Paraguay has an infrastructure deficit exceeding $35 billion, with roads already showing deformation and deep ruts in the pavement, as well as facing difficulties in making new public-private partnerships viable due to low traffic volumes.
Cámara Vial Paraguaya
Pytagua coverage mentioning Cámara Vial Paraguaya.
The Paraguayan government's debt to construction companies remains at US$300 million despite payments made in April and May, according to Capaco, which rejected the factoring system proposed by the Ministry of Economy and Finance (MEF), considering it unfeasible due to the high interest rates charged by financial institutions.
The construction sector in Paraguay presents a contradictory scenario in 2026, with growth in the volume of projects driven by investments from the Ministry of Public Works and Communications (MOPC) and the expansion of Route PY01, but it faces persistent financial difficulties, especially among public works companies, according to Gustavo Masi, director of the Paraguayan Road Chamber (CAVIALPA).
The 26th International Fair of Construction Equipment, Machinery, and Materials – Constructecnia – will be held from May 21 to 24 at the Conmebol Convention Center in Luque. The event brings together around 900 brands and 200 companies, with a program that includes conferences, business rounds, and panels on public works financing, energy, social housing, and mining.
The Ministry of Economy and Finance (MEF) and the National Directorate of Tax Revenue (DNIT) have begun new revenue and expenditure estimates to decide whether to raise the fiscal deficit cap, currently set at 1.5% of GDP. The move comes after first-quarter revenue fell short of expectations, while the accumulated deficit has already reached 0.8% of GDP and the annualized figure stands at 2.2%.
The Paraguayan Road Chamber (Cavialpa) demands from the Ministry of Economy and Finance (MEF) the regulation of the factoring system to settle state debts with contractors. The sector warns that delays force private indebtedness and that current payments do not reduce the accumulated liability.