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  • GTOG CONTRACTS IN PERU

GTOG CONTRACTS IN PERU

GTOG CONTRACTS IN PERU

27
Oct / 2022
Par: by RGB AVOCATS, Corporate, investment, tax and immigration lawyers in Peru

This contracting mechanism has taken on greater relevance from 2017 to the present, since its use for the Execution of the XVIII Pan American Games and Sixth Para Pan American Games 2019, and subsequently for the Implementation of the Integral Plan for the Reconstruction with Changes, Chinchero’s Airport, the Technical Assistance in the Execution of the Projects of the Sergio E. Bernales de Lima and Antonio Lorena de Cusco Hospitals, and the Contracting of the Technical Assistance in the execution of the "Expansion of the Central Highway" and "Construction of the Santa Rosa Expressway".

 

The GtoG Contract is characterized by the following:

a) It is an agreement between the Peruvian State and a foreign State.

b) For the execution of the agreement, the foreign State is empowered to act through its own agencies, dependencies, public or private, national or foreign companies;

c) Its purpose is the acquisition of goods, contracting of services and execution of works, as well as their management, development or operation;

d) It is regulated under the scope of international trade and by the rules and principles of international law;

e) It may include clauses that contemplate: (i) a knowledge transfer plan, (ii) a plan for the legacy of the foreign country, (iii) the implementation of a Project Management Office (PMO), and (iv) the obligation to submit documentation on the Contract from State to State, to be made known to the OSCE and the Office of the Comptroller General of the Republic;

f) It is excluded from the application of Peruvian public procurement rules, without prejudice to being under the supervision of the Peruvian State Contracting Supervisory Body (OSCE) and the prior and/or simultaneous control of the Office of the Comptroller General of the Republic of Peru.

 

The exclusion of State-to-State contracts from the scope of Peruvian public procurement rules is not absolute from a constitutional point of view. Indeed, in 2004, the Constitutional Court in its Ruling N° 020-2003-AI/TC stated that the public procurement mechanisms excluded from the Peruvian public procurement rules, because they use public funds or resources belonging to the Peruvian State, such as State-to-State contracts, "must respect the principles of efficiency, transparency and equal treatment".

 

Thus, GtoG contracts are subject to the respect of the following principles:

1. Principle of efficiency: The Peruvian State must efficiently manage its resources, both in the awarding of the best technical and economic offer, as well as in the design of annual programs by Peruvian Public Entities.

2. Principle of transparency: Publicity must be guaranteed in the call for bids, adequate quality control in the products to be acquired, in the results of the evaluation of the proposals, and in the management of the resources destined to the purchase in general.

3. Principle of equal treatment: Equal treatment exists when under no circumstances is there any preference or tendency to benefit any particular bidder.

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