IDB Finances Key Segment of Bi-Oceanic Corridor in Paraguay

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved a $200 million loan to finance the construction of a vital section of the Bi-Oceanic Corridor in Paraguay.

The operation will improve transportation, expand access to markets and services for people in western Paraguay, and stimulate international trade in the area served by the corridor.

At over 2,300 miles long, the Bi-Oceanic Corridor integrates the region via a continuous land route between the Atlantic and Pacific oceans. It crosses the strategically important and productive areas of central-eastern Brazil, western Paraguay, northern Argentina, and northern Chile, including the ports of Antofagasta, Iquique, and Mejillones.

The project is part of the IDB Group’s South Connection program, which aims to better connect the region, boost its competitiveness, and promote sustainable growth in South America.

The three segments of the corridor in Paraguay follow the 325-mile National Highway PY15, which links Carmelo Peralta on the Brazilian border with Pozo Hondo on the Argentine border.

The loan will finance the design, construction, and maintenance of 63.7 miles of Segment II and 5 miles of access road to the city of Mariscal Estigarribia. The operation will also improve 17 miles of the eastern route for accessing the industrial area of the city of Loma Plata, which feeds into the corridor.

The project will directly benefit the population and economic sectors of the departments of Alto Paraguay and Boquerón, including over 7,000 primary sector producers who account for much of the country’s agricultural output.

Approximately 28,700 people, including 1,700 from Indigenous communities, will gain better access to hospital services. The project will also improve access to secondary school for an estimated 99 towns, including 23 Indigenous communities.

The $200 million loan has a 22.5-year repayment term, an 8-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).