| Year of assessment | 2022-2023 |
| Date of publication | September 2024 |
| Country procurement volume | 3.6 billion USD (2020) |
| Principal organisation | Oficina Normativa de Contratación y Adquisiciones del Estado (ONCAE). |
| Main partners | Inter-American Development Bank (IDB), European Union (EU), World Bank (WB), and Central American Bank for Economic Integration (CABEI). |
Honduras
Recognizing the central role that public procurement plays in public service delivery, financial management, and sustainable development, this MAPS MAIN assessment for Honduras resulted in recommendations targeting the strengthening of ONCAE’s regulatory and operational autonomy, improving procurement planning and professionalization, enhancing competition and market participation, increasing transparency through digital tools, and reinforcing accountability and anti-corruption mechanisms.
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Quick facts
Background
Why was a MAPS assessment initiated?
To evaluate and modernize Honduras’ public procurement system, aligning it with international standards by identifying gaps in transparency, efficiency, and compliance.
Who initiated the assessment?
ONCAE, with support from international partners such as the Inter-American Development Bank (IDB) and the European Union (EU).
Brief description of the country’s procurement system:
Honduras has a decentralized procurement system governed by the Ley de Contratación del Estado (LCE, 2001). ONCAE serves as the main regulatory body. The system relies on HonduCompras, an outdated procurement portal with limited data capabilities. It faces significant accountability, competition, and technological challenges but is undergoing reform efforts.
Other relevant details:
The procurement system plays a crucial role in Honduras’ socio-economic development but is hindered by inefficiencies and corruption risks. Ongoing efforts include updating procurement laws and introducing e-procurement reforms.
Were there any disruptions?
While the assessment occurs during a period of reform, no specific external disruptions are mentioned. However, corruption risks and inefficiencies remain key challenges affecting procurement processes.
Main results and impact
Lack of a Clearly Defined Legal Framework for Procurement Responsibilities
- Issue: There is no clear definition of the optimal structure for procurement units within government entities, leading to inconsistencies in procurement responsibilities and oversight.
- Recommendations:
- Develop hierarchical legal norms that clearly define the responsibilities of procurement units in state institutions, including structure, staffing, and accountability mechanisms.
Limited Legal Mandates for Public Accountability in Procurement
- Issue: There are no specific legal provisions requiring public accountability or civil society oversight in public procurement.
- Recommendations:
- Modify the legal framework to explicitly require public accountability mechanisms and participation of civil society in procurement oversight.
Weak Institutional Capacity of ONCAE
- Issue: ONCAE lacks sufficient autonomy, resources, and personnel to effectively regulate and oversee the national procurement system (SNCP).
- Recommendations:
- Strengthen ONCAE’s legal and operational independence.
- Allocate sufficient budgetary resources and ensure adequate staffing to enable ONCAE to fulfill its regulatory and oversight roles.
Limited Professionalization of the Procurement Function
- Issue: Public procurement is not recognized as a specialized profession, and there is no structured career path for procurement officials.
- Recommendations:
- Modify the legal framework to formally recognize public procurement as a professional function.
- Develop professionalization programs, training, and certification pathways for procurement officials.
Excessive Use of Non-Competitive Procurement Methods
- Issue: There is a high reliance on direct contracting and other non-competitive methods, limiting market competition and value for money.
- Recommendations:
- Strengthen controls over direct contracting by requiring more stringent justifications and oversight.
- Promote open and competitive procurement practices to encourage supplier participation.
Inefficient Procurement Planning and Market Engagement
- Issue: Procurement planning is not aligned with market realities, and there are weak mechanisms for engaging suppliers.
- Recommendations:
- Improve procurement planning by integrating market research and supplier consultations.
- Develop tools and methodologies to enhance supplier engagement and competition.
Weak Digital Procurement Systems and Transparency Tools
- Issue: The national e-procurement platform (HonduCompras) is not fully functional as a transactional system, limiting transparency and efficiency.
- Recommendations:
- Strengthen HonduCompras by upgrading its functionalities to support the full procurement cycle, including contract management and bid evaluations.
- Require the publication of all procurement data, including contract awards and implementation details, in an accessible format.
Weak Enforcement of Audit and Oversight Mechanisms
- Issue: There is no systematic enforcement of procurement audits, and audit recommendations are not consistently implemented.
- Recommendations:
- Establish a mandatory mechanism for following up on audit findings and implementing corrective actions.
- Develop risk-based audit strategies to focus oversight efforts on high-risk procurement activities.
Limited Anti-Corruption Measures and Whistleblower Protections
- Issue: There are weak protections for whistleblowers and limited mechanisms to prevent and address corruption in procurement.
- Recommendations:
- Implement a national anti-corruption strategy focused on procurement.
- Strengthen whistleblower protection laws and establish confidential reporting mechanisms for procurement fraud.