The Paraguayan Ministry of Public Work & Communications just announced two projects that are expecting to be awarded during the second semester of 2017.
One of them concerns the amplification of the National Highway “Mariscal Francisco Solano Lopez”, for which the estimated investment required is USD 130.000.000. The Private Participant is expected to fund the main part of the project.
In that sense, Law 5102/2013 –known as The PPP Act– provide in its Article 38 that: “[T]he Private Participant may finance the development of public-private partnership projects, through the modalities, instruments and financial transactions recognized and regularly used in national or international financial markets. For the benefit of its creditors and to ensure obligations directly related to the development of the corresponding public-private partnership contract, it may constitute a special guarantee consisting of a pledge or creation of collateral trust in respect of rights arising from the public-private partnership contracts, including future cash flows generated by the project, and the shares of capital stock of the corporation acting as private participant…”.
The other project under the PPP modality concerns the construction of a system for wastewater treatment in 4 adjacent cities: Ciudad del Este, Minga Guazu, Hernandarias and Presidente Franco — all of them and located around 350 Kilometers from Asuncion.
This project is estimated to require a total investment of approximately USD 1.000.000.000 and the funding is expected to be provided by the Private Participant awarded with the project. Moreover, the investment is expected to be covered with users’ contributions and government subsidies.
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