The Guatemalan Congress is currently reviewing draft legislation on public procurement aimed at enhancing transparency and streamlining administrative processes. Under the existing Government Procurement Law, most government purchases exceeding GTQ 900,000 (approximately USD 116,580) must be awarded through competitive public bidding. Acquisitions of goods, supplies, or services valued above GTQ 90,000 (approximately USD 11,658) are subject to price quotation procedures, which likewise require public competition through Guatecompras, the official online government procurement platform. Since March 2004, all government entities are required to utilize Guatecompras to manage and publicly disclose procurement processes. In addition, Guatemalan entities must comply with the country’s commitments under the CAFTA-DR agreement.
Guatemalan law dictates that only local firms or foreign companies registered provisionally registered in country with the Mercantile Registry are permitted to submit bids for public procurement opportunities. As such, while it is not mandatory to partner with a local business if registered locally, the Commercial Service advises U.S. firms to do so to facilitate engagement with public entities. Should a foreign firm be awarded a contract, it must establish a formally registered branch in Guatemala to execute the agreement. In summary, although provisional registration during the bidding stage is legally permissible, in practice, completing this process before submission deadlines is often challenging.
It is important to note that historically, public contracts awarded under one administration are sometimes contested, breached, or left unpaid by subsequent administrations. In such cases, the U.S. Embassy has, on occasion, provided support to U.S. firms by encouraging the Guatemalan government to honor legally binding commitments.
Guatemala is not a signatory to the WTO Agreement on Government Procurement. However, the Commercial Law Development Program (CLDP) of the U.S. Department of Commerce is working with various Government of Guatemalan entities to provide technical assistance to help. Additionally, U.S. firms pursuing government tenders may qualify for advocacy assistance from the U.S. government. The Advocacy Center, part of the International Trade Administration of the U.S. Department of Commerce, coordinates interagency efforts to support U.S. exporters bidding on foreign public sector contracts. Support may include direct engagement by the U.S. Embassy or other agencies with Guatemalan authorities on behalf of U.S. bidders. Further information is available through the Advocacy Center’s Advocacy for Foreign Government Contracts program.
Government Procurement
The U.S. government broadly advocates for U.S. companies in foreign markets, especially in terms of open, fair, and transparent tendering procedures in accordance with Guatemala’s commitments under CAFTA-DR.
The Arévalo administration has made measurable strides to improve transparency and reduce corruption within public procurement. However, many U.S. companies have historically been reluctant to invest the time and resources to bid on Guatemalan tenders due to systemic corruption, favoritism toward well-connected firms, and a general lack of transparency in the process. Additional concerns included tenders allegedly structured to pre-favor certain suppliers, “flash tenders” posted outside regular business hours and awarded within hours, and limited opportunities for fair competition.
Below are key points relevant to U.S. firms considering public procurement:
• Potential Opportunities: Key public procurement sectors include energy, healthcare, construction, defense, safety and security, information and communication technologies (ICT), information technology (IT), and general consumer goods and services.
• Competitiveness Factors: All government tenders are evaluated under a 100-point system. Procurement boards, supported by technical experts, assign scores based on factors such as company qualifications, certifications, price, delivery timelines, and product value. Additional criteria may apply depending on the procurement category.
• Eligibility: All tenders are posted on Guatecompras. Participation requires local legal registration or the appointment of a local partner in compliance with Guatemalan procurement regulations.
• Regulatory Context: Guatemala is not a signatory to the WTO Agreement on Government Procurement but is a party to CAFTA-DR. Under CAFTA-DR, Guatemalan procurement entities are required to use fair and transparent procedures, including advance notice of purchases and timely, effective bid review processes. The agreement also contains anti-corruption provisions that establish violations as criminal offenses or subject them to equivalent penalties.
U.S. firms bidding on Guatemalan tenders may qualify for support from the U.S. Department of Commerce’s Advocacy Center. The Center coordinates interagency advocacy on behalf of U.S. exporters competing for public sector contracts abroad. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing Projects
Price, payment terms, and financing are often significant factors in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDBs). A helpful guide for working with the MDBs is the Trade Finance Guide.
The U.S. Department of Commerce’s International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting
· Commercial Liaison Office to the Inter-American Development Bank
· Commercial Liaison Office to the World Bank