Paraguay seeks to attract int’l investors by showcasing PPP projects

Paraguayan authorities have begun an international roadshow that will have a strong focus on PPPs.

The delegation that will meet with UK and US investors this week includes economy and finance minister Carlos Fernández, and central bank president Carlos Carvallo, local daily Última Hora reported, quoting sources from the economy and finance ministry (MEF).

There will be no presentations involving projects from the public works ministry (MOPC), a ministry source told BNamericas on condition of anonymity.

As one of the government’s chief goals is improving the health of public finances, MOPC is expected to lean heavily on private investors through PPPs for future projects, which has been stated several times by the government, which took office in August.

MOPC has a US$5.5bn portfolio for the current administration (2023-28), documents show. 

The ministry is currently tendering a US$445mn PPP contract to widen a 101km stretch of route PY01, with five consortiums having passed the prequalification stage. 

Other planned PPPs include the modernization of Asunción’s airport and dredging of a 537km section of the Paraguay-Paraná waterway.

The government is also eyeing this mechanism for new schools and hospitals, the head of the ministry’s strategic projects office (DIPE), Amílcar Guillen, said last month.

BONDS

While showcasing PPP opportunities abroad, the Paraguayan authorities will also seek to drum up investor interest in a new international bond issue, which could amount to US$1bn, according to Última Hora’s report.

The government last sold bonds in December, which was a local issue of US$220mn to mainly pay debts to construction and pharmaceutical firms, which were outstanding from the previous administration.