The Inter-American Development Bank (IDB) has approved a $200 million loan to finance the construction of a key section of Paraguay’s Bi-Oceanic Corridor, a strategic 2,300-mile route connecting the Atlantic and Pacific oceans. The project aims to improve transportation, expand market and service access for residents of western Paraguay, and stimulate international trade across the region. The corridor traverses central-eastern Brazil, western Paraguay, northern Argentina, and northern Chile, linking major ports including Antofagasta, Iquique, and Mejillones.
In Paraguay, the corridor follows the 325-mile National Highway PY15, connecting Carmelo Peralta on the Brazilian border with Pozo Hondo on the Argentine border. The loan will fund the design, construction, and maintenance of 63.7 miles of Segment II, a 5-mile access road to Mariscal Estigarribia, and improvements to 17 miles of the eastern route leading to Loma Plata’s industrial area. The project will directly benefit communities and economic sectors in the departments of Alto Paraguay and Boquerón, supporting over 7,000 primary sector producers.
Improved infrastructure will enhance access to essential services for approximately 28,700 people, including 1,700 from Indigenous communities, and provide better access to secondary education for 99 towns, including 23 Indigenous communities. The $200 million loan carries a 22.5-year repayment term with an 8-year grace period and an interest rate linked to the Secured Overnight Financing Rate (SOFR).
