Paraguay Highway Concessionaire Rutas del Este Collected $374 Million Amid Safety Concerns

Rutas del Este, the consortium managing Paraguay's PY02 highway under a 30-year public-private partnership, has already collected substantial payments totaling approximately $374 million since the road's provisional service began in 2022. This figure was disclosed by Public Works Minister Claudia Centurión before the Senate.

The payments encompass various components outlined in the contract, including deferred payments for the initial investment (PDI) and disbursements for operation, maintenance, and traffic volume. Of the total amount, $244 million corresponds to the PDI, which compensates the consortium for the construction investment. This payment is scheduled to continue for 15 years, until 2037.

Additionally, Rutas del Este has received over $117 million for operational and maintenance costs, known as Pago por Disponibilidad (PPD). This includes $57 million and approximately $60.83 million (equivalent to G. 365 billion at a G. 6,000 per dollar exchange rate). The PPD payments are linked to the upkeep and availability of the highway infrastructure.

These significant financial inflows to Rutas del Este, a joint venture between Spain's Sacyr and Paraguay's Ocho A, occur while the PY02 highway continues to experience critical issues and fatal accidents, such as a recent one in Pedrozo. The disclosure of these payments has raised questions, particularly concerning the ongoing safety concerns and unfinished infrastructure projects like the viaduct in Pedrozo.