Sacyr consortium wins Paraguay’s first PPP

The $520 million project will widen and maintain part of the Pan-American Highway that accounts for around 70% of Paraguay’s economic activity.

A Sacyr-led consortium has won the first public-private partnership contract in Paraguay to build and upgrade a motorway through the country’s busiest economic corridor.

Spanish construction company Sacyr, along with Portugal’s Mota-Engil and local road specialist Ocho A won the right to build Paraguay’s first PPP project, a $520 million job to widen and maintain federal motorways that are part of the Pan-American Highway.

There were little doubts about who would win the project. While 11 consortiums expressed interest to Paraguay’s Ministry of Public Works and Communications, only the Sacyr team submitted a bid.

The project will connect the Paraguayan capital Asuncion with the country’s second largest city, Ciudad del Este, to the east, near the Brazilian border. Around 70 percent of the country’s economic activity is concentrated along this 170-kilometre stretch of road.

The winning consortium will widen Route 2 and 7, including constructing five bypasses, and is contracted to provide maintenance for 30 years. Work is scheduled to begin in 2017 and will take three years to complete.

Paraguay has been moving towards using more PPPs to finance public infrastructure projects after passing legislation three years ago to promote private investment. The government is currently reviewing three bids it received for an airport PPP in Ascuncion. Sacyr, as well as local partners and companies from Chile and Uruguay, have submitted bids.