PY01 Highway Expansion Project: Operator Selection Nearing

Eugenio Rodolfo Sanabria Reporter

| 2025-07-16 17:35:01

 

ASUNCIÓN – The Paraguayan Ministry of Public Works and Communications (MOPC) is accelerating the PY01 highway expansion and improvement project for the Cuatro Mojones-Quiindy section (108 km) by completing the opening of economic proposals. This large-scale project, to be carried out under a Public-Private Partnership (APP) model, involves an investment of approximately 428 million USD (approximately 590 billion Korean Won), including maintenance for the next 30 years.

The PY01 highway is one of Paraguay's key transportation arteries, and this expansion is expected to significantly enhance the efficiency of logistics and human movement connecting the capital, Asunción, with the southern regions. In particular, it is projected to directly benefit about 2.6 million residents in the Central and Paraguarí departments, and also positively impact the Misiones and Itapúa departments. The MOPC believes this project will contribute to regional economic revitalization by easing traffic congestion and reducing travel times.

Two major consortia participated in this bid. The Desarrollo Vial al Sur consortium (comprising Sacyr Concesiones SL and Ocho A SA) proposed 25,705,143 USD (including taxes), while the Rutas del Mercosur consortium (comprising Tecnoedil SA, Alya Constructora SA, Construpar SA, and Semisa Infraestructura SA) submitted a lower bid of 24,077,936.70 USD. Both consortia proposed a semi-annual installment payment (PDI) method.

The submitted proposals will now be forwarded to the evaluation committee for a comprehensive review of their technical and economic aspects. The committee will meticulously examine each consortium's capabilities, experience, and the feasibility of the proposed amounts to select the final operator and recommend it to the MOPC. The government is committed to choosing the optimal partner through a transparent and fair process.

Marcelo Simbron, the mayor of Paraguarí, expressed high expectations for the project. He emphasized that "the PY01 highway expansion will bring a revolutionary change to the lives of countless Paraguarí residents who commute to Asunción daily," and that "the reduction in travel time will improve their quality of life." He also added that the highway expansion would significantly contribute to boosting tourism in the Paraguarí region. He predicted, "More tourists will visit to enjoy Paraguarí's beautiful nature and rich history, which will inject new vitality into the local economy."

The PY01 highway expansion project is one of the Paraguayan government's major infrastructure initiatives, playing a crucial role in the national development strategy. This project is evaluated as a cornerstone for improving the quality of life for local residents and fostering balanced national economic development. With the final operator selection and construction commencement imminent, the southern region of Paraguay is preparing for new opportunities for development.

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