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03/07/2024

On June 20, 2024, the National Directorate of Public Procurement (the “DNCP”) published on its portal the call for National Public Tender N° 449370 (the "Tender") convened by the Ministry of Public Works and Communications (the “MOPC”) for the rehabilitation and paving of road sections in the districts of Itá, Areguá, Capiatá, Ñemby, and San Lorenzo in the Central Department (the "Project"). The scheduled date for the submission and opening of bids is July 12, 2024.

Scope of the Project

The Project aims to rehabilitate and refurbish key sections in several of the country's most important productive and logistical areas and includes, among other works: asphalting and paving; road signaling; construction and repair of cobblestones; maintenance of gravel roads; cleaning of the right-of-way; construction of central walkways; construction of storm drains; and street pothole repair.

Project Value

The Project has an added value of Gs. 237,555,253,520 (approximately USD 32,000,000) divided into the following 5 lots (the "Lots"):

  • Lot 1: District of Itá with a length of 29.74 km, valued at Gs. 39,455,650,447
  • Lot 2: District of Areguá with a length of 22.86 km, valued at Gs. 37,010,732,170
  • Lot 3: District of Capiatá with a length of 27.32 km, valued at Gs. 65,102,828,131
  • Lot 4: District of Ñemby-Guarambaré with a length of 21.07 km, valued at Gs. 35,202,125,545
  • Lot 5: District of San Lorenzo with a length of 33.18 km, valued at Gs. 60,783,917,227

*The average value of each lot is USD 6,300,000, depending on the exchange rate.

The financing of the Project is part of the budget allocated to the Ministry of Public Works and Communications, in accordance with Decree No. 1188/2024, and the source of its financing comes from sovereign bonds issued by the Paraguayan State.

Other aspects of the Project

Potential bidders should take into account other important characteristics of the Project, such as:

Bid Maintenance Guarantee

The Tender requires bidders to present a bid maintenance guarantee equivalent to 5% of the bid value. The bid maintenance guarantee can be in the form of a policy or bank guarantee that must be presented before the execution of the contract.

Award System

The Tender provides for a lot-based award system. However, the awarding of more than one Lot to a bidder is allowed.

Award Criteria

The MOPC will award the Lot(s) to the bidder that substantially meets the requirements and offers the lowest evaluated price, provided that the bidder is considered eligible according to the criteria set out in the bidding documents.

Advance Payment

The Tender provides for an advance payment of 10% of the project value to the awarded bidders.  

Execution Period

18 months from the starting order.  

Validity Period of Bids

120 calendar days from the bid submission deadline.

Validity Period of Bid Maintenance Guarantees

150 days from the bid submission.

Bid Submission

National companies or branches of international parent companies established in Paraguay individually or in consortium, with legal, economic-financial, and technical capacity.

Subcontracting

Subcontracting for the execution of some of the planned works is allowed, but the amount of subcontracted work may not exceed 20% of the total contract amount. However, the awarded company must obtain prior authorization from the contracting entity.   

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For more information on infrastructure projects in Paraguay, please contact our experts: Silvia Benítez (sbenitez@vouga.com.py); Manuel Acevedo (macevedo@vouga.com.py); Rodolfo G. Vouga (rgvouga@vouga.com.py); Lucas Rolón (lrolon@vouga.com.py).  

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