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Public Procurement in Aruba

Public Procurement in Aruba represents a significant component of public sector expenditure and plays a vital role in supporting government operations, infrastructure development, and service delivery across the island. As a high-income Caribbean economy with a compact administrative structure, Aruba’s procurement system is designed to balance transparency, efficiency, and fiscal responsibility.

Government tenders in Aruba are governed by national procurement legislation and implemented through ministerial and departmental structures. While the overall procurement market is relatively small in scale, public contracting remains strategically important in areas such as construction, utilities, public administration, energy, and social services.

For domestic suppliers and international firms, Aruba offers a stable and rules-based procurement environment. Clearly defined legal instruments, public tender publication practices, and structured administrative oversight provide a predictable framework for participating in public procurement opportunities.

Country & Economic Overview

Public procurement expenditure represents approximately 12.9% of GDP, reflecting the importance of government purchasing within Aruba’s overall economic framework.

Public Procurement Governance Framework

Public procurement governance in Aruba is administered through government departments under ministerial oversight rather than a single centralized purchasing authority.

• Public Procurement Authority: Department of Economic Affairs, Commerce and Industry (DEACI)
• Institutional role: Oversight of procurement-related economic and administrative matters
• Supervising ministry: Ministry of General Affairs

Contracting authorities are responsible for conducting procurement procedures in accordance with applicable laws and administrative regulations.

Legal & Regulatory Framework

The public procurement law in Aruba is established through national ordinances and official gazette publications that regulate public tendering, contract award, and administrative oversight. These legal instruments provide the statutory basis for procurement across public entities.

The regulatory framework emphasizes:

• Transparency in public tendering
• Fair competition among bidders
• Administrative accountability
• Sound financial management

While the framework allows competitive tendering, detailed statutory provisions on Value for Money, sustainability, and socio-economic preferences are not formally codified.

Procurement Procedures & Thresholds

Specific monetary thresholds and procedural timelines are defined within tender documents and applicable ordinances rather than a single consolidated regulation.

E-Procurement System Overview

A fully centralized national eProcurement system in Aruba has not been formally implemented. Public tenders are published through official government portals and departmental announcements.

Electronic tender submission, standardized digital evaluation tools, and centralized procurement data platforms are not institutionalized under a unified system.

Procurement Market Characteristics

Procurement activity is largely project-based, with construction, maintenance, public utilities, and professional services forming key segments.

Transparency, Complaints & Oversight

Transparency in Aruba’s public procurement system is supported through public tender announcements and administrative review mechanisms.

• Publication of tender notices and award decisions
• Administrative oversight by relevant ministries
• Judicial remedies available under general administrative law

Formalized procurement complaint statistics and centralized reporting mechanisms are limited.

Sustainability & Green Public Procurement

Aruba has articulated broader sustainability and energy transition objectives at the policy level, which may influence public procurement practices.

• Green procurement strategies exist at policy level
• No mandatory green procurement requirements
• No formal procurement-specific sustainability targets

Environmental considerations may be incorporated on a case-by-case basis, particularly in energy-related projects.

Social & Ethical Procurement Considerations

The public procurement framework does not establish formal social procurement mandates.

• No statutory preferences for women-owned or disadvantaged businesses
• No mandatory ethical sourcing requirements
• Suppliers must comply with general national laws and contractual obligations

Key Challenges & Practical Insights for Bidders

Key challenges

• Small market size with limited procurement volume
• Absence of a centralized digital procurement platform
• Procurement rules dispersed across ordinances and administrative practice

Practical bidding insights

Regularly monitor official government and departmental tender publications.

1. Ensure strict compliance with tender documentation and submission requirements.
2. Engage local partners to strengthen administrative and operational capacity.
3. Account for currency and pricing considerations linked to the Aruban Florin.

Public Procurement in Aruba is best approached as a focused and compliance-driven market. For suppliers and consultants, success depends on procedural accuracy, responsiveness to published tenders, and a clear understanding of Aruba’s administrative procurement environment.