Paraguay: FONPLATA funds key project for the realization of the regional interoceanic highway

Ph. MOPC - Paraguay

The Development Bank has approved support the “Project: Works for improving and paving the PY-15 road section “Mariscal Estigarribia–Pozo Hondo and the access to Mariscal Estigarribia in the Department of Boquerón in the Republic of Paraguay”. The financing is for more than USD 354 million and will be granted in three stages. It is the largest loan financed by FONPLATA for the physical integration of the region, completing a strategic interoceanic corridor that links Brazil, Paraguay, Argentina and Chile.

mapa proyecto


The project aims at providing safe and non-interrupted circulation between Mariscal Estigarribia and the border town of Pozo Hondo, in the Paraguayan Department of Boquerón. This strategic investment in communications, transport, and logistics infrastructure on the west side of Paraguay will be a key factor for the economic development of the country, as it will improve local and regional integration of the area, thus contributing to sustained economic growth. The construction of this road section has been considered a priority by the Governments of Argentina, Brazil, Chile, and Paraguay in the “Asunción Declaration on Bioceanic Corridors” of December 2015, when they agreed to “promote technical studies and to prepare the corresponding recommendations for a prompt realization of the road corridor Campo Grande–Porto Murtinho (Brazil)–Carmelo Peralta–Mariscal Estigarribia–Pozo Hondo (Paraguay) –Misión La Paz–Tartagal–Jujuy–Salta (Argentina)–Sico–Jama–Ports of Antofagasta–Mejillones–Iquique (Chile)”.

The total investment amounts to more than USD 354 million, totally funded by FONPLATA and to be granted in three installments. So far, this is the most important operation in the history of the Development Bank. The Paraguayan Ministry of Public Work and Communications (MOPC) will oversee the works. All planned works and actions will directly contribute to the achievement of the United Nations Sustainable Development Goals 2030, especially Decent work and economic growth (SDG-8), Industry, innovation, and infrastructure (SDG-9), and Partnerships for the goals (SDG-17).

The works will involve the implementation of a new 227.6 km paved highway, 219.5 km of which correspond to the improvement and pavement of the stretch of the national Paraguayan route PY-15 between those localities, including its maintenance during the first eight years after the road project completion. Besides, the project includes the execution and equipping of the Land-Border Center in the locality of Pozo Hondo and of two weighing and toll stations. This road stretch will enable a new interoceanic road connection to facilitate Paraguayan foreign trade movements, connecting the country to Brazil, through Porto Murtinho in the State of Mato Grosso do Sul, and, from there, to the Atlantic Ocean, as well as to Argentina, through Misión La Paz, in the Province of Salta, and from there to Chile and the ports in the Pacific Ocean.