A Taiwanese company is set to make a significant investment in Paraguay’s growing electromobility sector by establishing an electric bus manufacturing and assembly plant. The project, estimated at US$30 million, was formalized through a memorandum of understanding (MOU) signed in Taipei, with Paraguayan President Santiago Peña in attendance.

During the signing ceremony, President Peña emphasized the transformative potential of the project for Paraguay. He highlighted that the MOU not only sets the stage for assembling electric buses in Paraguay but also opens up opportunities to improve the daily lives of millions of Paraguayans who rely on public transportation. Peña expressed his confidence in Paraguay’s potential as a hub for electric vehicle development in Latin America, given the country’s strong production of renewable energy.

The project, spearheaded by Master Transportation Bus Manufacturing Ltd, aims to enhance Paraguay’s public transportation system while creating approximately 2,600 local jobs. The company’s chairman, Wu Ting-fa, emphasized that the investment would significantly contribute to the development of Paraguay’s transportation infrastructure and position the country as a leader in the region’s energy transition.

The MOU outlines plans to establish the first fast-charging electric bus chassis and body manufacturing plant in Paraguay. Additionally, the company will assist in implementing a Taiwan-developed intelligent transportation system in the South American nation. Master Transportation’s general manager, Wu Zhong-xi, noted that key technologies, including batteries for the electric buses, would be imported from Taiwan and assembled in Paraguay. The company is still deciding whether to locate the factory in the capital, Asunción, or in Ciudad del Este, Paraguay’s second-largest city, with hopes of commencing mass production by the end of next year.

This partnership between Taiwan and Paraguay represents a deepening of bilateral ties, with Paraguay receiving significant support from Taiwan for its electromobility ambitions. The Paraguayan government has committed to providing tax incentives and other support to facilitate the project.

Negotiations for the MOU began during President Peña’s visit to Taiwan last year, where he toured Master Transportation’s facilities. This collaboration is seen as a pivotal step in Paraguay’s broader strategy to modernize its public transportation system and reduce its carbon footprint by transitioning to electric vehicles.

In addition to the bus manufacturing plant, the central banks of Taiwan and Eswatini also signed an MOU, reinforcing financial cooperation between the two nations. This agreement, witnessed by Taiwan’s President William Lai and Eswatini’s King Mswati III, underscores Taiwan’s ongoing efforts to strengthen international partnerships through economic and technological collaboration.

As Paraguay continues to develop its infrastructure and embrace sustainable technologies, the establishment of the electric bus plant is expected to play a crucial role in the country’s economic growth and environmental stewardship.

Source: Taipei Times