Taking a joint step forward in the Asuncion Light Rail Project
Paraguay agrees to
start the legislative process for the light rail project during the MOLIT Vice Minister’s visit to the country.
Vice Minister Yun Seong-won of the Ministry of Land, Infrastructure and Transport (MOLIT) visited Paraguay from April 24 to 27 to spur the passage of a special legislation that will make concrete Korea’s partnership with Paraguay on the Asuncion Light Rail Project.
The Asuncion Lig ht Rail Project is a $550 million project that will build a 43km light rail line between Asuncion and Ypacaraik, a town located east of the capital city The special legislation, which stipulate smatters concerning the project, will be submitted to th e Paraguayan Congress for, accord ing to the current plan, discussion at both chambers in May and passag e by the middle of this year.
If the passage comes through, the Team Korea, the K orean consortium for the project involving KIND(Korea O verseas Infrastructure and Urban Development Corporation), Hyundai Engineering, Kyerong Construction Industrial, LS Elec tr ic, and Hyundai Rotem, will have a firmer ground for its activities surrounding the project.
Korea’s cooperation with Paraguay on the project started last September when MOLIT Minister Noh Hyeong ouk signed a memorandum of understanding ( with Ó scar Rubén Salomón Fernández the President of the Senate of the Congress during his visit to Korea. In the MOU, the two countries agreed to promote the light rail project as the ‘lead project’ through which the two countries expand their cooperation in the in frastructure field.
Since signing the MOU, the Team Korea went to Paraguay in October to survey the project sites and had discussion s with the g overnment officials responsible for the project . Based on the discussion, the Team Korea drafted and submitted to the Ministry of Public Works and Communications, the main ministry in charge the project, its project proposal in November.
Meanwhile, the legislative process has been moving slow ly due to delays in coordination between relevant government agencies and Paraguay’s relative lack of experience with the public private partnership ( scheme , which the Asuncion project adopt s for its funding and implementation.
It was against this backdrop that the Korean delegation led by the MOLIT Vice Minister paid the official visit to Paraguay. His visit, which was accompanied by the Team Korea, will gave boost to the legislative process.
The Asuncion light rail project, which will be funded under an PPP scheme, will provide a rail link between Asu ncion and Ypacarai. The Paraguayan government will tap into the old rail infrastructure now sitting idle and the nation’s abundant hydrogen power to develop the new rail Once complete, the government expects the new rail service to relieve traffic congest ion, cre ate jobs , and help expand the domestic rail industry, who se development is essential to a landlocked country like Paraguay.
During his visit to Paraguay, Vice Minister Yun paid a courtesy call on President Mario Abdo B enitez to explain the Team to explain the Team Korea’Korea’s plan for the Asuncion ps plan for the Asuncion project. roject. As he madeAs he made the briefing, Vice Minister Yun the briefing, Vice Minister Yun expresseexpressedd appreciation for appreciation for giving Korea an opportunity to participate in the first light rail project in the giving Korea an opportunity to participate in the first light rail project in the citycity. He. He also reiterated its potential contribution to Paraguayalso reiterated its potential contribution to Paraguay, particularly in employment, , particularly in employment, tourism, living tourism, living and environmenand environmentt. While promising a continued active cooperation with the Paragupromising a continued active cooperation with the Paraguayan government to ayan government to ensure realization ofensure realization of such potentialsuch potentials ands and give give a new momentum for the national development, the Vice a new momentum for the national development, the Vice MinisteMinister rer reminded the importance of minded the importance of the passage of the special law. the passage of the special law.
Minister Arnoldo Wiens Durken of Public Works and Communications mentioned “Minister Arnoldo Wiens Durken of Public Works and Communications mentioned “Paraguay wants toParaguay wants to restorerestore its reputationits reputation as the rail owerhouseas the rail powerhouse with cooperation with Koreawith cooperation with Korea on on this project.” As for the this project.” As for the pprorogress in the legislation, the Minister expectsgress in the legislation, the Minister expects submission to the Congress by this week at the earliest.submission to the Congress by this week at the earliest.
During his for During his fourur--day trip, the Vice Minister had a trilateral meetingday trip, the Vice Minister had a trilateral meeting with the with the Minister of Minister of Public Works Public Works and Communand Communications and the Minister of the Planications and the Minister of the Planning Secrning Secretariat (etariat (Viviana Casco MolinasViviana Casco Molinas)) on April 2on April 255. . At the meetings with members of the Senate, including the Senate President on April 26 and with the At the meetings with members of the Senate, including the Senate President on April 26 and with the President of the ChambePresident of the Chamber of Deputies, Paraguay’s lower houser of Deputies, Paraguay’s lower house of the Congressof the Congress on April 24, Vice on April 24, Vice Minister Yun sought their support for the project. Minister Yun sought their support for the project.
To check on the progress of the project, the Vice Minister visited the project sites and chairedd the project sites and chaired a meeting a meeting with the Team Korea. At the meeting, he listened to the challenges they face inwith the Team Korea. At the meeting, he listened to the challenges they face in Paraguay and promised Paraguay and promised MOLIT’s supMOLIT’s support to ensure their success with port to ensure their success with the project. the project.
Vice Minister Yun says “The Asuncion Light Rail Project will be the first case where Korea will develop
a concrete partnership on a project based on a legislation that affirm s such partnerships. The project will
also be the first case where Korea will not only build but operate the rail transit system it built.” “MOLIT
will review what support it can provide to ensure the Team Korea’s successful implementation of the
project a nd to replicate the success in Paraguay to similar projects in other countries.”
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