CAF: Strategic Ally for Paraguay’s Economic, Social and Environmental Development

A delegation from CAF—development bank of Latin America—led by the South Regional Manager, Jorge Srur, visited Ciudad del Este and met with businessmen, national and local authorities to discuss the economic, social and environmental benefits that the projects financed by the institution will yield in the Alto Paraná region.

During the first day, the CAF delegation held a meeting with the authorities of the Chamber of Maquila Companies of Paraguay (CEMAP) to analyze the situation of the sector and assess cooperation alternatives. The Alto Paraná area concentrates 48% of the nation’s maquila industries and accounts for 32% of the sector’s exports. There are 250 maquilas that provide more than 21,000 people with quality jobs, 58% of them women. Noteworthy is that the sector is characterized by promoting jobs among the youth, which represents 62% of current labor. Maquila exports reach USD 1 billion per year, 80% of which to Brazil. During the meeting, participants assessed the benefits of the construction of the Second Integration Bridge, which connects Paraguay with Brazil, and its access roads, for the commercial activity of the sector, which is set to raise exports and create jobs. “CAF’s support has been crucial in the process of growth of the Maquila Regime, which is one of the most important in the process of industrialization and economic growth in Paraguay,” said Carina Daher, president of CEMAP. He added: “For us, the financing for the construction of a second bridge linking Paraguay with Brazil represents great hope, relief and potential to sustain and increase the economic and commercial flow between both countries.”¨

In the afternoon, CAF’s delegation toured the works of the bridge access roads, which received financing from the bank for an amount of USD 212 million. The project includes rural roads, interurban access, the construction of a Cargo Terminal and Primary Zone and a bridge over the Monday River. Together with Paraguay’s Minister of Public Works and Communications Rodolfo Segovia, a meeting was held with the project executing unit and the awardee companies, which made a presentation on the progress and status of the works. The project aims to improve connectivity between Brazil and Paraguay, integrating productive and logistical activities, to help consolidate the integration and economic development of the area. “At CAF we promote physical, productive and commercial integration in the region, from a comprehensive perspective, especially considering small and medium-sized enterprises, the creation of quality jobs and environmental and social sustainability criteria. We believe this is one of the most important and emblematic projects of our operations in the country, and we thank the government of Paraguay for having chosen us as its strategic partner to carry them out,” Srur said at the end of the tour.

Furthermore, CAF’s delegation toured the works of the Iguazú Power Substation that are part of the Transmission Strengthening Program of the National Interconnected Rural Electric Distribution System, implemented by the National Electricity Administration (ANDE). The project is funded by CAF for an amount of USD 212 million, and aims to provide greater reliability and security to power supply of the east, north, south and central systems of the country, as well as to improve the distribution infrastructure in the rural areas of the Eastern Region, thus improving the quality of power supply, reducing blackouts and increasing the transmission capacity of the National Interconnected System (SIN). The commissioning of the Substation will allow the distribution of all the power generated by the Itaipu Hydro Power Plant.

Lastly, the CAF delegation held a working lunch with municipal authorities of Ciudad del Este, Presidente Franco and Minga Guazú. During the meeting, they discussed the importance of comprehensive urban development and CAF’s commitment to continue aiding Paraguay’s economic, social and environmental development. In that sense, Srur expressed to the authorities the interest of further exploring projects, with a vision of environmental and productive sustainability yields benefits and improves the quality of life of the residents of Alto Paraná. Srur invited the municipalities to the next National Biodivercities Meeting in Paraguay, to be held in Asunción on October 6. The CAF-led initiative already has the support of more than 80 mayors in the region. Biodivercities was launched in Barranquilla in December 2021, and national meetings have already been held in Argentina, Ecuador, the Dominican Republic and Brazil.