TAIPEI (Taiwan News) – Taiwan and Paraguay signed a memorandum of understanding (MOU) worth US$150 million (NT$4.47 billion) over five years on Dec. 14, 2018, reported CNA.

Taiwan Ministry of Foreign Affairs (MOFA) spokesman Andrew Lee (李憲章) announced the agreement yesterday, and said that the deals will focus on education and social assistance, as well as housing and infrastructure.

News of the potential deal was first made public by the President of Paraguay, Mario Abdo Benitez, who tweeted about the agreement on Oct. 15, 2018, after an official visit to Taiwan. At this time, the Taiwan government said that the deal was not set in stone and that talks were ongoing.

MOFA said yesterday the deal is the product of talks over a number of years, and that the agreement was signed in the capital of Paraguay, Asuncion.

The MOU includes provisions outlining preferential treatment for Paraguayan and Taiwanese firms who bid on projects, and that projects funded as part of the deal require Taiwanese products to be used. Lee said these provisions are a win-win for both Paraguay and Taiwan.