Paraguay's public works and communications (MOPC) minister Pedro Alegre will travel to Washington, DC to seek financial support for national connectivity projects, a ministry official told BNamericas.
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The minister will meet with officials from financial entities such as the World Bank (WB) and IDB to discuss possible financing to partly cover infrastructure development initiatives.
Authorities are concerned about the effect of the world financial crisis on obtaining financing at a convenient cost to support Paraguay's development, the official said.
One of President Fernando Lugo's government priorities is to boost infrastructure development to reduce poverty and increase Paraguay's competitiveness to attract further investment.
Last month, MOPC presented a US$4bn strategic development plan for 2008-13. The plan includes a US$1.5bn investment to cover the paving of 2,000km of roads and the gravelling of another 1,500km.
Authorities aim to increase investment in infrastructure to 5% of GDP, improve the quality of existing infrastructure, develop a national infrastructure plan up to 2030 and implement a new management model involving the private sector and local governments.
Potable water and sanitation will receive US$500mn to reach 80% water coverage and 40% sanitation coverage. The power sector will receive US$1bn while other sectors - such as airports, connectivity projects, rail, ports and barges - will receive the remaining US$1bn.
MOPC wants the private sector to play an active role in the plan - through concessions or public-private partnerships - for the financing, construction, operation and maintenance of infrastructure.
Alegre will address Paraguay's investment conditions to obtain the financial sector's support for private investment in his country as well, the official said.
The initiatives included in the development plan are designed to boost the country's competitiveness by reducing cargo transport costs and promoting tourism, among other sectors, the official added.
MOPC is also in talks with the Andean Development Corporation (CAF) and the Japan Bank for International Cooperation to negotiate financing.
World development and finance ministers will gather in Washington, DC for the WB and IMF annual meeting on October 13.
