Paraguay: Senator alleges MOPC awarded contracts $157 million over reference price

Senator Ever Villalba has accused Paraguay's Ministry of Public Works and Communications (MOPC) of awarding 20 tenders over the past two years at prices that collectively exceed reference values by $157 million. Villalba presented his findings to the Senate leadership, highlighting significant discrepancies in contract awards.

During a meeting with Senate leaders, Villalba detailed his review of MOPC tenders, pointing out instances where awarded bids surpassed reference prices by as much as 81%, 65%, and 49%. He urged Minister Claudia Centurión to scrutinize the work of the technicians responsible for estimating project costs.

Minister Centurión, however, rejected the accusations of overpricing. She defended the ministry's procedures, asserting that the evaluation and adjudication processes were sound. The MOPC head was summoned to Congress to address these allegations directly.

One of the most contentious examples cited by Villalba involved a road improvement project for the Yby Pytá – Ybyrarobana stretch. The MOPC's reference cost was estimated at approximately 24 billion Paraguayan guaranis. While multiple bids were submitted, with one company offering a price close to the reference value (around 25 billion guaranis), other bids ranged from 44 billion to 48 billion guaranis. Villalba questioned why the lowest bid was disqualified and the contract was awarded at a price reportedly 81% above the reference, demanding justification for the additional cost and the disqualification.

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The senator estimated that the over-invoicing reaches US$157 million.