The OPEC Fund for International Development recently announced that it is providing a $50 million loan to Paraguay to co-finance the rehabilitation, upgrading and maintenance of National Route PY22 and access roads in the north Paraguayan department of Concepción.
Co-financed with a $135 million loan from CAF (Development Bank of Latin America and the Caribbean), the project will benefit around 125,000 people by enhancing regional connectivity, strengthening trade and supporting socio-economic development.
“Efficient transport infrastructure is vital to unlock economic potential and connect communities. With this project, we are not only improving mobility and trade but also enabling greater access to essential services and creating new opportunities for people in Paraguay,” stated OPEC Fund President Abdulhamid Alkhalifa.
Greater access to essential services
The financing will support the rehabilitation of a 176.2 km section of the Concepción-Vallemí-San Lázaro route and the upgrading of 41.2 km of access roads, including the Concepción bypass and connections to the free trade zone in the north-eastern region.
These improvements will facilitate the transport of essential goods, such as construction materials, agricultural products and livestock, while supporting Paraguay’s largest private-sector investment – the Paracel pulp mill.
The infrastructure boost will support growth in economic activity, strengthen regional trade and play a crucial role in fostering economic integration.
To date, the OPEC Fund has committed more than $29 billion to development projects in over 125 countries with an estimated total project cost of more than $200 billion. It is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively.
Read: OPEC Fund grants $20 million loan to support agricultural development in Malawi
OPEC Fund loans Paraguay over $600 million
The OPEC Fund has supported Paraguay’s sustainable development since 1978 with more than $600 million in loans to date in support of transport, energy, agriculture and water & sanitation projects.
Last week, the OPEC Fund announced that it is co-financing Africa’s largest onshore wind power project, contributing $30 million to the construction of two 550 MW wind farms with a total capacity of 1.1 GW in Egypt’s Gulf of Suez region. The facility, delivered by Suez Wind, a joint venture between ACWA Power and HAU Energ, will be capable of powering more than 1 million homes and reducing carbon emissions by around 2.5 million tons per year.
