Spotlight: Paraguay’s highway projects worth close to US$1.3bn

Paraguay’s public works ministry (MOPC) has eight major highway projects worth US$1.28bn under execution. The investment amount ascends to US$2.6bn when considering other projects in early stages.

According to a presentation from the ministry to a bicameral committee reviewing the 2025 budget bill, most of the contracts under execution have financing from multilateral institutions.

This is in line with the government’s efforts to control public spending and bring the fiscal deficit within legal limits. 

The budget bill includes a 0.93% increase in MOPC’s budget, while resources allocated to physical investments are set to fall to 5.29tn guaraníes (US$677mn) from 5.4tn guaraníes.

Minister Claudia Centurión told legislators last week that the government is betting heavily on private investment to achieve its 2023-28 goal of investing US$5.5bn in infrastructure. 

The projects currently under construction are:

Bioceanic highway section 3 (US$354mn): Construction began in late August with funding from La Plata basin development bank Fonplata. Works were divided into four contracts comprising a total of 224km between Mariscal Estigarribia and Pozo Hondo, in Boquerón department. 

Milk route (US$117mn): The project attained 95% progress this month, according to MOPC. It has funding from the IDB and is divided into three lots with a combined 184.5km, in Presidente Hayes department.

Route PY12 (US$180mn): Works began in February with funding from IDB. Works are divided into four contracts and cover 166km linking Nanawa and Burguez, in Presidente Hayes department. 

Puerto Falcón-Remanso highway (US$26mn): Construction is close to 90% complete, according to local construction chamber Capaco. Works are funded by Fonplata and entail widening a 19.5km stretch of route PY09 between the Puerto Falcón border pass and the Remanso bridge, in Presidente Hayes department.

Route PY22 northern corridor (US$80mn): The project was 71.9% complete last month. It has funding from Mercosur's structural convergence fund (Focem) and is divided into three contracts. Works entail upgrading 150km between San Pedro department’s namesake capital and the city of Belén in neighboring Concepción department. 

Route PY22 agroindustrial corridor (US$69mn): Progress had reached 50% in May. The project is divided into three contracts with funding from IDB. It entails upgrading a 99km stretch between Villa El Rosario and the road’s intersection with route PY11 in San Pedro department. 

Route PY17-sovereignty route (US$196mn): Listed as under execution, although contracts were signed in August with contractors having a six-month period for registry and appraisal. The works, which are divided into three lots with Fonplata financing, involve paving a 221km stretch of route PY17 between Pedro Juan Caballero (Amambay) and Ypejhú (Canindeyú).

Puerto Indio-PY07 (US$44mn): Lot 1 was 25% complete in September, while construction of lot 2 has also started. The project is funded by Latin American development bank CAF and covers 60.3km of route PY21, between Puerto Indio and the road’s intersection with route PY07 in Alto Paraná department. 

Eastern metropolitan corridor (US$212mn). Divided into six contracts, of which two involve roadworks. Lot 1 was 43% complete last month and lot 2 reached the 65% mark. The works cover a total of 31km and will link Presidente Franco with the future bilateral bridge with Brazil. Works are funded by CAF. Lot 3 involves a new 500m bridge over the Monday river. Other works entail linking the new infrastructure with existing roads in Presidente Franco, as well as new port facilities.