After a technical delegation from Etihad Railway visited the Paraguayan capital Asuncion on November 4th, this landlocked South American country is actively seeking potential cooperation with the United Arab Emirates in order to restart its long delayed suburban train project. This progress marks a new turning point for Paraguay in promoting urban railway construction.

The technical delegation held important talks with Paraguayan President Santiago Pe ñ a, with a focus on discussing opportunities for cooperation in the development of urban railways and freight transportation. Among them, the 44 kilometer commuting and tourism route connecting Asuncion and Ipakarai has become the core issue on the agenda. This high-level meeting injected new vitality into the project. Prior to this, the Paraguayan government cancelled a $500 million concession agreement with South Korea in September 2024, which had originally planned to fund, construct, and operate a light rail line equipped with a tram train fleet.

According to officials from the Ministry of Public Works and Communications, the funding plan under the new cooperation framework has been preliminarily formed: the government will contribute about $150 million, and private investors will provide up to $450 million in funding support under a 30-year franchise model. This financing model demonstrates Paraguay's innovative approach to infrastructure construction projects.

The planned commuting route for this project is expected to transport up to 60000 passengers per day, which will effectively alleviate the traffic pressure in Asuncion city. It is worth noting that the implementation strategy of the project has also undergone important adjustments: the government plans to first construct the Asuncion Luke section, and then expand it to Ipakarai in the second phase. This phased approach is more feasible and operational.

If the project is successfully completed, it will be the first time in decades that Paraguay has resumed regular passenger train services. Since the suspension of regular trains between Asuncion and L ü ck in the early 21st century, Paraguay has lacked regular passenger train services and only occasionally operates tourist trains. The reopening of this route will not only significantly alleviate traffic congestion in Asuncion and promote the construction of a sustainable urban transportation system, but also be closely integrated with new tourism and regional development plans, providing important support for Paraguay's urban modernization and regional integration development. Keywords: foreign construction news, international news

This cooperation intention also reflects the expanding influence of the United Arab Emirates in the global infrastructure field, as well as the new trend of South American countries seeking diversified international cooperation in promoting the modernization of transportation.Editor/Cheng Liting