The Asunción Downtown Resilience Project has three construction contracts awarded, while important components, such as housing in the Chacarita Eco-Inclusive District, still depend on contracting. The program is financed by a loan of up to US$105 million from the International Bank for Reconstruction and Development (IBRD), an institution of the World Bank Group, approved by Law No. 7,201/2023.
The most advanced contract covers the burial of approximately 2.5 kilometers of a 2x220 kV transmission line along Costanera Avenue, between Parque Caballero and San Estanislao Street. The contract was awarded to the TOCSA-Tecnoedil Consortium, and Verónica Martínez, director of Public Works at the Ministry of Public Works and Communications (MOPC), said the work was nearing completion in August 2026.
The first phase of work in Asunción’s Historic Center is being carried out by the Palma Consortium, formed by TECO S.A. and CCC S.A. Work began at Plaza O’Leary, where it has been completed, and is continuing at Plaza Uruguaya. The contract also includes the Paraguayo Independiente Corridor, the squares in front of the Cabildo and Plaza Isabel la Católica.
The project includes improvements to paving, sidewalks, drainage, the underground electricity network, lighting, street furniture and landscaping. The contract calls for this phase to be completed in December 2027. The work is expected to follow the Urban Design Manual for Asunción’s Historic Center, which the MOPC intends to turn into a mandatory standard with the approval of the Municipality and subsequent review by the Municipal Council.
At Parque Caballero, the first phase began receiving work crews in July 2026. Sectors are expected to be gradually reopened to the public, with the stage scheduled for completion in September 2027. The contract includes preparation of the detailed design, construction, operation and maintenance of the park after handover.
Still pending are the prequalification tender for the design and construction of the Eco-Inclusive District, which includes housing in Chacarita, as well as the hiring of the firm responsible for supervision. The second phase of Parque Caballero and further work in the Historic Center, including the Palma corridor and its squares, are being planned. There has been no update on the component planned for Banco San Miguel.
The urban plan also depends on a housing strategy. The Ministry of Urbanism, Housing and Habitat (MUVH) believes the Downtown area already has water, electricity, transport, schools and services capable of supporting new residents. One of the initiatives is Predio Artigas, a state-owned property for which an expression of interest was opened for developers, with the possible use of private capital through a trust, tax incentives and financing.
Asunción was also included in the Che Róga Porã program with a higher credit limit than that applied in other regions, because of property prices in the capital. Minister Juan Carlos Baruja argues that living downtown would reduce the travel time of workers and students who currently commute every day from the Central Department.
The private sector, however, argues that isolated buildings will not be enough. Christian Borja, president of Valores Casa de Bolsa, says the transformation needs to reach several blocks and combine housing with security, cleanliness, mobility, commerce, services and cultural activities. Restoring older properties will also require reconciling façade preservation with modernization of interiors, as well as incentives for owners.