Law 47-25 on Public Procurement takes effect this Wednesday

SANTO DOMINGO – A transformative legal framework for public procurement, Law 47-25, officially takes effect in the Dominican Republic this Wednesday. The legislation, promulgated by President Luis Abinader on July 28 of the previous year, completes its mandatory 180-day waiting period, marking a significant milestone in the nation’s governance and fiscal management.

To inaugurate the law’s implementation, President Abinader will preside over a ceremony to sign the decree that approves its General Application Regulation. This crucial regulatory document outlines the specific standards, establishes clear timelines, and delineates the responsibilities necessary for the effective execution of the new legal framework across all government entities.

The General Directorate of Public Procurement (DGCP) has characterized the new regulation as the operational engine that translates the law’s foundational principles into concrete, actionable procedures. The agency has designed a gradual, supportive implementation strategy to ensure a smooth transition. This comprehensive plan includes extensive training programs and continuous technical support from the DGCP to purchasing units within all public institutions, aiming for universal compliance and preventing any administrative lag.

Carlos Pimentel, the Director of the DGCP, underscored the strategic value of this phased approach, stating it provides essential legal certainty and unambiguous guidance for every participant in the public procurement ecosystem.

In a further step to cement the rollout, the DGCP is set to issue a detailed resolution this Thursday, which will articulate the subsequent institutional steps required for the law’s proper enforcement.

Law 47-25 introduces a suite of profound reforms designed to modernize state purchasing. Key provisions include a substantial increase in the procurement budget reserved for Micro, Small, and Medium-sized Enterprises (MSMEs), particularly those owned by women, raising the mandatory allocation from 20% to 30%. The legislation also fortifies sanctions to combat corruption, institutes novel contracting modalities, and mandates the exclusive use of the Electronic Public Procurement System (SECP) to enhance transparency. Furthermore, the law innovatively integrates environmental and sustainability criteria into the government’s procurement decision-making process, aligning national spending with broader ecological goals.