Advice on Public Private Partnerships in Paraguay

BDO's analysis of both the law itself and the economic, financial and institutional framework in which it is developed allows us to infer that participation in these ventures could generate good margins of profitability, combined with a low exposure to risk. The final profit margin expected will be subject to each sector and each particular project considered.

In this context, public-private participation can take many forms:

• The development of infrastructure and its operation, by the private sector, for a defined period of time, before the State takes over again.
• The hiring of a private operator for the management of a specific activity (security services, cleaning, collection of debts, etc.).
• The contracting of the total operation of a service (airport management, road concessions, etc.) while the public sector remains the owner.
• The privatization by public tender of the whole of a public service (for example the English model of public health).