Uruguay to Strengthen Digital Government Services with IDB Support

The Inter-American Development Bank (IDB) approved a $74 million Conditional Credit Line for Investment Projects to increase the efficiency of public management, enhance the level of security in the digital space, and improve the management of Uruguay's healthcare system through the strengthening of digital government services. This credit line to implement the "Digital Transformation for a Smart Nation Program" includes a first individual loan of $20 million.

Although Uruguay has a very high level of digital government development, there is still room for strengthening online public services, especially in the health sector, and to increase the capacity for detection and response to incidents in cyberspace given the growing number of global cyber threats.

Although the country has solid connectivity infrastructure and its population has the capacity and willingness to use the Internet, there still remains a significant share of non-digitized procedures, which translates into higher access costs for citizens: of a total of 2,555 procedures listed in the Guide to Uruguayan Procedures, only 1,736 (68%) can be conducted online. Specifically in the health sector, gaps in the adoption of digital services affect the quality and secondary use of data, hindering the monitoring of the population's health and the making of public policy decisions.

"This program will make available to Uruguay's citizens a greater supply of digital services that are more agile, secure, friendly and at a lower cost, Additionally, seniors and people with disabilities will benefit from program actions aimed at enabling universal access to digital services", said Alejandro Pareja, Specialist at the IDB's Innovation in Citizen Services Division.

The program was structured around three components. The first seeks to promote digital government by focusing on process optimization, evolution of citizen service channels, and promotion of technological innovation in the government sector. Through this component, the adoption of standards will be increased and a "government as a service" model will be implemented, among other actions.

The second component seeks to strengthen cybersecurity. To this end, it will finance the implementation of cybersecurity solutions and services provided by the Agency for Electronic Government, Information Society and Knowledge (AGESIC) to key public sector entities and suppliers. It will also uphold the implementation of cybersecurity support services for citizens; the training of professionals with a particular focus on women participation to help close the gender gap in this field; and the promotion of greater use of digital identification and signature. In addition, it will promote the adoption of Uruguay's cybersecurity framework by key public sector entities and suppliers.

The third component focuses on digital health. This component will finance the upgrade of the National Electronic Health Record, including updating new services and improving data quality, among others. It will also promote the adoption of the medication management system by providers and support the implementation of new technologies, including telehealth.

The Conditional Credit Line for Investment Projects (CCLIP) and the first individual loan were approved by the IDB's Board of Executive Directors. The CCLIP consists of three individual and sequential loans over a 10-year term. The first individual loan of $20 million has an amortization period of 25 years, a 5.5-year grace period, and an interest rate based on SOFR. It also includes $4.4 million in local counterpart funds.