The Ministry of Public Works and Communications (MOPC) has issued a tender for the design and construction of asphalt paving on the San Cristóbal – Paso Yobái section of Route PY10. This project will be entirely contractor-financed under the "turnkey" modality, in compliance with Law 5074/13.

Key highlights of the tender

  • Tender value: Gs. 765,737,125,276 (approximately USD 98 million).
  • Procuring entity: Ministry of Public Works and Communications (MOPC).
  • Contract Structure: turnkey agreement with 100% contractor financing.
  • Eligibility requirements:
    • Participation is open to individuals and companies domiciled in Paraguay and registered as state suppliers.
    • Branches of foreign entities may participate; however, only their operational experience within Paraguay since their establishment will be considered. Past performance of the parent company or other international affiliates is excluded.
    • Consortia are permitted, allowing bidders to pool expertise and resources.

Project overview

  • Scope: the project is divided into two lots, with a total of 15 milestones:
    • Lot 1: includes 6 milestones covering 36.76 km, with a 24-month execution period.
    • Lot 2: comprises 9 milestones spanning 42.99 km, also with a 24-month timeline.

Certificates of recognition of payment obligation (CROPs)

  • CROPs are issued upon the completion of each milestone, formalizing the Paraguayan State’s payment obligation.
  • CROPs will be issued in Guaraníes, rather than in U.S. dollars, as was the case with previous turnkey projects under Law 5074.
  • They represent public debt guaranteed by the National Treasury, are unconditional and irrevocable, and specify payment amounts, schedules, and terms, including interest.
  • CROPs can be transferred to third parties with prior authorization.

Financing conditions

  • Total Term: 15 years (30 semesters), including a grace period of 3 to 5 years.
  • Amortization: semiannual payments.
  • Interest Rate: can be fixed or variable. If variable, it will be definitively set within 270 days of contract signing or at financial closure, whichever comes first.
  • Variable rate calculation: indexed to the yield on Paraguay’s PYTNA01F0902 bond in Guaranies maturing in 2040.
  • Discount Rate: Varies by weighted average financing term, with rates as follows: 5 years (7.31%), 10 years (7.81%), and 15 years (8.01%).

Bid submission

  • Submission requirements: proposals must include two envelopes: one for technical proposals and another for economic-financial offers.
  • Bid security: 5% of the bid amount, valid for 270 days.

Tender deadlines

  • Inquiry deadline: March 5, 2025.
  • Bid submission deadline: March 12, 2025.
  • Bid opening date: March 12, 2025.

FERRERE advised Consorcio del Sur on the Costanera Sur project under Turnkey Law 5074/13. This project involved the design and construction of a 7.7 km avenue stretching from Cerro Lambaré to Avenida Colón. Costanera Sur is the latest of three infrastructure projects executed under Paraguay’s Turnkey Project Law.