

n w

ork

s

con

trac

t

Name of contractor Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 12 and Article 74; quoted above. Governmental Agreement No. 1056-92 REGULATIONS OF THE LAW ON CONTRACTING BY THE STATE. Article 12 Bis. Approval of Award. Any approval or disapproval, to which article 36 of the law makes reference to, shall be published in GUATECOMPRAS.

Information is included in the Contract. The schedule generally includes start and end dates for works, without detailed information on activities, times and investments.

Contract Price Yes E

Contract of working environment

Yes E

Contract schedule Yes E

Exe

cuti

on

of

co

ntr

act

for

pro

ject

ove

rsig

ht

Significant changes to contract price, schedule and environment, with justification.

No Requirements in regard to this aspect of the project cycle were not identified in regulations. According to the law, it is only required to record the contract before the General Comptrollership of Accounts. (Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Articles 74 and 75, Registration of Contracts).

Information in regard to this aspect of the project cycle must be requested directly to the PE through the Law on Access to Information.

Exe

cuti

o

n o

f

mai

n

con

trac

t

for

wo

rks

Individual changes to the contract, which affect price and justification for said changes

Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 12 and Article 74; quoted above. Required by the National Public Investment

Information available in electronic records for public consultation, which is feasible if interested party has information of the number of operation under which project was


26

G U A T E M A L A



Comments

Required by Law


Individual changes to the contract, which affect the schedule and justification for said changes

Yes E System, based on circular dated November 5

th, 2008 and Decree No. 70-2007.

published, SNIP number, and project name. It is not mandatory for municipalities to record information in GUATECOMPRAS regarding changes to contract price since they record it in the accounting system of each municipality and/or the SNIP.

Detail of any re-award of the main contract

Yes E

Fin

al d

eta

ils o

f m

ain

co

ntr

act

for

po

st-c

on

trac

t w

ork

s

Updated price of works or contract

Yes E Decree No. 57-92, LAW ON CONTRACTING BY THE STATE. Article 12 and Article 74; quoted above. Required by the National Public Investment System, based on circular dated November 5

th, 2008 and Decree No. 70-2007.

DECREE No. 72-2009 LAW ON THE BUDGET and Resolution 11-2010 – Regulations for the use of GUATECOMPRAS.

GUATECOMPRAS poses the possibility of recording information. Nevertheless, information is incomplete and not up to date. Municipalities record information in the accounting system of the corresponding municipality and in the SNIP. GUATECOMPRAS records a copy of the contract, and, among others, the start date, completion date and modified date for the

Total of payments made Yes E E

Actual scope of works No

Updated schedule Yes E

Project evaluation and audit reports

No


27

G U A T E M A L A



Comments

Required by Law


works, original price, adjusted modified price, amount of modifications due to reductions, extraordinary or supplementary works, payments made and balances. In addition, the Law on Access to Information enables getting information on the actual scope of the works upon consultation, but not on line. In regard to the project evaluation and audit reports, these must be requested to the General Comptrollership of Accounts


28

G U A T E M A L A

The Law on Contracting by the State requires that PEs disclose in GUATECOMPRAS information on: (i) General characteristics of the location, (ii) General and technical specifications for execution and blueprints, (iii) bases for tender, (iv) questions made by bidders during the corresponding period, (v) responses to questions made throughout the process, (vi) information on receipt of bids, qualification and award of bids, (vii) status of the bid evaluation process, and afterwards (viii) contract documents, contract price and their variations according to time and changes to the original contract. Pursuant to the Law on Contracting by the State, it is not mandatory for NGOs and Trust Funds to publish their events in GUATECOMPRAS. This legal requirement is set forth in the Law on the Budget. The Law on Contracting by the State defines separate contracting processes for each one of the stakeholders engaged in a project (Designer, Supervisor and Constructor). This implies individual codes that, a posteriori, hinder identification of main consultants and their correlation.

The SNIP is a tool that records information on the different stages of the project cycle, whereas GUATECOMPRAS is a website that is defined as an “electronic market, operated through Internet” that the State of Guatemala uses to acquire and contract goods and services. Both systems manage information derived from the project, which is consulted from different websites and using different codes. According to Decree 11-2007, Article 12, information on the SNIP is available to all Guatemalan citizens through the website www.segeplan.gob.gt; information on public works recorded by the entities in charge of the projects and works. The Law requires that all projects or activities are subject to an Environmental Impact Study (EIS) for their approval. Information related to the EIS must be recorded in the SNIP, but it is not part of the disclosed MPI.

http://www.segeplan.gob.gt/


29

G U A T E M A L A

3.4 Other current initiatives on transparency / anti-corruption or governance that support the construction sector

Initiative Promoter / Regulator

Focus Relation to CoST T= Transparency, A= Anticorruption, G= Good Practice

Comments

T A G

Decree No. 57-2008. Law on Access to Public Information.

Human Rights Ombudsman’s Office

Ensure to any interested party, without discrimination, the right to request and have access to public information under the custody of the authorities and subjects compelled by this law. The person that requests the information has penal and civil responsibilities for the use, management or dissemination of the same.

MPI that is not disclosed can be obtained through this Law.

The Law is a useful tool for getting information; it is related to CoST principles and objectives. In order to request information on behalf of third parties, it is necessary to have legal representation or accreditation. The Law allows for the restriction and confidentiality of information in specific cases.

Decree No. 11-2007 National Public Investment System

SEGEPLAN Makes information on public works available for citizens, based on information recorded by PEs in the SNIP on a monthly basis in the physical and financial follow-up module of the System.

Information is recorded in the SNIP. The project record number is required for public consultation.

The SNIP is a tool in keeping with CoST. The SNIP code is required to have access to information recorded in the System.

Fiscal Transparency, in the website of the Ministry of

Government of Guatemala

Provides the possibility of consulting budget execution, income, debts and accounting of local governments and the

Promotes transparency by showing financial and accounting operations of government entities.

The website enables access to information on budget execution, learning about efficiency in expenditure and, as a result, the formulation of


30

G U A T E M A L A



Comments

T A G

Public Finance

Executive Branch (central government).

indicators for planning and prioritization.

Code of Ethics for the Construction Sector

Guatemalan Chamber of Construction23

Defines Corporate Social Responsibility (CSR) as a “business culture based on ethical principles and strict compliance of the law…” Centre for Actions of Corporate Social Responsibility in Guatemala (CentraRSE24- for its name in Spanish), its objective is to generate change attitudes.

In its website, the Chamber

allows for consultation or

follow-up to public tender

processes through the

System for Quality

Management of Public

Tender Processes.

CSR and CentraRSE are instruments that support the consolidation of awareness processes for compliance with the law; with the main aim to continue promoting ethical and anti-corruption practices.

Administrative System for Management of Information Requests, SAGSI25 (for its

Vice Presidency of the Republic

Computerized solution for managing access requests submitted to the Public Information Unit. Commission for Transparency and Fight Against Corruption of the Vice

The SAGSI supports CoST objectives in relation to access to information.

This is an entity that could support CoST in measuring progress and increase in number of consultations on project information, collection of new needs or information demands that may arise.

23

www.construguate.com 24

CentraRSE, Diagonal 6, 10-65, Z.10, CG. Las Margaritas, Torre I, Nivel 5 Guatemala, Guatemala. Telephone (502) 22683700 25

www.vicepresidencia.gob.gt


31

G U A T E M A L A



Comments

T A G

acronym in Spanish)

Presidency of the Republic

The Citizens’ Observatory on Public Expenditure of the Government of Guatemala

Government of Guatemala

Seek convergence in transparency, promotion of investment, competitiveness and fiscal modernization. It is made up by representatives from the academic, economic, social and union sectors26. The Government participates through the MINFIN, which is committed to enabling information, as well as technical accompaniment to studies to be performed.

The Observatory will contribute to making budget execution transparent and promoting effective accountability27.

This is the tool that provides the highest possibility to support CoST actions. It allows for summoning persons to formulate proposals in regard to public expenditures. It is foreseen as a space for participation of the Initiative.

Agreement on Oversight of Quality and Quantity of Road

ANAM / CGC and CIV

Oversight of quality and quantity of road infrastructure projects in charge of COVIAL and promotion of efficiency and transparency in administrative and financial

Initiative that could contribute to promoting transparency in contracts linked to road works.

The agreement is a tool in keeping with CoST objectives. CoST could support the socialization of the applied methodology, and measure

26

Web Site Ministry of Public Finance, statement of President Alvaro Colom, February 4th

, 2010. 27

Observatory of Public Expenditures, the Transparency Vice Minister of the Ministry of Public Finance stated that it is at an accelerated activation process, with the support of the Vice Presidency of the Republic of Guatemala.


32

G U A T E M A L A



Comments

T A G

Infrastructure Projects, signed by the National Association of Mayors (ANAM for its acronym in Spanish), CIV and the General Comptrollership of Accounts (CGC – for its acronym in Spanish)

processes for contracting and supervision of works.

the level of disclosure of MPI, in the different stages of the project cycle.


33

G U A T E M A L A

3.5 Recommendations on how CoST can complement or integrate to current initiatives and create added value in Guatemala.

- One of the main challenges for CoST will be to promote the integration of transparency

initiatives that are being implemented both by SEGEPLAN, through the SNIP; and GUATECOMPRAS and the MINFIN. This would imply having interrelated computerized platforms and with possibilities for communication between them, as well as the adoption of common codes for linking project information from each one of the phases of its formulation cycle.

- Support the current initiative of the CIV which is aimed at improving administrative procedures for pre-qualification of construction companies in the State Registry of Pre-Selected Companies, considering reliable and verifiable information.

- Promote the implementation of mechanisms that enable unrestricted access to project information by the general public, as well as the dissemination of procedures to get it.

- Promote the need for awareness of EAs to adopt transparency processes and good practices in contracting processes for works, design and supervision of works.

- Promote the application of specific and unique regulations for the approval of construction permits by the municipalities, adopting codes and acceptable quality standards for our country.

- The participation of the civil society and project beneficiaries as observers throughout the different stages of the project cycle and in procurement processes, following-up, in a similar manner, the agreement signed by ANAM, COVIAL and CGC, with an aim to promote efficiency and transparency in administrative and financial processes for contracting and supervising works.

3.6 Constraints to the access to MPI

The constraints to the access to MPI do not have a specific origin, since they can be geographical (due to the location of users or interested parties), cultural, technological or due to administrative management processes to get access permits to sources of information.

In regard to cultural constraints, since Guatemala is a multi-lingual and multi-cultural country, language could be a barrier for consulting project information. The calls for tender or publications for submission of expressions of interest in bidding are made in Spanish and through the press.

Access to computerized sources for project consultation is feasible for those who have access to technology, have learned about it or are familiarized with its use. It is necessary to (i) know the protocols for consulting information from these sources (participation in free training processes), (ii) to have an access code for specific accounts of the SNIP and GUATECOMPRAS and/or (iii) have specific project data.


34

G U A T E M A L A

In the process of interviews with PEs, certain constraints to disclosure of some MPI processes were identified, such as: a) Recording in the GUATECOMPRAS and SNIP websites all processes in a traditional manner; b) Increase in administrative tasks, which implies an increase in non-disclosed processes; c) Lack of knowledge on the positive impact that the PE would have upon increasing transparency in the disclosure of MPI; and d) Change the misconception, generally from PEs, of “as more information is disclosed, transparency requirements increase”.

Current laws, based fundamentally in the Law on Contracting by the State, compel PEs to disclose procurement processes. However, it also sets constraints that hinder consultation in an easy or interactive manner for the regular citizen.

The Law on Access to Public Information defines confidential and reserved information in Article 21; the limits to the right to access to information in Article 22; and confidential information in Article 23. The following information, among others, is considered reserved:

- Information considered as professional secret - Information that is considered confidential by the law; - Sensitive information that can only be available to the holder of rights; - Information defined as intellectual rights; and - Information of individuals received by the subject liable for maintaining confidentiality.

3.7 Selection of PEs and Projects to be included in the Study

PEs to be included in the Study: The MSG Guatemala agreed that, in order to establish the sample for the study, the inclusion of PEs from both central and local levels was required. Having an analysis for both levels allows for finding out differences in the level of transparency between them.

At the Central Level, the selection was based on three basic criteria: (i) the amount invested in contracts (to maximize the impact of the Initiative), (ii) the amount invested in contracts linked to reconstruction due to damage caused by recent natural disasters in infrastructure, and (iii) variety in regard to the kind of infrastructure in which the PEs specialize.28

At Local Level, to identify at least three PEs that comply, separately, with the following criteria: (i) Relevant number of inhabitants in the municipality, (ii) conditions set forth by the Guatemalan laws for contracting works, and (iii) at random.

28

In addition, the MSG requested the inclusion of an analysis of the Guatemalan Housing Fund (FOGUAVI – for its name in Spanish) without following the CoST methodology, since it is the only unit of the Central Government in charge of subsidized popular housing projects (See Annex B).


35

G U A T E M A L A

3.7.1 PEs of the Central Government:

For the selection of institutions from the Central Government, it was required to perform analysis to determine which institutions report the highest historical concentration in the amounts of executed contracts and contracts scheduled for execution.

In the first approach, the universe of the study is the one made up by all entities within the central government, which implement projects.29

In order to define the PEs that belong to the Central Government and to be included in the Study, information published in the website of GUATECOMPRAS30 was reviewed.

In the consultation in GUATECOMPRAS, which included the institutions that recorded amounts committed to contracts in this website, it was evident that the level of accumulated execution in the years before 201031 surpassed Q. 7.3 billion, figure that could be matched, according to the schedule of contract execution for this year, and perhaps surpassed by almost one billion for the year 2011. (See Annex E).

Out of the total of institutions of the central government that record contracting commitments in the website of GUATECOMPRAS, those that show the highest numbers, both in execution and in programming, are the following two (2):

- Ministry of Communications, Infrastructure and Housing (CIV) - National Fund for Peace (FONAPAZ)

The following chart shows detailed information on accumulated execution of contracts and the scheduled execution for the four institutions:32

29

See methodology under section 2.2 Identification of Procurement Entities. 30

GUATECOMPRAS website, http://www.GUATECOMPRAS.gt, July 2010 31

The consulted source does not state the range of years before 2010 for which information was included. 32

In this analysis, information on contract commitments included in the following chart may differ from amounts allocated for each institution in their annual budget. In a comparative manner, the annual budget allocated to the institutions could be lower than the information on funds committed to contracts. This is due to the fact that, depending on the magnitude of the works, the contract can last for over one year.

http://www.guatecompras.gt/


36

G U A T E M A L A

3.7.1.1 Institutional commitments for contracts before and during 2010, for the four institutions that report the highest expenditures (Figures in Q=Quetzals US$1=Q8.00)33

33

Excerpt from chart – Institutional Commitments for Contracts before and during 2010, GUATECOMPRAS website, http://www.GUATECOMPRAS.gt. An important aspect is the continuity in budget execution, which applies when the budgets of public bodies and entities include credits to contract works or acquire goods and services which execution term exceeds one fiscal year, multi-annual contracts. 34

PEs that belong to the CIV and which were selected for the Base Line Study, are the main PEs that carry out road and social infrastructure Works in Guatemala, using several modalities for contracting Works, through management, trust funds and NGOs.

Institution

Accumulated Execution Scheduled Execution Total Amount of

Contracts ( 8) Previous

Exercises (1)

Current Exercise

( 2) Total (3) 2010 (4) 2011 (5)

Remaining

Years (6)

Scheduled Total

(7)

NATIONAL DEVELOPMENT FUND 68,205,276.16 50,593,223.14 118,798,499.30 31,994,161.15 501,920.53 0.00 32,496,081.68 100,701,357.84

FONAPAZ 32,111,916.23 588,387,895.49 620,499,811.72 508,771,357.79 488,274,347.58 0.00 997,045,705.37 1,029,157,621.60

CIV34 7,087,708,932.82 4,548,847,291.94 11,636,556,224.76 6,375,085,632.33 7,655,926,187.96 59,556,367.19 14,090,568,187.48 21,178,277,120.30

MINISTRY OF PUBLIC HEALTH AND SOCIAL WELFARE 4,892,879.06 28,456,350.74 33,349,229.80 33,419,146.57 7,917,260.21 0.00 41,336,406.78 46,229,285.84

1. Amount of accumulated execution of contracts in previous years. 2. Amount of execution of contracts during the current year. 3. Sum of execution from previous years and execution during the current year. 4. Amount of contracts scheduled to be executed during the current year. 5. Amount of contracts scheduled to be executed next year. 6. Amount of contracts scheduled to be executed for the remaining years. 7. Total amount of institutional commitments for contracts to be executed. 8. Includes the value of execution for previous years, as well as scheduled execution until the end of the contract, without including inflation rates for future years.


https://siges.minfin.gob.gt/sigesweb/gc/EstadisticaContratos.aspx#aFechas









37

G U A T E M A L A

Institutions that report the highest level of commitments in contracts - the Ministry of Communications, Infrastructure and Housing (CIV) and the National Fund for Peace (FONAPAZ) - are also the main entities linked to new or reconstruction projects with the highest social impact, as a result of emergency situations35. For example, Hurricane Mitch in 1998, Tropical Storm Stan in 2005 and Agatha / Pacaya in 2010 are quoted.

Natural disasters, which in magnitude of damage to infrastructure and social effects, have occurred in a recurrent range of 5 to 7 years. It is foreseen that the aforementioned institutions will continue with an increasing or at least sustained trend linked to development and execution of infrastructure projects36.

In relation to the criteria established37 for the selection of PEs, the four institutions that would make up the sample of the study were selected, focusing on the kind of works they execute, the dimension of the projects and their direct relation to reconstruction processes.

3.7.1.2 Selected Procurement Entities from the Central Government

No. Institution Procurement Entity Type of infrastructure

it executes

1

CIV

General Directorate of Roads (DGC –for its acronym in Spanish)

Roads (new projects, extension of road and transportation networks)

2 Fund for Road Conservation (COVIAL – for its acronym in Spanish)

Roads (maintenance, reconstruction, new works)

3 Social Solidarity Fund Social (water, sanitation,

schools, health, etc.)

4

FON

AP

AZ

(Pre

sid

ency

of

the

Rep

ub

lic)

Administration Social (water, sanitation,

schools, health, etc.) NGOs

35

See main functions of PEs under Section 4.3 Analysis of PEs. 36

The comment takes into account information from the report submitted by the international mission comprising the Economic Commission for Latin America (ECLA), the World Bank (WB), the Inter American Development Bank (IDB) and the United Nations’ System (UNS) on July 2010. 37

Terms of Reference for carrying out the Base Line Study (Annex C, Note on samples) and document entitled Methodology and Criteria for Project Selection, by the MINFIN.


38

G U A T E M A L A

3.7.2 PEs from Local Governments:

According to the criteria for making up the sample of PEs and as agreed by the MSG, the following municipalities were selected: the Guatemala City Hall, the Municipality of Antigua Guatemala in the department of Sacatepéquez and the Municipality of San Juan Sacatepéquez in the department of Guatemala, as detailed as follows: Guatemala City Hall:

- Due to the fact that it is the capital city of the Republic of Guatemala, it has high political relevance.

- As such, it represents high levels of investment. In 2009, the department of Guatemala was the second in relation to funds requested for public investment, which amounted Q.105,743,924.00, distributed in a territory of 2,253 Kms.2, to provide services, works and others to 3,103,685.00 inhabitants38. For that same year, Huehuetenango was the department with the highest amount of funds requested for public investment, which amounted Q.130,436,872.00, distributed in 7,403 Kms.2, to assist 1,114,389 inhabitants. Upon comparing data for both departments (Guatemala and Huehuetenango), it can be stated that by including the Guatemala City Hall in the study, it was possible to include the most representative PE at municipal level.

Antigua Guatemala:

- Antigua Guatemala is the main municipality located in an area considered world heritage. - The formulation of municipal projects must take into account the Law for the Protection of

Antigua Guatemala39. - The ruling body for authorizing infrastructure works is the National Council for the

Protection of Antigua Guatemala40. San Juan Sacatepéquez

- Random selection from 333 municipalities of the Republic of Guatemala.

38

Source: Population Estimates based on 2002 Census. 39

Law for the Protection of Antigua Guatemala, Decree 6069 of the Congress of the Republic of Guatemala. 40

Created in 1969 by the Law for Protection of Antigua Guatemala. Decentralized state entity which mission is to care, protect, restore and conserve chattels in national, municipal or individual real estate located in Antigua Guatemala and surrounding locations.


39

G U A T E M A L A

3.7.3 Selection of Projects

Definition of the number of projects to be included in the Base Line Study: Following the criteria of CoST International Secretariat and in response to the characteristics of Guatemala and included PEs, the number of projects to be studied was set at 16. Distribution of the number of projects per PE, based on the following criteria:

i) Proportional distribution of projects according to the importance in investment in works by PEs of the Central Government.

ii) In the case of local governments, the distribution was performed according to investment categories; assigning one large project to the municipality with the highest importance and medium projects to the other two municipalities.

iii) Inclusion of different kinds of projects (Roads, Sanitation, Social, etc.)

Criteria for project selection: i) Completed projects: executed between January 2008 and June 2010. ii) Project type: Social impact infrastructure projects linked to damage caused by natural

events; mainly, road infrastructure, education, health, water and sanitation, and social housing.

iii) By levels in contracting amounts, classifying them as medium or large according to the most important categories set forth by the Law on Contracting by the State, and which defines quotation and tender processes, in two ranges:

- Higher than Q.90,000.00 but under or equal to Q.900,000.00 (quotation), medium projects.

- Higher than Q.900,000.00 (tender), large projects. Contracts for amounts under Q.90,000.00 were excluded since most of them correspond to remodelling or technical studies.

iv) Random selection; levels according to amounts in order to detect differences in transparency among them.


40

G U A T E M A L A

In order to identify the projects to be included for each one of the PEs, the following matrix was prepared, including the criteria agreed on by the MSG41:

Matrix for Distribution of the number of projects per Institution and Procurement Entity

CoST Base Line Study

INSTITUTION /Procurement

Entity (5)

Central Government Local / Municipal Government 4)

CIV FONAPAZ(3)

Gu

atem

ala

An

tigu

a G

uat

emal

a

San

Ju

an

Saca

tep

équ

ez

CATEGORY PER AMOUNTS Q

COVIAL (2)

Caminos (2)

Social Solidarity

Fund (3)

Contracted by NGOs

Contracted by Administration

FONAPAZ

90,001 – 900,000 (Medium)

1 0 1 1 1 1 1 1

Higher than 900,001 (Large)

1 4 1 1 1 1 0 0

Total number of projects

16 2 4

2

2

2

2 1 1

41 Take note that the Matrix with the final distribution of the number of projects per Institution and

Procurement Entity originally approved by the MSG, was modified and the number of projects changed from 15 to 16 projects , due to:

- In the PE COVIAL one of the projects included under the category of large projects was eliminated because it was suspended.

- In the PE DGC, no medium projects were found; thus, one project was added to the large category. In addition, as recommended by the MSG, projects executed by affiliated companies not incorporated to the Guatemalan Chamber of Construction were included.

- In the PE Guatemala City Hall a large project was included as added value to the Base Line Study and in response to the level of importance of the PE.


41

G U A T E M A L A

3.7.4 Methodology for collecting information from selected PEs

In order to collect information from PEs included in the Study, which were related in hierarchical or administrative line to one of the members of the MSG, it was necessary to request the cooperation of the Vice Minister of the CIV, through a letter asking PEs to provide data of projects in general and specific information on selected projects.

For the PEs in which members of the MSG have no hierarchical or administrative relation, the cooperation from selected PEs was requested through a letter from the Vice President of the Republic of Guatemala, in which the CoST Guatemala Initiative was introduced and PEs were encouraged to provide required information.

The steps to request information were the following: (i) official introduction of CoST by government authorities in each one of the selected PEs; (ii) written request for information, starting with a list of projects completed before 2010; and (iii) once the projects that complied with established parameters were selected, PEs were requested to provide complementary information or any other information not available in regular information sources and secondary sources.

Section 4

4. Analysis of PEs, MPI and selected projects

A list of randomly selected projects for each of the PEs is included under this section, as well as the indicators derived or structured from the results of the study.


42

G U A T E M A L A

4.1 Summary of Projects included in the CoST Base Line Study (Total: 16 Projects included)

PEs Central Government Local government / Municipal

CIV FONAPAZ

Guatemala Antigua

Guatemala

San Juan Sacatepéquez

CATEGORY PER

AMOUNT Q COVIAL

Dirección General de Caminos

DGC

Fondo Social de Solidaridad FSS

NGOs Administration Trust Fund

Q.90,001 – 900,000 (Medium projects)

Construction with wood structure in walls and ceilings for COVIAL’s premises

Construction Buildings for community use, municipalities of Villa Nueva, Villa Canales, Chinautla and Guatemala.

Construction road infrastructure, local track Col. Díaz Z. 3, municipality and department of Quetzaltenango NGO: ADELANTE

Extension of School, Barrio El Esfuerzo, Puerto San José, Escuintla.

Improvement of streets, from 6th Avenue “A” between San Juan Road and 6

th

street of Colonia Landivar Z.7.

Borehole for drinking water, San Juan del Obispo Village

Extension and

exterior wall

circulation of

school

Comunidad de

Zet, sector 5.

Higher than Q.900,001 – (Large projects)

Fixing pot holes in the road B-46-2009 / LONG. 77.77KM./ Huehuetenango

Construction stretch: Huehuetenango - Vía San Pedro Jocopilas - El Tunal - Sta. Cruz del Quiché, Region VII (Northwest). Paving Department routes RN-13 and RDSM-7, Stretch: Coatepeque - La Reforma. San Marcos, Region VI. Paving of the stretch Casas Viejas - Ahumado - El

Construction Sewer system Sector IV – Housing development CHUK MUK - Santiago Atitlán, Sololá.

Construction of School La Cumbre Canton, municipality of San Andrés Sajcabajá, department of El Quiché. NGO: AFIC.

Restoring multi-sports courts in the municipalities of the department of Guatemala.

Shopping centre El Amate 18th Street between 5th y 4th Avenue of zone 1, Guatemala.


43

G U A T E M A L A

PEs Central Government Local government / Municipal

CIV FONAPAZ

Guatemala Antigua

Guatemala

San Juan Sacatepéquez

CATEGORY PER

AMOUNT Q COVIAL

Dirección General de Caminos

DGC

Fondo Social de Solidaridad FSS

NGOs Administration Trust Fund

Chapetón and Annexes, Santa Rosa.

3 Restoration and paving of stretch Ixtahuacán to Cuilco, Huehuetenango.


44

G U A T E M A L A

4.2 Detail of projects included in the CoST Initiative Base Line Study 4.2.1 Detail of projects included in the Central Government (Figures in Quetzals Q.8 = US-$1)

No. Project Description Procurement Entity Project size

Amount of Contract Quetzals

Type of Project and

infrastructure

Financing Source

1 Construction of offices with wood structure in walls and ceilings for the Implementing Unit for Road Conservation

Road Conservation Fund; CIV

Medium 176,993.50 Infrastructure buildings

Government

2 Fixing pot holes in the road B-46-2009 / Long. 77.77km. / Department of Huehuetenango

Road Conservation Fund; CIV

Large 3,350,000.00 Road Government

3 Restoring and paving of stretch Ixtahuacán to Cuilco Huehuetenango

General Directorate of Roads; CIVI


4 Construction stretch: Huehuetenango - Via San Pedro Jocopilas - El Tunal - Sta. Cruz del Quiché, Region VII (Northwest).

General Directorate of Roads; CIV


5 Paving of department routes RN-13 and RDSM-7, Stretch: Coatepeque - La Reforma. San Marcos, Region VI



6 Paving of stretch Casas Viejas - Ahumado - El Chapetón and Annexes, Santa Rosa.


Large 52,230,960,42 Road Government

7 Construction of buildings for community use, municipalities of Villa Nueva, Villa Canales, Chinautla and Guatemala

Social Solidarity Fund Medium 745,261.49 Infrastructure buildings

Government

8 Construction sewage system, Sector IV – Housing development Chuk Muk - Santiago Atitlán, Sololá.

Social Solidarity Fund Large 1,750,000.00 Sanitation Government

9 Construction of school in La Cumbre Canton, municipality of San Andrés Sajcabajá, department of El Quiché

FONAPAZ (NGO -

(ADELANTE)

Medium 349,900.00 Buildings Education

Government

10 Construction road infrastructure local track Colonia Díaz Zone 3, municipality and department of Quetzaltenango

FONAPAZ (NGO - AFIC)



45

G U A T E M A L A

No. Project Description Procurement Entity Project size

Amount of Contract Quetzals

Type of Project and

infrastructure

Financing Source

11 Extension of school, Barrio El Esfuerzo, Puerto San José Escuintla FONAPAZ (Administration)

Medium 399,000.00 Buildings Education

Government

12 Restoring multi-sports courts in the municipalities of the department of Guatemala

FONAPAZ (Administration)

Large 1,182,934.16 Infrastructure Government


46

G U A T E M A L A

4.2.2 Detail of projects included in the Local Government - Municipalities (Figures in Quetzals. Rate of exchange Q. 8 = US-$1)

No. Project Description Procurement Entity Project

size Contract Amount Quetzals

Type of Project and

infrastructure

Financing Source

1 Improvement of streets from 6th Avenue “A” between San Juan Road and 6

th street Colonia Landívar Z.7

Guatemala City Hall Medium 423,487.00 Road Municipal

2 Shopping Centre El Amate 18th Street between 5th and 4th Avenues of zone 1, Guatemala

Trust Fund for Support to Planning

Large 3,455,613.93 Buildings Municipal

3 Bore hole for drinking water, San Juan del Obispo Village; Antigua Guatemala

Municipality of Antigua Guatemala

Medium 300,000.00 Water and Sanitation

Municipal

4 Extension and exterior wall circulation of school Comunidad de Zet, sector 5, San Juan Sacatepéquez; Guatemala

Municipality of San Juan Sacatepéquez, Guatemala.

Medium 259,509.90 Buildings education

Municipal


47

G U A T E M A L A

4.3 PE Analysis

This section of the study contains information on functions; contracting actions implemented by PEs; models used for developing plans (designs) and project supervision; results achieved in regard to the MPI identified as disclosed in GUATECOMPRAS; and specific data of selected projects provided by each one of the PEs, showing variations in time and amounts of contracts for construction and supervision. Reference is made to consultation to other information sources, but it was not possible to identify said information.

4.3.1 Analysis of PEs of the Central Government

4.3.1.1 Implementing Unit – Road Conservation Fund (COVIAL - CIV) 42 Address: Salón No. 7, Finca Nacional La Aurora, Zona 13. Guatemala City. http://www.covial.gob.gt

Function: Unit that depends on the Ministry of Communications, Infrastructure and Housing (CIV). Created for maintenance of road infrastructure; however, it has also played a relevant role in the execution of new works and reconstruction works.

On January 19th, 2010, by Government Agreement No. 5-2010, the Agreement for the creation of COVIAL (Agreement No. 736-98) was modified, restoring the original activities of the Implementing Unit to its main function (the execution of maintenance works of the roads network and runways). In emergency situations, it will execute reconstruction works43.

Contracting forms: COVIAL acts within the legal framework of TRUST FUNDS. It has its own regulations, which enable it to perform contracting processes by “exception and other procedures”44. Contracting processes are published in the website of GUATECOMPRAS, including the basis, certificate of presentation of bids and award, contract and contract approval agreement, addendums, and the document that supports contracting under the quoted model. Contracting processes are ruled by times set forth by the PE, where only those invited to submit bids participate in the processes.

Upon consulting in GUATECOMPRAS, it was possible to determine that, between the years 2009 and 2010, COVIAL published 462 construction and cleaning projects and 248 supervision projects, all of them under the exception model and other processes.

42

http://www.covial.gob.gt 43

Government Agreement No. 736 – 98, Agreement for the Creation and Regulation of the Implementing Unit for the Conservation of National Roads /October 14

th, 1998

44 Information quoted from GUATECOMPRAS, for processes for contracting works and supervision.

http://www.covial.gob.gt/


48

G U A T E M A L A

Project Planning (Designs): According to the PE, project planning or design is carried out through several models: (i) by the institution; (ii) by external consultants; and (iii) using the turn-key approach. Contracts are awarded provisionally. The contractor elaborates the designs, which are in turn approved by COVIAL’s Consulting Council (its governing body) upon compliance with the corresponding technical verifications, as stated by the officers interviewed.

Project Supervision: COVIAL stated that it has a monitoring and verification unit, which is run by external consultants (Gsistem) who report on project progress. The System for Project Consultation “Sicopo” (for its acronym in Spanish) appears in its website. A user code and access key are required to enter the website.

Project supervision is contracted as external services, following the same processes set forth by

COVIAL’s internal regulations or exceptions set forth by the Law on Contracting.45

MPI disclosed by COVIAL and its analysis: The MPI disclosed by COVIAL focuses mainly in three of

the nine aspects included in the analysis: (i) Project identification (purpose and location), (ii)

Process for contracting construction works (bidding process, list of bidders and bid evaluation

reports), and (iii) Post-contract information (contract price and total of payments made).

In percentage terms, the aforementioned represents 32% of the total of MPI to be disclosed,

pursuant to Guatemalan laws.

The aforementioned percentage of MPI is affected by the information that was not found in public

records, such as: (i) Feasibility study, (ii) Project funds (Financing agreement, budget and base

price), (iii) Process for contracting designs and supervision, (iv) Details of the supervision contract,

(v) Execution of works (individual changes that affect the price and schedule, as well as details on

rewards to the contractor), and (vi) Post-contract information (Updated schedule).

45

DECREE No. 57-92, LAW ON CONTRACTING BY THE STATE, Article 44. Exceptions; and information prepared by PE.


49

G U A T E M A L A

Details of MPI disclosed by COVIAL: (Disclosed Information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases

Material Project Information (CoST)

Description of MPI (CoST) Disclosure

Required by Law

MPI disclosed

by PE

Project Identification

Specifications Y MIN

Purpose Y MA

Location Y Y

Beneficiaries Y MIN

Feasibility Study Y N

Project Funds

Financing Agreement Y N

Budget Y N

Estimated Project Cost (Base price) N N

Process for Contracting Project Design

Bidding Process Y N

Name of main consultant for design Y N

Process for contracting Project Supervision

Bidding Process Y N

Name of main consultant for Supervision Y N

Process for contracting Construction Works

Bidding Process Y MA

List of bidders Y MA

Reports on Bid Evaluation Y MA

Details of Supervision Contract

Contract Price Y N

Work and Scope of Works Y N

Work Schedule Y N

Details of Contract for Works

Name of Contractor Y S

Contract Price Y MA

Work and Scope of Works Y MA

Work Schedule Y MA

Execution of Supervision Contract

Significant changes to the contract price, schedule, scope and their justification

N N

Execution of Contract for Works

Individual changes that affect the price and reason for these changes Y N

Individual changes that affect the schedule and reason for these changes

Y N

Details on any rewards to the contractor Y N

Post-contract for works

Updated Contract Price Y MA

Total of Payments Made Y MA

Actual Scope of Works N N

Updated Schedule Y N

Reports on evaluations and audits N N


50

G U A T E M A L A

Specific information of selected projects: Projects included in the Study were selected from the

database of GUATECOMPRAS, provided by the MINFIN. The PE still has to provide information on

the list of executed projects, requested through letter dated July 23, 2010.

Information was collected from the PE for the two selected projects. As a result, it was possible to

get information on the person/entity responsible for supervision and design, and details of the

contract for supervision and works.

Out of the two projects, one medium and one large, one was contracted through quotation and the

other one through tender.

In 100% of the two cases, designs were elaborated by the PE and in 50% of the cases, supervision

was carried out externally.

In regard to analyzed cases, in one of them variations in time and amounts were observed. This

represent, for the supervision process, increase in times of up to 64% more to the agreed period

and an additional 17% in the price of this contract.

In regard to details of the contract for works, variations that represent an additional 64% in time

and a reduction of 33% in the amount of the contract were observed.

Upon comparing quoted data, it was observed that the Supervision process was affected mainly by

the variations in time of execution of works.

Detail of Analysis of MPI Disclosed by PE

EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not

significant | NGO: Non Governmental Organization | TF: Trust Fund

Procurement

Entity / Central and Local

Government

PROJECT

CONTRACT PROCESS CONTRACT DETAILS

DESIGN SUPERVI

SION WORKS SUPERVISION EXECUTION OF WORKS

EC

PE

NI

EC

P E

NI

L NGO

TF

NI

% Variations

% Average of

variations % Variations

% Average of

variations

Time

Amt Time Amt Time Amt Ni Time Amt

CEN

TRA

L

GO

VT

CO

VIA

L 1 (Office with wood..)

X

X

X

0 0

64 17

0 0

32 -16.5 2 (Fix Pot holes B46…)

X

X

X

64 17 64 -33


51

G U A T E M A L A

4.3.1.2 Dirección General de Caminos (DGC-CIV) (General Directorate of Roads) Address: Finca Nacional La Aurora, Zona 13 / Tel: 24721001 / http://www.caminos.gob.gt

Function: The Dirección General de Caminos (DGC – for its acronym in Spanish) is a unit of the

Ministry of Communications, Infrastructure and Housing (CIV), which belongs to the central

government. Its main activity is the construction, supervision, administration and maintenance of

road infrastructure in Guatemala.

There are two divisions within the organizational structure of the DGC: (i) Planning and Studies,

which is in charge of, among others, project development (from pre-investment to environmental

management); and (ii) Supervision (which comprises the departments of Project Control and

Follow-up and File Analysis). Project supervision is performed by the latter.

Contracting Forms: For contracting purposes, processes set forth by the Law on Contracting by the

State are implemented, publishing tender and quotation processes in the GUATECOMPRAS

website.

Project Planning: According to the information provided by the PE, designs are developed

internally, by DGC staff.

Project Supervision: DGC supervises follow-up to execution of works; however, it also hires

external consultants to perform this task. Consultants are hired for specific projects, following the

procedures set forth by the Law on Contracting by the State.

MPI disclosed by the DGC and its analysis: The MPI disclosed by the DGC focuses, mainly, in four of

the nine aspects included in the analysis: (i) Project identification (specifications, purpose, location

and beneficiaries), (ii) Process for contracting construction works (bidding process, list of bidders

and bid evaluation reports), (iii) Details of Supervision Contract (contract price), and (iv) Details of

contract for works (name of the contractor, contract price, work and scope of works, and work

schedule). In addition, it reports information on individual changes that affect the price and reason

for these changes. In percentage terms, the aforementioned represents 44% of the total of MPI to

be disclosed, pursuant to Guatemalan laws.


records, such as: (i) Feasibility study, (ii) Project funds (Financing agreement, budget and base

price), (iii) Process for contracting designs and supervision, (iv) Details of the supervision contract

(work and scope of works), (v) Execution of works (individual changes that affect the price and

schedule, as well as details on rewards to the contractor), and (vi) Post-contract information

(Updated schedule).

http://www.caminos.gob.gt/


52

G U A T E M A L A

Detail of MPI disclosed by the DGC (Disclosed information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases



Required by Law

MPI disclosed

by PE


Specifications Y MA

Purpose Y MA

Location Y Y

Beneficiaries Y MIN


Project Funds


Budget Y N



Bidding Process Y N



Bidding Process Y MIN

Name of main consultant for Supervision Y MIN


Bidding Process Y Y

List of bidders Y Y

Reports on Bid Evaluation Y Y


Contract Price Y MA


Work Schedule Y N


Name of Contractor Y Y

Contract Price Y Y


Work Schedule Y Y



N N


Individual changes that affect the price and reason for these changes Y MA

Individual changes that affect the schedule and reason for these changes Y N


Post-contract for works

Updated Contract Price Y MIN

Total of Payments Made Y MIN





53

G U A T E M A L A

Specific information of selected projects: Projects included in the study were selected from the

data base of GUATECOMPRAS, provided by the MINFIN. Afterwards, the DGC sent the information

required for complementing the list of executed projects and specific information for each selected

project.

Out of the four selected projects, information was collected from the PE. As a result, it was

established that in 100% of the cases, the PE was in charge of the design.

In 25% of the cases, the PE performed the supervision and in the remaining cases supervision was

performed externally.

In regard to details of supervision contracts, time variations from additional 70% to 100% are

recorded. These variations represent an average of 42.5% for time and 45.75% for price.

In regard to execution of Works, variations in time that range from additional 33% to 209% are

recorded, and for contract amounts, variations ranging from 44 to 142%. In average, the PE reports

increases of 123% in time and 103% in price, additional to what was originally agreed.

Detail of Analysis of MPI disclosed by the DGC

EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not

significant | NGO: Non Governmental Organization | TF: Trust Fund

Procurement


Government

PROJECT


DESIGN SUPERVI


E c

PE

NI

EC

PE NI

L NGO

TF

NI

Variations %

% Average of variations Variations %

% Average of variations

Time Amt Time Amt Tim

e Amt Ni Time Amt

Ce

ntr

al G

ove

rnm

en

t

DG

C

3 (Restoring Ixtahuacan…)

X

X

X

70 34

42,5

45,75

83 44

123

103.50

4 (Construction Stretch Huehuetenango)

X

X

X 0 75 209 142

5 (Paving RN 13) X

X

X

100 74 100 98

6 (Paving Stretch Casas Viejas…)

X

X

X 0 0 100 130


54

G U A T E M A L A

4.1.1.1 Fondo Social de Solidaridad (FSS) – Social Solidarity Fund Address: 5ª Avenida 6-06, zona 1 / Telephone: 2410-4141 / ext. 484 / http://www.fss.gob.gt

Function: The Social Solidarity Fund (FSS – for its acronym in Spanish) was created on March 11th, 2009 by Government Agreement No. 71-2009. Its purpose is to execute programs, projects and works, within the competence of the Ministry of Communications, Infrastructure and Housing to contribute to strengthening the economic and social development of the Guatemalan population and improve their life conditions through programs to support urban and rural communities, through its different implementing units46.

There are two relevant areas in its organizational structure: the Administrative Coordination, including the Contracting Coordination; and the Operations Coordination, including the units for Planning and Design, Supervision, and Reception and Liquidation47.

Contracting Forms: Performed within the legal framework of TRUST FUNDS. It has its own regulations, which enable it to perform contracting processes by “exception and other procedures”48. Contracting processes are published in the website of GUATECOMPRAS, including the basis, certificate of presentation of bids and award, contract and contract approval agreement, addendums, and the document that supports contracting under the quoted model.

Contracting processes are ruled by times set forth by the PE, where only those invited to submit bids participate in the processes.

The procedure for contracting works considers special cases. In these cases, the Executive

Coordinator can perform direct contracting. This takes place if bids received have a cost that is

higher than the one calculated by the institution; when due to any circumstances, and after two

calls for tender or publication, there was no award; and when, for any reason, a negotiation is

terminated. The actions of the Coordinator are supported by specific reports.

46

Legal Framework (Regulation Framework): http://www.fss.gob.gt/info4.html. The complete legal framework of the institution can be found in this link.

47 Structure of the Fondo Social de Solidaridad (Organizational chart):

http://www.fss.gob.gt/Documentos/ARTICULO%2010/NUMERAL%201/Estructura%20Organica/Organigrama%20Acuerdo%20Ministerial%20247-2009%20CIV.pdf 48

Information quoted from GUATECOMPRAS, for processes for contracting works and supervision.


55

G U A T E M A L A

The regulations allow for increases in contract amounts up to 40% over the original price, if they

are supported by the corresponding justification documents49.

In addition, it can implement the model of contracting through NGOs, processes that are published

in GUATECOMPRAS under the exception model. Bidders are invited to take part in the events, and

times can be cut short.

Project Planning: In most of the cases, designs are elaborated by the PE.

Project Supervision: Projects are supervised by the PE.

MPI disclosed by the FSS and its analysis: The MPI disclosed by the FSS focuses, mainly, in three of

the nine aspects included in the analysis: (i) Project identification (specifications, purpose, location,

beneficiaries and feasibility study), (ii) Process for contracting construction works (bidding process,

list of bidders and bid evaluation reports), and (iii) Details of Contract for Works (name of the

contractor, contract price, work and scope of works, and work schedule). In addition, it reports

information on Total of payments made.

In percentage terms, the aforementioned represents 41% of the total of MPI to be disclosed,

pursuant to Guatemalan laws.

The aforementioned percentage is affected by the information that was not found in public

records, such as: (i) Project funds (Financing agreement, budget and base price), (ii) Process for

contracting designs and supervision; (iii) Details of the supervision contract (work and scope of

works), (v) Execution of works (individual changes that affect the price and schedule, as well as

details on rewards to the contractor), and (vi) Post-contract information (Updated schedule).

49

Regulations for the operations of the Trust Fund of the Fondo Social de Solidaridad. http://www.fss.gob.gt/Documentos/ARTICULO%2010/NUMERAL%201/Marco%20Normativo/Fondo%20Social%20de%20Solidaridad/Fondo%20Social%20de%20Solidaridad/Reglamento%20de%20Operaciones%20del%20Fideicomiso%20FSS.pdf


56

G U A T E M A L A

Detail of MPI disclosed by the FSS (Disclosed Information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases



Required by Law

MPI disclosed

by PE


Specifications Y MA

Purpose Y MA

Location Y Y

Beneficiaries Y MIN

Feasibility Study Y MIN

Project Funds


Budget Y N



Bidding Process Y N

Name of main consultant for design Y MIN


Bidding Process Y N



Bidding Process Y Y

List of bidders Y Y



Contract Price Y N


Work Schedule Y N



Contract Price Y Y

Work and Scope of Works Y Y

Work Schedule Y Y



N N





Post-contract for Works

Updated Contract Price Y N

Total of Payments Made Y MA





57

G U A T E M A L A


data base of GUATECOMPRAS, provided by the MINFIN. Afterwards, the FSS sent the information

required for complementing the list of executed projects and specific information for selected

projects.

The PE has not provided the specific information for the two selected projects, requested by CoST

through letter dated August 6th. Information regarding the tender process, name of contractor,

contract prices and time was collected through electronic consultations.

In 50% of the cases, it was not possible to determine who was responsible for design and

supervision. For the remaining 50%, this information was identified in documents published for

contracting works, and designs were provided to the FSS by an external organization and

supervision was performed by the PE.

Detail of Analysis of MPI disclosed by FSS EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not significant | NGO: Non Governmental Organization | TF: Trust Fund

Procurement


Government

PROJECT


DESIGN SUPERVI


EC

PE

NI

EC

PE NI

L N GO

TF

NI

Variations %

% Average of

variations Variations %

% Average of

variations

Time Amt Tim

e Amt Tim

e Amt Ni Tim

e Amt

Ce

ntr

al

Go

vern

me

nt

FSS

7 (Construction Buildings for community use..)

X

X

X

0 0

0 0

0 0

0 0 8 (Construction Sewer system Community…)

X

X

X

0 0 0 0

4.3.1.4 National Fund for Peace (FONAPAZ – for its acronym in Spanish) Address: 6ª Avenida 9-51 zona 9, PBX (502) 2410-2000 / https://www.fonapaz.gob.gt

Function: The National Fund for Peace (FONAPAZ) is an institution attached to the Presidency of

the Republic, which develops and executes projects for eradicating poverty and extreme poverty.

It was created on June 28th, 1991 by Government Agreement 408-91, as a emergent social fund

resulting from the Peace process.

https://www.fonapaz.gob.gt/


58

G U A T E M A L A

In Government Agreement 310-2000, its lines of action were defined: Construction of housing and

rural community homes; Construction of state facilities; Construction of community halls;

Construction of multi-sports courts; Education and recreation programs; Program for provision of

building materials (tin sheets, accessories, etc.) for the rural area; Food Assistance Program;

Construction of schools and provision of equipment; Support to peace projects; and Others

specified by the President of Guatemala.

Contracting Forms: FONAPAZ contracts projects implementing the following models:

- Through NGOs - Through Administration, under the model of Trust Funds

Contracting activities performed by FONAPAZ through NGOs follow the procedures of the NGO,

publishing processes in GUATECOMPRAS (as set forth by the Law on the Budget). A short list of

bidders is invited to submit bids.

Contracting activities performed through Administration, follow the procedures of the Law on

Contracting by the State for the publication of processes. Times and the list of individuals or

entities invited to bid are implemented pursuant to its regulations.

Project Planning: Designs are elaborated by the Procurement Entity, except in complex cases,

where it hires individual consultants. In order to do this, it can apply the exceptional alternative

measures set forth by the Law on Contracting by the State50.

Project Supervision: Project supervision is performed by the PE.

MPI disclosed by FONAPAZ and its analysis: The MPI disclosed by FONAPAZ focuses, mainly, in

three of the nine aspects included in the analysis: (i) Project identification (specifications, purpose,

location, beneficiaries and feasibility study), (ii) Process for contracting construction works (bidding

process, list of bidders and bid evaluation reports), and (iii) Details of Contract for Works (name of

the contractor, contract price, work and scope of works, and work schedule). In addition, it reports

information on Total of payments made.

Comparatively, in the contract processes implemented by FONAPAZ some differences regarding

disclosed MPI on NGO management and Administration (Trust Fund) are recorded. This represents

an advantage in the score from NGOs. The difference is linked to information on: Name of the main

consultant for design and Individual changes that affect price and reason for changes.

50

DECREE NO. 57-92, LAW ON CONTRACTING BY THE STATE. Article 44, Exceptions.


59

G U A T E M A L A

In percentage terms, the aforementioned represents an average of 41% of the MPI disclosed by

FONAPAZ for contracting processes through Administration and NGOs. Both data refer to the total

of MPI to be disclosed, pursuant to Guatemalan laws.



contracting design (name of consultant) and supervision; (iii) Details of the supervision contract

(work and scope of works), (iv) Execution of works (individual changes that affect the price and the

schedule and the reason for these changes, as well as details on rewards to the contractor), and (v)

Post-contract information (Updated schedule).

Detail of MPI disclosed by FONAPAZ (Disclosed Information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases


Description of MPI (CoST) Disclosure Required by Law

MPI disclosed by PE

Administration NGOs


Specifications Y MIN MIN

Purpose Y MA MA

Location Y Y Y

Beneficiaries Y MIN MIN

Feasibility Study Y MIN MIN

Project Funds

Financing Agreement Y N N

Budget Y N N

Estimated Project Cost (Base price) N N N


Bidding Process Y N N

Name of main consultant for design Y MIN N


Bidding Process Y N N

Name of main consultant for Supervision Y N N


Bidding Process Y Y Y

List of bidders Y Y Y

Reports on Bid Evaluation Y Y Y


Contract Price Y N N

Work and Scope of Works Y N N

Work Schedule Y N N


Name of Contractor Y Y Y

Contract Price Y Y Y

Work and Scope of Works Y Y Y

Work Schedule Y Y Y


60

G U A T E M A L A


Description of MPI (CoST) Disclosure Required by Law

MPI disclosed by PE



N N N


Individual changes that affect the price and reason for these changes

Y MA N


Y N N

Details on any rewards to the contractor Y N N


Updated Contract Price Y MIN MIN

Total of Payments Made Y MA MA

Actual Scope of Works N N N

Updated Schedule Y N N

Reports on evaluations and audits N N N


data base of GUATECOMPRAS, provided by the MINFIN.

Out of the four selected projects, 50% was contracted through administration, using the model of

Trust Fund; and the remaining 50% through two NGOs.

Specific project information regarding the tender process, name of contractor, contract prices and

time was collected through electronic consultations and the Law on Access to Information.

In regard to time and amounts for supervision, no variations were recorded.

In relation to the time for contract execution, it was verified that there were no variations in 75% of

the cases and in the remaining 25% (one of the four cases analyzed), an increase of 50% was

recorded.

Variations in regard to contract amounts were recorded in 50% of the cases (two out of the four

cases analyzed): in the first case, a reduction of 2% was identified, and in the second case, an

increase of 19% over the price originally agreed on.


61

G U A T E M A L A

Detail of Analysis of MPI disclosed by FONAPAZ EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not significant | NGO: Non Governmental Organization | TF: Trust Fund

4.3.2 Analysis of PEs of Local Governments51

4.3.2.1 Guatemala City Hall Address: 21 calle 6-77, zona 1, Centro Cívico, Palacio Municipal, Guatemala, Central America/ PBX: 2285 8000 / Call Centre 1551 / http://www.nuestramuni.com

Function: Planning, control and evaluation of development and growth of its territory. It also pays special attention to social affairs and seeks to contribute to improve the quality of life of persons living in its jurisdiction.

The organizational structure of the Guatemala City Hall comprises the Financial Directorate, which is in charge of performing contracting processes, following the procedures set forth by the Law on Contracting by the State.

Contracting Forms: The Municipality can perform contracting activities implementing the processes set forth by the Law on Contracting by the State, even though it can perform contracting activities through Trust Funds. This entails disclosing processes in GUATECOMPRAS and the possibility of using short lists or inviting bidders, as well as to cut times short.

51

Information on the number of projects collected from GUATECOMPRAS, in regard to PEs of the local level, represented a limitation for the investigation since the number of identified processes was relatively low. This means that indicators resulting from the sample are indicative and not representative.

Procurement


Governments

PROJECT


DESIGN SUPERVI


EC

PE

NI

EC

PE NI

L NGO

TF

NI

Variations %

% Average of


% Average of

variations

Time Amt Tim

e Amt Tim

e Amt Ni Tim

e Amt

Ce

ntr

al

Go

vern

me

nt

FON

AP

AZ

9 (Construction School …)

X

X

X

0 0

0 0

0 0

Ns Ns

10 (Construction Road)

X

X

X

0 0 0 0

11 (Extension – School …)

X

X

X

0 0 0 19

12 (Restoring

Courts …) X

X

X

0 0 50 -2


62

G U A T E M A L A

Project Planning: Project planning can be performed with the support of several technical units of the municipality, or through its municipal companies.

Project Supervision: Supervision processes can be contracted externally, even though the municipality has qualified technical staff to carry out these activities.

MPI disclosed by the Guatemala City Hall and its analysis: In general, the MPI disclosed by the Guatemala City Hall focuses on four of the nine aspects included in the analysis: (i) Project identification (specifications, purpose, location, beneficiaries and feasibility study), (ii) Process for contracting project design (name of the main consultant for design); (iii) Process for contracting construction works (bidding process, list of bidders and bid evaluation reports); (iv) Details of Contract for Works (name of the contractor, contract price, work and scope of works, and work schedule).

In percentages, the aforementioned represents 43% of the MPI disclosed in regard to the total MPI to be disclosed, pursuant to Guatemalan laws.



contracting designs (bidding process) and supervision; (iii) Details of the supervision contract (work

and scope of works), (iv) Execution of works (individual changes that affect the price and schedule,

as well as details on rewards to the contractor), and (vi) Post-contract information (Updated

schedule).

Detail of MPI disclosed by the Guatemala City Hall (Disclosed Information: Y: Yes | N: No | Min: Minority of the cases | MA: Majority of the cases



Required by Law

MPI disclosed

by PE


Specifications Y Y

Purpose Y MA

Location Y Y

Beneficiaries Y MA

Feasibility Study Y Y

Project Funds


Budget Y N


Process for Contracting Bidding Process Y N


63

G U A T E M A L A



Required by Law

MPI disclosed

by PE

Project Design Name of main consultant for design Y MIN


Bidding Process Y N



Bidding Process Y Y

List of bidders Y Y



Contract Price Y N


Work Schedule Y N



Contract Price Y Y

Work and Scope of Works Y Y

Work Schedule Y Y



N N







Total of Payments Made Y N






Out of the two selected projects, specific information was provided by the PE. Information on the

tender process, name of contractor, contract prices and time was collected through electronic

consultations and data reported by the Municipality.

It was observed in consulted documents that in 100% of the cases, designs were elaborated by the

PE.

Supervision was performed by the PE in 100% of the cases.


64

G U A T E M A L A

Variations in time and amounts for contracts for execution of works were identified from the

specific information received for each project.

Detail of Analysis of MPI disclosed per PE EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not significant | NGO: Non Governmental Organization | TF: Trust Fund

4.3.2.2 Municipality of Antigua Guatemala, Sacatepéquez Address: Palacio del Ayuntamiento, Antigua Guatemala / http://www.munideantigua.com

Function: Planning and control of the development of its territory, exercising municipal

government through the Council. It also responds to social issues, and seeks to contribute to

improving the quality of life of persons living in its jurisdiction.

Contracting Forms: Execution of works is generally performed through administration. The

Municipality contracts those works for which it does not have technical resources, carrying out

tender and quotation processes thru the Municipal Treasury Office, which performs the functions

of the PE.

In data consulted in GUATECOMPRAS, information on execution of two projects during the past two

years was found; one contracted through quotation and the other through a tender process.

During the interview, the PE informed that both projects comprised the universe of contracts

executed during the consulted period.

Procurement


Government

PROJECT


DESIGN SUPERVI


EC

PE

NI

C PE NI

L N GO

TF

NI

Variations %

% Average of


% Average of

variations

Time Amt Time Amt Time Amt Ni Time Amt

LOC

AL

GO

VER

NM

ENT

Guatemala

1 (Improvement of street..)

X

X

X

0 0

0 0

1

0 0 2 (Shopping Centre El Amate…)

X

X

X

0 0

1

http://www.munideantigua.com/


65

G U A T E M A L A

The number of contracting activities carried out is due to the fact that the PE has executed projects

directly. The project included in the Base Line Study followed a public contracting process, due to

its level of specialization.

The PE stated that it has also carried out processes for contracting works through agreements with

NGOs.

Project Design: The Municipal Planning Office supports the Municipality in the formulation of

projects.

Project Supervision: The Municipal Planning Office supports the Municipality in the supervision of

projects.

MPI disclosed by the Municipality of Antigua Guatemala, Sacatepéquez and its analysis: In general, the MPI disclosed by the Municipality of Antigua Guatemala focuses on three of the nine aspects included in the analysis: (i) Project identification (specifications and location, beneficiaries and feasibility study), (ii) Process for contracting construction works (bidding process, list of bidders and bid evaluation reports); (iii) Details of Contract for Works (name of the contractor, contract price, work and scope of works, and work schedule).

In percentage terms, the aforementioned represents 30% of the MPI disclosed in regard to the

total of MPI to be disclosed pursuant to Guatemalan laws.


records, such as: (i) Project identification (Purpose, Beneficiaries and Feasibility Study); (ii) Project

funds (Financing agreement, budget and base price), (iii) Process for contracting designs (bidding

process, name of main consultant for design) and supervision; (iv) Details of the supervision

contract (work and scope of works), (v) Execution of works (individual changes that affect the price

and schedule, as well as details on rewards to the contractor), and (vi) Post-contract information

(Updated schedule).

Detail of MPI disclosed by the Municipality of Antigua Guatemala, Sacatepéquez (Disclosed Information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases



Required by Law

MPI disclosed

by PE

Project Identification Specifications Y MA

Purpose Y N


66

G U A T E M A L A



Required by Law

MPI disclosed

by PE

Location y Y

Beneficiaries Y N


Project Funds


Budget Y N



Bidding Process Y N



Bidding Process Y N



Bidding Process y Y

List of bidders Y y

Reports on Bid Evaluation y Y


Contract Price Y N


Work Schedule Y N


Name of Contractor y Y

Contract Price Y y


Work Schedule Y MA



N N











Specific information of selected projects: Projects included in the study were selected from the data base of GUATECOMPRAS, provided by the MINFIN. Of the two selected projects, information was collected in regard to the tender process, name of contractor, contract prices and time; both through electronic means and directly.


67

G U A T E M A L A

Project design and supervision were performed by the PE. The latter was based on information

from similar projects, executed on location.

Information requested previously through the Law on Access to Public Information was also

provided by the PE during the interview. No changes in times and amounts of the contract for

execution of works were recorded.


4.3.2.3 Municipality of San Juan Sacatepéquez, Guatemala Address: 7a. Calle "A" y 6a. Ave. Zona 1, Plaza Cataluña / San Juan Sacatepéquez, Guatemala. C.A.

Function: Municipality located in the north-western area of the department of Guatemala. The

Mayor is in charge of the municipal government and is the Chairwoman of the Municipal Council.

The organizational structure of the municipal comprises a Municipal Planning Office, the Treasury

Office and the department of Maintenance of Works. This scheme is similar to the one

implemented by other local governments. In this regard, the municipality has the administrative

capacity to perform processes for contracting works.

Contracting Forms: The Municipality performs contracting projects pursuant to the processes set

forth by the Law on Contracting by the State. However, it can also use the model of contracting

through NGOs.

Procurement Entity / Local Government

PROJECT


DESIGN SUPERVI


EC

PE

NI

EC

PE NI

L NGO

TF

NI

Variations %

% Average of


% Average of

variations

Time Amt Tim

e Amt Tim

e Amt Ni Tim

e Amt

Loca

l

Go

vern

me

nt

Antigua Guatemala,

Sacatepéquez 3 (Borehole..)

X

X

X

0 0 0 0 0 0

0 0


68

G U A T E M A L A

Project Planning: In general, projects are formulated through the Municipal Planning Office.

Project Supervision: The supervision process is implemented by the PE.

MPI disclosed by the Municipality of San Juan Sacatepéquez, Sacatepéquez and its analysis: In general, the MPI disclosed by the Municipality of San Juan Sacatepéquez focuses on three of the nine aspects included in the analysis: (i) Project identification (specifications, purpose and location), (ii) Process for contracting construction works (bidding process, list of bidders and bid evaluation reports); and (iii) Details of Contract for Works (name of the contractor, contract price, work and scope of works, and work schedule).

In percentage terms, the aforementioned represents 32% of the MPI disclosed in regard to the

total of MPI to be disclosed pursuant to Guatemalan laws. NOTE: This percentage is slightly higher

than the one corresponding to the Municipality of Antigua Guatemala because under item i), this

municipality discloses more information in regard to purpose.


records, such as: (i) Project identification (Purpose, Beneficiaries and Feasibility Study); (ii) Project

funds (Financing agreement, budget and base price), (iii) Process for contracting designs (bidding

process, name of main consultant for design) and supervision; (iv) Details of the supervision

contract (work, scope of works and work schedule), (v) Execution of works (individual changes that

affect the price and schedule, as well as details on rewards to the contractor), and (vi) Post-contract

information (Total of payments made and Updated schedule).

Detail of MPI disclosed by the Municipality of San Juan Sacatepéquez, Guatemala (Disclosed Information: Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases



Required by Law

MPI disclosed

by PE


Specifications Y Y

Purpose Y Y

Location Y MIN

Beneficiaries Y N


Project Funds


Budget Y N


Process for Contracting Bidding Process Y N


69

G U A T E M A L A



Required by Law

MPI disclosed

by PE

Project Design Name of main consultant for design Y N


Bidding Process Y N



Bidding Process Y Y

List of bidders Y Y



Contract Price Y N


Work Schedule Y N



Contract Price Y Y


Work Schedule Y MA



N N













Of the two selected projects, information was collected in regard to the tender process, name of

contractor and contract prices through electronic means.

Project designs and supervision were performed by the PE. Specific information on the selected

project was requested directly to the PE, and is still pending. Information was also requested

through the website of the municipality; no answer has been received yet.


70

G U A T E M A L A


4.4 Sources for access to disclosed MPI52

Based on the MPI of analyzed projects and disclosed by every one of the PEs included in the Base Line Study, it is possible to make reference to information sources that are to be consulted to collect said information.

52

Information based on data disclosed by PEs, interviews and data identified in consulted documents, by each one of the analyzed PEs, in the GUATECOMPRAS website.

Procurement Entity/ Local Government

PROJECT


DESIGN SUPERVI


E C

PE

NI

EC

PE NI

L NGO

TF

NI

Variations %

% Average of


% Average of

variations

Time Amt Tim

e Amt Tim

e Amt Ni Tim

e Amt

Loca

l

Go

vern

me

nt San Juan

Sacatepéquez

4 (Construction School)

X

X

X

0 0 0 0

1 0 0


71

G U A T E M A L A

Identification of disclosed MPI Y: Yes | N: No | Min: Minority of cases | MA: Majority of cases

Material Project Information

MPI (CoST) Description Identification of Disclosed MPI53

1 2 3 4 5 6 7


Specifications Y MA MA N Y N N

Purpose Y MA MA N Y N N

Location Y Y Y N Y N N

Beneficiaries Y MA MI N Y N N

Feasibility Study Y MA MI N Y N N

Project Funds

Financing Agreement Y Y N N Y N N

Budget Y Y N N Y N N

Estimated Project Cost (Base Price) Y N N N Y


Bidding Process Y N N N Y N N

Name of main consultant for Design Y MI MI N Y N N


Bidding Process Y N N N Y N N

Name of main consultant for Supervision Y MI MI N Y N N


Bidding Process Y Y Y N Y N N

List of Bidders Y Y Y N Y N N

Reports on Bid Evaluation Y Y Y N Y N N


Contract Price Y MI MI N Y N N

Work and Scope of Works Y MI N N Y N N

Work Schedule Y MI N N Y N N


Name of Contractor Y Y Y N Y N N

Contract Price Y Y Y N Y N N


Significant changes to the Price, Schedule, and Scope of the Contract and their justification

N N N N N N N


Individual changes that affect the Price and reason for these changes

Y MA MI N Y N N


Y MA N N Y N N

53

1. Information recorded or filed by the PE 2. Information re-sent by PEs but filed or recorded by

others. 3. Information submitted or disseminated for public use,

for example Internet (website) 4. Information disclosed to the public upon request.

5. Information required by the law to be disclosed to the public. 6. Disclosure prevented by the law. 7. Disclosure prevented by other factors (political, cultural,

management and administrative). (Highlighted spaces were not required).


72

G U A T E M A L A

Material Project Information

MPI (CoST) Description Identification of Disclosed MPI53

1 2 3 4 5 6 7

Details of any reward to the contractor Y MA N N Y N N

Post-Contract for Works

Updated Contract Price Y Y MI N Y N N

Total of Payments Made Y Y MA N Y N N

Actual Scope of Works Y MI N N N N N

Updated Schedule Y MA N N Y N N

Reports on Evaluations and Audits N N N N N N N

Summary of MPI identified as disclosed:

1 Which MPI is being recorded and how is it recorded?

- Pursuant to the Guatemalan laws, PEs record MPI in magnetic means - Most of the MPI is also being recorded in hard copies, except for Post-Contract information, which is

mostly available on hard copies.

2 Which information is being re-sent by the PEs and filed or recorded by other State institutions?

- PEs record in GUATECOMPRAS, mainly the MPI related to: (i) Project Identification; (ii) Process for

Contracting Works; (iii) Details on Contract for Works; (iv) Post-contract (updated price, total of payments made, updated schedule).

- They also record data of MPI related to the Name of the Main Consultant for Design and Name of the Main Consultant for Supervision, when they are contracted externally.

- Data of the MPI recorded in the SNIP: (i) Project Identification; (ii) Project Funds; (iii) Details on Contract for Works; (iv) Execution of Contract for Works; and (v) Post-contract (except evaluation and audit reports).54

- In the CGC, data on the MPI related to: (i) Process for Contracting Project Design (Name of the main consultant); (ii) Process for Contracting Project Supervision (Name of the main consultant); (iii) Details of Contract for works; (iv) Post-contract for Works (Evaluation and audit reports, elaborated by the CGC) is recorded.

3 Information submitted or disseminated for public use, for example Internet (website)

- PEs record in GUATECOMPRAS, for public domain, MPI related to: (i) Project Identification, (ii) Process

for Contracting of Works, (iii) Details of Contract for Works, and (iv) Execution of Contract for Works. - In most of the cases, MPI related to (i) Processes for Contracting Project Design and (ii) Process for

54

In the selected projects, this MPI was collected through direct consultations in PEs. Upon consulting the SNIP, it was not feasible to identify records with project data.


73

G U A T E M A L A

Contracting Supervision is not identified since these activities are performed by the PEs; or this information is to be requested directly to the PE.

- In regard to MPI related to Post-Contract (Updated Price, Total of Payments Made and Updated Schedule), disclosed information was identified mainly in PEs of the Central Government. PEs of Local governments recorded this MPI in other means, such as the Integrated System for Municipal Financial Administration.

4 Which MPI is disclosed to the public upon request?

- It is required to submit a request through the Law on Access to Public Information to receive MPI upon

request. - Delivery on request of MPI is mandatory if requested through the Law on Access to Information.

4.5 Comparative Summary of MPI disclosed by PEs on line DI = Disclosed Information, Y: Yes | N: No | MIN: Minority of cases | MA: Majority of cases

Project Information

Description


DISCLOSURE

REQUIRED

BY LAW

Central Government Local Government

CIV FONAPAZ Guatemala

City Hall Antigua

Guatemala San Juan

Sacatepéquez COVIAL DGC FSS NGO ADMINISTRATION

DI DI DI DI DI DI DI DI


Specifications Y MIN MA MA MIN MIN Y MA Y

Purpose Y MA MA MA MA MA MA N Y

Location Y Y Y Y Y Y Y Y MIN

Beneficiaries Y MIN MIN MIN MIN MIN MA N N

Feasibility Study Y N N MIN MIN MIN Y N N

Project Funds

Financing Agreement

Y N N N N N N N N

Budget Y N N N N N N N N

Estimated Project Cost (Base price)

N N N N N N N N N


74

G U A T E M A L A

Project Information

Description


DISCLOSURE

REQUIRED

BY LAW



City Hall Antigua

Guatemala San Juan



Process for contracting

Project Design

Bidding Process Y N N N N N N N N

Name of main consultant for

design Y N N MIN MIN N MIN N N

Process for Contracting

Project Supervision

Bidding Process Y N MIN N N N N N N

Name of main consultant for

Supervision Y N MIN N N N N N N

Process for Contracting

Construction Works

Bidding Process Y MA Y Y Y Y Y Y Y

List of bidders Y MA Y Y Y Y Y Y Y

Report on Bid Evaluation

Y MA Y Y Y Y Y Y Y

Details of Supervision

Contract

Contract Price Y N MA N N N N N N

Work and Scope of Works

Y N N N N N N N N

Work Schedule Y N N N N N N N N

Details of Contract for

Works

Name of Contractor

Y Y Y Y Y Y Y Y Y

Contract Price Y MA Y Y Y Y Y Y Y

Work and Scope of Works

Y MA MA Y Y Y Y MA MA

Work Schedule Y MA Y Y Y Y Y MA MA


75

G U A T E M A L A

Project Information

Description


DISCLOSURE

REQUIRED

BY LAW



City Hall Antigua

Guatemala San Juan



Execution of Supervision

Contract

Significant changes to the

contract Price, the schedule, its

scope and the corresponding

justification

N N N N N N N N N

Execution of Contract for

Works

Individual changes that

affect price and justification for

changes

Y N MA N MA N N N N

Individual changes that

affect the schedule and

justification for changes

Y N N N N N N N N

Details on any reward to the

contractor Y N N N N N N N N

Post-contract of Works

Updated Contract Price

Y MA MIN N MIN MIN N N N

Total of Payments Made

Y MA MIN MA MA MA N N N

Actual Scope of Works

N N N N N N N N N

Updated Schedule Y N N N N N N N N

Evaluation and Audit Reports

N N N N N N N N N

* Note: Items which disclosure is not required by law were not taken into account for the calculations of percentages of disclosed MPI.


76

G U A T E M A L A

4.5.1 Comparative Analysis of MPI Disclosed by PEs55

The graph shows that PEs of the Central Government disclose an average of 40% of the MPI required by the Law; whereas PEs of Local Governments disclose 35% of the information. This is equivalent to 35% of the MPI required by CoST International for the Central Government and 30% for the Local Government.

Percentages of disclosed MPI in the aforementioned levels were identified in five of the nine stages

of the project cycle, required by Guatemalan laws, as follows:

55

The caption of Guatemalan Law refers to Guatemalan laws and regulations.

0

10

20

30

40

50

60

70

80

90

100

Guatemalan Law Central Government

Local Governments

% o

f M

PI

ide

nti

fie

d a

s d

iclo

sed

Procurement Entities per Government Type

MPI disclosed by PEs of the Central and Local Governments

Guatemalan Law

Central Government

Local Governments


77

G U A T E M A L A

Specifically, PEs of the Central Government show higher percentages in aspects related to: (i)

Details of Contract for Works, (ii) Execution of Contract for Works, and (iii) Post-contract of works.

This is the result of disclosure of more information than that disclosed by the Local Government.

On the contrary, PEs of the local level disclose more information in aspects related to (i) Project Identification and (ii) Process for Contracting Construction Works.

In both cases (Central and Local Government), in aspects such as: (i) Project Funds, (ii) Processes for

Contracting Project Design, (iii) Contracting Supervision, and (iv) Execution of Supervision Contract,

there were no significant differences between both. In general, the information had to be

requested directly to the PEs.

Comparative Analysis between PEs: In relation to the MPI disclosed by PEs, it was identified that

the DGC showed the highest level of disclosed information, with 44% in regard to law

requirements.

PEs that follow the DGC (44%) with lower percentages of disclosed MPI are: (i) FONAPAZ (NGOs)

and Guatemala City Hall with 43%, (ii) FSS with 41%, (iii) FONAPAZ (Administration) with 39%, (iv)

COVIAL with 32%, (v) the Municipality of San Juan Sacatepéquez with 32%, and (vi) the Municipality

of Antigua Guatemala with 30%.

0

10

20

30

40

50

60

70

80

90

100

% M

PI i

de

nti

fie

d a

s d

iscl

ose

d


MPI disclosed by PEs in relation to Guatemalan Law

Guatemalan LawCOVIAL

DGC

FSS

FONAPAZ NGO

FONAPAZ ADMONGuatemala City HallMuni. Antigua GuatemalaMuni. San Juan Sacatepéquez


78

G U A T E M A L A

Two ranges of disclosed MPI can be identified graphically; the first one (44% maximum and 39% minimum) comprises the PEs: DGC, FONAPAZ (NGO and Administration) and FSS from the Central Government and the Guatemala City Hall from Local Governments, with 40%. These percentages represent between 38 and 34% of CoST requirements. The second range (with values around 30%) comprises COVIAL from the Central Government and the Municipalities of Antigua and San Juan Sacatepéquez from the Local Governments, which represent 26% of CoST requirements. Differences between percentages of MPI disclosed by PEs in relation to the PE with the highest percentage (DGC), are related to three aspects considered by the Law: (i) Process for contracting Project Supervision (Bidding process and Name of main consultant for supervision), (ii) Details of Supervision Contract (Contract price), and (iii) Execution of contract for works (Individual changes that affect the price and reason for these changes). FONAPAZ and the Guatemala City Hall, which are second to the DGC, have an advantage in relation to the rest of PEs due to the fact that these entities disclosed more information in relation to: (i) Project Identification (Purpose, Location, Beneficiaries; and in the Guatemala City Hall, Project Specifications and Feasibility Study), (ii) Process for contracting project design (name of the main consultant for design), and (iii) Detail of Contract for works (Name of the Contractor, Contract Price, Work and Scope of Works, Work Schedule). The Guatemala City Hall does not disclose information in relation to Execution of Contract for Works.

In the case of the FSS, in the third place, it is affected since, unlike FONAPAZ and the Guatemala City Hall, it disclosed information on project feasibility for one part of the cases and because it was necessary to request directly to the PE information related to Updated Contract Price, under the aspect of Post-Contract for Works.

For the PEs with the lowest percentages of disclosed MPI (COVIAL, Municipality of San Juan Sacatepéquez and Municipality of Antigua Guatemala), the percentages are affected by information that was not feasible to identify, related to: (i) Process for contracting Project design, (ii) Execution of Contract for Works, and (iii) Post-contract, and within the aspect of Project Identification, the items: Beneficiaries and Feasibility Study.


79

G U A T E M A L A

4.5.2 Analysis of MPI for the different stages of the CoST project cycle, identified as disclosed by PEs56

As aforementioned, legal requirements for the disclosure of MPI focus on nine aspects. The most significant values found as a result of the analysis are recorded under the following five aspects: (i) Project Identification, (ii) Process for Contracting Works, (iii) Detail of Contract for Works, (iv) Execution of Contract for Works, and (v) Post-contract for Works. The remaining aspects of MPI to be disclosed did not show significant values in the percentages of disclosed information, specifically in: (i) Project Funds, (ii) Process for contracting Project Design, (iii) Process for contracting Project Supervision, (iv) Details of the Supervision Contract, and (v) Execution of the Supervision Contract.

56

Information to which this study refers to was consulted through GUATECOMPRAS and other sources in which it was not feasible to collect specific information.


80

G U A T E M A L A

In short, the MPI mainly disclosed by PEs (Central Government and Local Governments) is identified in the following stages of the project cycle: (i) Project Identification, with 54%; (ii) Process for Contracting Works, with 95.75%; and (iii) Details of Contract for Works, with 91.50%. In lower percentages, disclosed MPI is related to: (i) Process for Contracting Design for Works, with 6.29; (ii) Process for Contracting Supervision of Works, with 4.13%; (iii) Execution of Contract for Works, with 5.50%; and (iv) Post-Contract for Works with 19.25%. These percentages are affected since PEs elaborate their own designs and supervise most of the works; and in regard to Post-Contract, because they can record this information in the SNIP or in their own accounting systems. The stages of the project cycle in which MPI is not disclosed correspond to: (i) Project Funds and (ii) Execution of Supervision contract. In the first aspect, since they record this information in the SNIP and the second aspect, because its disclosure is not required by the Law.


81

G U A T E M A L A

The highest value of MPI in relation to Project Identification is of 5% of the total required by Guatemalan Laws. The graph shows that, in average, PEs only disclose 2.7% of the MPI to be disclosed for this stage of the project cycle. This percentage is affected by information related to the Feasibility Study and Project Beneficiaries, which were not identified.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

% M

PI o

n P

roje

ct Id

en

tifi

cati

on

Ide

nti

fie

d a

s D

iscl

ose

d


MPI Disclosed by PEs in relation to Project Identification

Guatemalan Law

COVIAL

DGC

FSS

FONAPAZ NGO

FONAPAZ ADMON


82

G U A T E M A L A

The highest value for MPI related to the Process for Contracting Works is 3%, of the total required by Guatemalan Laws. The graph shows, in a comparative manner, that almost all of the analyzed cases show values that are very close to the total percentage in the aspect of Process for Contracting Works. PEs such as

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

%M

PI o

n C

on

trac

tin

g W

ork

s Id

en

tifi

ed

as

Dis

clo

sed


MPI Disclosed by PEs in relation to Process for Contracting Works

Guatemalan Law

COVIAL

DGC

FSS

FONAPAZ NGO



83

G U A T E M A L A

COVIAL are affected in the percentage due to the processes for contracting works in emergency situations. In general terms, the average percentage of MPI identified as disclosed is of approximately 2.87%, which is due to the interest of PEs to comply with the requirement of recording documents set forth by the Law on Contracting by the State in GUATECOMPRAS, which enables the process of payments during execution.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

% M

PI o

n D

eta

ils o

f C

on

trac

t fo

r W

ork

s Id

en

tifi

ed

as

Dis

clo

sed


MPI Disclosed by PEs in relation to Details of Contract for Works

Guatemalan Law

COVIAL

DGC

FSS

FONAPAZ NGO



84

G U A T E M A L A

The highest value for MPI related to the Process of Details of Contract for Works is 4%, of the total required by Guatemalan Laws. The graph shows that 50% of the PEs have values equivalent to the total percentage corresponding to Details of Contract for Works. This is an effect linked to the requirement of recording data in GUATECOMPRAS, which is linked to the process of recording the contract at the General Comptrollership of Accounts and the SNIP for the physical and financial follow-up of the project. The remaining PEs (COVIAL, DGC and the Municipalities of Antigua and San Juan Sacatepequéz) show an average percentage of 3.3, affected by the information related to Contract Price, Work and Scope of Works, and Work Schedule, which was not identified.

This stage of the project cycle represents the second highest percentage in terms of compliance with disclosure of MPI.


85

G U A T E M A L A

The highest value for MPI related to the Execution of Contract for Works is 3%, of the total required by Guatemalan Laws.

The graph shows that in six of the seven PEs information for this stage of the project cycle was not

identified as disclosed. The DGC and FONAPAZ (NGO) disclose 0.66% of the required MPI, recording

information on individual changes that affect the price and reason for these changes.

Thus, the analysis shows that this is one of the stages of the project cycle in which disclosure of

MPI is to be promoted, in sources such as GUATECOMPRAS.

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

% M

PI

on

Exe

cuti

on

of

Wo

rks

Ide

nti

fie

d a

s D

iscl

ose

d


MPI Disclosed by PEs in relation to Execution of Contract for Works

Guatemalan LawCOVIAL

DGC

FSS

FONAPAZ NGO

FONAPAZ ADMONGuatemala City HallMuni. Antigua Guatemala


86

G U A T E M A L A

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

100.00

% M

PI

for

Po

st-C

on

trac

for

Wo

rks

Ide

nti

fie

d a

s D

iscl

ose

d


MPI on Post-Contract for Works Disclosed by PEs, in relation to Guatemalan Law

Guatemalan Law

COVIAL

DGC

FSS

FONAPAZ NGO

FONAPAZ ADMON

Guatemala City Hall

Muni. Antigua Guatemala

Muni. San Juan Sacatepéquez


87

G U A T E M A L A

The highest value for MPI related to Post-Contract for Works is 3% of the total required by Guatemalan Laws.

The graph shows that PEs of the Local Government do not disclose in GUATECOMPRAS MPI

required by law, on the Post-Contract stage. PEs of the Central Government (COVIAL, DCG, FSS,

FONAPAZ – NGO and Administration) disclose an average of 25% of the required MPI, mainly

because they record information on Updated Contract Price and Total of Payments Made.

Thus, the analysis shows that the Post-Contract stage shows the second lowest percentage in terms

of disclosure of MPI in relation to requirements of Guatemalan Laws and CoST International. The

aforementioned percentage was affected by the disclosure of only three of the five indicators for

this stage.

Altogether, the effects stated within the Comparative Analysis of MPI Disclosed by PEs represent

40% of the MPI identified as disclosed by PEs.

4.6 Indicators of MPI Disclosed by PEs57

Process for Contracting Design for Works: At the level of the Central Government, 75% of the PEs

perform the design for works. The local governments show a level of 100% since PEs from Local

Governments elaborate their own designs.

Process for Contracting Supervision of Works: Based on disclosed MPI and information collected

from PEs, it was made evident that 58% of the PEs from the Central Government and approximately

100% of the PEs from Local Governments perform supervision of the works on their own.

Process for Contracting Works: In the PEs from the Central Government, it is evident that 17%

implement this process through NGOs, 42% through Trust Funds and 25% through the Law on

Contracting by the State. In 16% of the cases (two out of 12 projects), no information was

recorded. On the other hand, at the local level, in 75% of the cases contracting processes were

implemented through the Law on Contracting by the State and 25% through Trust Funds.

Parties interested in submitting bids: In general, electronic records of procurement processes

show processes where two to seven bidders take part. In 38% of the analyzed processes (six cases

57

Information derived from the analysis of the 16 projects is not representative, but rather indicative of the processes. Information on contract amounts, times and variations was collected directly from PEs for the Base Line Study. A summary spreadsheet is attached as Annex B.


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out of 16), three interested parties took part in the process; in 25% (four out of 16 analyzed), two

interested parties took part; in 12% (two out of 16) four interested parties participated, and only in

one case, seven interested parties participated in the process (representing 6%). The remaining

19% did not disclose the number of bidders.

In general, procurement processes implemented by NGOs show models of letters of invitation to

bid; thus, it can lead to the conclusion that short lists of bidders take part in the processes.

Details of Supervision Contracts: The most significant variations in time and amounts of

supervision contracts are identified mainly in PEs from the Central Government that implement

road infrastructure works (DGC). These PEs report average figures that surpass an additional 40%

in agreed amounts and terms. No significant variations were identified in PEs from the Local

Governments.

In cases such as FONAPAZ and PEs of the Local Government, which execute 100% of the supervision

by themselves, the variations in time and amounts were identified as Not significant, a criterion

adopted since they do not record data that links the supervisor to the works, and no records were

identified that link the supervisor to the works.

Details of Contracts for Works: In regard to time for execution of main works, the trend in

significant variations is evident in PEs that execute road infrastructure works, in the Central

Government. Variations in time were observed, which can represent up to 209% over the agreed

term; the average of additional time for the four projects that provided such information, is 123%.

Dissimilar information was found in regard to the prices of contracts for works in the central

government. In one of the 12 cases analyzed in this level, there was a negative variation, which

means a reduction of 33% of the original contract amount.

For the rest of the analyzed cases, in regard to contract amounts in the Central Government, a

trend in increased contract prices was observed. This increase reaches 142% additional to the price

originally agreed on. In average, the increase represents 103%.

In regard to variations in time at local level, changes were identified in only one of the four

analyzed projects, which reach 35% additional to the agreed on term and an increase of 17% in the

price of the contract.


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4.6.1 Summary – Analysis of MPI Disclosed by PE and by Central and Local Governments EC: External Contract | PE: Procurement Entity | NI: Not Indicated | L: Contracting Law | Ns: Not significant | NGO: Non-Governmental Organization | TF: Trust Fund

PE PROJECT


DESIGN SUPERVISION WORKS SUPERVISION WORKS

CE EA Ni CE EA58 Ni LC ONG

F Ni

VARIATIONS % AVERAGE per PE % VARIATIONS % AVERAGE per PE %

TIME AMOUNT TIME AMOUNT TIME AMOUNT Ni TIME AMOUNT

CEN

TRA

L G

OV

ERN

MEN

T

CIV 1 (Office) 1 1 1 0 0

32 8.5 0 0

32 -16.5

2 (Fix pot holes B46) 1 1 1 64 17 64 -33

DGC

3 (Restoring Ixtahuacan) 1 1 1 70 34

42,5 45,75

83 44

123 103,5 4 (Cons. Stretch Huehue.) 1 1 1 0 75 209 142

5 (Paving RN 13) 1 1 1 100 74 100 98

6 (Paving Stretch Casas) 1 1 1 0 0 100 130

FSS 7 (Construction Buildings) 1 1 1 0 0

0 0 0 0

0 0 8 (Construction Sewer system) 1 1 1 0 0 0 0

FONAPAZ

9 (Construction School) 1 1 1 0 0

Ns Ns

0 0

Ns Ns 10 (Construction Road) 1

1 1 0 0 0 0

11 (Extension School) 1 1 1 0 0 0 19

58

The amounts and times for Supervision performed by the PE, were estimated as average Not significant variations. The costs for this item are diluted in multiple technical and administrative activities, and no records were identified to link the supervisor to the works.


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PE PROJECT


DESIGN SUPERVISION WORKS SUPERVISION WORKS

CE EA Ni CE EA58 Ni LC ONG

F Ni

VARIATIONS % AVERAGE per PE % VARIATIONS % AVERAGE per PE %

TIME AMOUNT TIME AMOUNT TIME AMOUNT Ni TIME AMOUNT

12 (Restoring Courts) 1 1

1 0 0 50 -2

Total 12 2 9 1 4 7 1 3 2 5 2

% 17 75 8 33 59 8 25 17 42 16

LOC

AL

GO

VER

NM

ENT Guatemala

1 (Improvement Streets) 1

1 1 0 0 Ns Ns

0 0

17.5 8.60

2 (Shopping Centre El Amate) 1 1 1 0 0 35 17.2 Antigua

Gua. 3 (Bore hole) 1 1 1 0 0 Ns Ns

0 0 0 0

San Juan Sac. 4 (Construction School) 1 1 1 0 0

Ns Ns 1

Ns Ns

Total 4 0 4 1 0 4 0 3 0 1 0

% 0 100 25 0 100 0 75 0 25 0


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Section 5

5.1 Conclusions and Recommendations

A. Legal Requirements for Dissemination of CoST

- Out of the ten stages of the CoST Project cycle, nine are considered by Guatemalan laws. The Execution of the Supervision Contract is not considered in Guatemalan laws.

- Out of the thirty three times considered by CoST as MPI to be disclosed, twenty seven are related to MPI required to be recorded by the laws, especially in magnetic means, in the SNIP and GUATECOMPRAS. The following are not included: Estimated Project Cost (Base Price), and in relation to the Execution of Supervision Contract, Significant Changes to the Contract Price and Schedule, their scope and justification.

The stages of the Project Cycle not included in the laws represent 15% of CoST MPI.

- In general, a low percentage of disclosure of MPI was shown in: (i) Project Identification, (ii) Process for Contracting Design for Works, (iii) Execution of the Contract for Works; and (iv) Post-Contract. The Law applies to the disclosure of MPI for the cases in which Design and Supervision activities are performed externally and information on Post-Contract is recorded in means to which the regular citizen does not easily have access to (SNIP or SIAF- Muni).

- The laws focus mainly in which MPI is to be disclosed in the Process for Contracting Construction Works, Details of the Contract for Works, and Execution of the Contract for Works. The quality of disclosed information (what is disclosed and why is it disclosed) might have its cause in the actual practice of administrative processes and in technical aspects related to the possibility of linking virtual platforms of the Systems related to recording and disclosure of MPI.

B. Means for Disclosure of MPI

In general, PEs use electronic means to record and disclose MPI; thus, the main source for access to information is the GUATECOMPRAS System and the SNIP in regard to quantity and type of information. Nevertheless, the latter requires access codes for consultation. C. Comparative Analysis of MPI Disclosed by PEs

Among the legal requirements, the most significant values found as a result of the performed

analysis are recorded under five aspects: (i) Project Identification, (ii) Process for Contracting Works,

(iii) Detail of the Contract for Works, (iv) Execution of the Contract for Works, and (v) Post-contract

of works. The percentage of MPI disclosed by PEs, in average, represented 38%, pursuant to

requirements of Guatemalan laws.

In regard to the other aspects of the MPI to be disclosed, significant values were not recorded in the percentages of disclosed information, specifically on: (i) Project Funds, (ii) Process for contracting Project Design, (iii) Process for contracting Project Supervision, (iv) Details of Supervision Contract, and (v) Execution of the Supervision Contract. These need to be requested to PEs.


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D. Indicators of MPI Disclosed by PEs - In regard to variations in amounts and times of execution of main works, significant variations

with an average of 123% to 103% additional to what was originally agreed on, is identified in the PEs that execute road infrastructure works in the Central Government.

- Regarding variations in time at the Local level, changes were identified in only one of the four analyzed projects, which reached an additional 35% to what was originally agreed on, and an increase of 17% of the contract price.

E. Constraints to the Dissemination of CoST:

- The appropriation of CoST objectives by the PEs is a process that entails awareness and

dissemination of the aspects of the CoST Project Cycle that are expected to be included in the disclosure of MPI.

- Considering the disclosure of all the times within CoST MPI could be considered a challenge,

since it requires the will and conviction of PEs to adopt them.

- The definition of the SNIP as a source for recording technical and financial project information to be used by the PEs, would enable public consultation of the MPI if the interested party has access to computerized resources, has information on codes and access protocols for this source.

- The definition of GUATECOMPRAS as an electronic market that records MPI; a tool that facilitates contracting processes; which has the capacity for adapting to become a source for consultation for the common citizens and which, in addition, could include the stages of the project cycle defined by CoST, as an alternative for increasing the level of indicators of disclosure of MPI.

F. Recommendations for CoST to complement other Transparency Initiatives: Information collected for the Base Line Study identifies several Transparency Initiatives in the public and private sectors, as well as interest shown by these initiatives to disclose and follow-up information related to project execution, generally applying an accounting and financial approach. CoST can contribute with existing initiatives by providing indicators on MPI that is currently disclosed; and based on that, the definition of MPI aspects that, within the project cycle, would complement the information currently recorded in their websites. It is considered pertinent to learn more about the SNIP, the Citizens’ Observatory of Public Expenditures of the Government of Guatemalan, the Guatemalan Chamber of construction and the ANAM, CGC and CIV Agreement for Control of Quality and Quantity of Road Infrastructure Projects.


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GUATECOMPRAS is a website defined as an “electronic market” that the State of Guatemala uses to acquire and contract goods and services, and the SNIP is a tool that records technical and financial information of the different stages of the project cycle. Both represent opportunities to support CoST for (i) promoting the use of GUATECOMPRAS for recording a higher quantity and quality of project-related documents; and (ii) in the medium term, the use of the SNIP as the main source for disclosure of MPI.

5.2 Recommendations for the Pilot Phase

Collection of MPI: The strategy applied for collecting information from the PEs, resulting from written communications from high-level authorities addressed to managers of PEs included in the Base Line Study must be underpinned in order to make it totally effective. It should be applied from an earlier stage in order to reduce the possibility of lack of information and that its untimely delivery. As an example, one of the three PEs at the local level and two of the four PEs of the central level did not respond to requests submitted through the Vice Presidency of the Republic. Nevertheless, the collaboration from officers of the Ministry of Public Finance, the institution under the direction of the CoST Champion, was determined and effective, since they enabled the collection of a significant part of information that was used as the basis for selecting analyzed projects.

Scope of the MPI: Material Project Information should include blueprints for works in graph-type formats so that they can be consulted through GUATECOMPRAS. This would decrease the number of direct requests to the PEs, increase possibilities for participation with higher numbers of bidders, optimize time for preparing bids and it would translate into information that would be available for the general public.

Environmental Impact Assessments (EIA) entail technical evaluations and social audit before the approval of the EIA and the Project, pursuant to the requirements of the law and the SNIP. These studies comprise technical and environmental recommendations with implications in the quality and cost of works. The inclusion of the Environmental Impact Assessments (EIA) in the MPI must be assessed, since this would promote the disclosure and evaluation of the Project at an early phase and since it adds value to the enforcement of the Law on environmental issues. Environmental Impact Assessments entail social audit of the project, recommendations and commitments to be fulfilled by the contractor and the contracting party. Consequently, it has implications in cost and quality. Collaboration with PEs: Increased awareness among PEs that will be part of studies in subsequent phases would be advisable. Ideally, they must be informed about CoST, the importance of its contribution and expected results. This will contribute to achieving improved conditions for CoST objectives and expected effects.


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Limitations to CoST Impact: CoST will require a specially strong political support in order to influence in the increase of percentages of disclosed MPI in those institutions that follow their own regulations or are not ruled by the Law on Contracting by the State. CoST will have limitations to contribute to the revision of administrative procedures aimed at increasing control and quality in the pre-qualification of state contractors since it would imply modifications to specific laws and since it is a part of the actions of the State. The promotion of a level of coordination between CoST and other initiatives is an important factor to be considered, in order to strengthen the Initiative and to create links between virtual platforms, currently diverse, that enable interaction in the consultation of information, as well as to assess progress in transparency and disclosure of MPI, by the PEs. One of the necessary steps according to Guatemalan laws is that CoST must perform the proceedings required to acquire the legal status under which it will be able to take part in inter-institutional agreements. This issue is currently under discussion by the MSG. For the implementation of actions in the short term, inter-institutional coordination with PEs to be included in the Pilot Phase is required. It is advisable to assess the process for communicating with PEs through letters issued by the Vice Presidency of the Republic and members of the MSG of CoST Guatemala, for the Pilot Stage. Aforementioned actions must consider a commitment of public authorities in the implementation of administrative procedures and agreements with state entities linked to recording MPI. At the same time, it also implies the execution of tasks such as Workshops held with the participation of CoST, PEs, inter-institutional coordination and the definition of mechanisms for the implementation of electronic links between different computerized platforms.

Section 6

6. Reference Sources

Other documents - Introduction Letter for CoST, sent by the Vice President of the Republic of Guatemala to

Municipalities and the Ministry of Communications, Infrastructure and Housing, FOGUAVI, COVIAL, DGC and FSS, asking entities to enable access to information.

- Introduction Letter for CoST, sent by the Vice Minister of Communications, Infrastructure and Housing to FOGUAVI, COVIAL, DGC and FSS, asking entities to enable access to information.

- Documents for each one of the selected projects, published by Procurement Entities, corresponding to: Contest Basis, Modifications to Basis, Technical Record, Technical Specifications, Amounts of Work, Questions and clarifications, Blueprints, Certificate of Opening of Bids, Certificate of Qualification and Bid Award, Contract, Registered Contract, Agreement for Contract Approval.


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- Specific information for each Project, provided by Procurement Entities that responded to requests.

- Monitoring of Infrastructure Works of Urban and Rural Development Councils /USAID, CIEN, DP Tecnología Consultores en Información, Guatemala, November 2003.

- List of Entities Subject to Supervision, Publications of the General Comptrollership of Accounts, November 2009.

- List of contracting processes provided by the Coordination of GUATECOMPRAS in the SIAF project; Ministry of Public Finance.

- Other studies on Transparency and Anti-corruption: o Background Study: The Status of E-Procurement Reforms in Central and South

America, o CoST Associate Countries Guide – DRAFT- o UK Base Line Study, o Zambia Base Line Study, o Philippines Base Line Study, o Study of Anti-corruption Initiatives in the Philippines Construction Sector,

- Siglo XXI, article published on Wednesday, February 5th, 2010. - Terms of Reference for the Base Line Study of the CoST Initiative in Guatemala, July 2010,

World Bank. - Video-conference with John Hawkins and William D. O. Paterson /CoST

Laws

- Ministry Agreement No. 23-2010, Regulations of the Registry of State Suppliers - Ministry Agreement No. 24-2010, Transparency Standards in Public Procurement or

Contracting Procedures - Government Agreement 80-2004 - Article 10 of Resolution 11-20010 “Base Projects”, of the Ministry of Public Finance. - Article 232 General Comptrollership of Accounts. - Government Agreement No. 1056-92, Regulations of the Law on Contracting by the State. - Ministry Agreement MFP 1-2006 GUATECOMPRAS-SIGES-SICOINWEB.pd Link - Constitution of the Republic - Agreement DNCAE-Acción Ciudadana - 2003 - Decree Number 27-2009 - Decree 70-2007, Law on the General Budget of State Income and Expenditures for the

Fiscal Year 2008, (SNIP) - Decree 57-92 of the Congress of the Republic of Guatemala, Law on Contracting by the

State. - Decree 92-2005 – Law on the Budget 2006 - Article 48 - Decree No. 31-2002/ Organic Law of the General Comptrollership of Accounts of

Guatemala. - Decree No. 68-86 Congress of the Republic of Guatemala - Decree No. 101-97, Modifications Decree 71-98 - Decree No. 89-2002, Law on probity and duties of public officers and employees - Report of Entities Audited in 2009 by the General Comptrollership of Accounts. - Law on Contracting by the State Decree No. 57-92

http://www.guatecompras.gt/servicios/files/Acuerdo_Gubernativo_80-2004.pdf

http://www.guatecompras.gt/servicios/files/Convenio%20DNCAE-Acci%c3%b3n%20Ciudadana%20-%202003.12.12.pdf

http://www.guatecompras.gt/servicios/files/DECRETO%20NUMERO%2027-2009.pdf

http://www.guatecompras.gt/servicios/files/Ley%20de%20Contrataciones%20del%20Estado%20Decreto%20No.%2057-92.doc


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- Law for the Protection of Antigua Guatemala, Decree No. 6069 of the Congress of the Republic

- Law on Protection and Improvement of the Environment - Law on Contentious Administrative Proceedings 2005 04 19 - Resolution of the Normative Directorate of State Contracting and Procurement DNCAE 11-

2010, Reforms to Resolution DNCAE 30-2009, Standards for Use of the GUATECOMPRAS Information System.

- Resolution 11-2010 Standards for use of the GUATECOMPRAS System

Websites Emails - http:// www.sistemas.segeplan.gob.gt/sinip - [email protected] - http://www. accionciudadana.org.gt - [email protected] - http://www.caminos.gob.gt - [email protected] - http://www.construcciongtransparency.org - http://www.construguate.com - http://www.contraloria.gob.gt - http://www.covial.gob.gt - http://www.fonapaz.gob.gt - http://www.fss.gob.gt - http://www.GUATECOMPRAS.gt - http://www.minfin.gob.gt - http://www.munideantigua.com - http://www.munisanjuansac.org - http://www.nuestramuni.com - http://www.snip.segeplan.gob.gt - http://www.UNDP.org.gt - https://www.costguatemala.org - https://www.vicepresidencia.gob.gt - [email protected]

http://www.guatecompras.gt/servicios/files/Ley%20de%20Lo%20Contencioso%20Administrativo%202005%2004%2019.doc

http://www.guatecompras.gt/servicios/files/Resolucion%2011-2010%20%20Normas%20de%20uso%20del%20Sistema%20Guatecompras.pdf

http://www.sistemas.segeplan.gob.gt/sinip

http://www.caminos.gob.gt/

mailto:[email protected]

http://www.construcciongtransparency.or/

http://www.construguate.com/

http://www.contraloria.gob.gt/

http://www.covial.gob.gt/

http://www.fonapaz.gob.gt/

http://www.fss.gob.gt/


http://www.minfin.gob.gt/

http://www.munideantigua.com/

http://www.munisanjuansac.org/

http://www.nuestramuni.com/

http://www.snip.segeplan.gob.gt/

http://www.undp.org.gt/

http://www.costguatemala.org/

http://www.vicepresidencia.gob.gt/


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Section 7

ANNEXES

ANNEX A: Detail of projects included in the study

Analysis of Selected Projects – Central Government

COVIAL / Project (1): Construction of offices with wood structure in walls and ceilings for the offices of the Implementing Unit of Road Conservation.

Procurement Entity COVIAL / Ministry of Communications, Infrastructure and Housing - CIV

Name of the Project Construction of offices with wood structure in walls and ceilings for the offices of the Implementing Unit of Road Conservation

Location Salón 7, Finca Nacional La Aurora, Zona 13 Guatemala City

Design Contractor COVIAL

Project Supervisor COVIAL

Main Contractor HOMES Company

Start date for the Main Contract for Works

July 1st, 2009

End date for the Main Contract for Works

August 19th, 2009

Price of Contract for Works (Pre construction)

Q.176,993.50

Cost of Actual Contract for Works Q.176,993.50

1. Project Description: The Project was designed to respond to the need for space in COVIAL’s facilities. Main components of the project: - A total of 60m2 of construction - Wood walls of different heights - Dry wall lining - Concrete floor with steel reinforcement - Wood lining on the ceiling and shingles on the roof - Windows - Doors - Drain system - Water pipes - Electricity

http://www.guatecompras.gt/compradores/consultaDetEnt.aspx?iEnt=13&iUnt=0&iTipo=4



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G U A T E M A L A

2. Procedure for contracting designs and construction: The design was elaborated by COVIAL’s technicians. For contracting construction, the PE implemented a quotation process; disclosing in GUATECOMPRAS the basis for the contest, the certificate of reception of bids, the award certificate and the contract. Blueprints will be delivered upon request of interested parties. Three companies submitted bids and the contract was awarded to the bid with the lowest price.

3. Procedure for contracting supervision: Supervision was performed by technicians of the Implementing Unit (COVIAL). There is no reference to reports on the supervision of the construction process in the certificate of receipt of works. Amounts and times of Construction Contract: The price of the contract did not vary throughout the execution. A single payment was made at the end of the project. The estimated time for construction was of two months (eight weeks), and the actual execution time was of 50 calendar days (seven weeks). The Commission stated that the contractor fulfilled all the aspects of the contract, upon receipt of works.

Project Location:

Project

Dome Z.13

COVIAL

CAMINOS

To La Aurora Airport

To Tecún Umán

overpass - Z.13


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Project Photos:

COVIAL / Project (2): Fixing pot holes on road B-46-2009 / LONG. 77.77 KM. / Department of Huehuetenango Location: Huehuetenango, Guatemala.

Procurement Entity COVIAL / Ministry of Communications, Infrastructure and Housing

Name of the Project Fixing pot hold on road B-46-2009 / LONG. 77.77 KM. / Department of Huehuetenango

Location Department of Huehuetenango

Design Contractor COVIAL

Project Supervisor Constructora y Urbanizadora DM

Main Contractor Ingenieros Consultores y Constructores –I.C.Y.C.-


January 6th, 2009


December 30th, 2009


Q.3,350,000.00

Cost of Actual Contract for Works

Q.2,247,618.95

Panoramic view of the project




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1. Project Description: Project aimed at improving five road stretches in Huehuetenango, with a total extension of 77.77 kilometres. Main components of the project: - Filling with material in places where the ground has to be improved for transit. - Laying new asphalt in pot holes or places where it is required. - Setting up ditch-like drainage using concrete. - Placing elements to contain walls, called gabions. - Laying masonry walls and security devices for fixing pot holes.

2. Procedure for contracting designs and construction: The PE stated that the design was elaborated internally by COVIAL’s technicians. They based their design on in-site assessments. A tender process was implemented for contracting the execution of works. There were bidders in the first contest, so it was declared void.

In the new tender process, the required amount of work and their location were published. In addition, the basis, certificate of bid receipt, certificate of award and contract were disclosed. Blueprints had to be requested by interested parties. A commission appointed by the CEO of the institution received and opened the bids in public.

In the second process, three companies submitted bids and the contract was awarded to the bid with the lowest price.

3. Procedure for contracting supervision: The company Constructora y Urbanizadora DM was in

charge of supervision. Project monitoring and oversight were performed by technicians from the Implementing Unit (COVIAL).

In regard to the price of the supervision contract, originally agreed on at Q.545, 776.00, it increased to Q.639, 009.84; which means an increase of 17%. The PE has made partial payments for this contract (10 payments). The actual time of the supervision contract was of 11.5 months, i.e., 4.5 months (64%) more than the initially planned term of the project (seven months).

4. Amounts and times of the Construction Contract: In regard to Price, there was reduction of 33%. A total of Q.1,600,572.65 has been paid, equivalent to 71.21% of the final project amount. Five modifications to the contract were recorded, affecting the original terms of the contract. In the Certificate of Receipt of Works, dated April 5th, 2010, it is stated that the Receipt Commission performed the supervision and verification of the completion of the works on December 30th, 2009. The supervisor hired by COVIAL and the contractor signed the certificate. The Supervisor appointed by COVIAL has not signed the certificate.


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Data on the value of the contract can be found in the website of GUATECOMPRAS. The dates of these records show differences in relation to COVIAL’s documents.

The execution scheduled for seven months, finally took 12; i.e., 64% additional time to what was set forth in the contract.

DGC / Project (3): Restoring and paving of stretch Ixtahuacán - Cuilco, Huehuetenango

1. Project Description: Restoring and paving of stretch Ixtahuacán – Cuilco, Huehuetenango.

2. Procedure for contracting designs and construction: In the information provided by the PE, it is stated that the design for works was elaborated by the DGC. In the Certificate of Receipt of Bids it is stated that seven bids were submitted and the Award Certificate states that it was awarded to the bid that complied with all the conditions required by the PE.

3. Procedure for contracting supervision: There is evidence of a contract and amounts paid for

supervision. The number of the contract was identified in the information consulted, but there no records of the contracting process were observed.

Procurement Entity Dirección General de Caminos (CIV)

Name of the Project Restoring and paving of stretch Ixtahuacán - Cuilco, Huehuetenango

Location Ixtahuacán to Cuilco Huehuetenango, Guatemala

Design Contractor Dirección General de Caminos (CIV)

Project Supervisor INPLASA (Ingeniería y Planificación S.A.) Original amount Q 5.692,748.61

Updated amount Q.7,630,672.65 Term: 510 days; final: 865

Start date: March 7th, 2005 End date: August 31st, 2007

Main Contractor CONASA Contract NOG 24724423 Contract 294-2005


May 17th, 2005


July 23rd, 2007


Q. 79,500,403.00


Q. 114,823,690.68 Paid Q. 114.521.603,76


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The amount of the supervision contract exceeded approximately 34% of the original amount.

The supervision was performed throughout the term of the execution. Thus, the term of the contract was extended by 70%.

4. Amounts and times of construction contracts: Documents provided by the PE show that the

original amount of the contract exceeded by 44% and there were 16 documents linked to changes in the contract.

The execution of the project lasted 824 days, instead of the 450 days stated in the plan. This represents an increase of 83%.

DGC / Project (4): Construction of stretch: Huehuetenango - Via San Pedro Jocopilas - El Tunal - Sta. Cruz del Quiché, Region VII (Northwest).


Name of the Project Construction of stretch: Huehuetenango - Vía San Pedro Jocopilas - El Tunal - Sta. Cruz del Quiché

Location Huehuetenango

Design Contractor Dirección General de Caminos

Project Supervisor SUPERVICON Contract No.339-2001-CO

Original amount: Q.13,231,902.90 Updated amount: Q. 23.216.656,95

According to GUATECOMPRAS Q.35,439,317.75

Time: Three years (2001 thru 2003)

Main Contractor DISEÑO, CONSTRUCCION, TOPOGRAFIA Y URBANISMO, S.A. (DICO S.A.)


December 11th, 2000


January 29th, 2008


Q. 132,319,031,29


Q. 320,704.140,74 (Amount paid Q.292,396,034,74)

1. Project Description: Construction of stretch: Huehuetenango - Via San Pedro Jocopilas - El Tunal -

Sta. Cruz del Quiché, with an extension of 66 kilometres.

2. Procedure for contracting designs and construction: In the information requested to the PE on this specific project, it is stated that DCG elaborated the design for works.


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G U A T E M A L A

In regard to the process for contracting construction, it was not possible to identify information in GUATECOMPRAS. The PE only recorded contract information.

3. Procedure for contracting supervision: There is evidence of amounts paid for supervision, and in

the consulted information, there was a copy of the contract, but there were no records of the contracting process.

The amount of the supervision contract exceeded by 75% the original amount agreed. Reports submitted by the PE and data recorded in GUATECOMPRAS show differences in amounts.

The supervision period partially covered the time of execution.

4. Amounts and times of construction contracts: There are variations in contract amounts and

execution periods, which exceed what was planned. There are 22 documents on changes to the contract.

In the documents provided by the PE, it was observed that the original amount of the contract increased by 142%.

The initial execution period, estimated at 900 days (2.5 years), was extended to an actual period of eight years. In percentages, this represents that the time exceeded 209%.

DGC / Project (5): Paving of Department Routes RN-13 and RDSM-7, Stretch: Coatepeque - La Reforma. San Marcos, Region VI


Name of the Project Paving of Department Routes RN-13 and RDSM-7, Stretch: Coatepeque - La Reforma

Location San Marcos

Design Contractor Dirección General de Caminos (CIV)

Project Supervisor GONAVI Contract: 266-2006-DGC

Original amount: Q.5,169,854.12 Updated amount: Q. 9.020.630,68

GUATECOMPRAS: Q.10,723,598.51 Time: Three years (2006 thru 2009)

Main Contractor TOPSA CONSTRUCCIONES, S.A. Contract No. 527-2005-DGC


December 23rd, 2005


December 15th, 2008


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Q. 44,198,324.18


Q. 87,564,435.57 Paid Q. 77.195.521,79

1. Project Description: Paving of Department Routes RN-13 and RDSM-7.

2. Procedure for contracting designs and construction: In the information provided by the PE, it is

stated that DGC elaborated the design for works.

In the information disclosed by the PE, records of the process for contracting construction were identified. These include: the Resolution for the approval of the contract, the Award Resolution, answers to questions and tender basis.

3. Procedure for contracting supervision: There is evidence of a contract and amounts paid for

external supervision. The original amount of the contract increased by 74%. Records in GUATECOMPRAS show a different amount than the one stated in the documents provided by the PE.

4. Amounts and times of construction contracts: There are records of 17 documents on variations to the contract. This implied that the original price exceeded by 98%. There is a pending payment corresponding to 12% of the updated amount of the contract.

The initial estimated time for execution was of 1.5 years, which was increased by 100%, for a total of three years.

DGC / Project (6): Paving Stretch Casas Viejas - Ahumado - El Chapetón and Annexes, Santa Rosa.


Name of the Project Paving Stretch Casas Viejas - Ahumado - El Chapetón and Annexes

Location Santa Rosa, Guatemala

Design Contractor Dirección General de Caminos ( CIV)

Project Supervisor Dirección General de Caminos ( CIV)

Main Contractor CONASGUA Contract No. 423-2001-DGC-CO


July 23rd, 2005


June 23rd, 2007


Q. 22.734.018,00


Q. 52,230,960,42 Paid Q.51.853.157,92


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G U A T E M A L A

1. Project Description: Paving Stretch Casas Viejas - Ahumado - El Chapetón and Annexes.

2. Procedure for contracting designs and construction: In the information provided by the PE, it is

stated that DCG elaborated the design for works. There were no records on the process for contracting construction in consulted information. The Certification of Completion of Works was disclosed in GUATECOMPRAS, as well as other documents related to the contract.

3. Procedure for contracting supervision: According to the report of the PE, DCG performed the supervision.

4. Amounts and times of construction contracts: In the information provided by the PE, it is stated that there are 26 documents with variations to the contract. This affected the original amount, which increased by 130%.

According to records, the time for execution was originally agreed on one year, but it took two years, i.e. an increase of 100%.

The contract for works was valid for over six years (June 12th, 2001 thru September 10th, 2007). The advance was paid on June 27th, 2005 (five years after the start date of the contract). For the purposes of calculation of the duration of works, the reference date was the date on which the advance was paid.

FSS / Project (7): Construction of community buildings in the municipalities of: Villa Nueva, Villa Canales, Chinautla and Guatemala

Procurement Entity Fondo Social de Solidaridad (FSS) through Fundación para Mentores Empresariales de Guatemala (FUMEG), NGO.

Name of the Project Construction of buildings for community use

Location Municipalities of Villa Nueva, Villa Canales, Chinautla and Guatemala

Design Contractor See note

Project Supervisor See note

Main Contractor DINÁMICA COMERCIAL, S.A. (DIMINSA)


November 25th, 2009


The contract states that it will be the date set forth in the Certificate of the Receipt Commission. The basis state that the execution period was of four months.


Q.745,261.49


GUATECOMPRAS does not show variations. Specific information pending to be delivered by the PE.




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G U A T E M A L A

1. Project Description: Main components of the project: The project comprises the construction of eight buildings to be used as headquarters for the cooperatives of: (i) Mártires del Pueblo settlement, zone four, El Zarzal estate, Villa Nueva; (ii) Santa Isabel II, Villa Nueva; (iii) Colonia Tierra Nueva I, zone four, Chinautla; (iv) San Rafael township, El Jocotillo, Villa Canales, (v) La Arenera settlement, low section, zone twenty one; (vi) El Buen Pastor settlement, zone twenty five; (vii) Bárcenas Village, Villa Nueva; and (viii) Los Cerritos, zone eighteen. All of these places are located within the department of Guatemala. 2. Procedure for contracting designs and construction: The FSS has not provided information requested on this specific project. In regard to the process for contracting construction works, the basis, list of bidders, certificate of contract award and answers to questions from interested parties were disclosed in GUATECOMPRAS. Two bids and one letter stating that a third bidder “could not submit a bid” were received. The contract was awarded to the bid with the lowest price. 3. Procedure for contracting supervision: The FSS has not provided information requested on this specific project.

4. Amounts and times of construction contracts: The FSS has not provided information requested on this specific project. FSS / Project: (8) Construction Sewage System, Sector IV - Chuk Muk Housing Development -Santiago Atitlán, Sololá.

Procurement Entity Fondo Social de Solidaridad

Name of the Project Construction of Sewage System

Location Sector IV - Chuk Muk Housing Development- Santiago Atitlán, Sololá.

Design Contractor Not stated in consulted documents, even though the letterhead of an aid agency appears in technical records.

Project Supervisor Through administration

Main Contractor INGENIEROS CONSULTORES Y CONSTRUCTORES (I.C.Y.C.)


Nine calendar days after the advance is received. The contract was signed on January 12th, 2010.


The schedule states four months for execution; the contract states 90 days.


Q1,750,000.00


GUATECOMPRAS does not show variations. Specific information pending to be delivered by the PE.


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G U A T E M A L A

1. Project Description: The technical study of the project was found in the documents consulted in GUATECOMPRAS. It has the logos of the FSS and the International Aid Program “Junta de Andalucía”. According to the PE, the project comprises: “Setting up a sewage system for Sector IV (232 families), located in the central axis of the street, through the installation of circular plastic pipes underground, which will interconnect all the houses through individual connections. All pipes will interconnect through manholes built with masonry and bricks.

The final discharge of this network will interconnect to the network that is currently working in Sectors II and III, which will, in turn, join into a single line, which starts at the last street of Sector II and is directed towards the landsite where the sewage treatment plant will be located.

The aforementioned system will work through drainage of waste water, as an open channel so this system is considered a typical or conventional system.”59

2. Procedure for contracting designs and construction: The PE has not provided the information

requested for this specific project.

The technical records, blueprints, technical specifications and work schedule were disclosed in GUATECOMPRAS.

The PE applied the model of Restricted Tender for the contracting construction process.

Four companies participated in the process; the project was awarded to the best qualified bid. The Commission for Qualification and Award of Bids was made up by two institutions of the CIV (the FSS and the Unit for Construction of State Building).

The official price was disclosed until the bids were opened.

3. Procedure for contracting supervision: The FSS has not provided the information requested for

this specific project.

4. Amounts and times of construction contracts: In the documents for bid qualification, the time required for the project is set at 15, as well as in the bid; but without a time unit. In the schedule it is stated that the works will be executed for four months, and the contract states 90 days. This implies a difference of 30 days. The difference in time could be settled if the FSS provided requested documents on this specific project.

59

Information from the technical records of the Project.


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G U A T E M A L A

FONAPAZ / Project (9): Construction of School in La Cumbre canton, municipality of San Andrés Sajcabajá, Quiché

Procurement Entity Fondo Nacional para la Paz / FONAPAZ Asociación de Desarrollo Local y Ambiental de Nuestra Gente, (ADELANTE), NGO

Name of the Project "Construction of School”

Location La Cumbre canton, municipality of San Andrés Sajcabajá, Department of El Quiché

Design Contractor FONAPAZ

Project Supervisor FONAPAZ

Main Contractor Raymundo Velasco, Dany Bartolo


According to the contract, the execution time is four months. Start date: December 7th, 2009


April 6th, 2010


Q.349,900.00

Cost of Actual Contract for Works Q. 349,900.00

1. Project Description: The bases that were published state “Construction of School”, which

comprises construction of two classrooms with bathrooms. According to the work items, the works include: foundations, concrete block walls, concrete structure covered by steel sheets, on a metal structure, as well as installations for drainage, water, electricity and a flagpole.

2. Procedure for contracting designs and construction: FONAPAZ planned the project.

Contracting for works was performed through an NGO. Three companies participated in the contracting process. The Certification of Qualification of Bids shows the qualification criteria, the list of bidders and the amounts of the bids.

3. Procedure for contracting supervision: FONAPAZ performed the supervision of the project.

4. Amounts and times of construction contracts: No variations were recorded in the contract.

FONAPAZ / Project (10): Construction Road Infrastructure Local Track Colonia Díaz Zone 3, municipality and department of Quetzaltenango

Procurement Entity Fondo Nacional para la Paz / FONAPAZ Asociación Civil para El Fortalecimiento Integral Comunitario, (AFIC), NGO

Name of the Project Construction Road Infrastructure Local Track

Location Colonia Díaz, Zone 3, municipality and department of Quetzaltenango

Design Contractor Individual consultants



http://www.guatecompras.gt/proveedores/consultaDetProvee.aspx?rqp=8&lprv=1561




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Main Contractor INGENIEROS CONSULTORES Y CONSTRUCTORES (I.C.Y.C.)


September 25th, 2008 The original term was extended from four to six months.


January 5th, 2010 / according to GUATECOMPRAS


Q.1,848,080.00 according to GUATECOMPRAS

Cost of Actual Contract for Works Paid Q.1,568,169.02 / Pending payment Q.279,910.98 Contract total - Q.1, 848,080.00, according to GUATECOMPRAS. According to FONAPAZ report - Q. 1,848,080.00

1. Project Description: Documents disclosed in GUATECOMPRAS show the amount of work to be

performed:

Cleaning, redefinition of topography, land cuts, transportation of material, laying base, laying pavement, construction of concrete curbs and drains of the FONAPAZ type, construction of sidewalks, channels with metal gratings, project management activities and sign for project identification.

2. Procedure for contracting designs and construction: According to PE information, the design was elaborated by FONAPAZ. Contracting for works was performed through an NGO. Two companies participated in the process; the Certificate of Qualification of Bids shows qualification criteria, but not the amounts of the bids.

3. Procedure for contracting supervision: Supervision was performed by FONAPAZ.

4. Amounts and times of construction contracts: According to information recorded in GUATECOMPRAS and information provided by FONAPAZ, the price did not change. FONAPAZ / Project (11): Extension of School, Barrio el Esfuerzo, Puerto San José Escuintla

Procurement Entity Fondo Nacional para la Paz (FONAPAZ)

Name of the Project Extension of School, Barrio El Esfuerzo, Puerto San José, Escuintla.

Location Barrio El Esfuerzo, Puerto San José, Escuintla.

Design Contractor FONAPAZ


Main Contractor CONSTRUCTORA S.J.R.S.


Four months for delivery, including two months for administrative procedures. February 15th, 2008


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G U A T E M A L A


June 16th, 2010


Q.399,000.00


Q.473,212.82, according to information provided by FONAPAZ

1. Project Description: Works comprise construction of three classrooms of the FONAPAZ type,

with capacity for building a second floor.

2. Procedure for contracting designs and construction: FONAPAZ is identified as the designer of the project in the information provided by the PE.

Contracting for works was performed through an NGO. Only one bid was submitted. The Certificate of Qualification of Bids shows the qualifications and the amount of the bid (Q.399, 000.00). The project was awarded for that amount.

The official Price of FONAPAZ was disclosed during the opening of bids, which amounted Q.399, 282.43.

3. Procedure for contracting supervision: FONAPAZ performed the supervision.

4. Amounts and times of construction contracts: According to the information provided by the PE, the price of the contract increased by 19% and an extension of an additional 50% of the execution time was authorized.

FONAPAZ / Project (12): Restoring Multi-sports Courts in the municipalities of the department of Guatemala

Procurement Entity Fondo Nacional para la Paz (FONAPAZ)

Name of the Project “Restoring of Multi-sports Courts”

Location Municipalities of the department of Guatemala

Design Contractor Not stated


Main Contractor CONSTRUCTORA MÉRIDA, S. A.


Information requested to the PE, response pending.


Information requested to the PE, response pending.


Q.1,182,934.16


The record of the contract number is not disclosed in GUATECOMPRAS. Q.1, 158,884.34, final contract amount according to FONAPAZ.


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G U A T E M A L A

1. Project Description: Restoring multi-sports courts in several municipalities of the department of

Guatemala.

2. Procedure for contracting designs and construction: FONAPAZ designed the project, according to report provided by the PE.

Contracting of works was performed through an NGO. Two companies participated in the biding process. The Certificate of Qualification of Bids shows the qualification requirements and amounts of the bids.

Documents disclosed in GUATECOMPRAS include the Project Award Certification, the bases and project specifications.

3. Procedure for contracting supervision: FONAPAZ performed the supervision.

4. Amounts and times of construction contracts: The contract number was not identified in GUATECOMPRAS. Information provided by the PE states that there were no variations in time and a decrease of 2% in the price was recorded.

Analysis of Selected Projects – Local Governments

Muniguate / Project (1): Improvement of streets from 6th Avenue “A” between the San Juan Road and 6th street of Colonia Landivar Z.7

Procurement Entity Guatemala City Hall, Guatemala

Name of the Project Improvement of streets from 6th Avenue “A” between the San Juan Road and 6th street of Colonia Landívar, zone 7) – Directorate of Social Development -

Location Sixth Avenue “A” between the San Juan Road and 6th street of Colonia Landívar, zone 7 – Directorate of Social Development -

Design Contractor Guatemala City Hall, Guatemala

Project Supervisor Guatemala City Hall, Guatemala

Main Contractor Asfaltos de Guatemala, S.A.


Information requested to PE, pending official response.


Four months after the signing of certificate of start of works.


Q.423,487.00


The information requested to the PE shows that there were no variations in the contract amount.

http://www.guatecompras.gt/proveedores/consultaDetProvee.aspx?rqp=8&lprv=1118


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G U A T E M A L A

1. Project Description: The project comprises improvement works to replace sidewalks, asphalt, re-adapting residential drainage connections, construction of curbs and other works planned for improving the base over which new asphalt will be laid.

Documents disclosed in GUATECOMPRAS include the bases, specifications, technical project records, amounts of work, and blueprints.

2. Procedure for contracting designs and construction: Documents provided by the PE state that the PE elaborated the design. A quotation process was implemented for contracting project execution, pursuant to the Law on Contracting by the State. The list of bidders was disclosed in GUATECOMPRAS, as well as the prices of the bids and the criteria for qualifying bids. In addition, the PE included the technical records, the amounts of work, specifications and blueprints. The Bid Qualification and Award Commission awarded the works to the best of the four bids received.

3. Procedure for contracting supervision: The Guatemala City Hall performed the supervision.

4. Amounts and times of construction contracts: The PE reported that there were no variations in time and contract amounts.

Location:

6th Ave. “A” Project

Project

El Trébol


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G U A T E M A L A

Project Photos:

View from the intersection of 6th Ave

“A” and 4th Street, towards alley

View from the intersection of 6th

Avenue “A” and 4th

Street towards San Juan Road and 7th

Avenue

Calzada

San Juan

View from the intersection of 6th Ave “A” and

6th Street, towards alley


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G U A T E M A L A

Muniguate / Project (2): El Amate Shopping Centre – 18th Street between 5th and 4th Avenues of zone 1, Guatemala

Procurement Entity Guatemala City Hall, Guatemala

Name of the Project El Amate Shopping Centre – 18th Street between 5th and 4th Avenues of zone 1, Guatemala

Location El Amate– 18th Street between 5th and 4th Avenues of zone 1, Guatemala

Design Contractor Designs elaborated by the URBANÍSTICA workshop. Guatemala City Hall

Project Supervisor To be assigned by the Guatemala City Hall.

Main Contractor WER S.A.


Information requested to PE, pending response.


60 days as of the date of signing of the Certificate of Start of Works. A variation in time of 35% was recorded.


Q.3,455,613.93. Three payments were established in the contract.


Information requested to the PE states that there was an extension to the contract for 17.2%. Final contract amount Q.4,049,613.93

1. Project Description: The Guatemala City Hall, through the Trust Fund for Support to Urban

Planning (FAPU).

The works comprise: a) Construction of an ellipse-shaped roof for an area of approximately 1,340.36 m2. The

amount of meters is divided into the different Works to be performed. b) General Works include:

- Construction and setting up bases for cover support. - Construction and setting up support for cover. - Construction and installation of the cover (membrane type). - Construction and installation of the internal structure for mounting and tightening

cover. - Safety cables.

c) The project must comply with the following guidelines: Works are to be executed by qualified, experienced staff, with the structural calculations and recommendations required for each line of work.


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G U A T E M A L A

Construction Process: Works to be performed under these specifications comprise:

- Lab and field trials, in order to ensure compliance with required resistance. - Sample for works, whichever are required for approval - Tracing and levelling of existing structure - Membrane - Metal structure - Cables and accessories

d) Membrane: The membrane must have the following specifications: - Thread: PES HT 1100 Dtex Polyester - Weight: 1,050 g / m2 - Resistance to traction (warp / weft): 420 / 400 daN / 5cm - Resistance to tear (warp / weft): 55/50 daN - Reaction to fire: B1 / DIN 4102 NFPA, BS 7837-CSFM-UNE 23727, NFP 92.503-

SIS-650082 SN 199998 - Treatment for surface: CALIBRATED PVDF Alloy - Extreme temperatures endured: -30° C / + 70° C - Union of canvas pieces with radio-frequency welding / thermal welding.

e) Metal structure: The metal structure must have the following specifications: - Plates: Structural AST A -36 steel - Tubes: Structural ASTM A53 Grade B steel - Welding: E70XX according to AWS D1.1

f) Cables and Accessories: The metal structure must comply with the following specifications: - Cables: Galvanized steel harnessed cables. - Eye loop cables and casting or concrete foundations with Wirelock (Crosby) resin, - Fastenings: Carbon templated and sheathed shackles (Crosby) / Grade 5 steel

screws.

Documents disclosed in GUATECOMPRAS include: the bases, specifications, amounts of work, and responses to consultations from interested parties. Project blueprints will be provided upon request. 1. Procedure for contracting designs and construction: Documents state that the Guatemala City Hall was the designer of the project, through the Urbanística workshop. The tender process through a Trust Fund (FAPU) was implemented for contracting the execution of the project, and disclosed in GUATECOMPRAS. The Bid Qualification and Award Commission awarded the contract to the best qualified company, out of the two that submitted bids.

2. Procedure for contracting supervision: The Guatemala City Hall performed the supervision.

3. Amounts and times of construction contracts: The final project amount was Q.4, 049,613.93, which implied a variation of 17.2% in the price. The contract time increased by 35%.


116

G U A T E M A L A

Location:

Project Photos:

EL AMATE

Centro Cívico

Project

View from the intersection of 18th

Street

and 4th

Avenue, zone 1, towards the south Detail of El Amate overpass

Project

Mercado Sur 2

Ave. Bolívar

Centro Cívico


117

G U A T E M A L A

SJOB AG / Project (3): Borehole for drinking water, San Juan del Obispo Village; Antigua Guatemala

Procurement Entity Municipality of Antigua Guatemala, Sacatepéquez, Guatemala.

Name of the Project Borehole for drinking water, San Juan del Obispo Village; Antigua Guatemala

Location San Juan del Obispo Village; Antigua Guatemala

Design Contractor Water Division

Project Supervisor Municipal Planning Office

Main Contractor Mantenimiento y Servicio Hidráulico S.A. (M.A.S.E.H.I.S.A.)


October 9th, 2009


October 22nd, 2009


Q.300,000.00

Cost of Actual Contract for Works Q.300,000.00

Detail of El Amate overpass

Interior view of premises

Interior view of premises




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G U A T E M A L A

1. Project Description: The Project comprised drilling a well up to a specified depth of 320 feet, to get a flow volume of 250 gallons per minute. The expected minimum depth for drilling was 600 feet, a diameter of 12 inches was acceptable for drilling.

The type of machinery to be used for drilling was specified, as well as the drilling method, the taking of samples, cleaning and development, and the pumping test.

It was required to procure the following components to make the well operational:

- Installations for water network (pipes) - Cistern tank - Booths for machinery - Submarine pump - Electricity fixtures

2. Procedure for contracting designs and construction: The designer of the Project is not identified in the documents. During the interview with the Head of the Water Department, he stated that the municipality had elaborated the design; thus, data from wells previously built in the place was taken as reference for the design.

The quotation processes set forth by the Law on Contracting by the State were implemented in order to contract project execution.

The list of bidders, bid prices, criteria for bid qualification, amounts of work and specifications were published in GUATECOMPRAS.

The project was awarded to the best qualified bid among the three that were submitted to the Qualification and Award Commission.

3. Procedure for contracting supervision:

The Municipality of Antigua Guatemala performed the supervision, through the Municipal Office for Planning Works.

4. Amounts and time of Contract:

The contract price amounted Q.300, 000.00, and the time for execution of Works was 10 days.

The PE reported that there were no variations in time or price.


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G U A T E M A L A

Location:

Photos:

Project Location. Connection for electricity / meter

Details of the well / Other Components: Installation of electricity for pump and pipes

Access road to San Juan

del Obispo

To Antigua

Guatemala

Cemetery Cemetery

Project


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G U A T E M A L A

Panoramic view of the Project and other components of the well:

- Mechanic Well (project) - Installations of water network (pipes) - Cistern Tank - Booth for machinery - Submarine pump - Electricity installation -

SJAC / Project (4): Extension and circulation of School - Comunidad de Zet, sector 5, San Juan Sacatepéquez; Guatemala

Procurement Entity Municipality of San Juan Sacatepéquez, Guatemala

Name of the Project Extension and Circulation of School Comunidad de Zet Sector 5

Location San Juan Sacatepéquez, Guatemala

Design Contractor Pending delivery of information

Project Supervisor Municipality

Main Contractor Arquitectura Constructiva (ARQ-CON)


Time for completion of works: two months (8 weeks)


Pending delivery of information


Q 229,494.90 plus a contribution of materials from World Vision for Q 30,015.00, for a total of: Q259,509.90


Pending delivery of information



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G U A T E M A L A

1. Project Description:

The project comprises extension and circulation of the school. The project was funded with municipal funds and the contribution of an NGO.

In the information published for the event was included the amount of work to be executed; the blueprints and specifications had to be requested by interested parties to the PE.

The construction was planned with a mixed system of block walls and a concrete-steel structure, floor laid over a concrete basis, tin sheets on the roof with a metal structure and metal doors and windows.

2. Procedure for contracting designs and construction: The designer of the Project was not identified in the documents. Specific project information was requested to the PE and the response is still pending.

The quotation processes set forth by the Law on Contracting by the State were implemented in order to contract project execution.

The list of bidders, bid prices, bases for the contest, amounts of work and award certificate were published in GUATECOMPRAS.

The project was awarded to the best qualified bid among the three that were submitted to the Qualification and Award Commission.

3. Procedure for contracting supervision:

The specific information for this Project was requested to the PE and the response is still pending.

4. Amounts and times of the Construction Contract:

The price of the contract amounted Q.229,494.90. It was not possible to identify variations in time and amounts of the contract. Specific information for this Project was requested to the PE and the response is still pending.


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G U A T E M A L A

ANNEX B - FOGUAVI

Fondo Guatemalteco para la Vivienda (FOGUAVI, MICIVI) – Guatemalan Housing Fund

The National Housing Fund (FOGUAVI) was created through the Law on Housing and Human Settlements, Decree 120-96. The objective of FOGUAVI is to provide housing to Guatemalan families who do not have a place to live, who are in the economic segment of poverty and extreme poverty; defining poverty as those who earn up to four minimum wages. FOGUAVI rewards the efforts of those Guatemalan families that can given an “initial contribution” in a relation of 3 to 1, i.e. that, for every quetzal the family gives, FOGUAVI rewards them with three quetzals, up to a maximum of Q. 20,000.00. FOGUAVI is a second-tier bank which mission is to raise funds at local and external level in order to deposit them in the banking system, so that these be managed according to FOGUAVI instructions. At the present time, FOGUAVI is assisting the following segments: 1. Strengthening the demand for popular housing:

a) Landsite with housing (LCV – for its acronym in Spanish), b) Landsite with services (LCS – for its acronym in Spanish)

NOTE: For this segment, the developer receives the subsidy until the housing solution is

completed and the property deed is under the name of the beneficiary.

2. Construction of housing in landsite of the beneficiary (CVLP – for its acronym in Spanish). 3. Decentralized. 4. Providing housing to those affected by natural disasters, such as Stan, and recently Agatha.

NOTE: For segments 2, 3, 4, the constructor receives advances during the construction process. Legal bails are required for the payment of these advances.

FOGUAVI gets funding from: VAT Peace, of the tax of Q.1.5 per distributed cement sack; and BANVI in liquidation. For this year, its budget is estimated at Q.448 million for investment and Q.10 million for operation. FOGUAVI is led by Lic. Oswaldo E. Mejía R, as the CEO and uses the GUATECOMPRAS website exclusively for contracting Social-Economic Studies.


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ANNEX C

Excel Spreadsheet (this document is enclosed to this document)

ANNEX D

Detail of Laws related to Contracting Processes

Main Laws

Institution that issued the Law

Regulation or Law

National Constituent Assembly Constitution of the Republic (Article 30)

Congress of the Republic

Law on Contracting by the State (Articles 19 Bis, 23 and 39 Bis)

Law of the Executive Branch

(Article 35, item t)

Law on the General Budget of State Income and

Expenditures (Fiscal Year 2009, Article 55)

Presidency of the Republic Regulations for the Law on Contracting by the

State (Articles 4 Bis, 7, 8, 10, 12, 12 Bis, 16 Bis, 25 and 54

Bis)

Ministry of Public Finance Ministerial Agreement 1-2006

(Linkage SIGES-SICOIN-GUATECOMPRAS)

Regulatory Directorate for Contracting and Procurement by the State

Resolution 30-2009 (Regulations on the use of GUATECOMPRAS)

http://www.guatecompras.gt/info/comoseusaguatecompras.aspx


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Legal documents linked to disclosure of procurement activities

Year Legal documents

2010 Circular – Proposal of bases

Circular de proyecto de bases.pdf (57 KB)

2010

Circular 15-2010, Request for Annual Procurement Schedule – Fiscal year 2010. Oficio Circular 15-2010.zip (457 KB)

2010 Circular 16-2010, Procedure for attaching documents to Procurement without contest process. Oficio 16-2010.zip (958 KB)

2010

Model of Bank Certification requested in the Ministerial Agreement 24-2010, "Transparency Standards in public procurement and contracting procedures "

Modelo de Certificación Bancaria Acuerdo Ministerial 24-2010_2.pdf (21 KB)

2010 Appeal filed on Ministerial Agreement No. 24-2010 issued by the Ministry of Public Finance. (File 1722-2010) Amparo en contra del Acuerdo Ministerial 24-2010.pdf (114 KB)

2010 Appeal filed on Ministerial Agreement No. 23-2010 issued by the Ministry of Public Finance. Amparo en contra del Acuerdo Ministerial 23-2010.pdf (76 KB)

2010 Resolution 11-2010, Standards for the use of the information system GUATECOMPRAS

Resolución 11-2010 Normas de uso del Sistema GUATECOMPRAS.pdf (688 KB)

2010 Ministerial Agreement 24-2010

Acuerdo Ministerial 24-2010.pdf (121 KB)

2010 Ministerial Agreement 23-2010

Acuerdo Ministerial 23-2010.pdf (293 KB)

2010 CIRCULAR 10-2010

nota.bmp (2757 KB)

2010 BASIC GUIDE FOR SENIOR BUYER

Guiabasicafuncionescompradorpadre.pdf (368 KB)

2010

Support guide for New Procedures on Elaboration and Publication of bases and contest, accordingly, in the GUATECOMPRAS website. Guía de Procedimiento de Preparación y publicación de Bases.zip (2733 KB)

2010

Resolution 1-2010 DNCAE, which modifies Article 1 of Resolution 155, which modified Article 8 of Resolution 30-2009, "Standards on the use of the System of Information for Contracting and Procurement by the State ", published on the official newspaper on January 7th, 2010. Resolución 01-2010 MINFIN DNCAE_2.pdf (129 KB)

2009

Resolution 155 DNCAE, which modified Article 8 of Resolution 30-2009, "Standards on the use of the System of Information for Contracting and Procurement by the State ", published on the official newspaper on December 4th, 2009. Resolución 155.pdf (112 KB)

2009 FILE DNCAE 488

Oficio DNCAE 488.pdf (204 KB)

2009 DECREE NUMBER 27-2009

DECRETO NUMERO 27-2009.pdf (346 KB)

2009 File DNCAE No. 319 in regard to Government Agreement 394-2008, Article 41 item 7. Oficio Circular 319 _1.pdf (425 KB)

2009 Circulars DNCAE No. 209 and 309, on procedures on the use of the GUATECOMPRAS system. Oficios Circulares sobre uso y procedimientos de GUATECOMPRAS_1.pdf (2094 KB)

2009

RESOLUTION No. 30-2009, STANDARDS ON THE USE OF THE SYSTEM OF INFORMATION ON CONTRACTING AND PROCUREMENT BY THE STATE -GUATECOMPRAS- RESOLUCION No 30-2009 NORMAS PARA EL USO DE GUATECOMPRAS.pdf (198 KB)

http://www.guatecompras.gt/servicios/files/Circular%20de%20proyecto%20de%20bases.pdf

http://www.guatecompras.gt/servicios/files/Oficio%20Circular%2015-2010.zip

http://www.guatecompras.gt/servicios/files/Oficio%2016-2010.zip

http://www.guatecompras.gt/servicios/files/Modelo%20de%20Certificaion%20Bancaria%20Acuerdo%20Ministerial%2024-2010_2.pdf

http://www.guatecompras.gt/servicios/files/Amparo%20en%20contra%20del%20Acuerdo%20Ministerial%2024-2010.pdf

http://www.guatecompras.gt/servicios/files/Amparo%20en%20contra%20del%20Acuerdo%20Ministerial%2023-2010.pdf

http://www.guatecompras.gt/servicios/files/Resolucion%2011-2010%20%20Normas%20de%20uso%20del%20Sistema%20Guatecompras.pdf

http://www.guatecompras.gt/servicios/files/Acuerdo%20Ministerial%2024-2010.pdf

http://www.guatecompras.gt/servicios/files/Acuerdo%20Ministerial%2023-2010.pdf

http://www.guatecompras.gt/servicios/files/nota.bmp

http://www.guatecompras.gt/servicios/files/Guiabasicafuncionescompradorpadre.pdf

http://www.guatecompras.gt/servicios/files/Guia%20de%20Procedimiento%20de%20Preparacion%20y%20publicacion%20de%20Bases.zip

http://www.guatecompras.gt/servicios/files/Resolucion%2001-2010%20MINFIN%20DNCAE_2.pdf

http://www.guatecompras.gt/servicios/files/Resolucion%20155.pdf

http://www.guatecompras.gt/servicios/files/Oficio%20DNCAE%20488.pdf

http://www.guatecompras.gt/servicios/files/DECRETO%20NUMERO%2027-2009.pdf

http://www.guatecompras.gt/servicios/files/Oficio%20Circular%20319%20_1.pdf

http://www.guatecompras.gt/servicios/files/Oficios%20Circulares%20sobre%20uso%20y%20procedimientos%20de%20GUATECOMPRAS_1.pdf

http://www.guatecompras.gt/servicios/files/RESOLUCION%20No%2030-2009%20NORMAS%20PARA%20EL%20USO%20DE%20GUATECOMPRAS.pdf


125

G U A T E M A L A

Year Legal documents

2007

Law on Contracting by the State, DECREE 57-92, updated until DECREE 11-2006 (Law on the Implementation of the Free Trade Agreement)

Ley de Contrataciones del Estado DECRETO No. 57-92.doc (183 KB)

2007 Regulations for the Law on Contracting by the State, DECREE 1056-92, updated until Government Agreement 151-2007

Reglamento Ley de Contrataciones. 1056-92 actualizado hasta 151-2007.doc (824 KB)

2006 Government Agreement 512-2006

Acuerdo Gubernativo 512-2006.pdf (391 KB)

2006 MINISTERIAL AGREEMENT MFP 1-2006 (LINK GUATECOMPRAS - SIGES - SICOINWEB) Acuerdo Ministerial MFP 1-2006 Vinculación GUATECOMPRAS-SIGES-SICOINWEB.pdf (549 KB)

2006 Government Agreement 17-2006 (Program for Reconstruction after Tropical Storm Stan)

Acuerdo Gubernativo 17-2006.pdf (1150 KB)

2005 DECREE 92-2005 – Law on the Budget 2006 - Article 48

DECRETO 92-2005 - Ley de Presupuesto 2006 - Artículo 48.pdf (1661 KB)

2005 Governmental Agreement 644-2005 – Reform to the Regulations for the Law on Contracting Acuerdo Gubernativo 644-2005 - Reforma Reglamento Ley de Contrataciones.pdf (358 KB)

2005 Governmental Agreement 644-2005 - Reform to the Regulations for the Law on Contracting (Central America Journal)

A. G. 644-2005 - Reforma Reglamento Ley de Contrataciones (Diario de CA).pdf (255 KB)

2005 LAW OF THE EXECUTIVE BRANCH

Ley del Organismo Ejecutivo.doc (127 KB)

2005 CONSTITUTION OF THE REPUBLIC

Constitución Política de la República.doc (269 KB)

2005 CODE OF CRIMINAL PROCEDURES

Código Procesal Penal 2005 04 19.doc (432 KB)

2005 CRIMINAL CODE

Código Penal 2005 04 19.doc (454 KB)

2005 LAW ON CONTENTIOUS – ADMINISTRATIVE PROCEEDINGS

Ley de Lo Contencioso Administrativo 2005 04 19.doc (55 KB)

2004

Government Agreement 80-2004, reform to Article 8 of the Regulations for the Law on Contracting by the State, setting forth the obligation to record information in GUATECOMPRAS. Acuerdo_Gubernativo_80-2004.pdf (1525 KB)

2004 Ethical Standards for the Executive Branch

Normas de Ética del Organismo Ejecutivo - 2004 07 13.pdf (404 KB)

2004 INTER-INSTITUTIONAL COOPERATION AGREEMENT MPF-SAT 2004

10B Convenio MFP-SAT - 2004 08 11.pdf (311 KB)

2004 AGREEMENT DNCAE - ACCION CIUDADANA – GUATEMALAN CONSTRUCTION CHAMBER 2004

57_Convenio_DNCAE-AC-CONSTRUCCIÓN_-_2004[1].pdf (131 KB)

2003 COOPERATION AGREEMENT BETWEEN REGULATORY DIRECTORATE FOR CONTRACTING AND PROCUREMENT BY THE STATE AND ACCIÓN CIUDADANA Convenio DNCAE-Acción Ciudadana - 2003.12.12.pdf (139 KB)

http://www.guatecompras.gt/servicios/files/Ley%20de%20Contrataciones%20del%20Estado%20Decreto%20No.%2057-92.doc

http://www.guatecompras.gt/servicios/files/Reglamento%20Ley%20de%20Contrataciones.%201056-92%20actualizado%20hasta%20%20151-2007.doc

http://www.guatecompras.gt/servicios/files/Acuerdo%20Gubernativo%20512-2006.pdf

http://www.guatecompras.gt/servicios/files/Acuerdo%20Ministerial%20MFP%201-2006%20Vinculaci%c3%b3n%20GUATECOMPRAS-SIGES-SICOINWEB.pdf

http://www.guatecompras.gt/servicios/files/Acuerdo%20Gubernativo%2017-2006.pdf

http://www.guatecompras.gt/servicios/files/Decreto%2092-2005%20-%20Ley%20de%20Presupuesto%202006%20-%20Art%c3%adculo%2048.pdf

http://www.guatecompras.gt/servicios/files/Acuerdo%20Gubernativo%20644-2005%20-%20Reforma%20Reglamento%20Ley%20de%20Contrataciones.pdf

http://www.guatecompras.gt/servicios/files/A.%20G.%20644-2005%20-%20Reforma%20Reglamento%20Ley%20de%20Contrataciones%20(Diario%20de%20CA).pdf

http://www.guatecompras.gt/servicios/files/Ley%20del%20Organismo%20Ejecutivo.doc

http://www.guatecompras.gt/servicios/files/Constituci%c3%b3n%20Pol%c3%adtica%20de%20la%20Rep%c3%bablica.doc

http://www.guatecompras.gt/servicios/files/Cdigo%20Procesal%20Penal%202005%2004%2019.doc

http://www.guatecompras.gt/servicios/files/Cdigo%20Penal%202005%2004%2019.doc

http://www.guatecompras.gt/servicios/files/Ley%20de%20Lo%20Contencioso%20Administrativo%202005%2004%2019.doc

http://www.guatecompras.gt/servicios/files/Acuerdo_Gubernativo_80-2004.pdf

http://www.guatecompras.gt/servicios/files/Normas%20de%20Etica%20del%20Organismo%20Ejecutivo%20-%202004%2007%2013.pdf

http://www.guatecompras.gt/servicios/files/10B%20Convenio%20%20MFP-SAT%20-%202004%2008%2011.pdf

http://www.guatecompras.gt/servicios/files/57_Convenio_DNCAE-AC-CONSTRUCCI%c3%93N_-_2004%5b1%5d..pdf

http://www.guatecompras.gt/servicios/files/Convenio%20DNCAE-Acci%c3%b3n%20Ciudadana%20-%202003.12.12.pdf


126

G U A T E M A L A

ANNEX E

Institutional Commitments for Contracts Before or in 201060

60

Institutional Commitments for Contracts Before or in 2010, GUATECOMPRAS website, http://www.guatecompras.gt.

Institution

Accumulated Execution Scheduled Execution

Tota

l Am

ou

nt

of

Co

ntr

acts

(Q

.)8

Pre

vio

us

Ye

ars

(Q

.)1

Cu

rre

nt

Ye

ar (

Q.)

2

Tota

l (Q

.)3

20

10

(Q

.)4

20

11

(Q

.)5

Rem

ain

ing

Ye

ars

(Q.)

6

Sch

ed

ule

d T

ota

l (Q

.)7

AUTHORITY FOR SUSTAINABLE MANAGEMENT OF THE BASIN

OF LAKE ATITLAN AND ITS SURROUNDINGS

825,

097.

36

2,47

4,42

1.7

2

3,29

9,51

9.0

8

552,

120.

67

0.00

0.00

552,

120.

67

1,37

7,21

8.0

3

GUATEMALAN FUND FOR INDIGENOUS DEVELOPMENT

0.00

610,

000.

00

610,

000.

00

610,

000.

00

0.00

0.00

610,

000.

00

610,

000.

00

NATIONAL DEVELOPMENT FUND

68,2

05,2

76.

16

50,5

93,2

23.

14

118,

798,

499.

30

31,9

94,1

61.

15

501,

920.

53

0.00

32,4

96,0

81.

68

100,

701,

357.

84

NATIONAL FUND FOR PEACE

32,1

11,9

16.

23

588,

387,

895.

49

620,

499,

811.

72

508,

771,

357.

79

488,

274,

347.

58

0.00

997,

045,

705.

37

1,02

9,15

7,6

21.6

0

MINISTRY OF COMMUNICATIONS,

INFRASTRUCTURE AND HOUSING 7,

087,

708,

932

.82

4,54

8,84

7,2

91.9

4

11,6

36,5

56,

224.

76

6,37

5,08

5,6

32.3

3

7,65

5,92

6,1

87.9

6

59,5

56,3

67.

19

14,0

90,5

68,

187.

48

21,1

78,2

77,

120.

30

MINISTRY OF AGRICULTURE, CATTLE RAISING AND FOOD

5,79

1,15

7.0

0

642,

166.

00

6,43

3,32

3.0

0

248,

170.

47

0.00

0.00

248,

170.

47

6,03

9,32

7.4

7

MINISTRY OF THE ENVIRONMENT AND NATURAL

RESOURCES

0.00

1,14

1,62

6.4

4

1,14

1,62

6.4

4

992,

917.

88

3,58

2,75

2.5

4

0.00

4,57

5,67

0.4

2

4,57

5,67

0.4

2










127

G U A T E M A L A

1. Amount of the accumulated execution of contracts from previous years. 2. Amount of execution of contracts in the current year. 3. Amount of execution from previous years plus execution for the current year. 4. Amount of contracts scheduled to be executed in the current year. 5. Amount of contracts scheduled to be executed next year. 6. Amount of contracts scheduled to be executed in the remaining years. 7. Total amount of institutional commitments to be executed, for contracts. 8. Includes the execution from previous years as well as execution scheduled until the end of the contract, without including inflation for upcoming years.

MINISTRY OF CULTURE AND SPORTS

55,9

95,8

11.

83

68,2

41,7

74.

90

124,

237,

586.

73

65,5

59,1

98.

66

18,3

95,8

61.

92

0.00

83,9

55,0

60.

58

139,

950,

872.

41

MINISTRY OF ECONOMY

114,

221.

48

705,

732.

58

819,

954.

06

210,

000.

00

0.00

0.00

210,

000.

00

324,

221.

48

MINISTRY OF THE INTERIOR

0.00

14,7

61,3

26.

67

14,7

61,3

26.

67

23,0

63,9

96.

35

0.00

0.00

23,0

63,9

96.

35

23,0

63,9

96.

35

MINISTRY OF FOREIGN AFFAIRS

0.00

658,

899.

56

658,

899.

56

0.00

0.00

0.00

0.00

0.00

MINISTRY OF PUBLIC HEALTH AND SOCIAL WELFARE 4,

892,

879.

06

28,4

56,3

50.

74

33,3

49,2

29.

80

33,4

19,1

46.

57

7,91

7,26

0.2

1

0.00

41,3

36,4

06.

78

46,2

29,2

85.

84

MINISTRY OF LABOR AND SOCIAL SECURITY

5,17

1,09

9.9

6

2,74

9,05

0.0

4

7,92

0,15

0.0

0

1,62

9,14

1.5

9

473,

678.

56

0.00

2,10

2,82

0.1

5

7,27

3,92

0.1

1

SECRETARIAT FOR SOCIAL WELFARE OF THE PRESIDENCY

OF THE REPUBLIC

0.00

288,

000.

00

288,

000.

00

0.00

0.00

0.00

0.00

0.00

SECRETARIAT FOR PLANNING AND PROGRAMMING OF THE

PRESIDENCY

0.00

581,

361.

06

581,

361.

06

366,

688.

85

0.00

0.00

366,

688.

85

366,

688.

85

Total (Q.)

7,2

60,8

16,3

91.9

0

5,3

09,1

39,1

20.2

8

12,5

69,

95

5,5

12.1

8

7,0

42,5

02,5

32.3

1

8,1

75,0

72,0

09.3

0

59,5

56,

36

7.1

9

15,2

77,

13

0,9

08.8

0

22,5

37,

94

7,3

00.7

0