Paraguay transport operators warn of service cuts over unpaid subsidies

Public transport operators in Paraguay's metropolitan area are warning of potential service disruptions, citing significant delays in the payment of state subsidies. César Ruiz Díaz, president of the Center for Metropolitan Area Transport Operators (Cetrapam), stated that passengers are already experiencing reduced bus services, which he attributes to the government's failure to disburse subsidies owed for April.

“

The information towards our sector is not clear and they continue to fail to honor the commitments they have assumed. That is the fundamental problem today.

Cetrapam claims the outstanding subsidy amount is around $4 million USD. Ruiz Díaz explained that the delays stem from issues in processing subsidy applications, unsatisfactory official responses regarding verification, and potential administrative failures or a lack of funds to meet commitments. He expressed frustration with the lack of clear information and the government's failure to honor its obligations.

The transport sector's leader suggested that the core problem is a budgetary shortfall. He noted that the current year's transport budget remains similar to the previous year's, despite rising operational costs, creating a financial imbalance. Ruiz Díaz also criticized the lack of timely cash flow planning by the government, which exacerbates delays and impacts the system's operation.

“

We estimate it is a budgetary issue. This year's budget for transport has the same amount as last year, but the amounts are growing. So, if you don't have it in the budget, obviously you start to falter. And that is what is happening. They haven't even had a cash flow plan.

The consequences of these financial issues are already visible, with fewer buses operating. Ruiz Díaz stated that operators cannot afford to keep all units running, and buses that break down remain out of service until repair funds become available. He described the situation as critical, calling it the most severe in recent Paraguayan public transport history, and pointed to the uncompensated increases in fuel prices since March and the lack of updated technical fares as further burdens.

“

The fleets do not operate 100% because they do not have the economic condition to do so. A bus that breaks down remains waiting until resources are available to fix it. This is regrettable.