Asunción, Agencia, IP.- President Santiago Peña has officially promulgated a law laying the groundwork for negotiating and implementing the commuter train project powered by renewable electric energy. The project will span the route from Ypacaraí to Asunción, passing through Areguá and Luque.
The decree, signed by the President, activates the Law assigning the Ministry of Public Works and Communications (MOPC) and Ferrocarriles del Paraguay S.A. (FEPASA) to sign a sub-concession contract in favor of the Republic of Korea’s Public Entity, Korea Overseas Infrastructure & Urban Development Corporation (KIND).
Additionally, it empowers the Ministry of Economy and Finance (MEF) to facilitate project financing and establish a guarantee and liquidity trust to manage all project-generated resources.
According to the Law, once the implementation agreement and subconcession contract are signed, the subconcessionaire must secure definitive financial closure within a strict timeframe.
Furthermore, the Ministry of Public Works and Communications (MOPC) and Ferrocarriles del Paraguay S.A. (FEPASA) are tasked with the land release, acquisition, relocation, compensation, and clearing of the areas earmarked for project execution, along with the necessary domain strips.
An article in the Law prohibits unauthorized intrusion, entry, or obstruction of train tracks and their circulation throughout their length, except for authorized vehicular and pedestrian traffic at duly approved intersections and level crossings after completing the appropriation and work zone release process.
The sub-concession contract, subject to approval by the National Council of Public Enterprises, will be up to 30 years from the commencement of operations.