Author: dev_

Paraguay's Minister of Foreign Affairs, National Chancellor Eladio Loizaga, has confirmed the approval of Paraguay's entry into the Development Centre of the Organization for Economic Cooperation and Development (OECD), which gives Paraguay an important international position. 

The session of the OECD Board of Directors approved last Thursday (26/01/2016) the incorporation of Paraguay to this institution, as confirmed by the Minister of Foreign Affairs. 

Founded in the 1960s, the OECD brings together several countries with the mission of promoting policies that improve people's economic and social well-being, providing a forum where governments can work together to share expertise and seek solutions to common problems, jointly measuring productivity and global trade and investment flows. 

Paraguay's membership in this organization undoubtedly represents an important seal of good practice and gives the country a significant image. 

The Secretariat for Consumer and User Defense (SEDECO) issued Resolution SDCU No. 390/16, by which it regulated the right of consumers to the proportional reduction of interest in case of early cancellation of debts, sales or provision of services on credit, as established in Art. 30 of Law No. 1334/98.

The proportional reduction consists of not considering the interest not accrued on the principal debt -capital-, for which purpose the aforementioned Resolution adopts the debt rescheduling procedure instead of applying a discount rate. This reduction may not be hindered, limited or conditioned to the payment of any penalty, regardless of its denomination.

The Resolution also provides for the obligation to issue to consumers, immediately, a clear, simple and detailed settlement of debts. To this effect, it establishes the simple nominal interest formula to determine the interest of the re-settlement, which will be calculated on the unit of time “Year“ expressed in whole numbers or in their fractions (common or decimal), as appropriate.

The regulation also imposes administrative sanctions on suppliers and providers that deny or hinder consumers from fully exercising the rights contained in the aforementioned regulation. Its application is under the authority of SEDECO, through a free administrative procedure that begins with the filing of a claim or complaint by the affected consumer.

For further information, please contact: Marco Colmán (mcolman@vouga.com.py) or Marcela Dos Santos (madosantos@vouga.com.py) 

As part of a regional effort aimed at facilitating the granting of patents to those who have simultaneously filed applications in more than one of the countries that make up the Prosur-Prosul Industrial Property Cooperation System -Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay-, the National Directorate of Intellectual Property (DINAPI) issued last December 9 Resolution DINAPI/RG/N° 14/2016, approving the guide for filing an application to participate in the accelerated patent examination procedure (PPH) in Paraguay, as agreed between the industrial property offices that make up said cooperation system.

By means of this resolution, the MOTTAINAI principle will be applied as a basis, which allows considering the patentability examination evaluated by an Office of Prior Examination (OEA) by the Office of Subsequent Examination (OEP), thus ensuring that the Patent applicant has the benefit of an accelerated examination of the corresponding application, as long as the requirements established in the aforementioned Resolution are met.

The incorporation of this procedure, aimed at accelerating the examination of patent applications for inventions and utility models, is part of a three-year Pilot Plan.

In the attached file you will find the Resolution mentioned above.

For further information, please contact: Laura Lezcano (llezcano@vouga.com.py).

FMO hired Vouga Abogados for the structuring of a credit line of up to US$ 10 million granted to the agrochemical company Agrofértil.

The line will be used to increase Agrofértil's financing capacity for the acquisition of agricultural inputs by producers.

The loan is secured by a guaranty trust administered by the trustee, a local bank. The trust is comprised of promissory notes and other receivables transferred by Agrofértil to the trust.

The transaction was signed on November 2 with the participation of attorneys Cynthia Fatecha and Carlos Vouga for Vouga Abogados.

The state-owned company FERROCARRILES DEL PARAGUAY S.A. (FEPASA) recently approved an initial proposal submitted for feasibility studies for the construction of a freight train in Paraguay. The project intends to take advantage of the existing strip of land between the connection of the Aba'i branch line (Department of Caazapá) with San Salvador (about 40 km), from that point -always following the old route- to Paraguarí, and from this point a new link would be created with the area of Villeta on the Paraguay River, which would complete a total of almost 200 km.

According to statements made by FEPASA's President, the Bolivian company Ferroviaria Oriental S.A. of Bolivia -which had presented itself under the modality of private initiative, contemplated in its General Regulations applicable to the development of projects- would invest at its own risk some US$1.6 million in the second phase for the preparation and presentation of a final proposal, an amount that could be recovered in the event of opting to participate in the third phase, for the subsequent selection by FEPASA of a partner to carry out the project -whose initial estimates would be in the order of US$450 million- provided that the project is viable and of interest.

The aforementioned presentation of the private initiative proposal counted on the legal advice and assistance of the Infrastructure Department of Vouga Abogados.

For further information, please contact: Jorge Figueredo Klein jfigueredo@vouga.com.py.

Last October 10, Decree 6092/2016 was enacted, which highlights in its recital the importance of energy as a factor of economic growth, industrial development and social progress, as well as the indispensability of the development of State policies that are aimed at meeting the energy needs of the population and all productive sectors, with criteria of quality, socio-environmental responsibility and efficiency.
 
The aforementioned decree defines the country's Energy Policy for the next 25 years. Given its strategic location, Paraguay occupies a central place in regional integration and should aim at the sustainable use of its natural resources to obtain clean and renewable energy.
 
To achieve this goal, through the effective implementation and monitoring of the Energy Policy, five key overarching objectives have been established for the National Electricity Sector:

a) Guarantee energy security based on the following criteria: self-sufficiency, efficiency, minimum cost and socio-environmental responsibility;
b) Ensure access to quality energy for the entire population with attention to consumer rights;
c) Use national energy sources;
d) To consolidate Paraguay's position as a hub of regional energy integration; and
e) To promote understanding of the importance of energy and its sustainable use.
 
In order to achieve the aforementioned objectives, the Annex to Decree 6092/16 establishes the following methodology for the development of the energy policy:
First, the higher and specific objectives of the National Energy Sector are defined in accordance with the vision of the energy policy, and then the objectives -both higher and specific- of the different energy sub-sectors are established.
Thus, the National Energy Sector and its four subsectors are duly framed, which are:
Electrical subsector,
Binational hydroelectric entities and electricity integration,
Bioenergy and alternative sources, and
Hydrocarbons,
indicating that there is a correspondence between the specific objectives of each subsector with those of the National Energy Sector (see Table 2 of the Annex to Decree No. 6092/2016).
To better organize the action plans proposed by the standard, three strategic axes are defined (see Table 1), with their respective strategic lines, instruments and goals for the short (2017-2023), medium (2024-2030) and long term (2031-2040).
Among the strategic lines, instruments and goals of great relevance detailed in the Annex to Decree 6092/16 -especially those related to the regulatory, institutional and financial areas- we can highlight the following:

Regarding the National Energy Sector: the creation of a Ministry of Hydrocarbons and Energy, the creation of the National Energy System (SISNAE) through the enactment of a Law of creation and its corresponding regulations, a strengthening plan for the National Council of Public Companies (CONAPE) and a Law of competitiveness of public companies in the energy sector, ANDE's management contracts with CONAPE, PETROPAR's management contracts with CONAPE, guaranteeing public and private financing for maintenance investments, modernization, infrastructure expansion and technological development, the legal framework for environmental safeguards (with emphasis on energy issues).
Regarding binational hydroelectric entities: the creation of a National Infrastructure Bank for Economic and Social Development (BNIDES), which will be - according to the strategic lines of the financing plan - an institution that will channel resources originating in the sector for the development of infrastructure in the country to support economic development, the approval of a Law on the use of additional financial resources from the energy sector, a strategy for the renegotiation of Annex C of the EBY, a Strategic Plan for the commercialization of Paraguayan Energy from the Paraná hydroelectric complex (Paraguay/Argentina; EBY and future CHB) and Itaipú Binacional, the revision of the 1979 tripartite agreement.

Regarding the Electricity Subsector: a National Plan for internal commercialization of electric energy 2017-2023, a National Plan of auctions for Electric Energy contracting, the promotion of electricity in the Energy Matrix, an electric mobility program in the public sector.

In the area of Bioenergy and alternative sources: the strengthening of INFONA, the creation of national funds for the development of renewable energy, the approval of a law for the independent generation of electric energy, the preparation of regulations for the transportation of electric energy, distributed generation and energy transactions with independent producers, the promotion of alternative energy sources.

In Hydrocarbons: regulate price formation and regulate fuel prices, encourage PETROPAR's participation at the national and international level in all activities of the hydrocarbon value chain, a new legal framework for hydrocarbons, a strategic plan for PETROPAR (2016-2023), a strategy for PETROPAR's association with companies, a strategy to raise financial resources for PETROPAR, the beginning of the construction of a refining plant.
 
For further information, please contact: Marta Martínez (mmartinez@vouga.com.py)

In order to promote the culture of entrepreneurship in the country, Law 5669/2016 , whose main purpose is the creation of a regulatory and institutional framework that lays the foundations to promote the entrepreneurial culture and the creation and permanence of formal businesses in the economy, through the establishment of incentives that allow the development of companies, access to financing and their stability to generate the jobs that Paraguay needs, was recently enacted.

This year, the Global Entrepreneurship and Development Institute (GEDI) placed Paraguay in 93rd place in the world ranking and in 17th place in the world ranking.[1] at the regional level, in terms of an ecosystem suitable for starting a business venture.

Although we are not among the top ranked companies, we are taking important steps at the national level to promote this culture of great impact on the economy, taking into account that national companies created by entrepreneurs generate direct benefits to the national economy, which makes it necessary to promote them.

Within the framework of this objective, the aforementioned Law creates the National Entrepreneurship Directorate (DINAEM), under the Vice-Ministry of Micro, Small and Medium Enterprises (MYPYMES), and the National Registry of Entrepreneurs.

Another noteworthy point of great value for any entrepreneur seeking a profitable source of financing is that the Law establishes that the Vice Ministry (MYPYMES) will promote Business Incubation Centers, as well as the creation of the Seed Capital Fund, the Angel Investors Fund and investment networks, so that SMEs and entrepreneurs will have more financial tools to promote their ventures, making them profitable and sustainable over time.

Undoubtedly, profitable financing accompanied by comprehensive legal advice -including intellectual property, tax, corporate, labor and other areas- will allow every entrepreneur to achieve his or her main objective, which is to consolidate his or her enterprise.

Starting a business is always the realization of a dream for those who undertake it and, therefore, it is essential to know the advantages of starting it with a comprehensive and experienced comprehensive advice. Vouga Abogados supports and promotes the culture of entrepreneurship, with the desire that Paraguay climbs in the GEDI Ranking and consolidates itself as a country with an ecosystem suitable for the development of entrepreneurs.

For further information, please contact: Walter David Vera wvera@vouga.com.py

[1] https://thegedi.org/countries/paraguay
 

As part of the project “Downtown reconversion, modernization of metropolitan public transportation and government offices”, the Paraguayan State, through the Ministry of Public Works and Communications (MOPC), will tender the construction of five public buildings of some Ministries of the Executive Branch. The tender will be international and the works are expected to start in 2017.

The estimated investment of the project was approved through LAW No. 5,133.[1] and is approximately seventy-five million US dollars (USD 75,000,000), its main objective being to reconvert the historic center of the city of Asuncion and the Port of Asuncion area on the Paraguay River.

This project will have a great cultural, social and urban impact on the capital of the Republic of Paraguay and will be financed by the Inter-American Development Bank (IDB), for which reason the rules and conditions of said financial entity will be applied, without the participation of the Public Procurement Directorate in the bidding process.

If you would like to receive more information, please do not hesitate to contact us.

[1] LAW 5133/2013, APPROVING LOAN AGREEMENTS N°s 2419/OC-PR FOR US$. 47,000,000 (UNITED STATES OF AMERICA DOLLARS FORTY-SEVEN MILLION) AND 2420/BL-PR FOR US$. 78,000,000 (UNITED STATES DOLLARS SEVENTY-EIGHT MILLION), SIGNED WITH THE INTER-AMERICAN DEVELOPMENT BANK (BID) ON OCTOBER 9, 2010, AMENDED BY AMENDMENT AGREEMENT NO. 1 OF MAY 18, 2011; AND LOAN AGREEMENT NO. 1386P SIGNED WITH THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES FUND FOR INTERNATIONAL DEVELOPMENT (OFID) ON MARCH 25, 2011, FOR US$. 19,000,000 (NINETEEN MILLION UNITED STATES DOLLARS), FOR THE FINANCING OF THE PROGRAM 'DOWNTOWN RECONVERSION, MODERNIZATION OF METROPOLITAN PUBLIC TRANSPORTATION AND GOVERNMENT OFFICES', WHICH WILL BE IN CHARGE OF THE MINISTRY OF PUBLIC WORKS AND COMMUNICATIONS (MOPC); AND EXTENDS THE GENERAL BUDGET OF THE NATION FOR FISCAL YEAR 2013, APPROVED BY LAW NO. 4848 OF JANUARY 2, 2013.

On August 23, a public hearing was held in the Bicameral Room of the National Congress in relation to the Bill “That develops Non-Conventional Renewable Energy Sources and their special regimes”, at the request of the Senate Commissions of Industry, Commerce and Tourism and Legislation and Codification, which must rule on it.

The hearing was attended by the Vice Minister of Mines and Energy and technicians from ANDE, INTN, the Secretariat of the Environment, the Ministry of Finance, associations such as the Paraguayan Association of Renewable Energies (APER), academics and private sector entrepreneurs.

In his opening remarks, Senator Fernando Silva Facetti stated that the Law seeks to encourage private investment in the sector and that it complements Law 3009/2006 “ON THE INDEPENDENT PRODUCTION AND TRANSPORTATION OF ELECTRIC ENERGY (PTIEE)”, which is currently in force. Meanwhile, Senator Arnaldo Giuzzio -who is another of the drafters, together with Senator Arnoldo Wiens- stated that this bill would be presented in the next thirty days, after the approval of the Paris Framework Agreement on Climate Change.

Vouga Abogados attended this presentation and, for several years, has been supporting the promotion of renewable energies in the country. In this sense, it actively participated in the legal advice of the Renewable and Sustainable Energy Roundtable of REDIEX (a public-private instance of the Ministry of Industry and Commerce for the promotion of non-traditional investments and exports), from which an initiative of “Paraguay's Renewable Energy Plan” was developed based on the experience and analysis of regulatory trends in other countries of the region, adapted to the local reality. From this text have been extracted the grounds for the aforementioned bill, by the aforementioned Senators proponents.

Should you wish to have the latest version of the draft bill, distributed at the aforementioned public hearing, please do not hesitate to contact:

Jorge Figueredo Klein – jfigueredo@vouga.com.py;