Under Public-Private Partnership (PPP) Law 5102/13, the Ministry of Public Works (MOPC) has issued the prequalification specifications for the design, finance, construction, operation, and maintenance of Road PY01 in the Cuatro Mojones - Quiindy stretch.

The main aspects of this project are described in detail below:

Project: Improvements to Road PY01 between Cuatro Mojones and Quiindy, with a length of 108 kilometers.

The project is divided into five tranches:

  • Tranche 1: Road PY01 between Four Mojones and Ytororó.
  • Tranche 2A: Road PY01 between Ytororó and Itá.
  • Tranche 2B: Road PY01, Itá to Yaguaron, Yaguaron bypass, Yaguaron to Paraguari, and Paraguari bypass.
  • Tranche 2C: Road PY01, Paraguari to Carapeguá and the Carapeguá bypass.
  • Stretch 3: Carapeguá to Roque Gonzalez de Santa Cruz, Roque Gonzalez de Santa Cruz bypass, and Roque Gonzalez de Santa Cruz to Quiindy.

Participants: Paraguayan and/or foreign companies may participate, individually or jointly, in a consortium.

Financing Experience: Experience financing at least three PPP public infrastructure projects with an initial investment of at least $100 million each in the last 20 years. At least one of the projects must have been at least 60 percent financed. At least one of the projects must include toll operations experience. The experience may be accredited directly, via subsidiaries, branches, the parent company, or any other legal entity whose ultimate beneficial owners are identical to those of the individual bidder or one of the consortium's companies.

Financial Capacity: Minimum net worth of USD 50 million, directly or through subsidiaries, branches, or the parent company.

Technical Capability: At least five road construction and maintenance projects performed over the last ten years for a minimum total of $300 million, either directly or through subsidiaries, branches, or the parent firm.

Deadline for submission of consultations: May 2, 2023.

Submission and opening of prequalification submissions: May 31, 2023.

Competitive dialogue: The prequalification terms and conditions establish the description of the process of, and basic regulations for the competitive dialogue.

  • The competitive dialogue stage begins after the MOPC resolution with the list of prequalified bidders.
  • Prequalified bidders will receive the following minimum documentation for the competitive dialogue: (i) list of members conforming the special competitive dialogue table; (ii) a summary of the project's technical specifications; (iii) a draft of the bidding terms and conditions; (iv) a draft of the PPP contract; and (v) rules for the competitive dialogue procedure.
  • Term: One month, with the possibility of an additional month's extension.
  • Items for which submissions of proposals are expected to be received: (i) term of the PPP contract; (ii) risk distribution system; (iii) financial closing requirements; (iv) early termination and calculation of compensation; (v) release of land, roadway corridor, and expropriations; (vi) evaluation criteria for bids.

Bidding: It is expected that the bidding process will begin in December 2023. The following are the basic criteria for selecting the winning bidder:

  • Between 60% and 70% will correspond to the score assigned to the reduction offered with respect to the reference amount for the deferred investment payments ("PDI").
  • Between 10% and 20% will correspond to the reduction offered with respect to the reference amount for the availability payment ("PPD").
  • At least 80% of the score will be distributed between these two concepts.
  • A score may also be assigned to those who offer, among other things, a shorter construction period and a lower payment linked to traffic ("PVT"), so long as the sum of these factors does not exceed 20%.
  • Only those bidders whose technical bids have exceeded a minimum threshold will have their economic bids opened.

PPP Contract Summary:

  • Duration: 30 years, extendable for up to an additional 10 years.
  • Investment estimation: $445 million
  • Compensation mechanisms (reference amounts):
    • PDIs: approximately USD 38 million per year, or USD 644 million in total.
    • PPD: approximately USD 20 million per year, or USD 538 million in total.
    • PVT: Approximately USD 5 million per year, or USD 148 million in total.
    • Additional income from the installation of gas stations and advertising, at the initiative of the winning bidder and with MOPC approval.
  • Resources to be invested by the bidder: at least 20% of the total investment requirements. 50% of such resources must be in the form of capital stock.

 

Contacts:

Carlos Vasconsellos - [email protected] 

Claudia Arietti - [email protected]