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Paraguay awards $1.47bn road concession

26 Oct 16 Sacyr Concesiones is entering the Paraguay market with a project win worth US$1.47bn (£1.2bn).

The consortium led by Sacyr Concesiones also includes Mota Engil and Ocho A. The call for tenders issued by the Ministry of Public Works & Communications attracted considerable interest from national and international companies, 13 of which were prequalified in the final phase.

The contract is for the construction and operation of ‘Road 2’ - between Asunción and Coronel Oviedo - and ‘Road 7’, which will link Coronel Oviedo and Caaguazú. Development of the project is seen as vital to the country's growth as 70% of economic activity is concentrated along the corridor. The roads have a planned construction investment amounting to €520m and are set to bring in revenue of €1.47bn over a 30-year concession. It is the first road project under the new Public-Private Alliance Law of Paraguay.

The contract covers 170km of roads, which will be widened, improved, operate, and maintained by the concessionaire. Five bypasses are included in the project.

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