Mexican Government to Conduct First Public Procurement Procedure on Blockchain

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The Mexican government is planning to conduct a public procurement procedure on a blockchain network – the first ever case of using the technology for such purposes in Mexico in an effort to promote transparency and accountability of the public tenders, Mexican business news outlet  El Economista reported.

It is not clear yet what will be offered for sale, but its organizers have pledged to publicly present the whitepaper and the object of the tender later in August.

The project has evolved from a hackathon that took place in April this year, within the framework of Talent Land 2018. At the time, Yolanda Martinez Mancilla, coordinator of the National Digital Strategy, said that Mexico’s government has been working on a project to track bids for public contracts using blockchain. Now the government seems ready to take the next step.

“The goalis to continue strengthening the prototype that was presented in April this year, within the framework of Talent Land 2018, and to launch in August the model of governance of the public network,”  El Economista quoted Mancilla as saying.

The governance model of the blockchain network for public purchases has been created in collaboration between several government agencies and a consultative council consisting of representatives of Mexico’s blockchain industry and international experts. The model will have a horizontal structure and will consist of public institutions, universities and civil society organizations.

The bidding process on the blockchain will involve the creation of many smart contracts, one for each phase of the procedure.

The first contract will perform the registration of the “Buyer Unit”, which is the government agency that is buying services or goods. The second contract will be for the registration of suppliers and their information on the blokchain. Within the second contract, will be created a third one, which will verify the information and the reputation of the participants in the procedure and their participation in previous public tenders. The fourth smart contract stores the project’s information, from registration to the result of the tender. The execution of the fifth contract evaluates the proposals and whether they meet the requirements, and awards the project to the winner.

Mexico’s government is not the first one to test blockchain solutions to increase transparency and minimize corruption. Brazil’s state-owned tech firm Serpro, for example, launched a blockchain that could prevent fraud and corruption in the government sectors.

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