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Paraguay's Ministry of Public Works and Communications (MOPC) and the consortium led by Sacyr Concesiones have signed the contract for the construction and operation of Road 2 (between Asunción and Coronel Oviedo) and Road 7 (between Coronel Oviedo and Caaguazú), with a planned investment in construction amounting to US$520 and a revenue backlog of US$1.47 billion in a 30-year concession.

This is the first roadway project under the new Public-Private Alliance (APP) Law of Paraguay, and the development of this project is vital to the country's growth: this is the most important corridor of the country, where 70% of the country's economic activity is concentrated.

As we reported in October 2016, MOPC awarded the project to the consortium composed of Sacyr, Mota Engil and Ocho A, which had submitted the only proposal for the project.

The contract encompasses 170 km of roadways that will be widened, improved, operated, and maintained by the concessionaire, including the construction of 5 by-passes between the cities of Asunción and Caaguazú. Maintenance of the corridor will substantially improve the standards of quality and will have an impact on greater driver safety and comfort.

Highlights of the main actions that will be carried out include the following:

• Upgrading work: improvements from km 13 to km 34 and from km 39 to km 40.5: a total length of 22.5 km.
• Widening and expansion works: Km 34 (start of the Ypacaraí by-pass) to km 183 (start of the Tape Porá section): a total length of 149 km.
• Maintenance and operation: Km 33 (start of the Ypacaraí by-pass) to km 183 (start of the Tape Porá section): a total length of 149 Km.
• By-passes included in the project: Ypacaraí, Caacupé, Itacurubí de la Cordillera, San José de los Arroyos, and Coronel Oviedo.
• Viaducts and traffic circles:
  • 1 traffic circle with a two-level interchange in Coronel Oviedo
  • 2 viaducts in Caaguazú.
  • 1 "trumpet" type interchange in Caaguazú

Sacyr Concesiones continues with a business strategy that is focused on the development of projects in Latin America, thereby showing its firm commitment to the development of Paraguay's infrastructures. It is confident that, after the success of this first package of APP projects, the trend will continue with upcoming infrastructure tenders by the country's government.