Paraguay again postpones bid opening for US$400mn paving project

Paraguay's public works ministry (MOPC) postponed for the eighth time the bid opening ceremony for the Loma Plata-Carmelo Peralta highway resurfacing.

The latest date had been pushed back from April 28 to May 29, but according to the official public contracts website, the date is now set for July 31.

Newspaper Última Hora reported that the US$400mn project is facing a lack of interest from construction companies and no offers have been submitted.

Firms cited by the paper said they declined to participate due to the difficulties of obtaining financing, since the project is a turnkey one in which the winning company must seek a loan for construction and the state then assumes the debt.

It also means the debt will be long term and payments will start only after the works are finished, the report said.

THE PROJECT

The initiative entails paving a 277km stretch between Loma Plata and Carmelo Peralta in Boquerón and Alto Paraguay departments, respectively.

The stretch is part of the so-called Bioceánica highway between Paraguay and the Brazilian state of Mato Grosso do Sul.