Paraguay Senate Approves Commuter Train Project, Sends to Lower House

Paraguay's Senate granted half-sanction to the Commuter Train (Tren de Cercanías) project on May 12, 2026, during an extraordinary session. The bill, which includes modifications, now moves to the Chamber of Deputies for final debate. The government-backed initiative aims to modernize public transport, carrying 40,000 passengers daily with a $450 million investment and creating 20,000 jobs during construction.

Senado paraguaio aprova projeto do Trem de Cercanias; proposta segue para a Câmara dos Deputados
Senado paraguaio aprova projeto do Trem de Cercanias; proposta segue para a Câmara dos Deputados

Paraguay's Senate approved the Commuter Train (Tren de Cercanías) bill on Tuesday, May 12, 2026, during an extraordinary session, granting it half-sanction in general and in particular with some modifications, according to El Nacional. The proposal now advances to the Chamber of Deputies for definitive analysis.

The initiative, considered a key government bet to modernize public transport and improve connectivity in the metropolitan area, aims to decongest traffic and reduce travel times. Official projections indicate the train would carry approximately 40,000 passengers per day, or about 14 million users annually.

The plan involves an estimated investment of USD 450 million and is expected to generate significant economic and labor impacts. Government figures cited by El Nacional mention the creation of some 20,000 jobs during implementation and around 500 direct permanent positions once the system is operational.

The Executive argues the project would also reduce unproductive travel time, lower costs from traffic accidents, and cut expenses related to diseases caused by environmental pollution. Additionally, it is expected to reduce maintenance and operation costs for private vehicles.

Authorities highlight that the project could boost the local economy and strengthen technical capacities related to railway and infrastructure development.

Following Senate approval, Acting President Pedro Alliana publicly celebrated the legislative progress, stating that the half-sanction represents an important step toward modernizing the country's transport system. Alliana, who served as the constitutional link between the Executive and Congress, said the result came from political dialogue and a shared vision to transform urban mobility in Paraguay.

The Commuter Train project now awaits treatment in the Chamber of Deputies before possible final approval.