CAF and Paraguay agree on a USD 272 million investment to enhance road infrastructure, improving cargo transport and socio-economic conditions through targeted rural projects in the Eastern Region, fostering regional competitiveness over four years.
On April 10, 2014, CAF, the development bank of Latin America, and the government of Paraguay signed loan agreements amounting to USD 272 million to upgrade road infrastructure. The financing will support projects along national and departmental road networks in three departments bordering Argentina, Bolivia, and Brazil.
The agreements include USD 222 million for the Integration Corridor Improvement and Road Reconstruction Program and USD 50 million for a local project to enhance rural roads and bridges in the Eastern Region. These initiatives aim to optimize cargo transport and improve overall connectivity.
Among the signatories were Paraguayan Minister of Finance Germán Hugo Rojas and CAF’s Director-Representative Fernando Infante, who emphasized the importance of infrastructure investment as a driver for regional development and integration.
The Integration Corridor Improvement Program is designed to facilitate the movement of goods across departmental, regional, and international corridors, thereby enhancing competitiveness within Paraguay and neighboring countries. The implementation will occur over four years, managed by Paraguay’s Ministry of Public Works and Telecommunications.
Additionally, the rural project targets infrastructure enhancements in poor regions, aiming to increase family income sources by developing social services and increasing productivity through vocational training in construction-related trades.
Improving road infrastructure is critical for enhancing economic competitiveness and regional integration. The CAF’s initiative supports Paraguay in developing its transport networks, crucial for facilitating trade across its borders with Argentina, Bolivia, and Brazil. By investing in rural areas, the program aims to alleviate poverty and promote socio-economic growth through skilled training in construction and related fields.
In summary, CAF’s investment of USD 272 million in Paraguay’s road infrastructure is pivotal for boosting competitiveness and integration across Latin America. The project prioritizes transport optimization and addresses poverty through rural development initiatives, underscoring infrastructure’s role in facilitating economic growth and social development.
Original Source: www.caf.com
