Mid term Review of the implementation of the Vienna Programme of Action for the Landlocked Developing Countries for the Decade 2014-2024 in Latin America and the Caribbean UN-OHRLLS and UN-ECLAC Background report for the Latin America regional review meeting on the implementation of the Vienna Programme of Action for the Landlocked Developing Countries for the Decade 2014-2024. Note: We gratefully acknowledge Mr. David Suárez and Ms. Isabelle Turcotte for preparing the draft report under the supervision of Gabriel Pérez-Salas, Economic Affairs Officer of the Infrastructure Services Unit at the Economic Commission for Latin America and the Caribbean (ECLAC), Gladys Mutangadura, Senior Programme Officer of the Landlocked Developing Countries sub-programme and under the general guidance of the Chief of Policy Development at the Department of Coordination, Monitoring and Reporting, and the Director of OHRLLS. The preparation of the report is an activity of the project entitled: Strengthening the capacity of Landlocked Developing Countries under the “Belt and Road Initiative” to design and implement policies that promote transport connectivity for the achievement of the SDGs which is funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Trust Fund.The views expressed in this report, which has been reproduced without formal editorial review, are those of the authors and do not necessarily reflect the views of the United Nations. 1 Table of Contents Maps ............................................................................................................................................................. 5 Acronyms ...................................................................................................................................................... 6 Executive Summary ....................................................................................................................................... 7 1. Guiding frameworks and principles to achieve sustainable development in landlocked countries ...... 10 The 2030 Agenda for Sustainable Development .................................................................................... 10 The Vienna Programme of Action (VPoA) ............................................................................................... 11 National Development Plans and their Alignment with the 2030 Agenda and the VPoA ...................... 12 The National Development Plan of the Plurinational State of Bolivia ................................................ 13 Bolivia: Transport legal and regulatory frameworks, and transport system policies ......................... 14 The National Development Plan of Paraguay ..................................................................................... 17 Paraguay: Transport legal and regulatory frameworks, and transport system policies ..................... 18 2. The status of implementation of the Vienna Programme of Action in Bolivia and Paraguay ................ 21 2.1 Priority 1: Fundamental transit policy issues .................................................................................... 21 2.1.1 Transit policy agreements and institutional reforms ................................................................. 21 2.1.2 Progress and achievements in transit and trade facilitation ..................................................... 27 2.2. Priority 2a: Development and maintenance of transport infrastructure ........................................ 33 2.2.1 Review of transport connectivity in the Plurinational State of Bolivia ...................................... 33 Current status, progress and challenges in road transport ................................................................ 34 Current status, progress and challenges in inland water transport ................................................... 37 Current status, progress and challenges of railway transport ............................................................ 39 Current status, progress and challenges for air transport .................................................................. 40 Current status, progress and challenges of pipeline transport .......................................................... 41 2.2.2. Review of transport connectivity in Paraguay .......................................................................... 43 Current status, progress and challenges in road transport ................................................................ 43 Current status, progress and challenges of inland water transport ................................................... 45 Current status, progress and challenges in rail transport................................................................... 47 Current status, progress and challenges in air transport ................................................................... 48 2.2.3. Primary funds to develop and maintain economic and services infrastructure ....................... 48 2.2.3.1 Financing economic infrastructure through public-private partnerships ............................... 51 2.2.3.3 Capacity for the development of regional infrastructure projects ......................................... 55 2 2.3 Priority 2b: Infrastructure development and maintenance ………………………………………………………….58 2.3.1 Electric energy in Bolivia and Paraguay ..................................................................................... 58 2.3.1.1 Electric energy capacity and generation ................................................................................. 58 2.3.1.2 Electric coverage ..................................................................................................................... 60 2.3.2 Information and Communication Technology (ICT) in Bolivia and Paraguay ............................ 60 2.3.3 E-Commerce ............................................................................................................................... 63 2.4 Priority 3: International trade and trade facilitation ........................................................................ 66 2.4.1 International trade of Bolivia ..................................................................................................... 67 2.4.1.1 Scope of international trade ................................................................................................... 67 2.4.1.2 Composition of trade .............................................................................................................. 67 2.4.1.3 Destination of exports ............................................................................................................ 69 2.4.1.4 Modes of transport and corridors .......................................................................................... 69 2.4.2 International trade of Paraguay ................................................................................................. 72 2.4.2.1 Scope of international trade ................................................................................................... 72 2.4.2.2 Composition of trade .............................................................................................................. 72 2.4.2.3 Destination of exports ............................................................................................................ 74 2.4.2.4 Modes of transport and corridors .......................................................................................... 74 2.4.3 Value added of exports .............................................................................................................. 75 2.4.4 Enabling environment for trade facilitation .............................................................................. 78 2.5 Priority 4: Regional Integration and Cooperation ............................................................................. 79 2.5.1. Transport and transit agreements between Bolivia and Paraguay: ......................................... 80 2.5.1.1. Bolivia: Binational transport and transit agreements ............................................................ 80 2.5.1.2. Paraguay: Transport and transit binational agreements ....................................................... 82 2.6 Priority 5: Structural economic transformation ................................................................................ 82 2.6.1 The economic context ................................................................................................................ 82 2.6.1.1 The economic context of Bolivia ............................................................................................. 82 2.6.1.2 The economic context of Paraguay ......................................................................................... 84 2.6.2 The social context ...................................................................................................................... 85 5.5.3 Science, technology, and innovation ......................................................................................... 86 2.7 Priority 6: Means of implementation ................................................................................................ 87 2.7.1 Internal resources and institutional capacity building ............................................................... 87 2.7.2 International support to advance VPoA priorities ..................................................................... 88 2.7.3 Contribution