Paraguay prepares seven tenders for infrastructure projects

By BKM | Berkemeyer

The Ministry of Public Works and Communications (MOPC) of Paraguay is preparing seven tenders for infrastructure projects that will be financed under the Public-Private Partnership (PPP) Law and Law 5074/13, popularly known as the turnkey law. It is expected that three of the projects will be tendered through PPP for a total value of USD 370 million and the other four through Law 5074/13 for a total value of USD 1,140 million.

Jorge Vergara, head of the Directorate of Strategic Projects (Dipe), told Última Hora that some of the tenders will be launched before July.

Paraguayan is working heavily to provide public services and improve roads throughout the country to create better connectivity internally and to major transportation arteries in Bolivia, Argentina, and Brazil. Road and other construction projects are financed directly by the government or executed under the Public-Private Partnership Law and Law 5074/13.

PPP requires a concession contract per project with specific terms and conditions, and shareholders will have to comply with equity contributions and structuring of financing, among others, minimizing the government involvement and liability. The government offers as guarantees National Treasury bonds or sovereign guarantee over the financing, only available if the works are completed.
Law 5074/13 provides a framework for public procurement of public infrastructure in which the bidder must obtain financing to perform the required works.