Paraguay readies major electromobility push for Asunción bus system

Asunción’s bus system will receive around 1,000 electric units over a four-year period in what is set to be the first big electromobility push from the Paraguayan government.

The new buses will replace 800 units that are nearly 20 years old and at the end of their life cycle, deputy transport minister Emiliano Fernández told local daily Última Hora.

The estimated cost of the project is still being analyzed, his office said when consulted by BNamericas. 

As for the financing, Última Hora reported that the government will use a combination of sustainability loans from international agencies, state resources, and a contribution from hydroelectric dam operator Itaipu Binacional.

Itaipu Binacional is operated jointly by Paraguay and Brazil. 

The administration of President Santiago Peña, who took office last August, is under pressure to reduce the fiscal deficit after a relaxation of the legal limits during the COVID-19 pandemic. 

This year the government has made progress on the tax revenue front, with a 26.5% year-on-year jump in January-May, according to tax agency DNIT.

The government has also submitted a bill to reform the State’s administrative organization with the objective of improving spending efficiency. 

Some of the long-term goals in Paraguay's electromobility plan, which was unveiled last year, include replacing all public transport buses with electric vehicles in the five largest cities by 2040, involving 6,292 units.

The strategy also includes taxis, with the objective of converting half of the country’s fleet by the same year.  

Paraguay is receiving support from Taiwan and other international partners to acquire the new vehicles.