Spotlight: Paraguay’s 2025 infrastructure priorities

Paraguay is betting on private investments and resources from the Itaipú Binacional hydropower plant to finance crucial infrastructure projects in 2025 as the country aims to become a regional logistics hub.

“Undoubtedly, this new year 2025 finds us stronger, with transformative projects underway and a clear vision: to build a more connected, inclusive and prosperous Paraguay,” Amílcar Guillén, head of the public works ministry’s (MOPC) strategic projects office (DIPE), told BNamericas. 

Itaipú Binacional is a joint initiative with Brazil. Each party is entitled to a 50% share of the energy the 14GW plant generates and as Paraguay uses a lot less than Brazil, it expects to receive US$490mn in funds to compensate this year.

Furthermore, the MOPC’s budget is US$972mn, to which US$590mn in private financing must be added, Guillén said. 

Roadworks

Prequalification for the US$430mn PPP tender for route PY01 began in 2023, with awarding expected this year. Likewise, the US$100mn route PY10 turnkey contract, for which a tender was launched in November, is scheduled to be awarded in 2025, according to Guillén.

“We are also advancing in the structuring of a concessions package for other important corridors such as routes PY03, PY06, and PY09,” he added.

Guillén said other key projects are underway. They include the Bioceanic corridor (US$350mn), the San Pedro agro-industrial corridor (US$57.2mn), the Chaco’i-General Bruguez stetch of route PY12 (US$180mn), the Sovereignty route (US$220mn), the Monday river bridge (US$17mn), the Pozo Colorado-Concepción stretch of route PY05 (US$80mn), the Concepción-Vallemí-San Lázaro stretch of route PY22 (US$185mn), and maintenance on routes PY19, PY09, and PY13 (US$18.9mn).

He also said the US$70mn eastern metropolitan corridor network, near the second bridge on the border with Brazil, is 50% complete, while a US$10mn integrated border control post in the city of Presidente Franco in the same area has reached the 90% mark. 

The official added that US$64mn in Itaipú funds will be used for widening the road between Asunción’s north access and the city’s Silvio Pettirossi airport, the improvement of the Mariscal López-Cruce Margarita stretch of route D007, and the widening of the Tape Tuja routes in Luque. The contracts were signed last week.

Paraguay recently secured US$57mn from Mercosur development fund FOCEM for a border control office in Puerto Falcón, near Argentina.

Waterworks

The biggest water tender MOPC will launch this year relates to the US$160mn infrastructure plan for the Mariano Roque Alonso (MRA) basin, which is financed by Latin American development bank CAF.

The plan includes 73km of sewers and drainage pipelines, a wastewater treatment plant, 9.4km of impulsion pipelines and six pumping stations.

Similar tenders include the Ypacaraí lake (US$154mn) and Luque basin (US$70mn) sanitation projects, Ciudad del Este wastewater (US$16mn) and potable water systems (US$37mn), and wastewater works in Lambaré (US$38mn for smaller basins, US$73mn for main collectors).

Currently, MOPC is carrying out phase B of the Pilar coastal defense works (US$54mn), which involves 13.7km of rain drainages, 137km of sewers, 25 pumping stations, a wastewater treatment plant and a 300m sub-fluvial emissary. 

The ministry is also executing a US$46mn program to improve water infrastructure in the cities of Santa Rita, San Ignacio Guazú, Carapeguá and Santa Rosa del Aguaray.

Hospitals

MOPC expects to award the construction contracts for hospitals in Concepción (US$40mn) and Curuguaty (US$20mn) this year. Both projects are funded by Itaipú resources.

The ministry also plans to launch tenders for new hospitals in Asunción (US$77mn) and San Estanislao (US$60mn), and start studies for one in Mariscal Estigarribia.

Transport and schools

After an agreement with South Korea to develop a US$600mn commuter train service in Asunción fell through, MOPC is aiming to launch a tender for a similar project. 

Other efforts in the sector include the acquisition of 30 electric buses for Asunción and sending a bill to congress to reform the transport law.

Around US$50mn were earmarked for dredging the Paraguay and Paraná rivers to maintain navigability.

MOPC is also working with the education ministry on 17 new education centers, repairs at 119 schools and 75 early childhood centers, Guillén said.