Executive Summary
| Event | Date | Content |
| Call for Bids | July 19, 2024 | The National Directorate of Public Procurement (DNCP) published on its portal the call for the International Public Bidding (IPB) for the Design and Construction of Sustainable Infrastructure Works and Urban Services in the Bañado Tacumbú neighborhood, convened by the Ministry of Public Works and Communications ("Contracting Authority" or "MOPC") |
| Call for Bids | September 12, 2024 | The National Directorate of Public Procurement (DNCP) published on its portal the call for the International Public Bidding (IPB) for the Rehabilitation of Highway PY 05 (section Pozo Colorado - Concepción), convened by the Ministry of Public Works and Communications ("Contracting Authority" or "MOPC") |
| Call for Bids | September 11, 2024 | The National Directorate of Public Procurement (DNCP) published on its portal the call for the International Public Bidding (IPB) for the Construction of Reinforced Concrete Bridges in the San Pedro Department, convened by the Ministry of Public Works and Communications ("Contracting Authority" or "MOPC") |
| Call for Bids | August 26, 2024 | The National Directorate of Public Procurement (DNCP) published on its portal the call for the International Public Bidding (IPB) for the Improvement and Duplication of Highway PY 01 for the section Cuatro Mojones – Quiindy, convened by the Ministry of Public Works and Communications ("Contracting Authority" or "MOPC") |
More Information:
I. Design and Construction of Sustainable Infrastructure Works and Urban Services in the Bañado Tacumbú Neighborhood
General Aspects
On July 19, 2024, the DNCP published on its portal the call for Bid 449366 convened by the MOPC under the modality of IPB for the design and construction of sustainable infrastructure works and urban services in the Bañado Tacumbú Neighborhood (the “Project").
Project Characteristics
The Project aims to improve the quality of life of the riverside population and the urban development of the Bañado Tacumbú neighborhood. The Project includes the following infrastructure works: (i) roads, (ii) electrical energy, (iii) drinking water, (iv) stormwater drainage, and (v) sanitary sewerage.
The Project will bring to life the new Bañado Tacumbú neighborhood, which will be located in an area of approximately 65 hectares, at an elevation of 64 meters above sea level, not subject to flooding by the Paraguay River, free of any occupation, and situated in the city of Asunción, capital of Paraguay.
Investment amount and financing
Gs. 157.500.000.000 (approximately USD 20,000,000). The Project will be fully financed by a loan from the Inter-American Development Bank (IDB), approved by Law No. 6424/2019.
Offer Maintenance Guarantee
5% - policy or bank guarantee.
Adjudication System
It will be awarded to the bidder whose proposal meets the qualification criteria, i.e., financial capacity, general and specific technical experience, key personnel, etc.
Number of Lots
Single lot for the entirety of the works.
Term for execution of works
The execution term of the Project is 21 months.
Subcontracting
Subcontracting for the execution of some scheduled works is permitted, but the amount of the subcontracted works shall not exceed 30% of the total contract amount. However, the awarded party must obtain prior authorization from the inviting authority.
Contracting Authority
MOPC
Relevant dates in relation to the Project
- Deadline for inquiries: October 3, 2024 (09:00).
- Bid submission date: October 24, 2024 (09:00).
- Bid opening date: October 24, 2024 (09:30).
II. Rehabilitation of Highway PY 05 (Section Pozo Colorado - Concepción)
General Aspects
On September 12, 2024, the DNCP published on its portal the call for Bid 449368 convened by the MOPC under the modality of IPB for the hiring of construction companies for the rehabilitation of Highway PY 05, specifically in the section between Pozo Colorado and Concepción (northern zone and western region of the country) (the “Project").
Project Characteristics
The Project aims to rehabilitate the section between Pozo Colorado and Concepción, which is currently in very poor condition. The Project is one of the most innovative of its kind in Paraguay, as it is the first highway in the country to be constructed entirely of concrete. The MOPC has emphasized that the use of concrete will make Highway PY 05 safer, more durable, and more efficient; furthermore, it will comply with the parameters of Law 5841/17 regarding the use of rigid pavement in road infrastructure projects in Paraguay, the regulatory decree of which was enacted in May of this year.
Number of Lots
The Project is divided into two strategic lots:
- Lot 1: covers a length of 53.3 km, starting at km 318.9 and ending at km 372.2.
- Lot 2: covers a length of 36.2 km, starting at km 372.2 and ending at km 409.1.
The total length of the section in question is 90.2 km, with dual carriageways.
Investment amount and financing
Gs. 472.523.161.624 (approximately USD 60,000,000). The Project will be financed with a loan granted by the Development Bank of Latin America and the Caribbean (CAF), approved by Law No. 6235/2018.
Offer Maintenance Guarantee
5% - policy or bank guarantee.
Participation condition
Individuals, legal entities, and/or consortiums, whether established or with a letter of intent, registered in the State Supplier Registry.
Adjudication System
One or a combination of several criteria set forth in Article 52 (i.e., quality, price, life cycle costs of the work, etc.) of Law No. 7021/2022 "On Supply and Public Procurement."
Adjudication criteria
Per lot.
Term for execution of works
20 months counted from the notice to proceed.
Subcontracting
Subcontracting is allowed, but the amount of the subcontracted works shall not exceed 20% of the total contract amount.
Contracting Authority
MOPC
Relevant dates in relation to the Project
- Deadline for inquiries: October 10, 2024 (12:00)
- Bid submission date: October 17, 2024 (09:00)
- Bid opening date: October 17, 2024 (09:30)
Project supervision
The DNCP has also published Bid 454027, convened under the modality of IPB, for the hiring of consulting services for the supervision of the works planned under the Project.
III. Construction of Reinforced Concrete Bridges in the Department of San Pedro
General Aspects
On September 11, 2024, the DNCP published on its portal the call for Bid 449085 convened by the MOPC under the modality of IPB for the construction of reinforced concrete bridges in the Department of San Pedro (the “Project").
Project Characteristics
The Project aims to address the accessibility issue in the Department of San Pedro (northern zone of the country), particularly in the districts of San Estanislao, Capiibary, and Cruce Liberación. The Project includes mobilization works and the movement of existing roads and bridges, drainage works (culverts and ditches), construction of reinforced concrete bridges and small bridges, vertical and horizontal signage, installation of guardrails, and complementary works.
Number of Lots
The Project is divided into two lots:
- Lot 1: (i) one 30-meter bridge in Colonia Felicidad – Route PY 08 (Liberación); (ii) one 36-meter bridge between Liberación – Colonia Amistad – Cruce Barrio San Pedro; and (iii) one 20-meter bridge on San Isidro Este Street – Arroyo Moroti – Amistad.
- Lot 2: (i) one 36-meter bridge on 2000 Bertoni Street (San Estanislao); and (ii) one 15-meter bridge between 1ro de Mayo – Granja Giménez (Capiibary).
The Project includes a total of five bridges with an overall length of 137 linear meters.
Investment amount and financing
Gs. 22.474.878.645 (approximately USD 3,000,000). The Project will be financed with funds from the loan granted by the FONPLATA Development Bank, approved by Law No. 6237/2018.
Offer Maintenance Guarantee
5% - policy or bank guarantee.
Adjudication System
It will be awarded to the bidder whose proposal substantially complies with the bidding documents and offers the lowest evaluated price.
Adjudication criteria
Per lot.
Term for execution of works
360 days counted from the notice to proceed.
Subcontracting
Subcontracting is allowed, but the amount of the subcontracted works shall not exceed 20% of the total contract amount.
Contracting Authority
MOPC
Relevant dates in relation to the Project
- Deadline for inquiries: October 18, 2024 (12:00)
- Bid submission date: October 25, 2024 (09:00)
- Bid opening date: October 25, 2024 (09:30)
IV. Improvement and Duplication of Highway PY 01 for the section Cuatro Mojones – Quiindy."
General Aspects
On August 26, 2024, the DNCP published on its portal the call for Bid 3101 convened by the MOPC under the modality of IPB for the improvement and duplication of Highway PY 01 for the section Cuatro Mojones – Quiindy , with a length of 108 kilometers (the “Project”). The value of the Project is approximately USD 445,000,000 and will be executed under the Public-Private Partnership modality, in accordance with Law No. 5102/13 and Regulatory Decree No. 1467/2024.
Project Characteristics
The Project aims to improve and duplicate Highway PY 01 in the affected section, which is further divided into 18 functional sub-sections. The Project is divided into three phases: (i) the construction contract, which includes: rehabilitation works; opening of third lanes; tunnels; viaducts; bypasses; comprehensive improvement of the drainage system and signage throughout the mentioned section, among others (the “Works”); (ii) operation contract; and (iii) maintenance contract. In total, the Project will have a duration of 30 years.
Offer Maintenance Guarantee
The Bid requires that bidders submit a bid security guarantee valued at USD 12,000,000. The bid security guarantee may be in the form of (i) a cash deposit, (ii) a stand-by letter of credit, (iii) a bond or bank guarantee, or (iv) an insurance policy with a first demand clause issued by an insurance company authorized to operate and issue surety bonds in the Republic of Paraguay.
Adjudication criteria
The MOPC will award the Project to the bidder who substantially complies with the requirements and offers the lowest DIP, and whose proposal is deemed "acceptable" in (i) the economic evaluation, (ii) the assessment of administrative backgrounds, and (iii) the technical evaluation.
Special Purpose Vehicle
The awarded bidder will be required to establish a Special Purpose Vehicle (SPV) within a period of 90 days from the date the award resolution becomes final. The SPV must comply with certain requirements, such as: (i) having its registered office in the Republic of Paraguay, (ii) limiting its corporate purpose exclusively to the execution of the Project, (iii) forming a board of directors composed of at least 3 principal members, and (iv) having a share capital of USD 20,000,000 at the time of its incorporation.
PPP Trust
The funds necessary to fulfill the obligations arising from the firm and contingent commitments derived from the Project will be managed by a trust, administered by the Financial Development Agency (Agencia Financiera de Desarrollo) in a separate estate, in accordance with Law No. 921/96 on Fiduciary Business. The State, as the trustor, will act through the Ministry of Economy and Finance (Ministerio de Economía y Finanzas).
Remuneration
The remuneration may be: (i) Deferred Investment Payments (DIP), (ii) Availability Payments (AP), (iii) Traffic-Linked Payments (TLP). Additionally, the awarded consortium will also have the right to receive income in the form of (iv) Exploitation of the Right of Way. It is important to mention that the contract may be assigned to third parties with the authorization of the MOPC.
Term for execution of works
3 years, from the notice to proceed.
Bid validity period
180 calendar days counted from the deadline for submission of bids.
Offer maintenance guarantee validity period
180 days counted from the submission of bids.
Bidding participation
Only the companies that have been prequalified will be able to participate in the bidding.
Subcontracting and assignment
Subcontracting is permitted for the execution of certain planned works, such as: engineering design, the total or partial execution of the works, conservation and maintenance of Highway PY 01, and toll collection tasks. Subcontractors must formalize and register their contracts with the MOPC before commencing work.
Contracting Authority
MOPC
Relevant dates in relation to the Project
- Deadline for inquiries: November 15, 2024
- Bid submission date: December 18, 2024
- Bid opening date: December 18, 2024
To obtain more information regarding any of the topics covered in this edition of our newsletter, please contact: Rodolfo G. Vouga (rgvouga@vouga.com.py); Manuel Acevedo (macevedo@vouga.com.py); Silvia Benítez (sbenitez@vouga.com.py); Lucas Rolón (lrolon@vouga.com.py); Yvo Salum (ysalum@vouga.com.py).
