The development of Paraguay's railroads could be carried out by the private sector, public works and communications (MOPC) minister Pedro Efraín Alegre told BNamericas.
"We believe rail is one of the sectors where private investment could be channeled," he said.
Private participation could include rehabilitating the country's existing rail network for commercial and tourist operations, said Alegre.
New projects, on the other hand, include expanding the network to places with high potential for rail development, such as areas where bulk cargo is produced.
Other initiatives include linking the network to regional integration initiatives to promote trade.
GOVERNMENT POLICIES
Paraguayan President Fernando Lugo's government plan includes promoting private investment to develop the country's transport infrastructure.
MOPC is already working with multilateral financial entities to improve the country's legal framework regarding private investment and concessions. This is expected to increase the country's chances of obtaining financing to develop such projects.
MOPC is also working with Chile's public works ministry (MOP), which is providing guidance on concession models.
On November 6, Alegre flew to Chilean capital Santiago to meet with MOP officials and private sector representatives, among others.
In the meantime, the government is implementing a number of measures to reduce corruption in the country, which is expected to promote the entrance of new private investment firms and generally boost trust and confidence in Paraguayan development initiatives.
Recently, MOPC declared two highway tenders void after private firms submitted extremely high offers. The minister accused the participating firms of taking advantage of their influence in the country.
The offers submitted included highway construction costs of over US$700,000/km.
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