Peña signs off on $75 million rural roads loan, boosting Beto Ovelar’s stronghold

President Santiago Peña has enacted a $75 million loan for rural roads, including a politically conspicuous allocation: half of the planned works will go to Caaguazú, the stronghold of Colorado Party senator Silvio “Beto” Ovelar.

Law No. 7706 approves financing from the Inter-American Development Bank for improvements to 123.79 kilometres of rural roads across Alto Paraná, Canindeyú, Caazapá, Caaguazú, Itapúa, San Pedro and Concepción.

The Public Works and Communications Ministry says the programme will use asphalt paving and double surface treatment. It aims to improve year-round travel between communities, production areas and urban centres, while reducing transport costs and making it easier to move agricultural and forestry products.

The ministry also says the roads will improve access to hospitals, schools, workplaces and markets. That access becomes particularly difficult during rainy periods, when poor rural roads hinder families’ movement and prevent production from reaching markets.

The project became a source of friction among lawmakers from the governing party. Deputy Chamber vice-president Hugo Meza, an ally of Ovelar, called the financing proposal “The Turkish soap opera.” The lower house approved it on August 12 after extensive debate, following a dispute that began when Ovelar went there to try to control the vote. The allocation to Caaguazú has led critics to accuse the senator of seeking political benefit from the programme.

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The Turkish soap opera.