Millions paid to highway concessionaire as deadly intersection remains unfinished in Paraguay

Rutas del Este, the consortium managing Paraguay's PY02 highway under a 30-year Public-Private Partnership (APP) agreement, has collected millions in payments while a critical safety project remains unfinished, leading to continued fatalities. The consortium, comprising Spain's Sacyr and Paraguay's Ocho A, is responsible for the highway's concession, yet the overpass intended to eliminate the dangerous Pedrozo crossing is still incomplete.

This vital infrastructure, presented by the Ministry of Public Works and Communications (MOPC) as a measure to enhance road safety, has seen significant delays. The "traffic light of death" at Pedrozo, a notorious danger spot, was only recently removed after a tragic accident claimed six lives. Users are forced to navigate makeshift U-turns as the overpass, originally slated for completion in May, remains unfinished. The MOPC has acknowledged significant progress only after the recent tragedy spurred property acquisitions.

While the safety project languishes, Rutas del Este continues to receive substantial payments. Official figures for 2025 show the state paid the concessionaire approximately 132.6 billion Paraguayan guaranis and US$70.8 million, totaling roughly US$92.9 million for the year. These payments cover investment recovery, availability, and traffic-linked fees. The deferred investment payment alone amounted to US$54.4 million in 2025, intended to recoup the construction costs.