The paving of Route PY12, which connects Chaco’i to General Bruguez in Paraguay’s Chaco region, is progressing significantly but has already recorded a multimillion-dollar cost increase. The project, spanning 166 kilometers, is divided into four lots and is considered one of the most important infrastructure works for the region’s development. According to data from the Ministry of Public Works and Communications (MOPC), the work is in its final phase, with completion rates ranging between 67% and 105% by May 2026.
However, the total cost of the project has already risen by G. 300 billion (approximately $50.8 million), reaching a total budget of G. 1.592 trillion ($269.9 million). This increase was authorized through modification agreements approved by Minister Claudia Centurión at the end of 2025. Lot 4, executed by the Chaco Sur Consortium, contributed the most to the cost escalation, with a 32.81% increase, surpassing the 20% limit established by Law No. 7021 on Public Supply and Procurement.
Lot 1, under the responsibility of the TEC Consortium, shows a progress rate of 70.09% and a cost increase of 19.3%. Lot 2, executed by the Avanza Chaco Consortium, has completed 105.20% of the work, including additional tasks, with a 19.9% increase. Meanwhile, Lot 3, managed by the Vial Chaco Consortium, is 98% complete, with a cost increase close to 19%.
Despite the overruns, the completion of Route PY12 promises to transform connectivity in the Chaco, ensuring permanent and safe access year-round, especially during heavy rainfall periods. The project is also expected to boost productive activities such as livestock, commerce, and services, while integrating local communities with the country’s main supply centers. The project is financed by the Inter-American Development Bank (IDB) and supervised by the MOPC.