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02/04/2024

Executive summary:

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MOPC Call N° 83/2023 – Addendum N° 4The MOPC, within the framework of the International Public Tender (IPT) for the National Route Improvement Project No. 17, Road Section between Pedro Juan Caballero – Capitán Bado – Itanará – Ypejhú in the Departments of Amambay and Canindeyú”, has issued Addendum No. 7, postponing the delivery and bid opening dates to April 3, 2024.February 14, 2024
Call for BidsThe National Directorate of Public Procurement (DNCP) has published on its portal the prequalification for the contracting of design and construction of works for the capture, treatment, and storage of drinking water for the metropolitan area of Ciudad del Este, valued at USD 200,000,000.February 15, 2024
Call for BidsThe DNCP has published on its portal the prequalification for the contracting of design and construction of the wastewater treatment plant and sub-fluvial emissary for the Lambaré basin, valued at USD 165,000,000.February 15, 2024

More information

► International Public Tender call for surveying, compensation, expansion, and improvement of Route PY 17 “Route of Sovereignty”

General Aspects

On January 5, 2024, the National Directorate of Public Procurement (DNCP) published on its portal the call for Tender 438107 convened under the IPT procedure for the survey, compensation, construction, and maintenance of the pavement of Route PY 17. This route connects the towns of Pedro Juan Caballero – Zanja Pyta – Capitán Bado – Itanará – Ypejhú, in the departments of Amambay and Canindeyú (the "Project").

The presentation, opening, and award date of the Project had several postponements; the latest was Addendum No. 7 dated March 15, 2024, which establishes that the new deadline for presentation, opening, and, eventually, award of the Project is set for April 3, 2024.

Project Characteristics

Recall that the Project aims to improve the connection between two of the country's most important productive areas. It is estimated that it will benefit around 150,000 people.

The execution of the Project includes, among others, works such as: earthworks, drainage; construction of the structural package, main axis, and accesses; paving; complementary works such as construction and removal of fences, signage, lighting, weighing and toll booths, counting booths, and environmental management plan.

Investment Amount: Gs. 1,432,191,265,000 (Approximately USD 215,000,000). The Project will be financed with a loan from the Financial Fund for the Development of the La Plata Basin (FONPLATA).

Maintenance Offer Guarantee: 3% - policy or bank guarantee.

Adjudication System

Per lot. The Project is divided into 4 lots. The adjudication of more than one lot to an offeror is allowed. Below is the planned length for each lot.

  • Lot 1 – 44 km
  • Lot 2 – 48 km
  • Lot 3 – 53 km
  • Lot 4 – 48,3 km

Each lot includes all aspects of the Project, i.e., surveying, compensation, construction, and maintenance of the work. The value of each lot is:

  • Lot 1 – Gs. 377.025.115.000
  • Lot 2 – Gs. 344.584.917.000
  • Lot 3 – Gs. 386.590.367.000
  • Lot 4 – Gs. 323.990.866.000

Approximately USD 53,000,000 on average, depending on the exchange rate.

Adjudication Criterion: The contracting party will award to the bidder who substantially meets the requirements and offers the lowest evaluated price. This is subject to the bidder being considered eligible according to the criteria set forth in the terms and conditions.

Advance: The tender provides for the granting of a 15% advance to the awarded bidders.  

Works Execution Period: 24 months from the start order.  

Maintenance Period for Service Levels (KPI): 60 months after the completion of the works.

Contracting Systems

  • Construction works: unit prices
  • Execution of surveying and expropriations for lands and improvements: provisional sums
  • Maintenance for service levels: lump sum

Offer Validity Period: 150 calendar days counted from the deadline for submission of offers.

Offer Maintenance Guarantee Validity Period: 180 days counted from the submission of offers.

Presentation to the Tender: National or foreign companies individually or in consortium, with legal, economic-financial, and technical capacity.

Subcontracting: Subcontracting for the execution of some planned works is allowed, but the amount of subcontracted works cannot exceed 40% of the total contract amount. However, the awarded company must obtain prior authorization from the contracting entity.   

► Drinking water and sanitation project for the Metropolitan Area of Ciudad del Este ("Project”)}

The Ministry of Public Works and Communications (MOPC) through the Directorate of Drinking Water and Sanitation (DAPSAN) convened Prequalification 787 of the Project on February 15, 2024, which aims to contract the design and construction of works for the capture, treatment, and storage of drinking water in the metropolitan area of Ciudad del Este, the second largest city in Paraguay.

After notification of the prequalification results, the MOPC will invite the prequalified to submit their bids and proposals.

Among the planned works are:

  • Construction of a water intake chamber with a capacity of 1100 l/s.
  • Provision and installation of a floating barrier around the intake chamber.
  • Headworks: Pre-oxidation, Energy Buffer Chamber, Load Chamber, and Overflow Chamber.
  • Storage of drinking water of 1500m3 within the premises of the Drinking Water Treatment Plant (DWTP).
  • All civil engineering works must be designed and built for a capacity of up to 1100 l/s and water pump installations capable of delivering a flow of 500 l/s to the distribution center of Presidente Franco.
  • Construction of a buried cast iron rising main of approximately 900 mm in diameter for an initial capacity of 500 l/s and final project capacity of 1000 l/s.
  • Construction of 2 reservoirs of 7000 m3 each.

Project and Consultancy Financing: Banco Interamericano de Desarrollo (BID) y Agencia de Cooperación Internacional del Japón (JICA). Aprobada por Ley N° 7088/2023.

Estimated Project Value: USD. 200,000,000 of which USD 115,000,000 granted by the IDB and USD 63,000,000 by JAICA; of these, USD 1,600,000 will be allocated to the Consultancy.

Modality: International Public Tender (IPT).

Relevant Dates in Relation to the Project

  • Bid Submission Date: April 22, 2024 (9:00 am).
  • Bid Opening Date: April 22, 2024 (9:30 am).

Construction Period: 26 months from the receipt of the Project commencement order.

Project Execution Site: City of Presidente Franco, department of Ciudad del Este.

Eligibility Criteria: Companies interested in bidding must demonstrate financial capacity, technical capability, past contract performance/non-performance, among other requirements stipulated in the Project prequalification.

Subcontracting: Subcontracting the entirety of the works is not allowed. However, subcontracting for certain specialized parts of the works is permitted.

► Drinking Water and Sanitation Project for the Metropolitan Area of Asunción - Lambaré Basin ("Project")

The Ministry of Public Works and Communications (MOPC) through the Directorate of Drinking Water and Sanitation (DAPSAN) convened Prequalification 788 of the Project on February 15, 2024, aimed at contracting the design and construction of the wastewater treatment plant (WWTP) and sub-fluvial emissary of the Lambaré basin, a city adjacent to Asunción. The Project is financed with funds from the IDB.

After notification of the prequalification results, the MOPC will invite the prequalified to submit their bids and proposals.

The Wastewater Treatment Plant (WWTP) will require (i) design, (ii) construction, and (iii) provision of:

  • Dredging of approximately 1,000,000 m3 of sand in an area of 14 hectares and complementary works for stabilization and circulation. Internal and external drains, slope protection, vehicular and pedestrian access to the WWTP. The property must be raised to a level determined by the engineering design of the Project. This is because it is a flood-prone area near the floodplain of the Paraguay River.
  • Pumping Station 05 (PS05), pumping to the arrival chamber, and complementary works for its connection to the main collector.
  • Pre-treatment (PT) with odor control and treatment, Bypass (BY), Disinfection (DES emerg), and Sub-fluvial discharge emissary (EMIS).
  • Provision of electromechanical, electronic, electrical, automation, internal and external security equipment, etc.
  • Offices, warehouses, operation and maintenance structures, fences, gates, roads, and circulation routes for both vehicles and pedestrians. Personal safety systems and equipment.
  • Interconnection for access roads to the WWTP with the South Promenade.
  • Operation and maintenance for a minimum of 1 (one) year of the constructed works and transfer of knowledge to the future plant operator.

Financing: Inter-American Development Bank (IDB) and the Official Credit Institute of the Kingdom of Spain (ICO). Approved by Law No. 7074/2023. It is noteworthy that the financing amount covers the entire work. 

Estimated Value: USD 165,000,000, of which USD 2,300,000 will be allocated to Consultancy.

Modality: International Public Tender.

Relevant Dates in Relation to the Project

  • Bid Submission Date: April 19, 2024 (9:00 am).
  • Bid Opening Date: April 19, 2024 (9:30 am).

Construction Period: 52 months plus 12 months of operation and maintenance following the inspection of the works.

Project Execution Site: The works will be carried out in the city of Asunción, and the land where the WWTP will be built is located in the Santa Ana neighborhood with an area of approximately 19 hectares. Additionally, the Sub-fluvial emissary will be executed in the Paraguay River.   

Eligibility Criteria: Companies interested in bidding must demonstrate financial capacity, technical capability, past contract performance/non-performance, among other requirements stipulated in the Project prequalification.

Subcontracting: Subcontracting the entirety of the works is not allowed. However, subcontracting for certain specialized parts of the works is permitted.

Other news:

  1. Acquisition of Aircraft for the Paraguayan Air Force

The Government announced its intention to acquire 6 "Super Tucano A 29" combat aircraft from Brazil for the Paraguayan Air Force (FAP). The aircraft would be used to combat organized crime. The investment would be approximately USD 121 million. The amount includes, in addition to the aircraft acquisition, the purchase of weapons, training programs for FAP air personnel, as well as the upgrade of another 6 "Tucano" aircraft of the FAP. The FAP commander indicated that the financing source for the aircraft purchase has not yet been decided; therefore, Government authorities are analyzing various alternatives to make the investment.

  1. Public Hearing Transmission Line 220KV Villa Hayes - Villa Real - Pozo Colorado - Loma Plata and Pozo Colorado Substation

On March 14, ANDE convened a public hearing to present the technical specifications of the construction project of the 220KV transmission line Villa Hayes - Villa Real - Pozo Colorado - Loma Plata and Pozo Colorado Substation. Among the most notable aspects of the hearing, we can mention the following: (i) it is expected that the tender will be launched during this semester; (ii) all lots comprising the tender can be awarded to one or several bidders; (iii) the tender rules will be those of the financier Kreditanstalt fur Wiederaufbau (KfW). The total value of the entire work is approximately USD 120,000,000.

For further information on any of the topics covered in this edition of our newsletter, please contact our experts: Silvia Benítezsbenitez@vouga.com.py); Manuel Acevedo (macevedo@vouga.com.py); Rodolfo G. Vouga (rgvouga@vouga.com.py); Carlos Vouga (cvouga@vouga.com.py) y Lucas Rolón (lrolon@vouga.com.py).  

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