On May 31, 2023, the Ministry of Public Works and Communications ("MOPC") carried out the opening of applications from interested bidders for the project of expanding and improving Road PY 01 under Law No. 5102/2013 of Public-Private Partnerships ("PPP").

A total of 16 companies, grouped in 6 different consortiums, submitted prequalification applications:

  1. Consorcio Desarrollo Vial Al Sur: Sacyr Concesiones S.L. - Ocho A S.A.;
  2. Consorcio Rutas del MERCOSUR: Tecnoedil S.A. Constructora - Alya Constructora S.A. - Construpar S.A. - Semisa Infraestructura S.A.;
  3. Consorcio Ruta del Sur: Coesa Construcao e Montagens S.A. - Constructora Asunción S.A.;
  4. Consortium AG – TOCSA: AG Construcoes E Servicos S.A. - Tocsa S.A.;
  5. Consorcio Rutas del Sur: Cointer Concesiones S.L. - AZVI S.A.U. - Constructora Heisecke S.A.; and
  6. Consorcio Rutas del Sur: Acciona Concesiones S.L. - Rovella Carranza S.A. - Concret Mix S.A.

Below is a summary of the next stages of the process.

Evaluation period of prequalification criteria: This stage lasts 60 days, until July 31, 2023. Upon completion, the MOPC will publish the selection of prequalified bidders through a resolution.

Competitive dialogue: During this stage, the pre-qualified bidders, along with their potential financiers, will have the opportunity to raise inquiries and submit proposals for improvements to the draft bidding terms and conditions, as well as the PPP contract. This stage will last for one month, with the possibility of an additional one-month extension.

Tender: Once the competitive dialogue stage is closed, the MOPC will call for a tender. Only pre-qualified bidders will be allowed to participate. It is estimated that the tender process will begin in December 2023.

PPP Contract Summary

  • Duration: 30 years, extendable for up to an additional 10 years.
  • Estimated investment: USD 445 million.
  • Remuneration mechanisms (reference amounts):
    • PDIs: approximately USD 38 million per year, or USD 644 million in total.
    • PPD: approximately USD 20 million per year, or USD 538 million in total.
    • PVT: approximately USD 5 million per year, or USD 148 million in total.
    • Additional income from the installation of gas stations and advertising, at the initiative of the winning bidder and with MOPC approval.
  • Resources to be invested by the bidder: at least 20% of the total investment requirements. 50% of such resources must be in the form of capital stock.