ASUNCÍON RIVERFRONT URBAN RESILIENCE PROJECT

The regeneration project adopts a multifunctional land-use approach by integrating residential, commercial, recreational, public, and mobility functions. The Eco-Inclusive District introduces a new residential area complemented by public functions such as social service facilities, commercial spaces on the ground floors of the buildings, and extensive recreational spaces, including public parks and green infrastructure. These developments are supported by mobility infrastructure, in particular, pedestrian-friendly pathways and bicycle lanes.

The Historic Centre incorporates three main zones: the 11,400 sqm Civic Corridor delivers institutional and public functions, the 5,400 sqm Commercial Corridor concentrates retail and office activity, and finally the 6,800 sqm Ecological Corridor functions as a recreational area. The 190,000 sqm Parque Caballero hosts recreational and commercial land uses, incorporating community gardens, a skate park, playgrounds, and flexible spaces for informal commerce. Finally, La Reserva Ecológica del Banco San Miguel is preserved as a recreational and public area, with small-scale infrastructure supporting environmental education and active mobility through new walkways and bike lanes. This multifunctional approach strengthens urban inclusivity and sustainable urban transformation across all project components.

The Asunción Riverfront Urban Resilience Project will support the local economy by stimulating business activity and expanding employment opportunities. The regeneration will increase the attractiveness of the riverfront by revitalising public spaces and creating a 5,400 sqm Commercial Corridor to reconnect the Historic Centre and the river and improve the quality of the built environment. These actions are expected to stimulate business activity, tourism, and recreation, increase land values, and attract private investment. Employment opportunities will be created in the construction, retail, and service sectors, with at least 1,000 jobs generated, 60% of which are for women. The design also incorporates flexible spaces for informal commerce, enabling street vendors and artisans to participate in the local economy. 

An economic inclusion program will further strengthen employment and business opportunities for vulnerable groups through the creation of the Centre for Local Economic Development and Social Innovation (CEDELIS). CEDELIS will provide training, technical assistance, and institutional support to community-based organisations, micro-, small-, and medium-sized enterprises (MSMEs), and individual beneficiaries, integrating informal workers into formal markets and regional value chains.

Gender inclusion in the local job market includes training 250 women in non-traditional and labour-intensive sectors, such as construction, setting recruitment quotas in CEDELIS, and prioritising women-led enterprises for grants and technical assistance. It aligns with the vision outlined in Paraguay's National Development Plan, serving as the city’s strategic blueprint for women’s participation in the formal labour force. Capacity-building activities will also train 100 public officials to improve institutional management in urban resilience, territorial and environmental planning, and public–private cooperation, ensuring long-term economic vitality. Among them, a target of 30% of female participants is set to reduce gender disparities in skills among public workers.

The project adopts the World Bank’s Green, Resilient, and Inclusive Development (GRID) framework and relies on the implementation of nature-based, low-carbon urban planning solutions. It will contribute in several ways to climate change adaptation and mitigation in the area. To mitigate flood risks and restore natural hydrological functions of the project area, two local streams will be rehabilitated and integrated into the urban fabric. Around 4,000 metres of streets will be upgraded with permeable paving, an upgraded drainage system, and climate-resilient grey and green infrastructure for stormwater retention. Overall, climate resilience will be enhanced through the rehabilitation of major public spaces along the riverfront. These include a series of parks, plazas, and green areas in all project zones equipped with shaded infrastructure to mitigate the heat island effect. Rain gardens and native tree planting will increase biodiversity.

The newly constructed Eco-Inclusive District includes climate-resilient urban infrastructure, such as bioswales, retention ponds, sustainable drainage systems, low-energy public lighting, passive cooling, and efficient insulation to reduce carbon emissions and energy demand in the project area. The historic Parque Caballero will be transformed into 13 hectares of restored parkland and 6 hectares of new development, incorporating community gardens, flexible public spaces, and flood retention areas to strengthen urban resilience. The Historic Centre will feature a 6,800 sqm Ecological Corridor, linking green spaces between the riverfront and the city centre to enhance climate adaptation.

Finally, the project will strengthen the ecological function of the Banco San Miguel, a 300-hectare reserve, enhancing the area's natural floodwater control through small-scale ecological interventions, including preservation and restoration of local flora. Establishing educational infrastructure, such as a nature observatory and sign system, will contribute to raising awareness of climate change and urban ecosystem protection.

The Asunción Riverfront Urban Resilience Project directly addresses the critical social challenges associated with the largest informal settlement in Paraguay, located along the city’s riverfront. A central intervention is the development of the Eco-Inclusive District on 35 hectares of municipal land, where 13.8 ha will be assigned to social housing sustained by public funds. The project will deliver around 700 climate-resilient resettlement housing units of real estate for families currently living in the flood-prone Parque Caballero area. These homes will be built on elevated land, significantly increasing long-term public safety from exposure to flood hazards. The housing units will be fully serviced by essential infrastructures, such as electricity, water, sanitation, and climate-resilient infrastructures, including a sustainable road network, green drainage systems, and public transport connections. In total, the project will improve the living standards for approximately 2,400 individuals, half of which women, while also reducing flood risk for 700 vulnerable households. 

Additionally, the project promotes social equity and inclusiveness by delivering community facilities to contribute to the well-being of local people. Designed 11,400 sqm Civic Corridor to connect the Historical Centre with the riverfront, increasing the provision of public services for the development area. It is expected to boost public space usage by 50% and benefit approximately 300,000 people who reside in or visit the historical centre of Asunción, enhancing community life and creating safer, more attractive environments. Furthermore, the construction of around 9,800 metres of cycling and walking paths in La Reserva Ecológica del Banco San Miguel will promote active mobility in the city. 

Participatory urban planning processes will be implemented to involve residents, especially women, vulnerable groups, and informal workers, in the design and development of their communities. The resettlement program of the Eco-Inclusive District will respect residents’ preferences regarding housing design and location to ensure that the project promotes local engagement in the decision-making process and fosters long-term social cohesion.

Asuncion Riverfront Urban Resilience Project. Project details. Accessed on 21/07/2025. https://projects.worldbank.org/en/projects-operations/project-detail/P175320 

Asuncion Riverfront Urban Resilience Project. World Bank report. Accessed on 21/07/2025. https://documentos.bancomundial.org/es/publication/documents-reports/documentdetail/099345010272218965 and https://www.worldbank.org/en/news/press-release/2022/11/16/banco-mundial-aprueba-proyecto-franja-costera-de-asuncion#:~:text=The%20project%20will%20also%20improve,a%20six%2Dyear%20grace%20period  

Proyecto de Resiliencia Urbana de la Franja Costera de Asunción. Marco de gestión ambiental y social (MGAS). Accessed on 23/07/2025 https://documents1.worldbank.org/curated/en/099041924182530451/pdf/P1753201fddac30d918ef01dcfda72a39a5.pdf   

Loan Agreement No. 9451-PY entered into between the Republic of Paraguay and the International Bank for Reconstruction and Development (IBRD). Accessed on 28/07/2025.  https://silpy.congreso.gov.py/web/descarga/expediente-151124?preview 

ETH Zurich. Asunción Futura. Aportes y proyectos conceptuales en la franja costera norte de Asunción del Paraguay. Accessed on 26/08/2025. https://www.research-collection.ethz.ch/bitstream/handle/20.500.11850/737834/ASUBOOK_SW_28.04.25.pdf?sequence=1&isAllowed=y