Recently, the Executive Branch issued Decree No. 8779/2023, which approves the following PPP project:
“Expansion and Improvement of the PY01 route – Cuatro Mojones- Quiindy Tranche – 108 km”.
Value of the project: USD 424 million
For context, a PPP project follows this life cycle:
Currently, the Ministry of Finance is working on the bidding terms and conditions for the pre-qualification as all PPPs must go through a prequalification process. The Ministry estimates that the bidding documents will be launched in February.
Novelties of this PPP project compared to the previous one (RPY02):
- With this project, the Paraguayan government intends to implement a competitive dialogue process.
- There are expectations of innovation in the risk matrix.
- Private parties will be in charge of the logistics behind right of way.
The project consists of the expansion and improvement of 108 km. It is divided into five tranches. For more information on this division, please refer to the map below:
In terms of strategy, Route PY01 is key because it connects the city of Asunción with Encarnación. According to the Paraguayan government, “it is a road of vital importance for the transport of goods and products from all economic sectors of the country. Likewise, it is part of the Regional Integration Corridors and connects the country directly with Argentina through the bridge between the city of Encarnación and Posadas” [1].
If this information was useful to you, feel free to schedule a meeting with us for more details of this project.
Colab advised IDB and IDB Invest in the refinancing of the only PPP project in force to date, which was awarded to Rutas del Este S.A. for the construction of the RPY02.
[1] https://www.mopc.gov.py/index.php/noticias/mopc-tiene-luz-verde-para-impulsar-la-ampliacion-y-mejoramiento-de-la-ruta-py01#:~:text=El%20Poder%20Ejecutivo%20promulg%C3%B3%20el,infraestructura%20p%C3%BAblica%20y%20ampliaci%C3%B3n%20y