Press Release

Paraguay to upgrade vital transport links with US$12 million OPEC Fund loan

60/2005 June 1, 2005, Vienna, Austria
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The OPEC Fund for International Development today signed a US$12 million loan agreement with the Republic of Paraguay to help finance rehabilitation of sections of the RN10 and RN11, two key national roads in the north-east central region of the country. The scheme falls within the scope of a government strategy to upgrade critical transport links in order to spur the country’s socio-economic development.

Being a landlocked country, Paraguay relies heavily on its road network to facilitate the transportation of goods, especially agricultural products, which make up the bulk of exports. However, only a fraction of the 64,000 km network is paved, with the remainder surfaced in earth or gravel. Government has thus placed high priority on developing the country’s road infrastructure to support integration and trade and increase Paraguay’s competitiveness in regional markets.

Works on the RN11 will involve upgrading a 58.7 kilometer stretch of earth road between Nueva Germania and San Pedro to an all-weather, 6.5-meter wide road with a 2.25-meter shoulder. The earth-surfaced RN10 will be asphalted along a 23.5 kilometer section between Capiibary and Yacy Kañy. Three bridges, 100m, 75m and 15m in length will also be constructed. For both sections, road signaling, lighting and protective barriers will be installed.

The upgraded routes are expected to deliver many benefits, including cheaper and more reliable transportation, increased agricultural production and improved access to export markets in Brazil and Argentina. This will translate into better living conditions and enhanced job opportunities for around 35,000 people in the project area.

The OPEC Fund has previously approved four project loans for Paraguay, in the agriculture, water supply and sewerage and financial sectors. Paraguay has also received grant assistance from the Fund for an education initiative in the capital Asunción.

Today’s agreement was signed in Vienna by H.E. Mr. Oscar Cabello, Ambassador of the Republic of Paraguay to Austria, and by H.E. Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.

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