PPP for Road Lighting and Surveillance

The international tender for lighting and video surveillance of 143 kilometers of road sections in El Salvador began, a contract that will be executed through a Public-Private Partnership.

Friday, February 7, 2020

Companies interested in applying for the project will have four months to submit their technical and financial proposal. After an evaluation process, the contract of the winning company must be approved by the Legislative Assembly.

See "Electric cables: Market Figures up to June 2019"

From the FOMILENIO II press release:

February 2020. In order to contribute to road and citizen safety, FOMILENIO II and the Ministry of Public Works announced the international tender rules for a Public-Private Partnership (PPP) for lighting and video surveillance (IVV). This project will be implemented in 143 kilometers of selected road sections, in the departments of La Paz, La Libertad and San Salvador. The Secretary of Commerce and Investment, Miguel Kattán; the Minister of Public Works and Transportation, Romeo Rodríguez Herrera; the acting Minister Counselor of the United States Embassy, Brendan O'Brien; the Country Director of MCC, Martha Keays and the Executive Director of Fomilenio II, William Pleites, participated in the announcement.

Companies interested in applying to the project will have four months to submit their technical and financial proposal. After an evaluation process, the contract of the winning company must be approved by the Legislative Assembly.

The PPP will last 15 years and will have a $13 million investment amount. The four road segments are: Santa Tecla - La Libertad with 23 km; La Gloria - El Espino with 52 km; El Espino - San Oscar Arnulfo Romero y Galdámez International Airport of El Salvador with 43 km and Plaza de los Cocos - Zacatecoluca with 25 km. It is estimated that on average more than 23,750 vehicles travel these sections every day.

The private partner assumes the financing, design, construction/installation and maintenance of the infrastructure and services - including lighting, video surveillance cameras, underground cabling, monitoring rooms and the operation of the lighting system - in exchange for the right to market advertising on the road.

A PPP is a contract between a public and a private entity, where the private party assumes substantial financial, technical and operational risks in the design, financing, construction and/or operation of a public good or service for a limited period of time, in exchange for compensation and directing state resources to social priorities.

FOMILENIO II provides technical and financial support to promote PPPs in El Salvador as a mechanism to attract investment and optimize the contribution of road assets (roads) to investment, employment and growth of the Salvadoran economy.

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More on this topic

Public-Private Partnerships Crippled by the Crisis

June 2020

Tenders to modernize the cargo terminal at the Monsenor Romero International Airport and to implement the video surveillance system on 143 kilometers of road in El Salvador, both through PPPs, were suspended due to the health emergency.

The international tender to light and provide a video surveillance system on 143 kilometers of road was announced in February this year, and gave interested companies four months to submit technical and financial proposals. See "PPP for Road Lighting and Surveillance".

Lighting and Road Video Surveillance Project being Prepared

November 2018

In El Salvador, consultancy began to structure the project to install a lighting and video surveillance system on 140 kilometers of roads in four regions.

From the Fomilenio II statement:

FOMILENIO II and Deloitte Consulting S.L.U. signed the order to start the consultancy to structure the Public-Private Partnership (PPP) lighting and video surveillance project.

El Salvador: $19 million for Road Lighting

May 2018

Using a public-private partnership scheme, a lighting and video surveillance system is to be installed on 140 kilometers of roads in four departments.

According to Fomilenio II, the project is in the phase "Recruitment of the advisor to structure the project", which is "on hold - as of May 2018." 

Public-Private Partnerships Not Being Leveraged

December 2017

In the four years that the law of associations between the State and private companies in El Salvador has been in effect, not a single infrastructure project has been able to materialize using this business scheme.

Although there are at least seven infrastructure projects that were initially proposed as being those with the highest priority and ideals to be developed under the public-private partnership scheme and with funding from Fomilenio II, none of them has managed to materialize. 

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