They highlight the important role that Mercosur resources play in Paraguay

Asunción, IP Agency.- The permanent representative of Paraguay to Mercosur and Aladi, Ambassador Didier Olmedo, within the framework of the Paraguayan Pro Tempore Presidency, visited the facilities of Paraguay TV, invited by the program “Tribuna Set” in Asunción. On this occasion, he highlighted the important role played by the resources from the Fund for Structural Convergence of Mercosur (Focem) as a source of non-reimbursable resources in financing emblematic works in Paraguay.

“Focem is a fund that provides non-refundable financing. Depending on the size of the economy of each country, a contribution scheme and a benefits scheme have been designed,” said Ambassador Olmedo when detailing that Paraguay contributes USD 1 million annually, Uruguay USD 2 million, Argentina USD 27 million and Brazil USD 70 million, thus forming an annual fund of USD 100 million.

In that context, he mentioned that the distribution of resources is inversely proportional to contributions. “Paraguay receives USD 48 million annually, Uruguay USD 32 million, and Argentina and Brazil USD 10 million each. So, in the first 10 years since the creation of FOCEM, Paraguay received non-refundable USD 480 million, having contributed only USD 10 million, thus obtaining a net profit of USD 470 million to invest in important projects such as roads, transmission lines, laboratories and housing,” he noted.

USD 48 million in favor of emblematic works

Since its creation, this Mercosur Fund allocated an annual average of USD 48 million to finance projects in Paraguay, mainly for the financing of infrastructure works, he stated.

Among the projects funded by Focem in Paraguay, he mentioned the Concepción to Vallemí route, later extended to the locality of San Lázaro and another emblematic work that was also funded with non-reimbursable MERCOSUR resources is the Costanera Norte and the connecting Viaduct with the Costanera 2. Also, he recalled that with these funds it has been possible to finance the 500 kV Transmission Lines from Itaipú to Villa Hayes.

Focem is the first solidarity financing mechanism of the Mercosur countries and its objective is to reduce the asymmetries of the bloc. The funds are allocated to the countries and delivered as a non-refundable donation to finance up to 85% of the eligible value of the projects they present.

“Currently, Mercosur is working on the creation of a Focem 2, which will allow it to continue promoting the development of Paraguay,” the ambassador said in Tribuna.

Ambassador Olmedo emphasized that the facilitation of trade between the Mercosur countries is one of the priorities of the Paraguayan Pro Tempore Presidency. “We seek to streamline processes and reduce costs to promote regional commercial exchange,” he stated.