PARAGUAY | Infrastructure: Back to basics

Jul 1, 2014

Paraguay’s infrastructure has suffered from years of neglect, but a new PPP framework could bring change

Paraguay’s government is going back to basics with its program to improve the economic and investment environment: building up infrastructure.

As a landlocked South American country that has the ambition to become a hub, and a re-export platform for the sub-region, the country needs to boost its transport logistics — and put an end to power blackouts.

Such events are all the more grating for locals, given Paraguay’s abundance of hydro-powered electricity generation capacity, including the binational Itaipu hydroelectric dam, one of the biggest in the world, on the border with Brazil.

The country’s infrastructure is well under par by international standards. "There is a huge deficit built over decades of insufficient investment that has put Paraguay among the 10 worst quality public infrastructure in the world," according to the World Economic Forum.

The administration of President Horacio Cartes looks determined to address long-standing issues in infrastructure. But...

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