MARCH 26. 2014
The Executive Branch announced days ago the 3 main investment projects which will be promoted under the Public-Private Partnership regime in Paraguay. With the enactment in the month of March of the Regulatory Decree of the Public-Private Partnership Law (Law 5102/2013), the projects are expected to be advanced immediately.
The Regulatory Decree was signed by President Horacio Cartes on March 12, a fact that generates a positive outlook towards what may become the first PPP projects in the country, which include:
- The improvement and expansion of routes 2, 6, 7 and 1 which form a triangle linking Asunción –Ciudad del Este – Encarnación, with a total length of approx. 800 km. The estimated cost of the project is of USD 988 million, excluding the required expropriations.
- Paraguay-Paraná Waterway dredging and signaling. This project is of utmost importance for the country both from the strategic and logistic standpoint, since 80% of the Paraguayan foreign trade is transported through river navigation. The project entails an initial investment of approx. USD 104 million and annual maintenance of USD 17 million.
- Modernization of International Airport Silvio Pettirossi (Asunción). According to estimations of the Ministry of Public Works and Communications (MOPC), the airport requires an investment of approx. USD 100 million in order to upgrade equipment and facilities. Between the Silvio Pettirossi Airport and the Guarani Airport (Ciudad del Este), over 10.000 tons of cargo per year are transported, and there is a growth expectation of 50% for the following 10 years.
These three projects aim to strengthen Paraguay’s internal and external interconnectivity, which is one of the biggest challenges for the country to continue its economic expansion.
According to MOPC estimations, the following are the investment amounts required in diverse infrastructure areas:
- Roadway system: USD 3300 million, 3 years of construction work and 20 - 25 years of operation
- Distribution of electricity: USD 461 million
- Transmission of electricity: USD 1816 million
- Air transportation: USD 110,5 million
- River navigation: USD 214 million, 2 years for dredging and annual maintenance after 4 - 6 months.
For more information about these projects or to obtain a copy of the PPP Law or the Regulatory Decree, please do not hesitate to contact us.