Paraguayan Ambassador to the Eastern Republic of Uruguay, Didier Olmedo, visited the set of Tribuna, a program broadcast by Paraguay TV, to talk about the relationship between the two countries and Paraguay’s priorities during its Pro Tempore Presidency of Mercosur.
The diplomatic representative highlighted the role of the Fund for the Structural Convergence of Mercosur (FOCEM) as a source of non-reimbursable resources for Paraguay. Annually, the Mercosur fund allocates around USD 48 million to the country to finance important infrastructure works.
“FOCEM is a fund that provides non-refundable financing. Depending on the size of the economy of each country, a contribution scheme and a benefit scheme have been designed,” Olmedo said, detailing that Paraguay contributes $1 million annually, Uruguay $2 million, Argentina $27 million and Brazil $70 million, making up thus an annual fund of $100 million.
In that context he mentioned that the distribution of resources is inversely proportional to contributions. “Paraguay receives $48 million annually, Uruguay $32 million, and Argentina and Brazil $10 million each. So, in the first 10 years since the creation of FOCEM, Paraguay received $480 million non-refundable, having contributed only $10 million, thus obtaining a net profit of $470 million to invest in important projects such as roads, transmission lines, laboratories and housing. , he pointed.
Some of the projects financed by FOCEM in Paraguay include the route from Concepción to Vallemi, subsequently extended to the locality of San Lázaro, the Costanera Norte and the viaduct connecting with Costanera 2, as well as the 500 kV transmission lines from Itaipú to Villa Hayes.
It should be noted that the 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.