18-12, Nishiochiai 2-chome,
Shinjuku-ku, Tokyo 161-8575, Japan
Phone: +81-3-5906-0211
FAX: +81-3-5906-0112

Transportation

BACKGROUND & PURPOSE OF PROJECT

The Government of Paraguay promotes the trades with the adjacent countries as a policy with overriding priority.
The way of transportation for overseas trade in Paraguay is mainly a river transport in the Paraná and Paraguay River (60%) and road transport (37%).
Though the trunk road networks among 3 major cities (Asunción, Ciudad del Este and Encarnación) are well improved, the most of the roads that connect production areas to export ports are unpaved. These unpaved roads are easy to damage by the heavy trucks, and these bad conditions force vehicles to reduce speed, cause damage to the vehicles, and make driving especially difficult after rainfall.
Moreover, there are several private ports located on the Paraná River bank, and most of them are exclusively used for grain export. Most of these ports are small and not effective for export, though each port is located near the corresponding producing district.
These situations make the export cost of the soybean expensive and it becomes the maximum factor to weak the export competitiveness.
Under these circumstances, Japan was requested to carry out a feasibility study into the construction and development of the road that connects Paraguay's grainbelt to the Paraná river and the main soybean producing area consisting of 9 ports that are used by the soybean farmers in Canindeyú, Itapúa and Alto Paraná departments.
The 3 purposes of the study are listed below:
(1) Establish a development plan for the passage of export goods (roads and ports) to improve Paraguay's export efficiency and enhance the competitiveness of its export goods with the aim of achieving economical growth in Paraguay.
(2) Conduct a feasibility study in relation to roads of the highest priority once a general development plan has been defined.
(3) Facilitate the transfer of technology to local partners in Paraguay through the study.

CHARACTERISTICS, CONCEPT, STANCE & SKILLS OF PROJECT

We conducted and carried out natural condition surveys, road inventory surveys, future demand forecasts, environmental & social impact surveys, planning for the development of roads & ports, basic design for roads and structures, economic & financial analyses among other activities in relation to the following targets that constitute the export corridor in Paraguay's grainbelt:
(1) Regional road from Ciudad del Este to Natalio (approx. 165 km);
(2) Access roads to 9 soybean exporting ports along the Paraná river (approx. 119 km long as a whole) (only Caarendy Port was originally included as a port);
(3) Extend Route 15 to cover the section from Naranjito to the Paraná riverside (approx. 50 km long).

EFFECT OF PROJECT

(1) This project aims to reduce the vulnerability of transportation infrastructure in Paraguay, and its contents correspond to that of the national program. It is expected to improve transport efficiency, increase the productivity of exports, enhance the competitiveness of the exporting industry, and, as a result, invigorate Paraguay economically.
(2) The EIRR for all targeted operations will be 14.3% where construction and follow-up maintenance are conducted appropriately, indicating that this project is economically feasible. Also it is expected that this project will contribute to the elimination of poverty and improve living conditions in Paraguay.