Paraguay will launch the first tender for its new public transport reform in approximately a month and a half , with around 300 buses and an initial forecast of 120 electric units .
The definition was exclusively revealed to Mobility Portal by Econ. Emiliano R. Fernández, Vice Minister of Transport of Paraguay , an agency dependent on the Ministry of Public Works and Communications (MOPC), headed by Minister Claudia Centurión.
“ We are at 85% of the tender specifications and in the final 15% of adjustments. The bidding process should be officially announced in no more than a month and a half, ” the official stated during a one-on-one interview on the live stream “Fuera de Registro .”
The call will be the first in a roadmap that includes five tenders to reorganize the metropolitan system through corridors and contract approximately 2,000 buses .
Each process will include both the operation of the service and the provision of the fleet. For the first corridor, the Government estimates a need of approximately 300 units, although the final figure will be established in the tender specifications.
The preliminary goal is for 40% of the buses to be electric , a proportion that Paraguay will try to transfer to each of the corridors.
“On this corridor, we want to have about 120 electric buses. That's the mix we'll be adjusting, but our plan is for 40% of the 2,000 to be electric,” Fernández confirmed.
The figure is still part of the initial planning and may be adjusted according to operational needs and the conclusions of the dialogue with the market.
However, it marks for the first time a concrete reference on the electrical dimension of the next call.
Tender specifications are 85% complete and there are between 60 and 90 days to submit bids.
The Deputy Ministry is currently working on the final contractual and financial elements of the tender. Before finalizing it, it plans to open a competitive dialogue with operators, manufacturers, fleet providers, and financial institutions .
This mechanism will allow comparing the conditions designed by the State with the market's actual capacity to finance, deliver, and operate the units.
“Once we have almost finalized the contractual elements, we will work with the private sector to get their final feedback and adjust the specifications,” Fernández said.
In parallel, the government is holding talks with local banks, international companies, and businesses already operating in the country. It is also preparing new regional roadshows and has already held discussions with financiers and suppliers in Colombia.
Following publication, potential participants will have between 60 and 90 days to prepare and submit their proposals .
“That is the timeframe we are considering to give the interested party time to work on their offer, reach the necessary agreements, and submit the bids,” the deputy minister explained.
The call will be open and international , a signal aimed at manufacturers, operators and financiers interested in entering the Paraguayan market.
The initial timeline anticipates launching the first tender in 2026, two more in 2027, and the remaining two in 2028. The process will cover five metropolitan corridors and distribute the necessary number of units in each one according to its routes and demand.
“We’re going to do it gradually,” the official explained.
The design is based on the new legal framework established by Law 7617/2026 and its regulations, which enable new ways of contracting, financing and controlling public transport.
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Operation and fleet will be contracted separately
One of the main changes will be the possibility of differentiating the operation of the service from the ownership and provision of the buses .
In each corridor, fleet operators and suppliers will be selected under linked contracts, a structure aimed at increasing competition and facilitating the financing of new vehicles.
The reform incorporates project finance tools commonly used in large infrastructure projects. The aim is to increase bankability and distribute risks among the government, operators, suppliers, and financial institutions.
“We took this financial technology and incorporated it into public passenger transport. Previous legislation did not allow it ,” Fernández explained.
The new model will also review the operator compensation system. Paraguay is considering a combination of payments per kilometer traveled and per passenger transported , based on regional experiences and pilot programs.
To design the tender, the government is working with teams and former managers of the systems in Chile, Colombia, Brazil, and Uruguay . The consultations cover contract drafting, corridor planning, tariff structure, and the transition between existing contracts and the new system.
A gradual approach will be one of the key conditions. Paraguay will begin with a pilot program to assess market response, fleet operations, and the impact on users before proceeding with subsequent tenders.
The expansion of electricity will accompany the new demand for transport
The electrification of the fleet will coincide with a new stage for the Paraguayan energy system.
In addition to its hydroelectric base, the country is preparing its first utility-scale solar tender , a call for 140 MW of photovoltaic power planned for Loma Plata, in the Central Chaco.
The process, promoted by the National Electricity Administration (ANDE), has already gone through public consultation and received a much higher level of interest than expected.
According to the Paraguayan Renewable Energy Association (APER), as reported to Energía Estratégica , the platform reached its limit of 400 participants, compared to the 30 or 40 people that the state-owned company initially expected.
The winning bidder will sell all the energy produced to ANDE through a contract of up to 30 years. Construction is expected to take place between 2027 and 2028, while commercial operation is projected to begin in 2029.
The call for bids opens a new avenue for energy generation in a country whose electricity demand has grown sharply in recent years. This increase is linked to new industrial facilities, real estate developments, data centers, artificial intelligence, and cryptocurrency mining.
For public transport, this expansion will be significant as the number of electric buses and depots increases. The first tender could incorporate around 120 zero-emission units, but the government's overall target would raise that figure to approximately 800 , if the 40% electric participation rate is maintained across the 2,000 planned buses.
This leap will require coordinating the purchase of vehicles with the connection capacity of the depots, the construction of electric charging stations and investments in transmission and distribution.
The State is already building two charging facilities for its fleet and is working with the electric company to analyze locations, available power and possible network reinforcements.
The solar tender also highlights the challenges of this transformation. The Loma Plata project does not include batteries and will be located in a low-consumption area, with a weaker grid and farther from the country's main demand center.
APER warns that Paraguay needs to accelerate investments in generation, transmission, distribution and storage to keep up with a demand growth that they estimate at around 18%.
The private sector projects that non-conventional renewable capacity could reach 3,000 MW by 2030 , although that figure represents a business aspiration and not an official government goal.
For transport reform, the availability of clean energy is a competitive advantage, but fleet expansion will require bringing that electricity to the points where the buses are actually charged.
According to Fernández, the energy cost of an electric bus is around eight cents per kilometer, compared to 60 cents for a diesel bus . This is in addition to a stable electricity rate, while fuel represents about 40% of a transport company's cost structure.