House Budget Committee approves favorable opinion on commuter rail; project is absolute priority for Peña

The Budget Committee of Paraguay's Chamber of Deputies issued a favorable opinion on the bill enabling the commuter rail, through a government-to-government (G2G) agreement. The initiative, already approved in the Senate, is considered an absolute priority by President Santiago Peña, according to the President of the Chamber, Raúl Latorre. The plan includes an initial 18 km phase to Luque and future expansion to Ypacaraí, with capacity to transport more than 40,000 people per day.

The Budget Committee of Paraguay's Chamber of Deputies gave a favorable opinion on the bill that adjusts the regulatory framework for the future commuter rail and establishes rules for its implementation through government-to-government (G2G) agreements. The committee, chaired by Deputy Cristina Villalba (ANR, from Canindeyú), approved the initiative that modifies and expands Law No. 7434/2025.

To detail the project, the committee received the Minister of Public Works, Claudia Centurión, and the president of Ferrocarriles del Paraguay S.A. (Fepasa), Facundo Salinas. Centurión explained that execution will be carried out through a Special Purpose Company (SPC), formed by Fepasa and Etihad Rail, the state-owned railway operator of the United Arab Emirates.

The first phase of the train will cover about 18 kilometers, reaching Luque. In a second stage, the route foresees an expansion of approximately 44 kilometers to Ypacaraí. According to the minister, the system will be able to transport more than 40,000 people per day, focusing on punctuality, safety, and comfort, in addition to helping relieve urban traffic.

Centurión also highlighted structural impacts, such as territorial planning in the metropolitan region and the attraction of investments and job creation. The President of the Chamber of Deputies, Raúl Latorre, stated that the approval of the project was discussed in a meeting with President Santiago Peña and that it is an "absolute priority" on the legislative agenda. "The commuter rail issue is a priority. Talking with colleagues from different political sectors, the majority sees it in the best light and understands the need to change, to revolutionize transportation in the country," Latorre declared.

The project already has Senate approval, and the favorable committee opinion in the Chamber paves the way for full sanction and subsequent enactment.