Paraguay enacts $224 million Japanese loan for Yabebyry-Pilar highway

Paraguayan President Santiago Peña has officially enacted a law authorizing a significant loan of approximately $224 million from Japan. This funding, provided by the Japan International Cooperation Agency (JICA), is earmarked for the construction and improvement of the Yabebyry-Pilar highway, a crucial infrastructure project in the country's southwestern region.

The law, signed on August 21, 2026, approves the loan agreement for the "improvement of the integration corridor and socioeconomic development of the southwestern region." The project, managed by the Ministry of Public Works and Communications, is expected to enhance connectivity between the departments of Misiones and Ñeembucú, covering 154 kilometers of roadway. Official estimates suggest the initiative will directly benefit around 300,000 people.

Vice President Pedro Alliana, who is also a future presidential pre-candidate for Honor Colorado, personally lobbied for the project, ensuring its swift passage through the legislature. The Senate approved the measure last week, followed by the Chamber of Deputies this past Wednesday. Alliana, who has strong ties to the Pilar region, having served as governor and deputy for Ñeembucú, has been a vocal proponent of the Yabebyry-Pilar corridor.

The promulgation ceremony took place during the official visit of Japan's Crown Prince Akishino and Crown Princess Kiko, coinciding with the commemoration of the 90th anniversary of Japanese immigration to Paraguay. President Peña marked the occasion on social media, calling the loan a "new milestone in our history of friendship" that will "improve our road integration corridors, boosting economic development and generating new opportunities."