Category: Uncategorized

1. What is the law applicable to arbitration in Paraguay?

The law regulating arbitration, both domestic and international, is Law 1879/2002, which incorporates with minor modifications the Model Arbitration Law of the United Nations Commission on International Trade Law (UNCITRAL). Therefore, Paraguayan arbitration law follows international arbitration standards, which makes Paraguay an attractive venue for international arbitration.

2. In what cases is a dispute considered international under Paraguayan law?

According to art. 3.c of Law 1879/02, a dispute is international when: a) The domiciles of the parties are in different countries at the time they formalize the arbitration agreement; b) The place where the performance is to be rendered or where the subject matter of the dispute is most closely related is not a country in which one of the parties is domiciled.

3. Are there mandatory provisions that must be applied to all arbitration proceedings regardless of the will of the parties?

Paraguayan arbitration law gives the parties flexibility to adapt the procedure to their needs. The only limit to this power is that both parties must be treated equally and have the same opportunity to assert their rights.

4. Has Paraguay ratified the New York Convention? If so, has it made any reservations to it?

Yes, it has ratified the New York Convention. It has not made any reservations to it.

5. What other conventions or treaties related to arbitration has Paraguay signed?

Paraguay is also a party to the Inter-American Convention on International Commercial Arbitration and the Inter-American Convention on the Extraterritorial Effectiveness of Foreign Judgments and Arbitral Awards. As a member of the Southern Common Market (MERCOSUR), Paraguay has ratified the MERCOSUR International Commercial Arbitration Agreement (Decision of the Common Market Council No. 3/98).

Arbitration agreement

6. What are the requirements for the validity of an arbitration agreement?

The arbitration agreement must be in writing. This requirement is fulfilled in many ways. The arbitration agreement may be contained: a) in a single document signed by both parties; b) in an exchange of letters or telegrams; c) in an exchange of statements of claim and defense in which one party affirms the existence of the arbitration agreement and the other party does not deny it. In addition, a reference in a contract to a document containing an arbitration agreement is valid as long as the contract is in writing and the reference implies that the arbitration agreement is part of the contract.

7. How are arbitration agreements enforced?

If a dispute that is subject to an arbitration agreement has been brought before a court, the court is required to refer the parties to arbitration if either party invokes the arbitration agreement, unless the court determines that the agreement is null and void, inoperative or incapable of being enforced.

8. Is there any provision in the Paraguayan arbitration law regarding the severability of the arbitration agreement?

Yes. Art. 19 of Law 1879/02 provides that, for the purposes of the arbitral tribunal's jurisdiction to decide on its own competence, the arbitration agreement is considered an agreement independent of the main contract. Furthermore, the said article provides that the decision of the arbitral tribunal that the main contract is null and void does not imply ipso iure -i.e., by operation of law- that the arbitration agreement is also null and void.

Arbitral Tribunal

9. Does the law impose any restrictions on the appointment of arbitrators?

No. The parties are free to choose the arbitrators, provided that they are impartial and independent, since partiality and lack of independence are grounds for challenging an arbitrator.

10. Are there any supplementary rules regarding the appointment of arbitrators?

Sí. Por ejemplo, en ausencia de un acuerdo de las partes con respecto al número de árbitros, el tribunal arbitral debe estar compuesto de tres árbitros.

En cuanto al nombramiento de los árbitros, la ley establece que si el tribunal arbitral está compuesto por tres árbitros, cada parte nombrará un árbitro y dichos árbitros designarán al tercer árbitro. En caso de que una de las partes no designe un árbitro dentro de los treinta días a partir de la fecha en que dicha parte recibió una solicitud de la otra parte para realizar dicho nombramiento o si los dos árbitros no llegan a un acuerdo para designar al tercer árbitro dentro de los treinta días posteriores a la fecha en el que fueron nombrados, el tribunal hará el nombramiento dentro de los siete días, a petición de cualquiera de las partes.

En un arbitraje con un solo árbitro, si las partes no llegan a un acuerdo para designar al mismo, el tribunal lo hará a petición de cualquiera de las partes dentro de los siete días.

11. ¿Cuáles son las causales para recusar a un árbitro?

Son la parcialidad, la falta de independencia y no contar con las calificaciones convenidas por las partes.

12. ¿Cuál es el procedimiento para recusar a un árbitro?

Las partes son libres de acordar el procedimiento para recusar a un árbitro. En ausencia de tal acuerdo, la parte que desee recusar a un árbitro presentará un escrito al tribunal arbitral explicando los motivos de tal recusación dentro de los quince días siguientes a la fecha de la constitución del tribunal arbitral o a partir de la fecha en la que la parte tomó conocimiento de la causal de recusación del árbitro. El tribunal arbitral decidirá acerca de la recusación al árbitro.

Si se rechaza la recusación, la parte puede solicitar al Juez de Primera Instancia en lo Civil y Comercial que dicte una decisión sobre la recusación, dentro de los siguientes quince días desde la fecha de la notificación de la decisión del tribunal arbitral que rechazó la recusación. El juez debe tomar una decisión dentro de los siete días.

Procedimiento arbitral

13. ¿Cómo se plantea una objeción a la competencia del tribunal arbitral?

La Ley 1879/02 establece que el tribunal arbitral es competente para decidir sobre su competencia y sobre las excepciones relativas a la validez y existencia del acuerdo de arbitraje. Es decir, la ley contempla el llamado Principio del Kompetenz-Kompetenz.

La excepción de incompetencia se opondrá, a más tardar, al momento de contestar la demanda. El hecho de que cualquiera de las partes haya designado un árbitro o haya participado en su nombramiento no impide que dicha parte oponga la excepción de  incompetencia.

El tribunal arbitral puede decidir sobre la excepción de incompetencia, ya sea como una cuestión preliminar o al decidir acerca del fondo de la controversia. Si el tribunal arbitral decide la excepción de incompetencia como una cuestión preliminar, cualquiera de las partes puede solicitar al Juez de Primera Instancia en lo Civil y Comercial que se pronuncie sobre el asunto dentro de los  treinta días desde la notificación de la decisión. El tribunal debe emitir una decisión dentro de los siete días y la misma no está sujeta a apelación. Mientras la decisión del Juez sobre la cuestión de competencia esté pendiente, el tribunal arbitral podrá continuar con el procedimiento, pero no podrá emitir el laudo.

14. ¿Qué facultades tienen los árbitros para conducir el procedimiento arbitral?

Con sujeción a las disposiciones de la Ley 1879/02 y al acuerdo de las partes sobre la forma en que se llevará a cabo el procedimiento, el tribunal arbitral puede conducir el procedimiento arbitral de la forma que considere apropiada. Cuenta con la facultad de otorgar medidas cautelares, de decidir acerca de la admisibilidad, relevancia y peso de las pruebas, de nombrar peritos, entre otras.

15. ¿Cuál es el idioma del arbitraje en caso de que las partes no lo hayan pactado?

No hay un idioma predeterminado. En ausencia de un acuerdo de las partes sobre el particular, el tribunal arbitral cuenta con la facultad para realizar dicha determinación.

16. ¿Existen normas acerca de la producción de las pruebas?

La ley de arbitraje contempla normas generales, pero las partes son libres de determinar normas más específicas. Si no lo hicieren, el tribunal arbitral tiene la facultad de hacer tal determinación.

17. ¿Se encuentra establecida por ley la confidencialidad del procedimiento arbitral?

No. Si las partes no acuerdan la confidencialidad del procedimiento arbitral, tal obligación no existe.

18. ¿Quién establece las costas del procedimiento arbitral?

El tribunal arbitral establece las costas del procedimiento arbitral (honorarios de los árbitros, de los peritos, gastos administrativos —en los casos de una institución— y gastos de viaje, por citar algunos) Lo hace siguiendo las reglas elegidas por las partes sobre el particular o basadas en las disposiciones supletorias de la Ley 1879/02.

De acuerdo con la Ley 1879/02, el tribunal arbitral fijará los honorarios de los árbitros en función al monto en cuestión, la complejidad de la controversia, el tiempo empleado por los árbitros y cualquier otra circunstancia relevante para el caso.

19. ¿Pueden los tribunales judiciales intervenir en el procedimiento arbitral?

Sí, pero sólo en las situaciones específicas establecidas por la Ley 1879/02. Entre ellas se encuentran: a) el nombramiento de árbitros; b) decidir acerca de las recusaciones a los árbitros; c) remoción de árbitros; d) dictar medidas cautelares antes de la constitución del tribunal arbitral y ejecutar las dictadas por el tribunal arbitral una vez que el mismo esté constituido; e) auxiliar a las partes en la producción de las pruebas; f) decidir acerca de la nulidad del laudo arbitral; g) ejecutar el laudo arbitral.

Derecho aplicable

20. ¿Cómo se determina el derecho aplicable a la controversia?

Lo determinan las partes. Si no han hecho tal determinación, entonces el tribunal arbitral determinará el derecho aplicable con arreglo a las normas de conflicto que estime aplicables. En todos los casos, el tribunal arbitral tendrá en cuenta los términos del contrato y los usos comerciales.

21. ¿Está el tribunal arbitral autorizado a decidir un caso en base a la equidad?

Sí, pero solo si las partes lo han autorizado expresamente.

Laudo arbitral

22. ¿Cuáles son los requisitos de un laudo arbitral?

El laudo arbitral debe constar por escrito y debe ser firmado por los miembros del tribunal arbitral. Si el tribunal arbitral está compuesto por más de un árbitro, sólo se requiere de la firma de la mayoría de ellos, siempre que se explique en el laudo arbitral la razón por la cual uno de los árbitros no firmó el laudo.

El laudo arbitral también debe indicar la fecha y el lugar del arbitraje, ya que se considerará que el mismo se llevó a cabo en ese lugar.

El laudo debe ser fundado, a menos que las partes acuerden que esto es innecesario o que el tribunal dicte un laudo que documente los términos de un arreglo al que han arribado las partes.

23. ¿Existe un límite de tiempo para que el tribunal arbitral dicte el laudo?

La ley no establece un límite para que el tribunal arbitral dicte el laudo. Sin embargo, las partes pueden establecer dicho límite. Además, los reglamentos de algunas instituciones arbitrales establecen un límite de tiempo para que el tribunal arbitral dicte el laudo.

24. ¿Es el laudo definitivo y vinculante?

Sí, el laudo es definitivo y vinculante, y no está sujeto a apelación. El único recurso contra el laudo arbitral es el recurso de nulidad.

25. ¿Cuáles son las causales para anular el laudo arbitral?

El Tribunal de Apelación en lo Civil y Comercial anulará el laudo si la parte que solicita la nulidad del laudo prueba cualquiera de las siguientes causales:

• Una de las partes en el acuerdo de arbitraje estaba afectada por alguna incapacidad, o que dicho acuerdo no es válido en virtud de la ley a la que las partes lo han sometido, o si nada se hubiese indicado a ese respecto, en virtud de la legislación paraguaya.

• No ha sido debidamente notificada de la designación de un árbitro o de las actuaciones arbitrales o no ha podido, por cualquier otra razón, hacer valer sus derechos.

•  El laudo se refiere a una controversia no prevista en el acuerdo de arbitraje o contiene decisiones que exceden los términos del acuerdo de arbitraje; no obstante, si las disposiciones del laudo que se refieren a las cuestiones sometidas al arbitraje pueden separarse de las que no lo están, solo se podrán anular estas últimas.

•  La composición del tribunal arbitral o el procedimiento arbitral no se han ajustado al acuerdo entre las partes, salvo que dicho acuerdo estuviera en conflicto con una disposición de la ley de arbitraje de la que las partes no pudieran apartarse o, a falta de dicho acuerdo, que no se han ajustado a la ley de arbitraje.

Además, el tribunal puede anular el laudo de oficio si:

• El objeto de la controversia no es susceptible de arbitraje.

• El laudo arbitral es contrario al orden público internacional o del Estado Paraguayo.

26. ¿Cuál es el procedimiento para anular el laudo?

La parte que interpone un recurso de nulidad debe indicar claramente las causales de nulidad y ofrecer toda la prueba que pretende producir. El órgano competente es el Tribunal de Apelación en lo Civil y Comercial del lugar en el que se dictó el laudo.

El Tribunal de Apelación correrá traslado a la otra parte, la que deberá contestar dentro de los cinco días. En la contestación, dicha parte ofrecerá todas las pruebas que pretende producir.

Una vez vencido el plazo e independientemente de que se haya presentado la contestación al traslado, el período probatorio se iniciará y no durará más de diez días. Si no existen pruebas que producir, el tribunal dictará sentencia dentro del plazo de diez días.

La prueba pericial, si corresponde, será presentada por un perito designado por el tribunal. No se admitirán más de tres testigos por cada parte. La declaración de los testigos puede realizarse fuera de la sede del tribunal.

Una vez que las partes hayan presentado todas las pruebas, el tribunal dictará sentencia dentro de los diez días. La misma es irrecurrible.

27. ¿Cuál es el derecho aplicable al reconocimiento y ejecución de un laudo arbitral extranjero?

Los laudos arbitrales extranjeros dictados en Estados signatarios de la Convención de Nueva York se reconocen y aplican de conformidad con las disposiciones de dicho tratado, ya que la Ley 1879/02 establece que los laudos arbitrales extranjeros se reconocerán de conformidad con los tratados que el Paraguay haya ratificado.

Si ningún tratado es aplicable, los laudos arbitrales extranjeros serán reconocidos y aplicados de conformidad con las disposiciones de la Ley 1879/02.

28. ¿Cuál es el procedimiento para el reconocimiento y la ejecución de las sentencias arbitrales extranjeras?

Un laudo arbitral extranjero, independientemente del país en el que se haya dictado, será vinculante y se ejecutará cuando se presente ante el tribunal competente. El tribunal competente es el Juzgado de Primera Instancia Civil y Comercial del domicilio de la persona contra la que se solicita el reconocimiento y la ejecución del laudo, o el del lugar de la ubicación de los bienes.

La parte que solicita la ejecución del laudo deberá presentar el laudo original debidamente autenticado, o una copia certificada del mismo, y el acuerdo de arbitraje o una copia debidamente certificada del mismo. Si el laudo o el acuerdo de arbitraje no están en español, la parte deberá presentar una traducción oficial de dichos documentos hecha por un traductor oficial.

29. ¿Cuáles son las causales para denegar el reconocimiento y la ejecución de un laudo arbitral extranjero?

Conforme a las disposiciones de la Ley 1879/02, las que son aplicables en caso de que un tratado internacional no sea aplicable, los motivos para denegar el reconocimiento y la ejecución de un laudo arbitral extranjero son los siguientes:

(a) a petición de la parte que solicita el reconocimiento y la ejecución, si esa parte proporciona al tribunal competente prueba de que:

(i) una parte del acuerdo de arbitraje estaba afectada por alguna incapacidad; o dicho acuerdo no es válido según la ley a la que las partes lo han sometido o, en su defecto, según la ley del Estado en el que se dictó el laudo;

(ii) la parte contra la cual se invoca el laudo no fue debidamente notificada del nombramiento de un árbitro o de las actuaciones arbitrales o no ha podido, por cualquier otra razón, hacer valer sus derechos;

(iii) el laudo se refiere a una controversia no prevista en el acuerdo de arbitraje o contiene decisiones que exceden los términos del acuerdo de arbitraje. No obstante, si las disposiciones del laudo que se refieren a las cuestiones sometidas al arbitraje pueden separarse de las que no lo están, se podrá otorgar reconocimiento y ejecución a las primeras;

(iv) la composición del tribunal arbitral o el procedimiento arbitral no se ajustaron al acuerdo de las partes o, en defecto de tal acuerdo, no estaba de acuerdo con la ley del Estado en el que se llevó a cabo el arbitraje; o

(v) el laudo aún no es obligatorio para las partes o ha sido anulado o suspendido por un tribunal del Estado en el cual, o conforme a cuyo derecho, se ha dictado el laudo; o

(b) si el tribunal determina que:

(i) el objeto de la controversia no es susceptible de arbitraje

(ii) el reconocimiento o la ejecución del laudo serían contrarios al orden público internacional o del Estado paraguayo.

Law No. 5882/2017 on Integral Management of Batteries and Batteries for Domestic Use came into force in March 2018, and presents a much more extensive and detailed regulation than the previous one -Law No. 3107/2006-. Like the previous one, the new law sets caps on the amounts of cadmium, lead and mercury that batteries may contain. In addition to this, it extends its scope of application to rechargeable batteries, determines new obligations for all those involved, establishes penalties and appoints new enforcement authorities. However, the relevant regulations have not yet been issued by the responsible institutions, which would replace the contrary provisions of Decree 4926/2010 and Resolution 970/2010 of the Ministry of Industry and Commerce (MIC).

While the previous law designated the MIC as the sole enforcement authority, the current law expands the responsible authorities:

• The MIC continues to be responsible for ensuring compliance with the law in the import process, extending its intervention to the manufacturing, assembly and commercialization processes, in addition to working in coordination with the National Quality System Agencies, implementing the Registry of Manufacturers, Assemblers and Importers of Batteries and Batteries for Domestic Use -not yet implemented to date- and establishing a system of prior import licenses;
• The Secretariat of the Environment (SEAM) is in charge of establishing regulation, control, monitoring and oversight mechanisms for the proper management and protection of the environment, and is responsible for preparing the Comprehensive Environmental Management Plan for Batteries and Cells -which is still pending despite the entry into force of the law- and the Registry of Operators for the recycling, elimination and final disposal of batteries and cells;
• The different municipalities should implement mechanisms for the transport, collection, treatment and final disposal of batteries and accumulators in their jurisdictions.

The law also establishes new obligations for all those involved in the private sector, both for manufacturers, assemblers, importers and marketers -who must guarantee and certify that their batteries comply with the law, provide suitable containers for collection at points of sale, make the batteries available to the municipalities, include warnings about the contamination caused by the product in their advertising campaigns, register with the MIC, among others- and also for users -who must verify that the batteries are in good condition at the time of purchase, and register with the MIC, among others-, include warnings about the contamination caused by the product in their advertising campaigns, register with the MIC, among others-, as well as for users -who must verify the good condition of the batteries at the time of purchase, dispose of them only at the collection points and not manipulate the structure or disassemble the batteries-.

Since the new law is in force, compliance with it is imperative despite the lack of relevant regulations, especially considering that non-compliance carries penalties ranging from fines (from fifty to one thousand minimum daily wages) to confiscation of products, cancellation of registration, prohibition to sell batteries and batteries and a written warning. This requires that companies involved in the trade of batteries and accumulators be aware of the operative provisions of the law that are already applicable without the need for additional regulation.

For more information about the changes brought by the new Law on Batteries and Batteries, and how to apply it, do not hesitate to contact Rodrigo Fernandez (rfernandez@vouga.com.py)

The bill approving the Agreement for the construction of the international road bridge between Carmelo Peralta (Paraguay) and Puerto Murtinho (Brazil) was approved on Wednesday, May 9 by the Chamber of Deputies and awaits enactment by the Executive. The Brazilian Chamber of Deputies approved the same agreement in a session held last March. The bridge, which will cross the Paraguay River, will be strategic to make the International Bioceanic Road Corridor viable. The project also includes complementary infrastructure works, accesses and border posts.

The Agreement creates a Paraguayan-Brazilian Joint Commission composed of representatives from each country, in charge of approving the Binational Bidding Terms and Conditions, the studies, projects and other documents or procedures necessary for the construction of the bridge, as well as awarding the result of the bidding and supervising the construction until its completion.

The bridge will not only connect Central-West Brazil, Northern Paraguay and deep water ports in Chile -with strategic access to the Atlantic and Pacific Oceans- but it is also linked to the construction of the first asphalt road in Alto Paraguay, which will represent an important support for the development of the entire Paraguayan Chaco, raising the quality of life of the inhabitants. The construction of the Paraguayan section of the Bioceanic Corridor between Carmelo Peralta and Loma Plata -which will cover 277 kilometers- is set to take forty months from the start of the work, whose award contract has already been signed in favor of the Consorcio Corredor Vial Bioceánico, made up by the company Constructora Queiroz Galvao S.A. of Brazil and Ocho A S.A. of Paraguay.

The Foreign Affairs Committee of the Chamber of Deputies advocates for the implementation of the Agreement and for the bidding processes to be brought forward, in order to inaugurate the bridge as soon as possible and connect the Paraguayan section of the Bioceanic Corridor.

For more information about public tenders and investment opportunities for this and other public projects, please do not hesitate to contact Walter David Vera (wvera@vouga.com.py) or Marco Colmán (mcolman@vouga.com.py) 

The bill which proposes an ambitious plan to reactivate the “Presidente Carlos Antonio López” Railway -one of Paraguay's emblematic institutions- was approved by the Chamber of Deputies last Wednesday, May 9, and is now before the Executive. The proposal came from the Executive Power itself, which, through Ferrocarriles del Paraguay S.A. (FEPASA) -a Paraguayan State company holding the concession for the provision of railway services in the Republic-, has been working on the rehabilitation of the railroad, in a first section which will be under the modality of “commuter train” and would mobilize thousands of Paraguayans every day.

The main features of the reactivation plan, which could be in place by 2020, would be as follows:

• The section would run some 44 kilometers from the central station at Plaza Uruguaya in Asunción to Ypacaraí;
• It would total eight main stations and between 12 and 15 stops;
• The trains would be all-electric (non-polluting), and would have a single body and three to four joints;
• It would depart every five minutes during peak hours, carrying up to 280 passengers at a time.

The railroad rehabilitation plan would also contemplate the relevant social solutions for those who currently occupy the railroad tracks, as well as the protection of the cultural heritage, which would not be affected by the installation of the system but, on the contrary, it is intended to revalue it.

With respect to investment, the business model governed by Law 117/91 of joint venture or risk-sharing. In this way, it would seek to have the support of private investors to cover operating costs, recovering investments over the 30-year term of the contract, in addition to a reasonable profit from payments made by users. Should this not be sufficient, they would receive a subsidy from the State for each ticket sold. The pre-qualification process for interested parties began in 2015 and four groups of companies have already been pre-qualified, although the company is seeking to attract more interested parties.

Should you have any questions about this project or other projects, please do not hesitate to contact us. 

In its latest report, issued last April, Fitch Ratings maintained the country's credit rating at “BB”, which leaves it steps away from obtaining investment grade. The report highlights that real GDP increased 4.3% in 2017, which is the highest rate in South America and above the average of similarly rated countries. Fitch's outlook is positive, projecting similar growth in 2018 and 2019 under the new government administration.

The debt-to-GDP ratio also remained lower than that of other countries with similar ratings. Thanks to compliance with the Fiscal Responsibility Law, the central government deficit at 1.4% of GDP was one of the lowest in the last two years. Likewise, the new administration's intention to reform the judicial system and to increase the efficiency of public institutions is seen as a factor that could improve indicators at the country level. In addition, some of the variables surrounding the country's credit profile could improve following an upcoming revision of GDP data upwards - as an improvement in nominal GDP would increase GDP per capita and reduce the debt-to-GDP indicator.

Fitch expects that a continuity of economic policies by the new administration - with low fiscal deficits and debt levels, improved governance indicators, as well as solid and sustained GDP growth rates with lower volatility - could improve Paraguay's credit rating.

If you would like to know more about Paraguay's credit information, please do not hesitate to contact us. 

By means of Decree No. 8819, of April 23, 2018, the image and logo of the “Country Brand” were approved, whose use will be mandatory by State agencies and entities, dependent on the Executive Branch, Corporations in which the State is a majority shareholder and Binational Entities in its Paraguayan Part. The approval of this material is a consequence of an exhaustive research to define the strategy of the “Country Brand” of Paraguay, carried out between 2016 and 2017, due to the fact that, nowadays, both business sectors and governments have the need to create their own identity in front of international markets, with the purpose of capitalizing the reputation of the country and its image.

According to the manual of use, the Country Brand is formed from what is called “Central Idea”, which is the fact by which a country wants to be known. In the case of the “Paraguay Country Brand”, the objective is to make known the development and progress that the country is experiencing and the Central Idea is then related to the notion of an economically fertile country, with potential for investment and growth. The final objective with the “Country Brand” is to create a collective awareness so that the concept of a fertile country is internalized, thus transforming the perception both domestically and internationally.

Three groups of icons were created to represent the Paraguayan ecosystem, each with six variables:

• GROWTH: economy, low indebtedness, legal certainty, political will, low taxes and transparency;
• OPPORTUNITY: industry, infrastructure, logistics, geography, quality of life and purity;
• WEALTH: commitment, energy, hospitality, water, climate and fertile land.

The image and logo of the Paraguay Country Brand will be managed jointly by the Ministry of Industry and Commerce and the Secretariat of Information and Communication, and will be used, in general, in both printed and electronic materials.

In order to establish a regulatory order with a scope according to the current situation of the sector, the Executive Branch issued Decree No. 8785/2018, countersigned by the Minister of Public Works and Communications, which constitutes the new regulation to the Hydrocarbons Law -Law No. 779/1995-. This decree encompasses and leaves without effect the previous decrees No. 2003/2014, 2673/2014 and 4476/2015, with the purpose of simplifying all the regulation in a single legal body and avoiding normative dispersion. The same also clarifies certain articles and establishes deadlines and obligations.

According to Article 2 of the Annex to Decree 8785/2018, the regulation is mandatory for all individuals or legal entities applying for rights for prospecting, exploration and exploitation of hydrocarbon deposits in their solid, liquid and gaseous states, as well as for holders of permits and concessions, and public officials involved in processes tending to the granting of the aforementioned rights. Regarding the scope of the new regulation, Article 160 provides that it will be applicable to applications for permits and concessions that are submitted as of the effective date thereof, or that as of the date of its publication in the Official Gazette - April 17, 2018, Official Gazette No. 72 - are in process and have not yet been approved by the Evaluating Committee.

According to the representatives of the MOPC, this new regulation constitutes one more achievement to achieve a better organization and ensure that Paraguay's hydrocarbon cadastre is occupied by serious and committed companies, and responds to the need for PETROPAR, in charge of carrying out the prospecting, exploration and exploitation of hydrocarbon deposits on behalf of the Paraguayan State, to have legal and technical tools that allow it to carry out such activities on its own or in association with other specialized companies. It is also intended that the Office of the Vice-Ministry of Mines and Energy may have the necessary tools to regulate and supervise such activities.

If you would like to know more about the exploitation of hydrocarbons in Paraguay and the regulations applicable to this activity, please do not hesitate to contact: Marta Martínez (mmartinez@vouga.com.py)

Taking into account the multiple benefits obtained with the implementation of the Electronic Legal Procedures System, the National Public Procurement Directorate (DNCP) issued Resolution No. 718/18 at the end of February, enabling a new module called “Electronic Investigations”, which came into force last March 15. It allows citizens to submit their complaints through the Electronic Investigations Module SICP in the institution's portal (www.contrataciones.gov.py).

As a result of the implementation of this new module, complaints will be processed through an electronic file, allowing the traceability of events and knowing the exact status of the investigation. Therefore, also the complaints submitted in writing to the Intake Desk will be digitized and processed electronically. In this case, the complainant must provide an e-mail address in order to have access to the system and receive the relevant notifications. Another aspect worth highlighting is that the module has the option of submitting complaints with identity protection, which is intended to encourage the submission of as many complaints as possible.

The Electronic Legal Procedures System also has two other modules that have been successfully used, streamlining procedures and increasing their transparency, providing the parties with the convenience of not having to go to the institution to inquire about the status of their procedures. In this regard, it should be noted that, thanks to the implementation of the system, physical notifications have decreased by 40%, representing an optimization of the State's resources through savings in both time and money.

If you would like to know more about procedures before the Dirección Nacional de Contrataciones Públicas, please contact Perla Alderete (palderete@vouga.com.py) or Walter David Vera (wvera@vouga.com.py) 

The renowned directory Chambers & Partners, dedicated to the publication of guides that identify and rank the best lawyers and law firms in the world, has distinguished Vouga Abogados, specifically in the person of its partner Cynthia Fatecha, with a nomination for the Women in Law 2018 awards, in its Latin American edition.

Chambers' Women in Law awards recognize those pioneers who have promoted the advancement of women within the legal sphere. The awards seek to highlight these achievements, empower the people behind women's innovative initiatives and give greater visibility to gender diversity. They represent the culmination of extensive research on gender diversity in Latin America and celebrate those who promote equal opportunities for women in the region.

The awards ceremony will be held on Thursday, May 10, in Santiago, Chile.

This nomination fills us with pride and reaffirms our commitment to continue promoting a diverse team where equal opportunities are a reality, which enriches the vision we can offer our clients.

In our eagerness to always provide our clients with the best service in the legal field and complying with the highest ethical standards, we continue to constantly reinforce our team, so we are pleased to announce the incorporation of RODRIGO FERNÁNDEZ DE NESTOSA to the Corporate area, to which he will contribute with his experience in intellectual property, litigation and contracts.

Rodrigo is a graduate in Law and Notary Public from the Universidad Nacional de Asunción and holds an LL.M. in Business & Trade Law from the Erasmus Universiteit Rotterdam. He also holds an LL.M. in Comparative Law from the University of Miami, and is fluent in English, Portuguese and Italian, in addition to Spanish.

We welcome Rodrigo and wish him success in his new role.

If you would like to know more about our Corporate area, please do not hesitate to contact Rodrigo at his e-mail address (rfernandez@vouga.com.py).