Paraguay beckons for bold airport investors

The Government of Paraguay has passed a bill to concession out the Asunción Silvio Pettirossi Airport, along with several of the country's regional airports. If approved by Paraguayan President Fernando Lugo, the 30-year concession will require an estimated USD100 million investment, which seems to be a lot of money for a country that has widely been regarded as something of a backwater in Latin America.

Local unions are vehemently opposed to the concession and about 2,000 unionised airport workers are now planning to wage a 10-day strike at Asunción Airport. The strike is expected to start at end of this week and result in widespread delays and cancellations.

Paraguay is one of only two landlocked countries in South America, surrounded by Brazil, Argentina and Bolivia. It famously fought Brazil, Argentina and Uruguay between 1864 and 1879 in The War of the Triple Alliance, leaving Paraguay with a population of only 200,000 and economic stagnation that lasted half a century. But Paraguay has undergone something of a political resurgence since the 35-year military dictatorship of Alfredo Stroessner came to an end in 1989, allowing for regular democratic presidential elections.