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Home > Industry

Paraguay Announces Elevated Highway Project in Luque, Expanding Existing Road Contract

Desk / Updated : 2025-04-09 08:08:27
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Asunción, Paraguay – The Paraguayan government has officially unveiled its plans to construct an elevated urban highway in the city of Luque. The project, featuring two lanes and four traffic lanes, will connect the Ñu Guasu area with Silvio Pettirossi Avenue. The initiative also encompasses the development of roundabouts and bypasses along various sections of the route from Luque to Ypacaraí.

This ambitious undertaking is being facilitated through a modification of the existing contract with the private investment firm Rutas del Este, which was initially for the expansion of National Route PY02 earlier this year. The government has opted to add a 30-year extension (adenda) to the original agreement to incorporate the new construction projects.

Instead of initiating a new bidding process, the government utilized the parliamentary recess to "modernize" the Public-Private Partnership (APP) law. This strategic move bypasses the need for congressional approval for the contract modifications, allowing the current president to authorize investments, loans, and agreements with companies unilaterally.

While the contract documents have been requested from the Ministry of Public Works and Communications (MOPC), the specific details remain undisclosed. However, it is understood that the new construction projects will be subject to a bidding process, in which the current contractor, Rutas del Este, is expected to participate. The contract for maintenance and additional works has been extended for the company for an additional 30 years. The total project cost is estimated to be approximately US$180 million.

The Presidential Office released a statement alongside a video presentation, declaring, "Today, we take a significant step towards improving mobility in Greater Asunción. We announce a project that will revolutionize how we enter and leave the capital: an elevated urban highway and new accesses branching off from the PY02 National Route. Designed for faster, safer, and more convenient travel, because better mobility leads to a better quality of life. This is the path towards a more modern, more connected Paraguay, focused on the well-being of its people."

Intriguingly, the video showcasing the elevated highway project also included footage of the previously planned suburban train (tren de cercanías) to be developed with prior consultations and funding from South Korea. The government ultimately decided to cancel this railway project, opting for a domestic company and national funds for the highway.

The MOPC clarified, "This solution has been designed to be perfectly compatible with the future suburban train, respecting the urban dynamics and the movement of pedestrians and vehicles in the city of Luque."

Furthermore, improvements are slated for a 41-kilometer stretch of the PY02 National Route between Ypacaraí, Areguá, and Luque, promising enhanced accessibility from these cities to the capital. A new bypass will be constructed in Areguá.

On the PY02 National Route, from kilometer 43, covering the Ypacaraí-San Bernardino-Luque (Tarumandy) section, the plans include the expansion of lanes at the San Bernardino access, urban improvements, and lane expansions at key points along the San Bernardino-Luque stretch.

Additionally, the Nueva Colombia connection will see the addition of left and straight turn lanes, and new access points connecting to the PY02 National Route will be developed.

The MOPC emphasized the long-term vision of the project, stating, "Beyond construction, this project includes the operation and maintenance of the entire road network, ensuring its long-term functionality and building modern infrastructure that meets the current and future needs of the country," as stipulated under the APP law.

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