Paraguay’s infra investments climb by a third in 2021

Investments in physical infrastructure works in Paraguay reached 7.9tn guaraníes (US$1.13bn) last year, some 34% higher than in 2020.

The growth was thanks to an increase in spending on PPP and turnkey contracts that offset a 21% decrease in public investments.

In 2020, investments in physical infrastructure works reached an annual record of US$1bn, but the public works ministry (MOPC) decided to cut its spending to US$750mn in 2021 from the US$851mn seen in 2020 due to fiscal constraints.

The final figure of MOPC investments for 2021 was 4.65tn guaraníes, some 75% of the official goal, ministry records show. 

By contrast, investments in turnkey and PPP contracts reached 2.08tn guaraníes (US$302mn), above the US$200mn seen the previous year. Meanwhile an additional 1.18tn guaraníes were directed to debt assignments related to physical investments.

The government is betting on concessions, turnkey contracts and PPPs to boost public works in a bid to avoid exerting too much pressure on public resources.

On that front, the MOPC’s strategic projects office (DIPE) has a US$1.5bn PPP and turnkey agenda with tenders scheduled for this year and after the next government takes office in 2023, and a separate US$1.1bn highway agenda that would put over 3,500km of roads under concessions between 2022 and 2027.