On April 29, the plenary of the National Assembly approved in third debate the Project 305, which will amend the Law 22 of 2006 that regulates public procurement in Panama.
There are several proposed changes to the public procurement Law. Around 20 articles will be added, and another 69 would be modified. Through the modifications, the sum of the so-called "Minor Purchases" would be increased up to US$50,000.00, without requiring proposal bond or performance bond.
Additionally, for more transparency in acts that exceed 300 thousand dollars, a submission of an affidavit will be required to the General Directorate of Public Procurement, certifying each and every owner of more than the 10% of the share capital, issued and circulating, of the participating company.
Another significant change is the inclusion of a limit on the addendums to the contracts, which may not exceed 40% of the total amount originally agreed. Furthermore, the entities may not advance payments exceeding 20% of the total amount of the contract. It is also important that the Project incorporates the equality of the proponents' principle, where participation under similar conditions is guaranteed. Finally, the concepts of calendar days are unified to business days.
Currently, the Project is pending to be sanctioned by the President of Panama in order to be considered as a Law of the Republic.