News Releases

Dec 4, 2014

Highway program will improve competitiveness of productive sector and economic and social integration in Paraguay

IDB support will help pave part of an important corridor that connects productive areas to river ports and facilitates access to social services

The Inter-American Development Bank (IDB) has approved a US$105 loan to finance a project that will contribute to improving the competitiveness of the productive sector and the economic and social integration in Paraguay.

This will be achieved by paving the corridor San Juan Nepomuceno-Empalme Ruta Nacional No. 6, an important link between a key productive area in the Departments of Caazapá, Itapúa and Alto Paraná and the country's main river ports.

The program will finance the construction, improvement and paving of 84.66 kilometers of main roadway and 4.83 kilometers of access roads.

The project includes a land registry and the review of final engineering designs, including adjusting the designs to technical criteria and standards for road safety as well as geographical and weather conditions in the region.

It also seeks to finance, among other activities, the expropriations and payments for improving the lands for the project; the administration of the program, including technical and administrative support and training for the unit of the highway Department in the Ministry of Public Works and Communications that will carry out the project; technical and administrative support; and a plan to help maintain protected wild lands for 15 kilometers on each side of the roadway.

Financing also will go toward plans to assist with socio-environmental issues, monitor the health and quality of the environment, strengthen indigenous communities and support community investments.

It is estimated that the project will reduce travel time in the area by more than 60 percent and the costs of operating the vehicles by nearly 50 percent, and will eliminate all seasonal restrictions on the use of the corridor.

The road is expected to generate other benefits, such as an increase in agricultural production and value added, the development of the tourism sector and an increase in the access by the area's population to social services such as schools, health centers and markets, among others.

The IDB loan for $105 million is for 25 years, with a grace period of six years and interest rates based on LIBOR.

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