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Paraguay Seeks $101.6 Million Loan from Brazilian Banks for Potential Super Tucano Purchase

Desk / Updated : 2025-04-03 23:08:15
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ASUNCIÓN, Paraguay - The Paraguayan Senate is scheduled to deliberate today (April 2nd) on a bill to approve a loan of USD 101,606,009.02 from Brazil's National Bank for Economic and Social Development (BNDES). This funding is intended for the "Project to Acquire Aircraft (Super Tucano) with Technical Capabilities to Support National Airspace Defense and Combat Drug Trafficking," an initiative led by the Ministry of National Defense.

The loan agreement between the Paraguayan government and BNDES was signed on November 19, 2024, and the bill includes an expansion of the national budget for the 2024 fiscal year (Law No. 7228).

Several Senate committees (Constitutional Affairs, National Defense and Public Military Forces, Finance and Budget, Accounts and State Financial Administration, and Prevention and Fight Against Drug Trafficking and Related Crimes) have recommended conditional approval of the bill. The proposed amendments will be discussed during the plenary session.

Exception to Import Procedures: "Inevitable Choice for National Security and Information Protection"
This potential acquisition of fighter aircraft will be carried out through an exceptional procedure, namely a direct contract. Minister of National Defense Óscar González emphasized the legal basis and necessity for this decision.

Minister González explained, "These are defense-related items, and proceeding in this manner is very appropriate. For example, we cannot disclose the characteristics of our radar, as this would be equivalent to providing information to organized crime." He further stated that current legislation allows the Ministry of National Defense to undertake this type of acquisition.

Following the standard competitive bidding process could lead to the disclosure of specific details about the requested equipment to criminal organizations. Therefore, the Ministry of National Defense has opted for this exceptional method to prevent such information leaks.

$93.3 Million Investment: Includes Training, Maintenance, and Technical Support Package
The actual investment is projected to be USD 93.3 million, while the loan approval is for a maximum of USD 101.6 million. The introduction of the Super Tucano aircraft is expected to include a package comprising:

Flight kits
Communication equipment
Night vision equipment
Weapon systems
Mission planning and training equipment and software
One year of logistical support
Maintenance equipment and tools
Secondment of Embraer technical personnel for one year
Training for 8 pilots and 12 mechanics
12-month warranty

The acquisition of the Super Tucano fighter aircraft is anticipated to significantly strengthen Paraguay's airspace defense capabilities and enhance its ability to respond to increasing transnational crimes such as drug trafficking.

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