Paraguay takes key step in re-tender of US$560mn highway

The lower house of the Paraguayan congress has given final approval to two loan agreements involving a total of US$560mn to finance the rehabilitation of Ruta 9 highway, known as Transchaco, taking a key step toward the re-tendering of the initiative.

Back in June, the country's deputy minister of public works, Juan Manuel Cano, said that congressional approval of these loans, which are being provided by Latin American development bank CAF and the Inter-American Development Bank (IDB) was necessary for the launch of the tender.

According to a release from the legislative body, the CAF will lend US$400mn and the IDB US$160mn.

The project involves the rehabilitation of the entire 475km road, which runs between the Remanso bridge in Central department and the town of Mariscal Estigarribia in Boquerón department, as well as another 56km of access roads in the municipalities of Loma Plata, Filadelfia and Neuland.

During the legislative session, congressman Arnaldo Samaniego said that the project is expected to benefit 60,000 residents, particularly in Boquerón department, which accounts for 65% of national dairy and meat production.

The tender for the road is expected to be launched next year. A previous bidding process failed in 2016 following concerns expressed by the country's finance ministry about the cost of the contract.