Paraguay eyes investment plan, toll collection reform for waterway crossings

The Foreign Minister of Paraguay, Rubén Ramírez, indicated the country’s proposal is to create an investment plan to harness the full potential of the waterway. In line with this, the Foreign Minister held discussions with his Argentine counterpart, Santiago Cafiero, in order to reach an understanding regarding the unilateral toll charges.

Following the visit of Argentina’s Minister of Economy, Sergio Massa, to Paraguay, accompanied by the Minister of Transportation, Diego Giuliano, and other officials, the Paraguayan government announced a temporary suspension of toll charges on the waterway, which had been imposed by Argentina since January 1st of this year.

Subsequently, authorities from the neighboring country denied that the toll charges were temporarily suspended, leading to a protest by Foreign Minister Ramírez.

In a press conference on August 25th, the Foreign Minister reported that he received a phone call from his Argentine counterpart, Santiago Cafiero, affirming the commitment to engage in dialog within his government to find a solution to the situation.

On August 30th, a new session of the Intergovernmental Waterway Committee will take place, during which Paraguay will propose elevating the decision-making standing of the meeting to “address structural issues and provide predictability to cargo operators.”

Coordinating Investments and Toll Charges

The Minister stated that Paraguay’s position is to present a mechanism that would lead to an investment plan and a new form of toll collection, with the consensus of Paraguay, Argentina, Brazil, Bolivia, and Uruguay.

This investment plan should aim to use the full potential of the waterway in the region, enabling navigation at all times.

“It was clear that Argentina will use domestic means to suspend this measure while this situation (the investment plan) is resolved within a period of 60 to 90 days,” said the Foreign Minister, reiterating that “Paraguay is firm in its demand for Argentina’s full compliance with the treaty and that this country cannot unilaterally impose a toll.”

Payments through Energy Transfer from EBY

Another announcement made after the meeting between President Peña and the Argentine Minister was the commitment to settle part of the debt with Paraguay through the transfer of energy generated by the Binational Entity Yacyretá (EBY).

“There was a commitment to disburse $10 million, and those funds have not been received up to today. And a promise of a $3 million disbursement for today,” the Foreign Minister detailed.

Source: Ip

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