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Infrastructure ministry to help Paraguay upgrade light rail transit system
Minister of Land, Infrastructure and Transport Noh Hyeong-ouk, right, does a fist bump with his Paraguayan counterpart Arnoldo Wiens Durksen, after signing a memorandum of understanding (MOU) at the Conrad Seoul, Yeouido, Thursday. Courtesy of Ministry of Land, Infrastructure and Transport
By Lee Kyung-min
By Lee Kyung-min
A consortium of public and private companies led by the Ministry of Land, Infrastructure and Transport will help Paraguay renovate its light rail transit system.
The ministry said Thursday that the five-year, $500 million (585 billion won) construction project will create seven stations and one rail depot along the 43 kilometer route connecting the country's capital Asuncion and Ypacarai, a nearby suburb. The partnership will undertake the operation of the transit for 30 years.
Land Minister Noh Hyeong-ouk signed a memorandum of understanding (MOU) with his Paraguayan counterpart, Arnoldo Wiens Durksen, minister of public works and communications, at the Conrad Seoul on Yeouido.
The Asuncion Light Rail Transit Project will be participated in by the Korea Overseas Infrastructure & Urban Development Corp. (KIND) and Ferrocarriles del Paraguay S.A. (FEPASA), Paraguay's state-owned rail operator.
The signing of the MOU between the two ministers was followed by one between the two companies. The agreement specifies procedural details and roles of the relevant entities to set the conditions required for the successful completion of the joint project.
The consortium will replace part of the aging Asuncion Railway, which was built in 1861 but has long ceased operation due to the deterioration of facilities.
The Paraguayan government expects to solve traffic congestion and promote urban development, which in turn will bolster job creation and economic revitalization there.
Thursday's MOU came about three months after a KIND-commissioned feasibility study on the project was concluded. The seven-month study was proposed by Paraguay in August 2020 when a team of Korean delegates visited the country for collaboration and a pre-construction tour. The project was first discussed in July 2014, but has since been stalled due to a series of politically sensitive issues.
The project was expedited after the Paraguayan government proposed government-to-government cooperation in February.
The delegation of government and business officials included those from the land and foreign ministries, KIND, the Korea Rail Network Authority (KRNA) and construction firms.
The ministry's Overseas Construction Policy Division Director Oh Seong-ik said, “I hope the conclusion of the MOU between Korea and Paraguay will stimulate the continued expansion of collaboration and partnership between the two countries in the field of infrastructure. We will continue efforts to create an environment where Korean companies are able to advance into the overseas infrastructure markets.”