Paraguay aims to tender US$300mn light train PPP this year

Paraguay’s public works ministry (MOPC) plans to launch a tender for the first phase of a light rail system for capital Asunción under the PPP model this year, with the project estimated to require an initial investment of US$300mn.

The feasibility studies were carried out by Korea Overseas Infrastructure & Urban Development Corporation (KIND), which is under the jurisdiction of the South Korean land and infrastructure ministry (MOLIT), MOPC stated in a release.

The study stated that the main line would be 44km long, with seven stations between the capital’s Estación Central station and the town of Ypacarí. The initial 15km between Estación Central and the Luque district in the center of the city will consist of a double line, with only one service operating on this section, with three stations.

The Estación Central-Luque section would be the first stage of the PPP. According to the feasibility study, building this 15km line at ground level would cost US$246mn, while making it an elevated line would raise the capex to US$366mn.

For the second stage, which would involve the rest of the line to Ypacarí, a ground-level line would cost US$390mn and an elevated line would cost US$510mn.

Once finished, the whole system would transport an estimated 229,000 people per day (according to demand projections for 2026). 

A previous attempt to tender the project in 2018, which attracted six bidders, ended up being cancelled by state rail firm Fepasa due to financing problems.