Skip to main content

Paraguay in talks to salvage tender for works on Routes 2 and 7

Paraguay is in discussions with six out of 11 prequalified consortia after none of the 11 submitted bids for a major highway development. The Public Works and Communications Ministry is making efforts to put back on track a public-private partnership to widen routes 2 and 7. Media reports said consortia were supposed to present their bids on 28 April. But with no bids submitted by that date, the government set a new date of 29 June. The whole project will require US$754 million, including $80 milli
May 10, 2016 Read time: 2 mins
Paraguay is in discussions with six out of 11 prequalified consortia after none of the 11 submitted bids for a major highway development.

The Public Works and Communications Ministry is making efforts to put back on track a public-private partnership to widen routes 2 and 7.

Media reports said consortia were supposed to present their bids on 28 April. But with no bids submitted by that date, the government set a new date of 29 June.

The whole project will require US$754 million, including $80 million for land expropriation, $387 million for construction and around $287 million for maintenance.

Some of the consortia meeting government representatives are Ruta Esperanza, Consorcio Roggio, Consorcio 27, Sacyr Concesiones, Consorcio Mota Engil-Ocho A y Obras-Huarte Lain and Grupo Isolux Corsan Concesiones.

Route 2 runs 132km from Asunción to Caaguazu Department's capital, Coronel Oviedo. Crossing the departments of Central, Cordillera and Caaguazu. It continues east as Route 7 to end in Paraguay’s second largest city, Ciudad del Este.

The 193km Route 7 links the departmental capitals of Caaguazú and Alto Paraná, Coronel Oviedo and Ciudad del Este, ending at the Friendship Bridge, an arch bridge connecting the Brazilian city of Foz do Iguaçu, on the Paraná River, to Ciudad del Estre.

Related Content

  • Sacyr enters Paraguay road sector
    October 25, 2016
    Sacyr subsidiary Sacyr Concesiones is leading a consortium to will build and operate the Road 2 and Road 7 routes in Paraguay. The Road 2 route will connect Asunción and Coronel Oviedo. Meanwhile the Road 7 route will run from Coronel Oviedo to Caaguazú. Construction is expected to cost US$520 million with the concession package being for a period of 30 years. The Route 2 and Route 7 combined deal is of note as this will be Paraguay’s first PPP for a highway project. The consortium is headed by Sacyr Conces
  • Paraguay project agreement reached
    May 8, 2019
    An agreement has been reached for the projects to widen Route 2 and Route 7 in Paraguay by the various bodies involved. The Consorcio Rutas del Este joint venture partners have agreed terms with the Inter-American Development Bank (IADB), UBS and the Ministries of Public Works and Communications and Finance. UBS is providing financing worth US$250 million while the IADB is providing $200 million. Consorcio Rutas del Este, which comprises Sacyr, Mota Engil and Ocho A, is providing $83 million meanwhile. Cons
  • Paraguay’s planned highway projects
    January 22, 2019
    Several major road projects are underway in Paraguay at present, though issues are afflicting some. Although the Rute del Este consortium comprising Sacyr, Mota Engil and Ocho A was awarded the PPP contract to upgrade Ruta 2 and Ruta 7, the necessary funding has yet to be delivered. The Inter-American Development Bank (IADB) and the US Bank have both said that they would give the necessary funding. A new deadline has been set for the funds to be delivered at the end of March 2019. Meanwhile there are also d
  • Time extension for Paraguay project financing
    April 19, 2018
    A time extension has been offered to the consortium that will build Paraguay’s Ruta 2 and Ruta 7 highway projects. This extended period has been authorised by Paraguay’s Ministry of Public Works and Communications (MOPC). The highway contract is being handled by the Rutas del Este consortium, which is made up of the contractors Mota Engil, Ocho A and Sacyr. Originally the financing package for the highway deal was to have been in place by April 14th 2018. However the consortium’s deadline for the PPP