Dec. 14, 2016
Paraguay will improve the competitiveness of its agricultural sector and economic integration, particularly in its eastern region, with a program for the improvement and conservation of road corridors, supported by a US$90 million loan approved by the Inter-American Development Bank. The payment term is 23 years, with 7.5 years as a grace period, and an interest rate based on libor.
The beneficiaries will be the users of the road network, especially the small and medium agricultural producers and an estimated population of at least 522,000 people, of which 76% correspond to the rural population.
The improvement and conservation of road corridors aims to improve traffic conditions, service level, and road safety in the sections that are part of the program to achieve a reduction in transport costs, travel time, and the accident rate.
The road sections that are expected to be improved and maintained form part of an important logistics corridor connecting production areas in the eastern region of Paraguay with processing and marketing centers for the country's main export products, as well as intermodal terminal waterways.
Priority works include the paving of the approximately 90-kilometer section between San Juan Nepomuceno and Route 6, a corridor that is fundamental for national and international integration since it connects the south-central part of the eastern region, where some 54% of agricultural production is concentrated, with the Paraguay-Paraná waterway, where the main bulk export ports and the main oilseed processing plants are located.
In addition, the extension of this corridor from Route 6 to the east will allow access to one of the country's main fruit and vegetable production and processing centers and provides a link to the river ports on the banks of the Paraná River.