Paraguay: FONPLATA finances key project for regional bioceanic corridor

PRESS RELEASE

This is a machine translation of the original press release issued in Spanish.

The Development Bank approved the “ Project Improvement and Paving Route PY-15 Mariscal Estigarribia Section - Pozo Hondo and Access to Mariscal Estigarribia in the Department of Boquerón of the Republic of Paraguay ”. The financing is for more than 354 million dollars and will be granted in three stages. This is the largest loan financed by FONPLATA for the physical integration of the region, completing a strategic interoceanic corridor that links Brazil, Paraguay, Argentina and Chile.

The objective of the project is to contribute to achieving safe and uninterrupted transit between the towns of Mariscal Estigarribia and the border area of Pozo Hondo in the Paraguayan department of Boquerón. This strategic investment in communications, transportation and logistics infrastructure in western Paraguay will constitute a key factor for the economic development of the country as it will improve local and regional integration in the area, and will contribute to sustained economic growth. The execution of said road section has been considered as a priority by the Governments of Argentina, Brazil, Chile and Paraguay in the "Declaration of Asunción on Bi-oceanic Corridors" of December 2015, when they agreed to "promote the carrying out of technical studies and formulate the pertinent recommendations for the prompt completion of the Campo Grande - Puerto Murtinho (Brazil) - Carmelo Peralta - Mariscal Estigarribia - Pozo Hondo (Paraguay) - La Paz Mission - Tartagal - Jujuy - Salta (Argentina) - Sico - Jama - Ports of Antofagasta highway corridor - Mejillones - Iquique (Chile) ”.

The total investment in the project amounts to more than 354 million dollars, which will correspond entirely to FONPLATA's own resources, granted in three stages, making it the largest operation in the history of the Development Bank. The execution will be in charge of the Ministry of Public Works and Communications ( MOPC ) of Paraguay, and the works and planned actions will contribute directly to the achievement of the 2030 Sustainable Development Goals of the United Nations, particularly decent work and economic growth ( ODS-8); Industry, Innovation and Infrastructure (ODS-9); and Partnerships to achieve the goals (SDG-17).

The works will involve the implementation of a new paved road of 227.6 km, of which 219.5 km correspond to the improvement and paving of the section of the National Route PY-15 between these towns, also contemplating its maintenance during the first eight years once the road works are completed. In turn, the project includes the execution and equipping of the Border Center Building in the town of Pozo Hondo and two weighing and toll stations. This section of highway in Paraguay will enable a new inter-oceanic road link to facilitate foreign trade movements, linking the country with Brazil via Porto Murtinho in the State of Mato Grosso del Sur and from there to the Atlantic Ocean, as well as with Argentina via La Paz Mission in the Province of Salta and from there with Chile to the ports on the Pacific Ocean.

FONPLATA - Development Bank

We work for the integration of Argentina, Bolivia, Brazil, Paraguay and Uruguay to achieve a harmonious, inclusive and sustainable development. Our objective is to promote a better insertion of our member countries in Latin America and the global market by financing studies, projects, programs, assistance and technical advice.