Infrastructure projects portfolio under Law No. 5074

By Martín Carlevaro & Sofía Suárez, Berkemeyer Attorneys & Counselors

The Ministry of Public Works and Communications has recently published the first projects to be implemented in the form of Public Works under Financing, regulated by Law No. 5074. We must bear in mind that those legislations amend and broaden Law No. 1302/98, which provides modes and special and complementary conditions to Law No. 1045/83, that sets forth the "Regime of Public Works". This mode is used when the contractor is required to provide full funding of the costs incurred by the procurement, and for his safety the Government grants a guarantee with sovereign bonds.


The three new planned projects are:

Route 9 Transchaco. Distance between Puente Remanso - Mariscal Estigarribia (Chaco)

Project: Reconstruction and expansion that includes road widening, strengthening asphalt layers, surface recoating, milling of existing layers and reconstruction of roadsides, plus complementary works.


Status of the Process: Design Phase. Terms and conditions according to Law No. 5074/2013 will be published shortly.

Amount of Investment: USD 383 million.

Fulfillment term: 2 and a half years.

Road access and control station at the bridgehead of the second bridge with Brazil (Alto Parana)


Project: Construction of access roads (40 KM) to the second international bridge over the Parana River between Paraguay (Pte Franco) and Brazil (Foz do Iguacu); civil works of the integrated control area and first control zone.


Status of the Process: Design Phase. Tender is expected by the second half of 2015 in order to start works in the first quarter of 2016. According to unofficial information, a previous prequalification stage will take place.


Amount of Investment: USD 212 million.


Fulfillment term: 12 months.

Bio-Oceanic Corridor (Distance between Carmelo Peralta - Loma Plata)


Project: Asphalt Paving of 278 KM, allowing interconnection between Brazilian ports on the Atlantic Ocean and Chilean ports on the Pacific Ocean.


Status of the Process: the corridor is in its first phase, since the objective is to build a corridor that integrates the Western Region of Paraguay by connecting the region with the Pacific and Atlantic Oceans thus enabling the socioeconomic development of the Chaco. This being so, the total amount planned for this project is USD 700 million divided into the two phases of the project. However, for the second phase the Government does not disregard the possibility of seeking funding from an international organization. The start of the corridor is planned for early 2016.

Amount of Investment: USD 315 million.


While there are other projects that are being analyzed under this legislation, these projects are the ones that are in a more advanced stage and close to be tendered. According to information published by the Directorate of Strategic Projects - DIPE - the terms and conditions are about to be published.