There is still no political consensus for the concession or for the shareholder participation that the State should have in the company that will manage the Port.

According to reports from elsalvador.com, the president of the Autonomous Executive Port Commission (CEPA) Albino Roman, said "to be discussing the percentage that the State should have is a lack of vision." He added that "a world class operator is only going to invest if the business is profitable, hence a 51-49% distribution of the shares in favor of the State is not profitable for the investor. With that proportion we will not even get 10% IRR (internal return rate), when Fomilenio is asking for 14%

Source: elsalvador.com

More on this topic

Concession for Salvadoran ports goes to the National Assembly

January 2009

The government will send the bill to the Legislative Assembly with a proposal for 90% of the shares to be owned by foreign investors and 10% by the State.

According to elsalvador.com: "The completed La Union Port will be turned over to President Elias Saca next Wednesday. That same day he will send the draft legislation for the concession of the port to the Legislative Assembly.

Port concession in El Salvador unresolved

August 2008

The project presented by the Government to the Legislative Assembly proposed the concession of both the La Union and the Acajutla ports to one operator.

CEPA president, Albino Román, said that this is the most appropriate way because it is attractive to big companies and will permit better development of the terminal and will generate income for the country, both from the operation of the port as well as from taxes.

Port chief says La Unión concession will earn El Salvador US$8 million a year

July 2008

El Salvador will earn US$8 million a year over the next 25 years from a concession to operate the port of La Unión, predicted Albino Román, president of the Autonomous Port Authority (CEPA).

Román said the projection was based on the minimum forecast for the volume of cargo. The 178,000 square-meter cargo terminal will have a 350,000 TEU (20ft equivalent) container handling capacity.

Construction of El Salvador's La Unión port reaches closing stages

May 2008

Construction of El Salvador's new port, La Unión is now in its final stages, following the investment of US$96.3 million, the Executive Port Commission (CEPA) reported.

Albino Román, the CEPA president, said that docks for passenger, cargo and multi-purpose traffic have now been concluded, providing 820 meters of moorings. "Whichever company wins the operating concession will have to invest a lot on equipment," he added.