The Paraguayan Ministry of Public Works and Communications (MOPC) has signed a Memorandum of Understanding (MoU) with Etihad Rail from the United Arab Emirates (UAE) to rebuild the 44 km line between Asunción and Ypacaraí for regional passenger rail transport. The basis for this is a 30-year concession via a special purpose vehicle supported by Paraguayan state railway Fepasa and Etihad Rail. Around 40,000 passengers per day are expected, which corresponds to around 14 million per year. The project costs are estimated at up to EUR 378 million (USD 450 million). Etihad Rail is contributing EUR 126 million, while Fepasa and the Paraguayan government are contributing EUR 42 million. A further EUR 168 million is to come from external financing on the UAE market. In addition, the agreement includes a non-repayable contribution of EUR 12.6 million from the UAE to Fepasa for preliminary work. Detailed studies are to determine the final scope and financing within eight months. The project will be implemented in two phases, first the 16 km section between Asunción and Luque and then 28 km to Ypacaraí. Construction can begin in early 2027, provided financing and permits are secured, with a construction period of around 36 months.
