The public Procurement process in El Salvador is regulated by the Procurement and Contracting Law of the Public Administration. The law was adopted in 2019. Before the introduction of the new law, the Procurement and Contracting Law of the Public Administration (LACAP) adopted in 2000 was applicable in the country. The law applies to all state budget and local government entities, including their respective Legal Entities of Public Law (LEPLs), state-owned companies and non-commercial legal entities.
A separate public body (procurement regulatory body) responsible for managing public procurement in El Salvador is the Public Administration Procurement and Contracting Regulatory Unit (UNAC). The Regulatory Unit is responsible for overseeing and monitoring the process of public procurement.
According to the legislation, public procurement is conducted based on the principles of non-discrimination, free competition, equality, ethics, transparency and decentralization.