Taiwan, Paraguay sign MOU to build US$30 million e-bus plant

Taipei, May 21 (CNA) A Taiwanese company will invest an estimated US$30 million to build an electric bus manufacturing and assembly plant in Paraguay, according to a memorandum of understanding (MOU) signed in Taipei on Tuesday.

Speaking at the signing ceremony, visiting Paraguayan President Santiago Peña said the MOU will not only pave the way for assembling e-buses in Paraguay, but also provide "the possibility of changing the lives of millions of Paraguayans" who commute to work.

There is "no better place" than Paraguay to develop electric vehicles in Latin America as it is a large producer of renewable energy, Peña said, adding that he looked forward to seeing Paraguay play "a leading role" in energy transition in the region.

Wu Ting-fa (吳定發), chairman of Taiwan-based Master Transportation Bus Manufacturing Ltd. said the project's goal was to "enhance the development of public transportation in Paraguay" and would create an estimated 2,600 local jobs.

Through the investment, the company will eventually seek to expand its presence from Paraguay to other members of the Southern Common Market, also known as Mercosur, a trade bloc comprised of Paraguay, Brazil, Argentina, and other South American nations.

According to the MOU, the bus manufacturer will establish the first fast-charging bus chassis and body manufacturing plant in Paraguay and assist in bringing a Taiwan-developed intelligent transportation system to the South American nation.

Wu Zhong-xi (吳忠錫), the bus company's director and general manager, told local media at the ceremony that batteries and other key e-bus technologies will be imported from Taiwan and assembled in the planned factory.

Wu Zhong-xi said the company was expecting to invest US$30 million in the project and would receive tax incentives and other support from the Paraguayan government, but he declined to provide additional details.

Though the company has yet to determine whether the e-bus factory will be built in the capital Asunción or Ciudad del Este, Paraguay's second biggest city, it hoped that mass production could begin at the planned factory by the end of 2025.

Negotiations on the MOU, which was inked by the bus manufacturer and the Paraguayan Ministry of Industry and Commerce, began in July 2023 when then President-elect Peña traveled to Taiwan and visited the manufacturer's depot in New Taipei.

Prior to attending the ceremony, Peña met with President Lai Ching-te (賴清德) at the Presidential Office to reaffirm Paraguay's ties with the Republic of China (Taiwan's official name), according to a press release by the Presidential Office.

Peña was citied in the release as saying that he was pleased to attend Lai's inauguration on Monday and that he looked forward to seeing more collaborations between Paraguay and Taiwan.

Lai expressed similar views, stressing Taiwan's commitment to enhancing its partnerships with Paraguay with the aim of fostering stability and prosperity for both nations.