How to win government contracts in Uruguay

Navigating Government Procurement in Uruguay: A Strategic Guide for Foreign Companies

Uruguay offers considerable public procurement opportunities across sectors such as infrastructure, renewable energy, telecommunications, and digital transformation. Foreign companies must, however, navigate Uruguay's regulatory landscape, shaped by both domestic laws and international trade agreements. This guide draws on official Uruguayan government sources and international frameworks to assist businesses in successfully competing for government contracts.

Legal and Regulatory Framework for Public Procurement

National Legislation

Public procurement in Uruguay is governed by Decree No. 150/012 (Texto Ordenado de Contabilidad y Administración Financiera - TOCAF), establishing principles of transparency, equal treatment, and competitiveness. Key provisions include:

• Required publication of tendering opportunities exceeding approximately UYU 750,000 (about £16,000).
• Use of abbreviated procedures (Licitación Abreviada) for lower-value purchases or emergency situations.
• Anti-corruption measures mandating disclosure of potential conflicts of interest or political contributions by bidders.

The current policy under Uruguay’s administration prioritizes smaller maintenance projects rather than large Public-Private Partnership (PPP) schemes, potentially favoring local firms due to project scale.

International Agreements and Obligations

Uruguay participates in the Mercosur-EU Trade Agreement, significantly reducing tariffs for European companies bidding for public contracts, enhancing their competitiveness. Uruguay aligns its trade policies with WTO General Agreement on Tariffs and Trade (GATT) Article III principles, promoting equal treatment of foreign and domestic suppliers.

Additionally, investment protection treaties such as the modernized Canada-Uruguay Foreign Investment Promotion and Protection Agreement (FIPA) provide fair treatment and robust dispute resolution mechanisms, beneficial to foreign investors.

Registration and Documentation Requirements

Eligibility and Registration

Foreign companies must register on Uruguay's public procurement portal Sistema de Compras Públicas (comprasestatales.gub.uy). Required documentation includes:

• Apostilled documents, authenticated as per the Hague Apostille Convention:
  • Articles of incorporation.
  • Board resolutions authorizing tender participation.
• Tax compliance certificates issued by Dirección General Impositiva (DGI).
• Audited financial statements from the past three fiscal years.
• Proof of technical qualifications relevant to the tender.

Non-Spanish documents require translations certified by authorized translators recognized by Uruguay.

Sector-specific Certification Requirements

Specific tenders may have additional certification requirements, such as ISO 14001 certification for environmental standards in renewable energy contracts, or cybersecurity standards compliance for IT procurements.

Tender Procedures and Timelines

General Tendering Process

The general process includes:

• Publication of tender notices via the official Compras Estatales portal, detailing technical specifications and evaluation criteria.
• An official clarification period, typically within the first ten working days.
• Mandatory electronic submissions, including required documentation signed digitally.
• Evaluation committees review submissions based on outlined criteria, typically announcing results within a maximum of 45 days after submission.

Overcoming Domestic Preference Considerations

While Uruguayan procurement law promotes openness, Article 47 of Decree No.150/012 allows domestic preference margins of up to 20% if local suppliers offer comparable quality. Major impacted sectors include construction materials, agriculture equipment, and IT services.

To remain competitive, foreign bidders should consider:

• Forming strategic joint ventures or partnerships with established local SMEs.
• Utilizing international agreements (e.g., Mercosur-EU deal) for tariff advantages on imported supplies.

Case Study: Successful Bidding in Uruguay's Renewable Energy Sector

A recent solar farm project tendered by Uruguayan state energy company ANCAP highlighted key success aspects:

• Collaborations between international companies with technical expertise and credible local contractors.
• Clearly emphasizing technological innovations (e.g., high-efficiency photovoltaic modules and tracking systems).
• Leveraging value-added components such as local knowledge transfer partnerships with Uruguayan universities.

Strategic Recommendations for Prospective Bidders

Companies aiming for success in Uruguay’s procurement market should:

• Regularly monitor official procurement portals (comprasestatales.gub.uy) and specific ministry sub-sites (e.g., Economy and Finance, Transport and Infrastructure).
• Establish well-structured joint ventures or partnerships with trusted local contractors experienced in government procurements.
• Pursue favorable financing through Export Credit Agencies (ECAs) aligned with OECD Arrangement regulations.
• Ensure proposal documentation meets Uruguay's requirements, presented clearly in well-translated Spanish.

Conclusion

Foreign companies can significantly enhance their opportunities in Uruguay’s public procurement marketplace by adhering strictly to legal and procedural frameworks, capitalizing on beneficial international arrangements, and implementing strategic local alliances. Such strategic alignment positions firms to successfully navigate this competitive and growing market effectively.

[1] https://blue-community.net/2025/03/05/uruguay-mega-project-to-be-renegotiated/
[2] https://assets.publishing.service.gov.uk/media/67b6f8f932b2aab18314bc18/uruguay-trade-and-investment-factsheet-2025-02-21.pdf
[3] https://gfmag.com/economics-policy-regulation/mercosur-eu-trade-deal-challenges-protectionism/
[4] https://www.bnamericas.com/en/news/uruguay-roundup-offshore-seismic-permitting-paysandu-hydrogen-promotion
[5] https://www.britannica.com/topic/General-Agreement-on-Tariffs-and-Trade
[6] https://moveadvisor.com/move/questions-to-ask-movers/
[7] https://www.tender-service.com/international/uruguay
[8] https://www.achilles.com/industry-insights/procurement-act-23-faqs/
[9] https://www.canada.ca/en/global-affairs/news/2025/03/canada-and-uruguay-agree-to-negotiate-a-modernized-fipa.html
[10] https://thxnews.com/2025/03/07/canadian-government-initiates-fipa-modernization-with-uruguay/
[11] https://en.wikipedia.org/wiki/Apostille_Convention
[12] https://www.comprasestatales.gub.uy/consultas/buscar/inciso/11
[13] https://www.gub.uy/ministerio-economia-finanzas/institucional/adquisiciones
[14] https://www.artigas.gub.uy
[15] https://www.poderjudicial.gub.uy/transparencia/licitaciones.html