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07/02/2023

The Executive Branch approved the public initiative project "Expansion and Improvement of Route PY01 in the Cuatro Mojones - Quiindy section" last January 30, 2023, through Decree No. 8779/23 (the "Project"). The Project was approved under Law No. 5102/2013 on Promotion of Investment in Public Infrastructure and Expansion and Improvement of Goods and Services in Charge of the State ("PPP Law").

In accordance with the PPP Law and its Regulatory Decree No. 4183/2020, the Public Private Participation Unit (Unidad de Participación Público Privada) of the Technical Office of Planning (Secretaría Técnica de Planificación) and the Ministry of Finance (Ministerio de Hacienda) approved the feasibility of the Project and it was added to the project bank of the National Public Investment System (Sistema Nacional de Inversión Pública) ("SNIP") with SNIP code No. 973, in charge of the Ministry of Public Works and Communications (Ministerio de Obras Públicas y Comunicaciones).

The Project seeks to increase capacity of and improve traffic on Route PY01, Section 4 Mojones - Quiindy, which is 108 kilometers long. Currently, Route PY01 suffers from high traffic volumes and congestion, for which the Project proposes not only to accommodate the increase in traffic estimated for the next 30 years, but also to function as an alternative route to alleviate congestion on other roads. The Project has an estimated value of Gs. 4,140,296,573,777 (USD 566,278,813)[1] and includes works and services such as:

  1. Earthworks, paving, drainage and complementary works;
  2. Elaboration of an environmental management plan, road safety and traffic management;
  3. Bridges, viaducts and specialized services;
  4. Routine maintenance;
  5. Acquisition of Environmental Services Certificates (Certificados de Servicios Ambientales) (issued by the Ministry of the Environment and Sustainable Development) (Ministerio del Ambiente y Desarrollo Sostenible);
  6. Preparation of bidding terms and conditions;
  7. Procurement of the contract management and inspection;
  8. Project management and administration; and
  9. Elaboration and approval of the final design.

The public tender for bidders interested in participating in the Project will be available in the next few days on the National Office of Public Procurement (Dirección Nacional de Contrataciones Públicas) website. If you require any additional information, please contact Rodolfo G. Vouga (rgvouga@vouga.com.py), Luis Marcio Torales (lmtorales@vouga.com.py), Juan Manuel Ros (jros@vouga.com.py) or your usual Vouga Abogados contact.


[1] Daily reference rate of the Central Bank of Paraguay: Gs. 7,311.41, effective February 1, 2023.

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