Private Sector Funds Gs. 5 Billion To End Gridlock Around Paseo La Galería In Asunción

A coordinated public-private initiative has begun in Asunción to address traffic congestion and improve road infrastructure in the area surrounding Paseo La Galería, a major shopping centre in Paraguay’s capital city. The Municipal Government of Asunción and Blue Tower Ventures Paraguay S. A. formally announced the traffic impact mitigation project this November 2025, with work set to continue for six months.

The improvements are designed to increase safety and service levels across the district road network. Blue Tower Ventures, a private development company, will fund the entire initiative, investing around Gs. 5.000.000.000 (approximately US$715,000). The Municipal Government will not contribute its own resources to the construction.

Paving and road work around Paseo La Galería

The project encompasses several interconnected improvements across multiple streets in the Paseo La Galería area. Over 1.000 square metres of asphalt paving will be laid on César Vasconcellos Street and Pablo Alborno Street, replacing existing brick surfaces.

Additional improvements include integral enhancements on Santa Teresa Avenue between Aviadores del Chaco and Herminio Maldonado. This will include new pavements, ramps, and modifications to the central median. Traffic signals will be installed between Santa Teresa Avenue and Gumersindo Sosa Street. A specialised traffic lane has been designed for vehicle turns between Santa Teresa Avenue and Herminio Maldonado Street.

The project also includes wider urban design enhancements to the commercial district. A central median along Santa Teresa Avenue will be improved with urban design emphasis. New road signage and markings will be placed within a two-block radius around Paseo La Galería, covering Gumersindo Sosa, Emeterio Miranda and Denis Roa streets.

Vehicle donation for traffic management

Blue Tower Ventures has donated a specialised vehicle to the Municipal Government. This donation aim to support maintenance of the city’s traffic light system. This donation forms part of the broader commitment to long-term traffic management in the Paseo La Galería area.

Project authorisation and oversight

The traffic impact mitigation initiative in the area surrounding Paseo La Galería was authorised through Municipal Resolution D.O.P. No. 3, issued on 30 May 2025. All work is being executed under technical supervision by the Department of Works Inspection, part of the Municipal Works Department. This oversight ensures compliance with municipal quality and road safety standards. The six-month execution period begins from the official notification received by contractors.

Why Paseo La Galería area improvements matter

Project to alleviate traffic close to Paseo La Galería.

Paseo La Galería is a dynamic commercial zone that draws substantial foot and vehicle traffic. Without targeted interventions, growth in the area creates congestion and safety risks for residents and visitors. Intendant Luis Bello, the head of the Municipal Government, stated that the infrastructure improvements represent a concrete advance in municipal management.

Bello emphasised that the Municipal Government prioritises swift administrative processes and transparent management. He noted that the project resolved a lengthy administrative process in just two weeks, a timeframe significantly faster than previous standards.

Public-private collaboration in traffic impact mitigation

Julio Hernández, Chief Executive Officer of Blue Tower Ventures, stressed the importance of cooperation between the public and private sectors for Asunción’s urban development. He stated that coordinated dialogue, planning and responsible action demonstrate how both communities benefit from infrastructure improvements in the area surrounding Paseo La Galería.

Hernández announced that further traffic mitigation projects will commence in coming months. He also reaffirms the company’s commitment to sustainable growth and urban integration.

Bello highlighted that these works complement other ongoing initiatives, including signage on major avenues and agreements with national institutions aimed at improving urban infrastructure and connectivity.

Timeline

Work commenced immediately following the formal announcement in November 2025. Upon completion in six months, Asunción will have modernised critical infrastructure in one of its busiest commercial districts around Paseo La Galería.

Read more: Congress Approves US$75 Million Loan To Enhance Paraguay’s Roads System.