Paraguay is in the process of negotiating external loans exceeding $1.6 billion, according to data from the Ministry of Economy and Finance (MEF). By May 2026, loans tied to infrastructure, connectivity, sanitation, energy, and logistics projects amount to $1.17 billion under management, with an additional $454 million awaiting legislative approval.
Among the pending contracts awaiting approval are a $300 million contingent credit line with the Development Bank of Latin America (CAF) and a $154 million sanitation program for the Lake Ypacaraí Basin, funded by the Inter-American Development Bank (IDB). Both are under review in Paraguay’s Senate.
Among ongoing projects, the largest allocations include the upgrade of the Southwest Region Socioeconomic Integration and Development Corridor ($228.6 million, financed by the Japan International Cooperation Agency - JICA) and the expansion of the high-voltage energy transmission system ($140 million, supported by the IDB and the European Investment Bank - EIB). The Bioceanic Route also receives $200 million in funding.
Other projects in the early management phase total $534 million, covering sanitation in eastern cities, modernization of the Acaray Hydroelectric Plant, and sustainable agroforestry development. Diversifying lenders, including the IDB, World Bank, JICA, CAF, and EIB, reduces reliance on a single source but poses challenges related to timelines, execution, and fiscal sustainability.
The success of these investments will hinge on the ability to convert loans into tangible projects, improving infrastructure and services in areas critical to Paraguay’s development.