Sacyr Leads Paraguay’s Historic Mobility Overhaul
A game-changing investment is set to redefine the way Paraguay moves. In a bold step toward revolutionising transport connectivity, Sacyr Concesiones, through its Rutas del Este joint venture, has secured a €163 million project finance boost to expand the already transformative PY02 highway concession. This isn’t just another infrastructure project—it’s the birth of Paraguay’s first rapid access system for its capital, Asunción, and the largest urban intervention in the country’s history.
Backed by the Paraguayan Ministry of Public Works and Communications, this latest expansion will bolster a key corridor linking the bustling capital to the heart of the nation. More than one million people entering Asunción stand to benefit from reduced travel times, improved safety, and better quality of life.
The Backbone of the Expansion
With an eye firmly on regional development, the additional investment—roughly USD 180 million—will deliver strategic access points and upgraded infrastructure. Leading the effort is Rutas del Este, a Special Purpose Vehicle (SPV) comprised of Sacyr Concesiones (60%) and local partner Ocho A (40%).
At the heart of the plan is a new structuring highway system featuring:
- The Variantes de Ypacaraí – Areguá
- A 3.6-km elevated urban highway with dual carriageways and four lanes
- Two new PY02 Route access points to enhance traffic flow between Asunción and outlying cities
These additions form a crucial puzzle piece in Paraguay’s national development strategy, with the new infrastructure set to ease congestion and streamline urban movement.
Connecting Communities: A Closer Look at the Access Points
The two newly announced connectors play a pivotal role:
- Connection at Kilometre 41: Enhancing access through Ypacaraí, Patiño, Areguá, and Luque, this segment will bridge several fast-growing urban centres with the capital.
- Connection at Kilometre 43: Serving the San Bernardino corridor, this link provides another streamlined route into Asunción’s metropolitan area.
By integrating these corridors into the broader traffic ecosystem, the project promises smoother journeys and better urban-rural linkage.
Urban Impact on a National Scale
Paraguay’s President, Santiago Peña, didn’t mince words when hailing the scale of the undertaking: “This is the largest urban intervention project in Paraguay’s history. It will have a major impact nationwide and reaffirm the role of Asunción as the political and economic heart of the country.”
Indeed, the project reaches far beyond the capital. The expanded highway network will serve seven major urban centres:
- Asunción
- Luque
- Areguá
- Ypacaraí
- San Bernardino
- Nueva Colombia
- Emboscada
It’s not just about roads. It’s about national cohesion, economic growth, and modernising the backbone of public mobility.
A Model for Public-Private Partnership
June 2023 marked a significant milestone when full operations commenced on the 151-km Route PY02, stretching from Ypacaraí (km 36) to Caaguazú (km 187). This stretch represents not just physical progress but institutional innovation as Paraguay’s first major Public-Private Partnership (PPP) infrastructure project.
Awarded to the Rutas del Este consortium, the original concession required an investment of around USD 520 million. The scope includes:
- Road design and engineering
- Financing and risk management
- Maintenance and lifecycle operations
- A 30-year operational period covering 11 municipalities across three departments
The PY02 isn’t just a highway. It’s a blueprint for future infrastructure delivery in Latin America, where private capital and public vision combine to accelerate national development.
Socioeconomic Transformation
What does this mean for Paraguayans day-to-day? For starters, less time stuck in traffic, greater access to jobs, and safer travel. These benefits cascade across multiple sectors, from logistics and tourism to real estate and urban planning.
This road isn’t being built in isolation. It’s part of a broader plan to modernise Paraguay’s transport grid, connect underdeveloped regions, and encourage decentralised growth. As more people and goods move more freely, the nation becomes more competitive and inclusive.
Why This Matters Globally
With Sacyr at the helm, this project demonstrates how international firms can effectively partner with local entities and governments to create lasting value. It also sets a precedent for transparent, long-term infrastructure investments across South America.
The use of elevated roadways in dense urban areas reflects a global trend in space-optimised design. As cities become more congested, going vertical isn’t just an option; it’s a necessity. And by embracing dual carriageways and integrated systems, Paraguay signals its readiness to compete in a digitally connected, fast-moving world.
A Road to Opportunity
The PY02 expansion isn’t merely about cutting through traffic; it’s about carving out a new future for Paraguay. From improved logistics chains to enhanced regional accessibility, the investment fuels a ripple effect of development opportunities.
With local and international partners onboard, the nation is proving it can deliver complex, high-impact projects that resonate beyond its borders. In the long run, the true value of this project lies not only in kilometres paved but in lives improved.
