The point of argument is why it is diesel bus introduction instead of electric rail or bus system, or Light Rail. Taking in consideration of Paraguay's conditions to access to energy source, electricity is chosen reasonably. Because of Itaip HPP and Yacyreta HPP.
If natural gas, it is also reasonable, but this is no resource near by. Both diesel and natural gas have to be imported.
If natural gas or electricity, it is much more clean than diesel engine bus.
The total project cost is USD160 million, of this total, USD115 million for a loan from the IDB and USD18 million from OFID (Organization of Petroleum Exporting Countries for International Development). The rest, USD35 mil. is provided by the Government of Paraguay.
The loan are divided by two part;
1) USD62.4 million loan for a 30-year term with a six-year grace period and a LIBOR-based interest rate;
2) USD15.6 million loan for a 40-year term, with a 40-year grace period and 0.25% interest, and
3) USD47 million loan for a 25-year term, with a five-year grace period and a LIBOR-based interest rate.
OFID's loan condition would be non-concessional.
IDB has approved credit line for this transport project