Under the agreement, which was signed during this week’s visit of Bolivian president Mr Evo Morales to Asuncion, the two countries will evaluate the feasibility of constructing a railway linking Roboré in eastern Bolivia with Puero Carmelo Peralta, where a new bridge is planned across the Paraguay River to improve transport links with Brazil.

Both Paraguay and Bolivia are members of the Group of Landlocked Developing Countries. The Paraguayan government says there is a need for progress on the rail link, which is being developed within the framework of the Vienna Action Programme for Landlocked Developing Countries.

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