On February 22, the Request for Prequalification regarding a Public Investment Project for the Extension of Route PY01 in the Cuatro Mojones – Quiindy section (108 km) has been published. Such Project will be developed under the Public-Private Partnership (PPP) legal framework, regulated by Law 5102/2013 and its Regulatory Decree 4183/2020.
This tender will also include a Competitive Dialog with the prequalified bidders prior to the Call for Bids.
Such Competitive Dialogue will allow prequalified bidders to suggest amendments, submit queries and propose modifications, in order to achieve a successful and bankable PPP Project, lasting between 1 and 2 months.
Route PY01 is essential in Paraguay’s road system, connecting Asunción with Encarnación and thus connecting Paraguay directly with Argentina through the bridge between Encarnación and Posadas. The project concerns 108 kilometers of this route.
The technical and financial requirements for this PPP Project are:
1. Experience in PPP Infrastructure Financing.
The Bidder must:
– Have experience in financing Infrastructure Projects under long-term contracts aimed at the construction, financing and operation of such infrastructures.
– Have experience in at least three PPP Projects of a minimum of USD 100m each, in the last 20 years, and the financed amount must be 60% of the total investment in at least one of them. One of these projects must include experience in toll operation.
– In case of PPP contracts performed by another Entity, the Bidder must prove that it held at least 20% of the stock of the performer Entity at the time of Financial Closure.
In the case of a Consortium, this experience may be accredited individually by any of the member companies that meet the above requirements.
2. Financial Capacity
– Bidders must prove Financial Capacity by submitting a Net Worth of at least USD 50m.
– Financial Capacity may be accredited directly or via subsidiaries, branches or parent companies.
– In the case of a Consortium, it may be accredited jointly by all the entities that make it up
3. Technical Capacity.
– The construction specialties required include i) road works such as new construction, extension,, rehabilitation or restoration of highways and roads, etc., and ii) road maintenance such as sealing cracks, resurfacing, milling, patching, signaling, security works, etc.
– Regarding technical capacity, the Bidder must prove that it has performed at least 5 completed projects within the last 10 years in the aforementioned specialties, including construction and/or maintenance of road infrastructure for a total sum of USD 300m.
– In the case of a Consortium, the technical capacity may be accredited individually by any of its members that meets those requirements or jointly by all the member companies of such Consortium, directly or via their subsidiaries, branches or parent companies.
It should be noted that this Request for Prequalification do not require international companies set up a Consortium with local companies.
Finally, it is expected that the final Bid documents contemplate a risk distribution and payment mechanism similar to the Routes 2 and 7 PPP project awarded in 2017.
Some relevant data of the call for bids:
– Contracting Authority: Ministry of Public Works and Communications.
– Capex: USD 445,000,000 (divided in 5 tranches).
– PPP contract term: 30 years.
– Deadline to submit queries for the RFP documents: May 2, 2023.
– Deadline for submissions for the RFP: May 31, 2023.
– Estimated date for the Public Bid Procedure: October 2023.
For further information please contact Martín Carlevaro: martin.carlevaro@berke.com.py and/or Adriana Ocampos: adriana.ocampos@berke.com.py and/or Pedro Lacasa: Pedro.Lacasa@berke.com.py and/or Dahiana Acosta: dahiana.acosta@berke.com.py
