In a significant move toward sustainable urban transportation, Paraguay is set to embark on its first large-scale electromobility project, focusing on the capital city’s bus system. Over the next four years, approximately 1,000 electric buses will be integrated into Asunción’s public transport network, replacing 800 aging units that have nearly reached the end of their service life.

The initiative, spearheaded by Deputy Transport Minister Emiliano Fernández, marks a pivotal step in the country’s commitment to reducing carbon emissions and modernizing its public transportation infrastructure. The financial details of the project are still under review, but the Paraguayan government is expected to leverage a combination of sustainability loans from international agencies, state funds, and contributions from Itaipu Binacional, the hydroelectric dam operator jointly managed by Paraguay and Brazil.

The electromobility push aligns with the broader goals of President Santiago Peña’s administration, which is currently navigating the challenges of reducing the fiscal deficit following the economic impacts of the COVID-19 pandemic. Efforts to bolster tax revenues have already seen a 26.5% year-on-year increase in the first five months of 2024, as reported by the tax agency DNIT. Additionally, the government has proposed a bill aimed at reforming the State’s administrative structure to improve spending efficiency.

Paraguay’s long-term electromobility strategy, unveiled last year, envisions a complete transition to electric public transport buses across the country’s five largest cities by 2040. This ambitious plan includes the conversion of 6,292 buses to electric power and aims to electrify half of the nation’s taxi fleet by the same year. The country is receiving support from international partners, including Taiwan, to acquire the necessary vehicles.

The integration of electric buses in Asunción is not only a step toward reducing environmental impact but also a reflection of Paraguay’s growing emphasis on sustainability and technological advancement. As the country continues to modernize its infrastructure, this project is expected to set a precedent for future developments in public transportation across the region.

Source: BNamericas