The state-owned company FERROCARRILES DEL PARAGUAY S.A. (FEPASA) recently approved an initial proposal submitted for feasibility studies for the construction of a freight train in Paraguay. The project intends to take advantage of the existing strip of land between the connection of the Aba'i branch line (Department of Caazapá) with San Salvador (about 40 km), from that point -always following the old route- to Paraguarí, and from this point a new link would be created with the area of Villeta on the Paraguay River, which would complete a total of almost 200 km.

According to statements made by FEPASA's President, the Bolivian company Ferroviaria Oriental S.A. of Bolivia -which had presented itself under the modality of private initiative, contemplated in its General Regulations applicable to the development of projects- would invest at its own risk some US$1.6 million in the second phase for the preparation and presentation of a final proposal, an amount that could be recovered in the event of opting to participate in the third phase, for the subsequent selection by FEPASA of a partner to carry out the project -whose initial estimates would be in the order of US$450 million- provided that the project is viable and of interest.

The aforementioned presentation of the private initiative proposal counted on the legal advice and assistance of the Infrastructure Department of Vouga Abogados.