Paraguay lines up Mercosur funding for Costanera Norte road

Thursday, December 18, 2014

Paraguay signed a US$117mn financing agreement with Mercosur to build the second phase of the Costanera Norte road project in capital Asunción.

Mercosur's structural convergence fund Focem will provide non-reimbursable cooperation funding of US$83.2mn. The Paraguayan government will cover the remaining balance.

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Paraguay's public works and communications ministry (MOPC) will carry out the project, which entails the construction of a two-lane 11.5km road, paving, and an overpass.

A tender for the project had drawn five expressions of interests, but the MOPC canceled it and turned to the Mercosur funding.

The road will connect Primer Presidente avenue with the Ruta Transchaco highway, according to a government release.

Works are to begin in the first quarter of 2015 and be completed in 36 months