On Thursday (02/02), the Ministry of Finance of Paraguay signed the act signing the Free Trade Zone concession for the new land of the Omega Green biorefinery, located in Villeta, Paraguay. The document was signed by the Minister of Finance Óscar Llamosa Diaz, the Minister of Public Works and Communications Rodolfo Segovia, the Deputy Minister of Industry of the Ministry of Industry and Commerce Francisco Ruiz Diaz and the President of BSBIOS Erasmo Carlos Battistella.
We have thus taken a fundamental step towards moving forward with the project after acquiring new land for a larger area of 384 hectares. Now, we are ready to move on to other steps.
The stages of the engineering project, the concession of the municipal construction license and the Paraguayan environmental licenses have already been completed. The Free Zone consolidates an environment of legal and economic security favorable to investments in the country and provides us with the necessary conditions for the export of biofuel. Now we seek to secure the necessary financing for the project.
“This project (Omega Green) aims to transform Paraguay into a producer of 100% renewable energy. The advanced technology places us as a world reference, will attract investments in human capital and activities with higher added value and will help sustain our economic growth, not only in the place where the factory operates, but throughout the country. We value the commitment of investors, taking into account that they continued this project, which is so important for the national interest, despite the complex scenario of recent years.”
Óscar Llamosa Diaz, Minister of Finance
“This construction is committed to the development of this region and the Free Trade Zone of Villeta. This government is pleased to receive investments of this type. Hopefully construction will start soon.
Rodolfo Segovia, Minister of Public Works and Communications
“This is a project that offers us an important niche for the production of certified soy. Paraguay is today in this intermediate stage of industrialization. Agroindustrial exports exceed primary exports. We are in the transition from a rural economy to an agro-industrial economy. The Omega Green project will improve this. We celebrate an investment of this type that will generate jobs and economic growth.
Francisco Ruiz Diaz, Deputy Minister of Industry at the Ministry of Industry and Commerce
The Free Zone was determined by Presidential Decree No. 8376 of November 24, 2022, by the President of Paraguay Mario Abdo Benítez. The document highlights the project’s ability to boost foreign trade, add value to raw materials produced in Paraguay, such as animal fats, vegetable oils and residual oils, generate jobs and bring state-of-the-art technology to the country.
The contract guarantees the maintenance of the project’s legal conditions for a period of 30 years, renewable for another 30 years. The complex was considered “of national interest” by the government of Paraguay due to its social and economic importance for the country. It will bring gains to the economy of more than US$ 8 billion in 10 years, contributing to balance the trade balance. It will generate 3,000 direct jobs during the construction phase and around 2,400 direct and indirect jobs when it goes into operation.
The land is in Villeta, 45 kilometers from Asunción, capital of Paraguay. The area has the advantage of making a border of 220 meters, on the one hand, with the highway (Rutta Villeta-Alberdi), and on the other, with a larger strip of the bank of the Paraguay River. Another advantage is that it is located about 100 meters from a power substation (Subestación Buey Rodeo).
There is also the opportunity to accommodate future expansions, with ampler space for the development of the port, in addition to allowing the reception of strategic partners who can invest in related activities. Proximity to the paved road and the power substation also reduces operating costs for the project. The land will have a Permanent Preservation Area (APP), maintaining the identity of the current biome.
Infrastructure works for the establishment of internal roads and access, as well as the entire fencing of the area that will house the project, have already been carried out. The civil construction of the plant should begin in 2023 and has a completion period of up to 3 years. The production of biofuels is planned for the year 2025.