Paraguay has awarded its first its public-private partnership (PPP) to a consortium of Spanish, Portuguese and local companies to expand and maintain two of the country’s federal highways.
Paraguay’s public works and communications ministry MOPC announced that Spain’s Sacyr, Portugal’s Mota-Engil and local road builder Ocho A won a 30-year contract for the $520m project involving the Ruta 2 and Ruta 7 highways.
The announcement late Friday came nearly three years after Paraguayan lawmakers passed PPP legislation to promote private investment in public infrastructure. Before the law’s passage, Paraguay had ranked among the countries in Latin America in need of clearer regulation to help stimulate investment in PPPs.
“In just two and half years, Paraguay was able to put in place a PPP law that in many other countries can take up to seven years,” Paraguay Finance Minister Santiago Peña said in a statement after the winning bid was announced.
The MOPC had prequalified 11 companies for the project, including Sacyr and Mota-Engil, but it only received one bid in June.
“We’re very happy to accompany the national government in its first experience in awarding a contract through a PPP,” said Jesus Vladero Canales, Sacyr’s Paraguay representative.
The project involves widening and maintaining 149km of federal highway. The three-year construction period is scheduled to begin in early 2017.
Paraguay is also reviewing the three bids it received for an airport PPP in the capital Asuncion. French airport operator Vinci Airports partnered with local construction company Talavera & Ortellado to present one offer, while Sacyr and Chile’s Agunsa also made a joint bid and Uruguay’s Cedicor made a separate offer.
Paraguayan Central Bank President Carlos Fernández Valdovinos told LatinFinance earlier this month that the country’s economy is expected to grow 4% this year, up from a previous forecast of 3.5%.