Infrastructure, education, and innovation, CAF priorities to support the development of Paraguay

In his first visit to Paraguay, Luis Carranza, Executive President of CAF, Development Bank of Latin America, reiterated to the President of the Republic, the Institution's commitment to promote the sustainable development of the country and its inhabitants. Executive President Carranza also met with the Minister of Finance, Santiago Peña, and the President of the Central Bank of Paraguay, Carlos Fernández.

At the end of the meeting with President Cartes, Carranza highlighted the good moment of the local economy: "The potential for long-term growth in Paraguay is very high, growth levels for this year exceed 4 percent, and next year the country could consolidate a growth of close to 5 percent. What is important is to maintain this growth pace, and for this it is necessary to continue with macroeconomic stability policies". 

In order to support Paraguay's development strategy, CAF intends to contribute through financing for infrastructure projects, promotion of productivity in all the sectors of the economy - through investment in innovation and development - and continue promoting the coverage and quality of education in the country, among several sectors that are a priority for its inhabitants. 

In this respect, CAF's Executive President highlighted the Institution's support to the Transchaco project, and to the ANDE transmission and distribution project for the metropolitan system, as well as to other projects aimed at education and the agricultural sector. Carranza added, "Transchaco is a very important integration route, and by eliminating the infrastructure gap and enabling the country's connectivity, it will significantly increase productivity and employment".  

During the past five years (2012-2016), the Institution approved operations for Paraguay for USD 1.655 billion, which represents an average of USD 331 million per year. Thus, CAF contributes with transportation and energy projects through road infrastructure, and strengthening of the electric and communications systems, favoring productive development and trade in the country as well as access of the national production to external markets under competitive conditions.  

In favor of social and environmental development, projects have been executed in the areas of education, community development, and rural development, in order to improve the life conditions of the poorest groups in society, Through financing and technical assistance, support has been provided to initiatives such as the expansion of the anti-poverty stoplight to the public and private sectors in Paraguay, the modernization of the Servicio Nacional de Catastro (National Land Registry); and the design of the national policy on science, technology, and innovation in Paraguay, among others. 

Other initiatives promoted by CAF to improve the country's competitiveness by strengthening public institutions include: Law of Guaranties for MSME's, strengthening de Public Investment System, support for Fiscal and Macroeconomic Policy, and the Program to strengthen best practices in Corporate Governance in Public Companies in Paraguay.