Page 119 - Forbes - USA (February 2018)

PROMOTION

growth in recent years, many Technological innovation is also which has also become the coun- of Millicom’s Tigo Paraguay. “In
young people will be moving into driving changes in the traditional try’s largest money mover through a country of 7 million people, we
the workforce in coming years, Paraguayan banking sector with its mobile banking service, Tigo have more than 2 million mobile
and it has a private sector that new players emerging, including Money. “We are responsible for wallet active accounts and 1.3 mil-
is dynamic and that moves inde- Paraguay’s largest foreign investor, $1.5 billion worth of transactions lion regular users. Paraguay has
pendent of the public sector.” communications giant Millicom, per year,” says Jose Perdomo, CEO only 800,000 bank accounts.”

The Decade Of Infrastructure:

PPPs Drive New Investment

he Cartes adminis- develop the necessary expertise
tration entered office and capacity to be a strong local
facing a severe infra- partner for international con-
T structure deficit. Pub- struction companies.
lic Works and Communications With the largest turnover in
Minister Ramón Jiménez Gaona the construction sector, new
worked quickly to increase ISO certification and the new
investments, more than qua- U.S. Embassy build on its radar,
drupling those of the previous Tecnoedil welcomes more inter-
administration. Infrastructure national partnerships to access
investment reached $800 mil- long-term financing for large-
lion in 2017 and is expected to scale infrastructure projects.
grow to $1 billion in 2018. “Our company is specialized in
To support investment in all aspects of construction, from
infrastructure, the government roads to highways, ports to indus-
established the framework for trial complexes, factories to large
public-private partnerships “Paraguayan construction companies can be buildings,” says Ardissone. “It
(PPPs) for the first time in Para- is important to note that Para-
guay. This opened the door to excellent partners because we are serious, eager to guayan companies are very seri-
Paraguay’s initial PPP to upgrade work together, and we have good local expertise ous and highly skilled, and they
Routes 2 and 7, the arterial high- to bring to the table.” are reliable.”
way that links the capital, Asun- A more recent addition to the
cion, with Ciudad del Este on the local offering is Tecsul, whose
— EMILIO GILL, President of CAVIALPA,
Brazilian border, thereby con- youthful founder Joaquin Fer-
the Paraguay Road Builders Association
necting the two regions respon- nandez brings an innovative,
sible for 70% of Paraguay’s GDP. can-do attitude to his business.
The international airport is also For the Routes 2 and 7 project, Paraguay can achieve investment “So much still needs to be done:
earmarked for redevelopment leading Paraguayan construc- grade, this will be a key step. Infrastructure is lacking, real
under the new laws. tion firm Ocho A has partnered “Once we complete this proj- estate investment is required, and
“We welcome international with Spanish company Sacyr, ect and investors see how suc- we have shortfalls in the sewage
companies that are bringing new Portuguese firm Mota Engil and cessful it was, it will be easier to network which covers only 20%
technology into the country and Paraguayan construction firm get financing,” Pettengill adds. or 30% of the country. But it is
increasing competition with Par- Tecnoedil. “The hardest part of “Investors are usually afraid of impossible for us to do it alone.
aguayan companies, and that are this project is financing it, and buying bonds and not seeing a We do not see foreign companies
hiring more local professionals this is a hurdle that we have project become a reality. In our as taking away work from us, but
and professionals from overseas,” overcome already,” says Ocho case, this risk does not exist, as we rather expanding the total oppor-
explains Jiménez. “By improving A President Luis Pettengill. have the expertise to execute the tunities so that we can catch up
the pace and the quality of public “Routes 2 and 7 will be funded project, which is not a complex on our infrastructure deficit
works, we have reduced costs by by bond emissions via Goldman one. Building highways is what faster,” says Fernandez.
around 20%. We are witnessing Sachs and backed by the IDB. we do best.”
bigger, more complex projects in It is a good structure. In addi- Tecnoedil founder Roque Credits:
terms of engineering and financ- tion, the government is attract- Ardissone echoes Pettengill’s Project Directors: Clementine
ing, which is helping us move ing a great deal of interest from comments, explaining that his Winkler and David Seale
faster and improve the lives of international investors who are company has worked hard since Writer: Susan Burnell
millions of Paraguayans.” buying government bonds. If its incorporation 40 years ago to info@forbesemergingmarkets.com
Economic Development 5