ASUNCIÓN, Paraguay – While the Ministry of Public Works and Communications (MOPC) anticipates private sector participation in public infrastructure investment, plans totaling approximately USD 2.34 billion have yet to advance to concrete implementation stages.
At the beginning of its term, the government faced financial difficulties with USD 350 million in debt and USD 100 million in unpaid interest. Compounding this, the MOPC's investment budget has been further reduced due to the fiscal consolidation plan aimed at lowering the fiscal deficit target to 1.9% of GDP this year. The 2024 financial plan saw a 22% decrease from USD 1.264 billion in 2023 to USD 980 million, and the allocated budget for this year remains at the same level as last year.
In response, Amilcar Guillén, Director of the Strategic Project Management Office (DIPE) under the MOPC, explained, "The structuring process for large-scale projects such as PPPs (Public-Private Partnerships) and turnkey projects can take considerable time, sometimes even extending beyond a government's term." He added, "The scale and complexity of the projects lengthen the procedures, and financial closing is heavily dependent on market conditions."
The MOPC, led by Minister Claudia Centurión, is actively promoting PPP and turnkey (Law 5074) approaches. Director Guillén highlighted key projects, including the expansion and improvement of the PY01 National Highway, Cuatro Mojones-Quiindy section (108 km), with bidding scheduled for April 25, and the construction plan for the first high-speed access and exit to Greater Asunción (4 km elevated road), targeted for implementation within this year.
Furthermore, the paving project for the PY10 National Highway, San Cristóbal-Paso Yobái section (approximately 79 km), being pursued through a turnkey approach, received bids from five companies on April 9, with the aim of signing a contract in the first half of 2025.
Railway Project
The government also has high expectations for the suburban railway project connecting Asunción and Ypacaraí (Law 7434). This project aims to resume railway transport along the 44 km section.
Director Guillén stated, "We are prioritizing the modernization of strategic corridors to improve regional connectivity, reduce logistics costs, and strengthen Paraguay as a multi-modal logistics hub." To this end, the MOPC technical team is currently evaluating maintenance projects for export and passenger transport corridors, including National Highways PY03, PY06, PY09, and the modernization of the Silvio Pettirossi International Airport.
Support from Itaipu Hydroelectric Power Plant
Minister Claudia Centurión announced that the MOPC expects to receive USD 400 million in investment from the Itaipu Binacional (IB) in 2025. She emphasized, "While this is almost the same level as the 2024 budget, an additional USD 400 million will be added to the MOPC's USD 972 million budget. Although it will not be directly reflected in the budget, we will undertake specific projects through the MOPC's capabilities."
The Paraguayan government recognizes the expansion of public infrastructure as a key driver for economic growth and is actively seeking to attract private investment for this purpose. However, various factors, including complex project structuring processes, financial constraints, and market conditions, are preventing planned investments from translating into concrete results. The government's proactive efforts and the building of trust with the private sector will be crucial in achieving tangible outcomes soon, which is essential for Paraguay's economic development.
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