Paraguay's public works ministry (MOPC) cancelled the tender for the modernization of Asunción's Silvio Pettirossi airport and also stated it would not use the PPP model for future improvements to the terminal, putting an end to the US$149mn project.
Over a year ago, the country's comptroller recommended cancelling the tender for the airport concession, pointing to alleged irregularities in the bidding process that benefited Spanish firm Sacyr, which participated as part of a consortium with Chilean firm Agunsa.
This ignited a legal battle between the ministry, then led by Ramón Jiménez, and the comptroller, which even reached the supreme court in regards to the constitutionality of the project. Since the tender cancellation, the government has withdrawn its request to the supreme court however, the ministry said in a press release.
Aside from the Sacyr-Agunsa offer, the only other bidder for the contract was a consortium made of Vinci Airports and Tocsa. Both proponents had renewed the bid bonds for their respective offers, although those bonds officially expired on Monday.