Paraguay would need to raise annual infrastructure investment from its current level of about US$1 billion to between US$2 billion and US$2.2 billion, says Paul Sarubbi, president of the Paraguayan Road Chamber (Cavialpa), an association of road construction companies. The organization links that level of investment to the possibility of sustaining 7% annual economic growth and says the change depends on political will and greater participation by private capital.
The sector estimates an infrastructure gap of US$30 billion. At the current pace, it would take about 30 years to close the existing deficit, without counting new needs or road maintenance. Citing a study by consulting firm McKinsey, Sarubbi said investments equivalent to at least 4.5% of gross domestic product would be needed to double the economy in a decade.
Needs include waterways, water and sanitation, schools, hospitals and power transmission, as well as roads. Although the country has hydroelectric power, Sarubbi warned of possible bottlenecks in four or five years if there is no investment in transmission, distribution and long-term generation projects. The construction sector directly supports nearly 300,000 workers and their families, Cavialpa says.
To expand construction without concentrating spending in the short-term state budget, Sarubbi pointed to public-private partnerships, concessions and Rehabilitation and Maintenance Contracts (CREMA), as well as Paraguayan laws that allow these models and Law 5,074, known as “turnkey.” Under CREMA contracts, a company finances and carries out road rehabilitation and is responsible for maintenance for several years; the state repays the investment over 10, 12 or 15 years.
The country’s road network is valued at more than US$12 billion. In the organization’s view, long-term contracts could enable more roads to be rehabilitated and preserve this asset. Sarubbi cited Uruguay as a regional model for attracting large-scale investment through legal stability and public-private partnership contracts. He also advocated improving the quality of spending and prioritizing investment over current expenditure in the General Budget of the Nation: he said each public guarani invested in infrastructure can leverage four to five guaranis in private investment.
The Bioceanic Corridor, which connects the Atlantic and Pacific oceans through Brazil, Paraguay, Argentina and Chile, is an opportunity for logistics and industrial development in the Chaco. To prevent the region from serving only as a transit route, Sarubbi advocated expanding energy, water and services in Carmelo Peralta, Loma Plata, Filadelfia, Mariscal Estigarribia and Pozo Hondo, creating conditions to process raw materials within the country.
These proposals will be discussed at the 6th CAVIALPA 2026 Forum and Exhibition, scheduled for October 20 from 8 a.m. to 7 p.m. at the Grand Theater of the Central Bank of Paraguay in Asunción. Organized as part of Cavialpa’s 32nd anniversary, the event is set to include government officials, legislators, representatives of the industrial and agricultural sectors, and specialists from multilateral organizations. Former Uruguayan president Luis Lacalle Pou will give the keynote address. Participation will be free, with registration through the organization’s digital platforms.