In an effort to establish itself as a strategic transport node in South America, Paraguay has launched an ambitious agenda of infrastructure projects under the administration of President Santiago Peña, and is looking at public-private partnerships to help drive further infrastructure growth.
The Paraguayan government’s vision aims to position the country as a “multimodal logistics centre”, leveraging its strategic location between Brazil, Argentina, and Chile.
The Ministry of Public Works and Communications (MOPC) is actively promoting public-private partnerships (PPP) and concessions to drive investments in key infrastructure.
According to Amilcar Guillén, Head of the Strategic Projects Authority (DIPE) of the MOPC, “one of the central goals of our agenda is to consolidate Paraguay as a multimodal logistics centre,” he stated in an interview with the international press outlet BMamericas.
Guillén emphasized the importance of Route PY01 in this process, considering it fundamental to Paraguay’s vision as a logistics hub. Route PY01 runs from the capital Asunción to the southern city of Encarnación, which lies across the Paraná river from the city of Posadas in Argentina.
Despite having a PPP law in place for over a decade, currently, there is only one project in development, the expansion of Routes PY02 and PY07, with an investment of US$530 million. However, another contract for Route PY01 is being tendered, demonstrating renewed interest in utilizing PPPs to promote infrastructural development.
Guillén noted that several additional PPP projects are being structured, including Route PY09, in collaboration with the Development Bank of Latin America (CAF).
Route PY02 connects Asunción to Paraguay’s second-largest city, Cuidad del Este, which itself lies further upstream on the Paraná river, opposite the Brazilian city of Foz do Iguaçu, with the Friendship Bridge connecting the two international trading hubs.
Route PY07 connects Ciudad del Este with the city of Coronel Oviedo to the north. Route PY09, better known as the ‘Trans-chaco’ route and the longest in the country, runs from Paraguay’s border with Argentina just outside the capital Asunción, all the way through the Chaco to the border with Bolivia.
The government has set a target investment of US$ 5.5 billion over five years, aiming to generate around 300,000 jobs.
Among the priority projects is consolidating the bi-oceanic corridor, which aims to connect the Atlantic and Pacific oceans through Paraguay, Chile, Argentina, and Brazil. Guillén has highlighted dialogue with Chilean authorities to coordinate efforts as crucial for regional development.
Additionally, Paraguay is advancing in the bidding process for sanitation works in the city of Pilar to strengthen its position as a key port center. “Pilar is one of the few deep-water ports and is more important than ever due to lower water levels in the Paraguay River,” explained Guillén.
Regarding air transport, the government is evaluating different models to modernize the Asunción International Airport. “We are finalizing an agreement with internationally renowned consultants in airport developments,” announced Guillén, emphasising the strategic importance of the airport in the country’s development plans.
The government says its initiative to transform Paraguay into a regional logistics hub through public-private partnerships and concessions represents a significant step toward economic development and regional integration, as the country seeks to leverage its privileged geographical location at the heart of South America to attract investments and promote sustainable economic growth.
Analysts say that the implementation of these projects will boost the construction and logistics sectors, and also generate employment opportunities and contribute to strengthening trade connections between Paraguay and its South American neighbors.
