Paraguay provides update on US$1.5bn infrastructure agenda

Paraguay’s public works ministry (MOPC) is advancing with an infrastructure agenda worth around US$1.5bn that will be executed through public-private partnerships and turnkey projects.

The strong focus on public works is part of efforts to reactivate the economy.

“We’re taking strong actions to incorporate the private sector in the provision of road infrastructure, transportation and logistics corridors in order to boost the economic recovery and improve the economy’s competitiveness,” the head of MOPC’s strategic projects office (DIPE), Jorge Vergara, said at the opening of construction expo Construtecnia.

The MOPC pipeline has three projects that are in the advanced feasibility study stage:

Paraguay River waterway (US$110mn): A private initiative by Belgian dredging firm Jan de Nul, which would entail dredging 537km between capital Asunción and the river’s intersection with tributary Apa. Vergara said the feasibility studies would be presented this month.

Route PY01 (US$350mn): A project to widen 108km between the towns of Ytororó and Quiindy in Paraguarí department. The feasibility studies began in June and are expected to finish in November 2022. 

Asunción light rail (US$300mn): The 44km line would have seven stations linking Asunción’s Estación Central bus terminal and the town of Ypacarí. Feasibility studies are expected to be concluded before the end of this year. 

The projects in the early stage of feasibility study are:

Route P10 (US$120mn)
Route P06 (US$120mn)
Asunción ferry system (budget not yet disclosed)
Luque-San Lorenzo-Limpio-Mariano Roque Alonso water intake and sewer system (US$450mn)
 Naranjito-Nueva Aurora highway (US$30mn)

MOPC is also evaluating concessions for highways that have a combined extension of 3,148km, with eight sections totaling 1,562km potentially being awarded during 2022-2023.