The Paraguayan government is seeking a $286 million loan from Japan for a highway corridor in the south

The Paraguayan government has presented a bill to Congress to secure a $286 million loan from Japan to build the Southwest Corridor, a nearly 200-kilometer road project in the south of the country. The announcement has sparked debate over public debt priorities amid a crisis involving shortages of medicines.

The Paraguayan government is seeking a $286 million loan from Japan for a highway corridor in the south
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The Paraguayan government has presented a bill to the National Congress to authorize a $286 million loan from the Japan International Cooperation Agency (JICA) for the construction of the Southwest Corridor, a road project that will connect the departments of Misiones and Ñeembucú.

The announcement was made by Vice President Pedro Alliana and the Minister of Public Works and Communications, Claudia Centurión, together with the President of the Senate, Basilio "Bachi" Núñez. The project involves the construction of 154 kilometers of concrete-paved roads, plus 25 kilometers of urban crossings, totaling nearly 200 kilometers of new road infrastructure.

Minister Centurión described the initiative as strategic for the country, forming part of a new bioceanic corridor that will connect Alto Paraná with Argentina and, subsequently, with Pacific ports. She emphasized that the project will strengthen national logistics, reduce transport times, and put an end to the historical isolation that several communities in the south face during the rainy season.

Vice President Alliana called the credit a "historic date" for Misiones and Ñeembucú, recalling that the project was originally scheduled to begin only in 2028 but was brought forward following negotiations by the Paraguayan government with Japan. He urged Congress to expedite the approval of the loan so that construction can begin in 2027, with an estimated completion period of 30 months.

During the presentation, a debate emerged about the priorities of public debt, amid the crisis of medicine shortages at the Social Insurance Institute (IPS) and the Ministry of Health. When asked about the possibility of issuing public bonds to finance the purchase of medicines, Alliana admitted that this alternative could be considered, stating, "It does us no good to inaugurate hospitals and have better equipment if there is a lack of medicines."

The project will cover the districts of Yabebyry, Cerrito, Laureles, Desmochados, Pilar, and other localities, including drainage systems, ring roads, road safety works, and four new bridges, one of which will be 400 meters long over the Yabebyry River.

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Updated: Jul 22, 2026, 1:30 AM