Paraguay Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in paraguay, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Transportation
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Overview

Much of Paraguay’s inland road network is unpaved, and paved arterial roads are in need of upgrades.  Paraguay’s civil aviation infrastructure is also among the least developed in the region.

The Paraguayan government is working to improve the roads throughout the country, with an aim to create better connectivity within the country and to improve links to Bolivia, Argentina, and Brazil.  Projects may be financed directly by the government or executed under the Public-Private Partnership law.  In 2019, Paraguay began construction of the first of three phases of the “Corredor Bioceanico,” which would provide road, rail, and fiber optic links between Chilean ports in the Pacific and Brazilian ports in the Atlantic.

The government cancelled a Public-Private Partnership concession to build a new passenger terminal within the grounds of the current Silvio Pettirossi International Airport in August 2018 due to irregularities in the review process.  COVID-19 further delayed the tender, but the government may relaunch the tender in late 2023 or 2024.  The U.S. Transportation Security Administration authorized direct flights between Paraguay and the United States in 2020 for the first time since 2016.   There is currently no direct commercial passenger service between the United States and Paraguay, though multiple carriers operate nonstop cargo service.  The Government of Paraguay is exploring the possibility of positioning Paraguay as a logistics and aircraft maintenance platform.  The government is interested in projects to better utilize the country’s second-largest airport, located in Ciudad del Este, including using it as a regional hub for cargo logistics. 

Leading Sub-Sector

Paraguayan road building firms do not have the capacity to execute or finance all planned projects, creating opportunities for U.S. road construction and engineering services.  Other opportunities include the sale of road building machinery, project management consulting, operations of highway concessions, and financial services.

Opportunities

The government advertises tenders on the Ministry of Public Work’s website and the government’s public contracting office website.  Under Paraguay’s Public-Private Partnership law, firms may also propose unsolicited projects.

The Government of Paraguay considers the improvement of the country’s civil aviation infrastructure a top priority.  As a result, there is anticipated growth in the following sectors:  Civil aviation consulting and engineering services, airport infrastructure and technologies, weather monitoring equipment, safety and security equipment, air traffic control systems, and baggage and cargo handling equipment and systems.

Resources

Paraguayan Ministry of Public Works

Paraguayan Civil Aviation Authority

National Directorate for Public Contracts

Inter-American Development Bank

The World Bank

U.S. Embassy Asuncion

 


 

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