Paraguay to push US$1.8bn in infra works in reactivation plan

Paraguay’s public works ministry (MOPC) has included 12 road and water projects worth US$1.8bn in the the economic recovery plan being drafted by the government, which will involve between US$2bn and US$2.5bn in total investments. 

Many of these projects have financing from multilateral entities such as the Inter-American Bank (IDB), Latin American development bank CAF, La Plata River basin development bank Fonplata and Japan’s International Cooperation Agency (JICA), public works minister Arnoldo Wiens was reported as saying by daily Última Hora.

The projects included in this plan are:

Bioceanic Highway Section 3 (US$360mn): This entails 219km of roadway between Mariscal Estigarribia and Pozo Hondo. Wiens said that financing from multilaterals is being studied for this project or it could also be carried out as a turnkey contract.

Soberanía Highway (US$220mn): This involves a 194km road between Pedro Juan Caballero (Amambay department), Capitán Bado, Itanará (Canindeyú) and Ypejhú. This project will be fully financed through a loan approved last year by Fonplata. The MOPC expects to launch a tender for the works this year. 

East Metropolitan Corridor (US$212mn): This project will result in the construction of 37.1km of access roads for the second bridge connecting Brazil and Paraguay. CAF has approved US$212mn for this project, according to state news agency IP. It has yet to be tendered.

Ruta PY012 (US$200mn): This entails paving 162km between Chaco-í, on the outskirts of Asunción, and General Bruguez (Presidente Hayes department). The MOPC is currently negotiating an IDB loan for this project, after ruling out using a turnkey model, according to the ministry’s website.

Industrial Corridor-Milk highway (US$194mn): One of two roads partially financed through a US$235mn loan approved by IDB in November 2019, this section outlines 190km connecting the Cruce Pioneros intersection, the town of Paratodo and the Douglas intersection in Presidente Hayes department. 

Industrial Corridor-San Pedro highway (US$73.5mn): The second agroindustrial corridor partially financed by IDB, this entails 80.3km of roadway between Villa Rosario and the Yakare Ñe’e road intersection (San Pedro).

Puerto Indio-Mbaracayú-Superhighway (US$103mn): This will mean the paving of 60km of roads connecting Puerto Indio, Mbaracayú and the Mariscal López highway in Alto Paraná department. CAF has approved US$100mn for this initiative. 

Remanso Bridge-Puerto Falcón road widening (US$38mn): A 19.2km road between the Remanso Bridge and the Puerto Falcón border pass (Presidente Hayes) will be widened. This will be partially financed with a US$70mn loan from Fonplata. 

Concepción Costanera road (US$35mn): A 7.5km avenue in the city of Concepción will be built, although the financing has not yet been determined. 

Avenida Silvio Pettirossi (US$16mn): This development will involve widening the 9.7km avenue that leads to Asunción’s international airport. Financing sources have not yet been chosen.

Asunción Terminal underpass (US$13mn): This project will mean building a 440m underpass near Asunción’s main bus terminal. Financing has not been decided as yet.  

Monday River water system (US$200mn): This entails building a potable water intake on the Monday River and a potable water plant, plus household connections, sewerage works and a wastewater treatment plant that will serve the cities of Presidente Franco and Ciudad del Este (Alto Paraná). Financing is being discussed with IDB and JICA. IDB previously approved a US$750,000 loan to prepare the project. 

Lambaré River sanitation (US$165mn): A wastewater treatment plant will be built and improvements made to sewerage systems in Asunción, Lambaré, Fernando de la Mora and Villa Elisa. Financing has not yet been decided.

OTHER MOPC INVESTMENTS

Besides the projects included in the economic recovery plan, the MOPC plans to invest between US$1.1bn and US$1.2bn this year.

“We have 270 works contracts across the whole country,” minister Wiens was quoted as saying by Radio 1 de Marzo.

Some of the works being carried out by the ministry include the PPP to widen the PY02 and PY07 highways, as well as the first section of the Bioceanic corridor and the Asunción-Chaco’i bridge. 

Last week, the ministry reported that some US$3.5bn of roadworks were being carried out despite the COVID-19 pandemic, while US$239mn of roadworks, waterworks and other public works projects are being tendered, with a further US$3.3bn planned for future bidding processes.