Waterway Project would allow Paraguay River to be navigable most of the year

RIO DE JANEIRO, BRAZIL – The head of Paraguay’s Directorate of Strategic Projects (UEP), Jorge Vergara, stated that the Waterway Project is essential for the country and could be a profitable business with wide-ranging benefits.

Through the execution of the project, the Paraguay River is expected to be navigable for a large part of the year.

It was a statement made in the framework of the third Paraguayan Infrastructure Summit in a presentation entitled Opportunities in PPPs and Regional Integration of the Bioceanic Corridor.

On occasion, the official of the Ministry of Public Works and Communications (MOPC) detailed the main projects to be financed with private capital. One is the Public-Private Partnership (PPP) for the Paraguay River Waterway – Sovereign Section, Asunción – Apa River.

Within this context, he stressed that river transport is a very important part of the Paraguayan economy. To be competitive, the country must have a navigable river at least 90% of the year.

“Today, we have approximately 100 days a year of navigation, and yet we have a movement of products exceeding 20 million tons. The waterway is really fundamental, and it can be a good business for all the sectors involved,” he said.

Regarding the project, he informed that there is already a private initiative of the Belgian company Jan de Nul, which proposes to keep the river navigable almost all year round with several works such as dredging, opening channels, signaling, beaconing, and operating along the 510 kilometers.

Along with the above, he added that the proposal is being analyzed and that the expenditure would be around US$110 in capital investments (Capex), with an annual estimate of US$40 million for 20 years, which can be extended to a maximum of 30 years, as established in the PPP law.

He also stated that, as it is a private initiative via PPP, the law allows for the participation of the Paraguayan State in the Capex of up to 10% of the net present value.

Finally, the director of the UEP detailed the major works being promoted in Paraguay, such as the Bioceanic Corridor, routes PY02, PY12, PY21, and the Bioceanic Bridge.