The Paraguayan Government has announced a new tender under Law 5074/13 for Turnkey Projects. This initiative involves paving 75 km of Route PY10, from San Cristóbal, through Caazapá, to Paso Yobái in Guairá. The estimated investment is USD 100 million, with the works expected to be completed within three years.
Law 5074/13 for Turnkey Projects regulates the execution and procurement of public works or services via tenders issued by the Paraguayan government. Under this law, bidders are responsible for designing, constructing, and financing the projects. The Paraguayan State assumes the payment obligations, which are backed by a sovereign guarantee. These obligations are contingent upon the delivery and acceptance of completed and usable milestones (the Completed and Usable Milestones).
Upon the delivery and acceptance of a Completed and Usable Milestone, the Paraguayan government will issue a Certificate of Payment Obligation Recognition (CROP) in US dollars, corresponding to the value of each milestone. The CROPs are transferable, unconditional, irrevocable, and autonomous.
FERRERE advised the Consorcio del Sur on the Costanera Sur project under Law 5074/13 for Turnkey Projects, which encompasses the design and construction of a 7.7 km avenue extending from Cerro Lambaré to Avenida Colón. Costanera Sur is the most recent of the three infrastructure projects executed under Law 5074/13 for Turnkey Projects in Paraguay.