Paraguay confirms only 5 PPP projects will move forward

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Paraguay confirms only 5 PPP projects will move forward

Paraguay has confirmed that only five out of the twenty proposed public - private partnership (PPP) projects will be tendered using the partnership model.

According to José Molinas, Minister of Planning for Economic and Social Development, fifteen projects have been left behind due to the fact that there were better financing options than using the PPP model.

Two of the projects that were discarded are the upgrade, operation and maintenance of the Apa river - Paraná river junction waterway and the railway system between Asunción and Ypacarí.

The total estimated investment for the 5 confirmed projects is US$800 million The tender processes for the projects are expected to be launched between the end of 2014 and the beginning of 2015.

The five projects approved include:

There is also a request from the Ministry of Public Health for the expansion of primary healthcare centers through a PPP project. The fifth project has not been disclosed because it has not been declared of public interest yet.

The Civil Aviation Authority of Paraguay (DINAC) issued a press release on Sept. 19th confirming that the Pre-feasibility studies for the Silvio Pettirossi international airport modernization project had already started with funding from the European Union.

The project will involve the construction of a new airport terminal and the reconstruction of the existing facilities to transform them into administrative offices.

The Alanet Global Consortium is already working on the studies and it is estimated that the studies will be ready in 60 days.

DINAC will initially submit the Pre-feasibility studies to the PPP Unit of the 'Secretaría Técnica de Planificación (STP)'. Then, it will submit the final Feasibility study for the final approval before the tender process takes place.

In August the local press reported that the San Cristóbal-Naranjal road will be the first project to be tendered using the PPP model. The 42.7-Km stretch links the cities of Encarnación and Ciudad del Este.

The project includes the construction, finance, operation and maintenance of the road stretch. It has an estimated investment of $26.9 million, which would be mostly covered with tolls.

The Pre-feasibility study for the project has already been approved. Benito Roggio SA is working on the final feasibility study.

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