Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Last Published: 7/23/2019
Paraguay’s public procurements have historically involved widespread corruption, although the government is making efforts to enhance transparency and accountability.  U.S. firms participating in government tenders are strongly urged to contact the embassy's Economic and Commercial Section, and submit an advocacy questionnaire through the Advocacy Center in Washington, D.C. once the decision to participate has been made.  Embassy advocacy in government tenders in the past has helped ensure a more transparent process. 
Paraguay’s National Directorate for Public Contracts (DNCP), which manages all public procurement tenders, launched a web-based system to increase transparency.  DNCP’s website provides information on upcoming solicitations for potential contractors to more easily follow the status of competitions and prepare bids prior to the closing date.  Paraguay’s Public Contracting Law stipulates that all public contracting at the national and local levels with a value in excess of approximately $6,000 must be done via DNCP.  Foreign firms can bid on tenders deemed “international” and on “national” tenders through the foreign firms’ local legal agents or representatives.  Paraguayan law gives preference to locally produced goods in public procurements open to foreign suppliers, even if the domestic good is up to 20 percent more expensive than the imported good. 

In October 2013 the Paraguayan Congress passed a law to promote Public-Private Partnerships (PPPs) in public infrastructure and allow for private sector entities to participate in the provision of basic services such as water and sanitation.  Implementing regulations for the PPP law were signed in March 2014.  As a result, the Executive Branch can now enter into agreements directly with the private sector without the need for Congressional approval.  Paraguay’s Ministry of Public Works expects to launch its first PPP in 2019, an expansion of a main highway between Asuncion and Ciudad del Este.  Several roads, a dredging project for the Paraguay River, wastewater treatment project in Ciudad del Este, and a medical storage facility for the Social Security Institute are under evaluation.

Paraguay is not a signatory to the WTO Agreement on Government Procurement.  It has observer status in the GPA Committee.
 

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