The Executive Branch announced a few days ago the 3 priority infrastructure investment projects that will be promoted under the Public-Private Partnership regime in Paraguay. With the enactment in March of the Regulatory Decree of the Public-Private Partnership Law (Law 5102/2013), the projects are expected to be promoted immediately.
The Regulatory Decree was signed by President Horacio Cartes on March 12, and generates a positive expectation in relation to what could be the first PPP projects in the country, which include:
- The improvement and widening of Routes 2, 6, 7 and 1, which form a triangle linking Asunción - Ciudad del Este -Encarnación, with a total length of approximately 800 km. The estimated cost of the project is approximately USD 988 million, excluding the necessary expropriations.
- Dredging and signaling works on the Paraguay-Paraná Waterway. This project is of great logistical and strategic importance for the country, since 80% of Paraguay's foreign trade is transported by waterway. The project involves an initial investment of approximately USD 104 million and annual maintenance of USD 17 million.
- Modernization of Silvio Pettirossi International Airport (Asunción). According to estimates of the Ministry of Public Works and Communications (MOPC), the airport requires an investment of approximately US$100 million for the modernization of equipment and physical facilities. Between Silvio Pettirosi Airport and Guaraní Airport (Ciudad del Este), more than 10,000 tons of cargo are handled per year, and these figures are expected to grow by 50% in the next 10 years.
The three projects seek to improve Paraguay's internal and external interconnectivity, one of the country's greatest challenges to continue its economic expansion.
According to MOPC estimates, the following amounts are required in the various infrastructure areas:
- Road system: USD 3300 million, 3 years of construction and 20 - 25 years of operation.
- Electricity distribution: USD 461 million
- Electricity transmission: USD 1816 million
- Air transportation: USD 110.5 million
- River transportation: USD 214 million, 2 years of dredging and annual maintenance after 4 - 6 months.
For more information about the projects, or to receive a copy of the PPP Law and the Regulatory Decree, please do not hesitate to contact us.
