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Provision of Potable

Water and Effluents

Treatment in Paraguay -

Investment Projects and

Legal Framework

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ESSAP S.A.: Company of Sanitation Service of

Paraguay S.A.Mission: provide potable water and sewerage continuously and

efficiently, offering quality service, transparency and honesty, committed

to improving the quality of life of the population and the preservation of

the environment

Antecedent: Born on October 26, 1954 under the name CORPOSANA

originally, with the aim to develop projects, construction, operation and

management of the works and the potable water and sewerage services

from the city of Asunción, and since 1966 for all republic.

On April 1, 2002 within the process of transformation of state enterprises,

the legal concept is changed, and renamed ESSAP SA, with a

shareholding of 99.9% of the Paraguayan State and 0.1% of FEPASA.

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• Law Nº 1614/00 "General of the Regulatory Framework ...", by

which is set all the requirements to be met by providers and users

of potable water and sewerage systems.

• Law Nº 2051/03 “of Public Procurement”, whereby is established

the regime procurement of goods, services and works with state

agencies.

• Additionally, should enforce labor law, civil, environmental, tax

laws and other regulations in force in the Republic of Paraguay

applicable to state agencies and corporations.

Legal Framework

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Law Nº 5396/15

• Process with Sovereign Guaranteed of the Paraguayan State.

• For the approval process is used procedures of the National Public

Investment System.

• For the bidding process is used the Law No. 2051/03 "Public

Procurements".

• The offeror proposes its own source long-term financing as part of the

technical and financial proposal.

• The allocation is performed based on the net present value (NPV or

VPN), whereby the bids are evaluated and compare beetwen offeres,

competing in terms of amount and terms of financing.

• is required a minimum 25% of local stake in the performance of the

contract, which may be by direct participation in the consortium and /

or outsourcing of domestic firms.

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Government target for 2018

-10%

0%

10%

20%

30%

40%

50%

60%

1989 1993 1998 2003 2008 2013 2018

5% 4% 4%8%

15%11%

8%

Proyeccion de Cobertura en Saneamiento

1989

1993

1998

2003

2008

2013

2018

Projection of Coverage in sanitation

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Priority Works and Financing Sources

• 3 (three) invesment with

started process.

• 6 (six) in Managing Projects

and/or Financing sources

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1. Construction and Extension of Sanitary Sewer System and

Construction of Wastewater Treatment Plants in the Lambare, Luque,

M.R. Alonso Basin

Summary of

works:Collecting Network Building (Primary,

Secondary and Tertiary); Pumping Stations and

Lines Drive; two Wastewater Treatment plants;

Support to Operations Management.

Beneficiary

Population:

1.600.000 residents (projecting until the year

2045).

Invesment

Amount:US$ 425.000.000.-

Project

Design:It contains an Advanced Draft, Project

Executive is responsible for the company to be

awarded.

Status: In process of evaluation of Prequalification

delivered on 01/04/2015.

Licitacion

Modality:International public process with financing

(Law Nº 2051+Law Nº5074)

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2. Execution of Filling the Site and Construction of Housings Affected by

the Relocation of the Construction of Wastewater Treatment Plant in the

Bella Vista and Itay Basin. Includes: Filling the site, housings

construction and subfluvial emmisary.

Beneficiary

Population:

425.000 residents

Invesment

Amount:

US$ 20.000.000.-

Project Design: Executive Project (since Año 2014)

Funding

source:

Loan BIRF 7710-PA

Licitation

Process:

International Public Process

Estatus: In evaluation process of the offers

delivered on March 25.

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3. Total Sanitation Program of the Asuncion Bay and the Expansion and Improvement

Program of Sanitary Sewerage System of Asuncion. It includes the Construction of 3

(three) TPWW (Varadero, Bella Vista and San Lorenzo.).

Summary of

works

1) Collecting Rehabilitation and Improvement

Networks in Basin Varadero and Bella Vista

(downtown of Asunción and vicinity); 2)

Expansion and Improvement of collector

networks in the San Lorenzo (area of influence

of Lake Ypacarai); 3) Construction of three

Wastewater Treatment Plant.

Beneficiary

Population:

805.000 residents (projecting until the year

2045).

Invesment

Amount:

US$ 110.000.000.-

Project Design: Executive Project in final stage of design

(Donation of the IADB).

Funding source: Loan of the Interamerican Development Bank

(IADB).

Estatus: in the process of parliamentary approval

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4. Construction of the Integrated Potable Water System and Sanitary Sewer

Systems of Ciudad del Este, Hernandarias, Pte. Franco and Minga Guazú –Alto

Paraná Region.

Summary of

Works:

Potable Water: Water Treatment Plant, main

wáter pipes, impulsion, Distribution Centers and

distribution network.

Sanitation Sewerage: Collector Network Primary,

Secondary and Tertiary; Pumping Station y

Impulsion lines; Treatment Plant of Waste Water.

Beneficiary

Population:

1.500.000 residents.

Invesment Amount: US$ 500.000.000.

Status Advanced Draft projecto in running by ESSAP with

funds provide by Itaipú Binacional.

Funding source: International public process with financing

(Law Nº 2051+Law Nº5074)

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Map of the Project of Water System of Alto Paraná.

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Map of the Project of Sewerage System for Alto Parana.

PTAR 1

PTAR 3

PTAR 4

PTAR 7

PTAR 6PTAR 5

PTAR 2

• 7 (seven) Treatment Plants of Waste Water

•Pumping Station

•Impulsion lines

•Collector networks

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5. Construction of the Sanitary Sewer System and Treatment Plant

of Waste Water of the Yukyry Stream Zone.

Beneficiary

Population:

230.000 residents

Invesment

Amount:

US$ 110.000.000.-

Project

Design:

Without project.

Funding

source:

International public process

with financing

(Law Nº 2051+Law Nº5074)

Estatus: Itaipu has started the bidding

process for procurement of

Consulting Services for the

Preparation of the Design

Project (Draft Advanced)

Aº Yukyry

Proyecto:

1°stage: TPWW for treatment of the water of Yukyry stream

2°stage: receive and treat the wastewater of Stream Yukyry basins and sub basins

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6. Construcción de Planta de Tratamiento de Agua Potable de

Piquete Cué. (cobertura de zona Limpio y M.R. Alonso y

Emboscada).

Beneficiary

Population:

230.000 residents

Invesment

Amount:

US$ 130.000.000.-

Project Design: Without project.

Funding source: International publica process

with financing

(Law Nº 2051+Law Nº5074)

Estatus: Stage of Project definition and

funding source.

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Components to be Built:

Treatment Plant Water on Piquete Cue,

Distribution Center (D.C.) and water mains

pipes.

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7. Construction of two Potable Water Treatment Plant over

Tebicuary River. (Caazapá, Maciel, Bertoni, Iturbe, Yuty, Yegros,

Leandro Oviedo and San Pedro del Paraná).

Beneficiary

Population:

65.000 residents

Invesment

Amount:

US$ 180.000.000.-

Project

Design:

Without project.

Funding

source:

International publica process with

financing

(Law Nº 2051+Law Nº5074)

Estatus: Stage of Project definition and

funding source.

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Beneficiary

Population:

45.000 residents

Invesment

Amount:

US$ 50.000.000.-

Project Design: Without project.

Funding source: International publica process

with financing

(Law Nº 2051+Law Nº5074)

Estatus: Stage of Project definition and

funding source.

8. Construction of Potable Water

Treatment Plant on Puerto Triunfo

(Victory Harbor). (Natalio, Yatytay and

Ma.Auxiliadora).

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9. Construction of Treatment Plant of Potable Water on Puerto Antequera

(Antequera Harbor). ( Puerto Antequera and San Pedro de Ycuamandiyu).

Beneficiary

Population:

30.000 residents

Invesment

Amount:

US$ 50.000.000.-

Project Design: Without project.

Funding source: International publica process with

financing

(Law Nº 2051+Law Nº5074)

Estatus: Stage of Project definition and

funding source.

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Summary of Priority Works on Water and Sanitation.

Item DenominationBeneficiary

Population:

Invesment AmountUS$

1Construction and Extension of Sanitary Sewer System and Construction of

Wastewater Treatment Plants in the Lambare, Luque, M.R. Alonso Basin1.600.000 425.000.000

2

Execution of Filling the Site and Construction of Housings Affected by the

Relocation of the Construction of Wastewater Treatment Plant in the Bella

Vista and Itay Basin. Includes: Filling the site, housings construction and

subfluvial emmisary.

425.000 20.000.000

3

Total Sanitation Program of the Asuncion Bay and the Expansion and

Improvement Program of Sanitary Sewerage System of Asuncion. It includes

the Construction of 3 (three) TPWW (Varadero, Bella Vista and San

Lorenzo.).

805.000 110.000.000

4

Construction of the Integrated Potable Water System and Sanitary Sewer

Systems of Ciudad del Este, Hernandarias, Pte. Franco and Minga Guazú –

Alto Paraná Region.1.500.000 500.000.000

5Construction of the Sanitary Sewer System and Treatment Plant of

Waste Water of the Yukyry Stream Zone. 230000 110.000.000

6Construcción de Planta de Tratamiento de Agua Potable de Piquete

Cué. (cobertura de zona Limpio y M.R. Alonso y Emboscada). 230.000 130.000.000

7

Construction of two Potable Water Treatment Plant over Tebicuary

River. (Caazapá, Maciel, Bertoni, Iturbe, Yuty, Yegros, Leandro

Oviedo and San Pedro del Paraná). 65.000 180.000.000

8Construction of Potable Water Treatment Plant on Puerto Triunfo

(Victory Harbor). (Natalio, Yatytay and Ma.Auxiliadora). 45.000 50.000.000

9Construction of Treatment Plant of Potable Water on Puerto Antequera

(Antequera Harbor). ( Puerto Antequera and San Pedro de Ycuamandiyu).30.000 50.000.000

Totales 4.930.000 1.575.000.000

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The price of Potable Water Service on Paraguay