Executive Summary
| Event | Date | Content |
| Infrastructure | International Public Tender | May 13, 2026 | The National Directorate of Public Procurement (DNCP) published the call by the Ministry of Public Works and Communications (MOPC) for the construction of sustainable housing in Bañado Sur (Barrio Tacumbú). |
| Regulation of the Renewable Energy Law | May 19, 2026 | Renewable Energy | Promulgation of Decree No. 6034/2026, which regulates Law No. 7599/2025 "On the Modernization of the Regime that Regulates and Promotes the Generation of Electric Power from Non-Conventional Non-Hydraulic Renewable Energy Sources." |
| Infrastructure | International Public Tender | May 22, 2026 | The DNCP published the MOPC call for the rehabilitation and maintenance of the following road sections: Cruce Primavera (PY22) – San Ramón (14.56 km); San Ramón – Concepción (PY22) (13.10 km); access to the Paracel plant site (3.99 km); Santa Rosa access – Route PY05 (4.68 km), with a total length of 36.33 km. |
| Infrastructure | International Public Tender | May 22, 2026 | The DNCP published the MOPC call for the rehabilitation and maintenance of the Concepción – Vallemí – San Lázaro section, with a total length of 181.3 km. |
| Mobility | Suburban Rail Bill | May 26, 2026 | Congress passed the bill "Amending and expanding Law No. 7434/2025 – On the Suburban Rail Reform – and establishing special provisions for the implementation of the project through Government-to-Government (G2G) agreements." |
Executive Summary
I. Infrastructure | Construction of Sustainable Housing in Bañado Sur (Barrio Tacumbú)
- General Overview
On May 13, 2026, the Ministry of Public Works and Communications (MOPC), through the National Directorate of Public Procurement (DNCP), published International Public Tender 485278 (MOPC Call No. 13/2026) (the "Call") for the construction of various types of sustainable social housing in the new Bañado Tacumbú neighborhood, covering all specialties, including the structural and installation works defined in the approved executive project design (the "Project"). The objective of the Project is to improve the housing conditions of the riverside population in the southern area of Asunción.
- Key Features
Project Value and Financing
The works have an estimated value of Gs. 355,160,414,605 (approximately USD 58,000,000). The Project will be financed with funds from the loan granted by the Inter-American Development Bank (IDB) under Loan Agreement No. 4700/OC-PR, approved by Law No. 6424/2019.
The Project is divided into 9 lots: Lots 1 to 3 include 120 single-family homes each (approx. USD 4,600,000 – 4,700,000 per lot); Lots 4 to 6 include between 230 and 231 single-family homes each (approx. USD 8,900,000 – 9,100,000); and Lots 7 to 9 include between 8 and 10 multi-family buildings each (approx. USD 4,976,000 – 6,203,000). Each bidder may be awarded only one lot.
The anticipated execution periods are:
- Lots 1, 2, and 3: 12 months from the notice to proceed.
- Lots 4, 5, and 6: 14 months from the notice to proceed.
- Lots 7, 8, and 9: 15 months from the notice to proceed.
Financial Conditions
An advance payment of 10% of the contract value is provided. Bid maintenance guarantees range between approximately USD 137,000 and USD 270,000 depending on the lot. The award system is based on the lowest qualifying bid that meets the substantive conditions of the bidding documents. Subcontracting is permitted with prior approval from the Works Manager.
Award System
The contract will be awarded to the lowest compliant bid that meets the substantive conditions of the bidding documents. The Call is governed by the IDB Procurement Policies (GN-2349-9).
Subcontracting
The contractor may subcontract works subject to prior approval from the Works Manager.
Contracting Authority
MOPC.
Key Dates
The key dates are: June 30, 2026 — deadline for submission of queries; July 6, 2026 — deadline for submission of bids (9:00 a.m.) and bid opening (9:30 a.m.) at the Main Hall of the MOPC Central Building.
II. Regulation | Non-Conventional Non-Hydraulic Renewable Energy Law
On May 19, 2026, the Executive Branch issued Decree No. 6034/2026 (the "Decree"), which regulates Law No. 7599/2025 "On the Modernization of the Regime that Regulates and Promotes the Generation of Electric Power from Non-Conventional Non-Hydraulic Renewable Energy Sources" (the "NCRE Law").
The Decree sets out the operational framework for the various categories authorized under the NCRE Law: Self-Generator, Co-Generator, Generator, and NCRE Exporter. It is important to note that not all mechanisms under the Decree apply equally to each category. The most relevant provisions are detailed below, organized by applicable category.
I. NCRE Co-Generators and Self-Generators – NCRE Reference Tariff
The remuneration that ANDE pays Self-Generators and Co-Generators for energy injected into the National Interconnected System (NIS) is determined based on the NCRE Reference Tariff. This tariff is set annually by MOPC through resolution, based on a technical report that ANDE must submit before March 31 of each year, detailing its generation costs by time block and voltage level.
The NCRE Reference Tariff is differentiated by time of day (Peak and Off-Peak) and by the type of energy injected:
- Interruptible Energy — energy whose supply cannot be permanently guaranteed and whose dispatch is not firm: remuneration equals ANDE's Average Generation Cost (AGC). The advantage for the licensee is that it bears no obligation to guarantee a minimum supply. The limitation is that the price received is only the AGC, with no additional capacity or ancillary service components.
- Non-Interruptible Energy — energy that is firmly and permanently assured: remuneration considers the AGC plus firm capacity, ancillary services, and, potentially, the injection point location. The price is potentially higher, but requires the licensee to guarantee supply firmness, which may require storage systems or other backup sources.
As of the date of publication, the AGC has not yet been determined, nor has the methodology for its calculation — including whether ANDE's own hydroelectric generation will be included or excluded — been established by MOPC. This is a pending definition of high relevance for the economic viability of Self-Generation and Co-Generation projects.
- NCRE Generators – Tender Process
- Tender, Reference Price, and Contracting Modalities
Unlike NCRE Self-Generators and Co-Generators, NCRE Generators sell their energy to ANDE (when not selling to Large Consumers) through competitive international public tender processes. The Decree regulates three central aspects of this process:
Reference Price. The Decree establishes that MOPC will determine the methodology for calculating the Reference Price applicable to Generator tenders, based on a prior technical report from ANDE. This price considers the specific characteristics of each NCRE source, storage systems, the geographic location of the connection point to the NIS, and the voltage level. The Reference Price published in each call for tenders will constitute, as is common in all competitive processes, the maximum award value — i.e., it operates as a ceiling for bids, not as a fixed price — thereby preserving the competitive incentive and allowing the effective price to be lower depending on the bids received. As of the date of this publication, the methodology for calculating the Reference Price has not yet been established by MOPC.
Contracting modalities. Bidding documents and contracts may include three energy acquisition modalities:
- Open Modality: ANDE undertakes to purchase a minimum quantity and may require up to a maximum quantity defined in the bidding documents.
- Defined Quantity Modality: ANDE acquires a fixed and unique quantity of energy.
- Modality for Interruptible Sources: The NCRE Generator is not obligated to supply a minimum quantity, and ANDE undertakes to purchase all the energy that the NCRE Generator is able to produce. This modality is best suited for variable generation sources such as solar or wind.
In all cases, ANDE must have budgetary authorization to cover the maximum quantity of energy to be acquired.
Tender procedures may also include electrical energy storage systems or be called solely for storage. Tenders will be governed by Law No. 7021/2022 on Public Supply and Procurement, with the exceptions set forth in the NCRE Law.
- Incorporation of the Special Purpose Vehicle (SPV)
The successful bidder (NCRE Generator) in an NCRE tender must incorporate a Special Purpose Corporation (Sociedad Anónima de Objeto Específico – SOE) in Paraguay within 60 business days from the date the award resolution becomes final. The SPV will be the contracting party in the NCRE Connection and Supply Agreement. The awardee must maintain a majority shareholding in the SPV, with a minimum of 51%, which the bidding documents may increase.
In the case of a consortium award, the SPV must be incorporated with the same partners and in the same proportions as the consortium at the time of the award. Prior to contract execution, the SPV must be registered with the DNCP State Suppliers Registry.
- Public Tender Award – Guarantees
The Decree establishes three mandatory guarantees applicable to the Generator:
- Bid maintenance guarantee: between 0.5% and 5% of the estimated total project cost.
- Performance bond – construction phase: required prior to contract execution; amount and term to be defined in the bidding documents, with a maximum of 5% of the total awarded amount.
- Performance bond – operation and maintenance phase: required prior to commencement of supply; maximum of 5% of the total awarded amount, decreasing in proportion to annual contract execution.
All guarantees may be provided by deposit, bank guarantee, surety bond, standby letter of credit, or insurance policy, issued by entities authorized by the Central Bank of Paraguay and the Superintendency of Insurance.
- NCRE Administration and Payment Trust
The Decree establishes the complete operational framework for the NCRE Supply Administration and Payment Trust, with the MEF as settlor and the AFD as trustee. The trust is declared a matter of public utility and priority.
ANDE must fund it at least 12 months in advance of each scheduled payment. Its establishment is optional and conditioned on whether the call for tenders provides for it: if the bidding documents do not include it, the applicable payment regime is that of Law No. 7021/2022. The trust's obligations may be partially guaranteed by multilateral credit agencies, at the Generator's cost.
- Assignment of Rights and Arbitration
The Connection and Supply Agreement and the SPV's shares may be assigned to third parties once supply has commenced, provided the assignee demonstrates technical and financial capacity, obtains the corresponding NCRE License, and receives prior authorization from ANDE.
The Decree provides for the possibility of agreeing to institutional or ad hoc arbitration for the resolution of contractual disputes, seated in Asunción, although the parties may agree on a foreign seat when the scale of the project or other relevant factors so justify. ANDE will be a necessary party in the arbitral proceedings, and the Attorney General's Office (Procuraduría General de la República) will intervene as an accessory party. ad hoc para la solución de controversias contractuales, con sede en Asunción, aunque las partes pueden consensuar una sede en el extranjero cuando la envergadura del proyecto u otros factores relevantes lo justifiquen. La ANDE será parte necesaria en el proceso arbitral y la Procuraduría General de la República intervendrá como coadyuvante.
- Overall Assessment
The promulgation of Decree 6034/2026 is a significant milestone for the sector: for the first time, Paraguay has a complete operational framework for private participation in non-conventional renewable energy generation. The framework is more robust and bankable than the previous regime — terms of up to 30 years, payment trust, arbitration, Large Consumer provisions — and addresses several of the limitations that had constrained market development under Law No. 6977/2023.
However, the full functioning of the regime depends on the issuance of additional regulatory instruments still pending: the AGC methodology and the NCRE Reference Tariff for Self- and Co-Generators; the Reference Price methodology for Generators; the NIS connection guidelines; and the resolution defining which sources qualify as interruptible or non-interruptible. The speed with which MOPC and the Vice Ministry of Mines and Energy issue these instruments will be decisive for the market to begin operating at the scale the country needs.
To access the text of the Decree, click here: Decree No. 6034/26
- Infrastructure | Rehabilitation and Maintenance of Road Sections: Cruce Primavera – Concepción and Access Roads
- General Overview
On May 22, 2026, the Ministry of Public Works and Communications (MOPC), through the DNCP, published International Public Tender 488092 (MOPC Call No. 07/2026) (the "Call") for the rehabilitation and maintenance by service levels of the following road sections: Cruce Primavera (PY22) – San Ramón (14.56 km), San Ramón – Concepción (PY22) (13.10 km), access to the Paracel Plant (3.99 km), and Santa Rosa access – Route PY05 (4.68 km), with a total length of 36.33 km (the "Project"). The Call was issued as a single lot.
- Key Features
Project Value and Financing
The Project has an estimated value of Gs. 269,224,597,643 (approximately USD 44,000,000) and will be financed with funds from the joint CAF/OFID loan approved by Law No. 7517/2025. The Call was issued ad referendum, with MOPC in the process of obtaining the corresponding budgetary extension.
Execution Period
The contract execution period is 84 calendar months from the notice to proceed, with an initial 4-month period for the elaboration of the executive design, followed by 20 months for construction from the physical notice to proceed, and 60 months for maintenance services.
Advance Payment
10% of the contract.
Bid Maintenance Guarantee
Bidders must submit a bid maintenance guarantee (bank guarantee or insurance policy) equivalent to 5% of the total bid amount.
Award System
Bid evaluation will be based solely on price.
Subcontracting
The permitted subcontracting percentage is 20% of the total contract amount.
Contracting Authority
MOPC.
Key Dates
June 23, 2026 — deadline for submission of queries; June 29, 2026 at 9:00 a.m. — deadline for submission of bids. Bid opening will take place the same day at 9:30 a.m. at the Main Hall of the MOPC Central Building.
- Infrastructure | Rehabilitation and Maintenance of Road Sections: Concepción – Vallemí – San Lázaro
- General Overview
On May 22, 2026, the Ministry of Public Works and Communications (MOPC), through the DNCP, published International Public Tender 488061 (MOPC Call No. 06/2026) (the "Call") for the rehabilitation and maintenance by service levels of the Concepción – Vallemí – San Lázaro section, with a total length of 181.3 km (the "Project"). The Project is divided into 3 lots as follows:
- Lot 1: Km 0+000 to Km 52+300 (52.3 km)
- Lot 2: Km 52+300 to Km 113+000 (60.7 km)
- Lot 3: Km 113+000 to Km 181+300 (68.3 km)
Each bidder may be awarded only one lot; if the same bidder submits the lowest price for more than one lot, the award will be made for the lot where the price combination is most advantageous to the State.
- Key Features
Project Value and Financing
The Project has an estimated value of Gs. 819,864,270,021 (approximately USD 134,000,000), distributed as approximately USD 40,000,000 for Lot 1, USD 47,000,000 for Lot 2, and USD 47,000,000 for Lot 3. The Project will be financed with funds from the CAF/OFID loan approved by Law No. 7517/2025, and the call was issued ad referendum.
Execution Period
The contract execution period is 84 calendar months from the notice to proceed, with an initial 4-month period for the elaboration of the executive design, followed by 20 months for construction from the physical notice to proceed, and 60 months for maintenance services.
Advance Payment
10% of the contract.
Bid Maintenance Guarantee
Bidders must submit a bid maintenance guarantee (bank guarantee or insurance policy) equivalent to 5% of the total bid amount.
Award System
Bid evaluation will be based solely on price.
Subcontracting
The permitted subcontracting percentage is 20% of the total contract amount.
Contracting Authority
MOPC.
Key Dates
June 22, 2026 — deadline for submission of queries; June 26, 2026 at 9:00 a.m. — deadline for submission of bids. Bid opening will take place the same day at 9:30 a.m. at the Main Hall of the MOPC Central Building.
- Mobility | Chamber of Deputies Passes "Suburban Rail" Bill
On May 26, 2026, the Chamber of Deputies approved the Senate version of the bill "Amending and expanding Law No. 7434/2025 – On the Suburban Rail Reform – and establishing special provisions for the implementation of the project through Government-to-Government (G2G) agreements" (the "Bill"). With this approval, the Bill has been passed and is now submitted to the Executive Branch for promulgation.
Below are some of the most relevant provisions of the Bill:
- Direct Award under G2G Regime: The Ministry of Public Works and Communications (MOPC) and Ferrocarriles del Paraguay S.A. (FEPASA) are authorized to directly negotiate, execute, implement, and supervise agreements with foreign governments — or companies or entities designated by them — for the implementation of the Project. This empowers the authorities to select the sub-concessionaire without a competitive tender process.
- State Financial Backing: The Ministry of Economy and Finance (MEF) must record as commitments of the Paraguayan State all financial obligations arising from the Project's contracts, including commitments for deferred investment payments, availability payments, and early termination amounts — which shall be recorded as firm and contingent obligations, as applicable. The MEF must also issue a prior approval opinion on the Project Implementation Agreement.
- Dispute Resolution: In agreements executed under the G2G modality, the parties may expressly agree to submit to a specific jurisdiction in the Project Implementation Agreement, designating in each case the applicable law and the jurisdiction chosen. Additionally, the parties may agree to submit their disputes to arbitration, with the seat located within or outside Paraguay.
- Special Purpose Vehicle: For the implementation of the Project, a Special Purpose Corporation (Sociedad de Objeto Específico – SOE) governed by Paraguayan law must be incorporated, whose exclusive purpose will be determined by the Sub-concession Agreement, the Project Implementation Agreement, and the Project documents. Under the G2G scheme, any public or private company designated by the allied foreign government may be selected as the majority shareholder of the SPV, subject to approval by MOPC and FEPASA. The minimum duration of the SPV will be the contract term plus two additional years, plus the validity period of the works and services guarantees.
- Fiscal Incentives: The "Suburban Rail" Project will benefit from the incentives established in Law No. 7548/25 "Establishing the New Fiscal Incentives Regime for National and Foreign Investment," Law No. 117/91 "On Investments," and Law No. 5542/15 "On Guarantees for Investment and Promotion of Employment Generation and Socio-Economic Development," applicable to all phases of the Project, including design, construction, and operation.
- FEPASA Participation and Capitalization: FEPASA is authorized to participate as a majority shareholder of the SPV and to allocate the resources it receives — whether from budgetary appropriations, capital contributions, financing, or other legitimate sources — to the capitalization of the SPV.
- Budgetary Provision and Trust: MOPC, FEPASA, and the MEF undertake to provide for and manage the allocation of resources necessary to meet the State's financial obligations under the Project. They must also take the necessary measures to ensure the timely funding of the Project's trust, at least twelve months in advance of scheduled payments.
- Guarantee for Creditors: The SPV may establish, in favor of its creditors, a special guarantee consisting of a pledge or security trust over the rights arising from the Project Implementation Agreement, including the future cash flows generated by the Project, and the shares representing the SPV's share capital.
- Approval of the UAE Agreement: The agreement executed between MOPC, FEPASA, the Ministry of Industry and Commerce (MIC), and Etihad Rail PJSC of the Government of the United Arab Emirates is hereby approved and incorporated as an annex, forming an integral part of the law upon promulgation.
To access the text of the Bill, click here.









