El Salvador: PPP for Customs Construction

Feasibility studies for the application of a Public-Private Partnership in the construction and maintenance works of the border crossings of La Hachadura and El Poy, and in the intermediate enclosures of Metalío and Tejutla began to be elaborated.

Friday, September 27, 2019

FOMILENIO II and the consortium Unión de Personas Pasos Fronterizos (UDP Pasos Fronterizos) signed a contract this day to carry out a technical study to determine the feasibility of a possible Public-Private Partnership (PPP) project at border crossings and intermediate precincts, according to an official statement.

You may be interested in "PPPs to Boost the Economy” and "Construction: Optimism for PPP Regulation

The document issued on September 24 by FOMILENIO II, which "... The APP project would consist of the financing, design, construction and maintenance of the La Hachadura (Ahuachapán) and El Poy (Chalatenango) border crossings, as well as the intermediate enclosures of Metalío (Sonsonate) and Tejutla (Chalatenango). It would also include the maintenance of the Anguiatú (Santa Ana) and El Amatillo (La Unión) border crossings.

The Executive Director of FOMILENIO II explained that the investment in these studies will reach US$591,732, and that the project is part of the portfolio of public-private partners in which the Millennium Challenge Corporation (MCC) currently provides support to the Government of El Salvador. It also reiterated its commitment to continue supporting government agencies in carrying out studies and structuring projects that will allow the country to take advantage of this innovative financing instrument.

As part of the consultancy, UDP Pasos Fronterizos will provide support to the Directorate General of Customs (DGA) of the Ministry of Finance (MH) in determining the feasibility of implementing this project under the PPP modality.

More on this topic

El Salvador: PPP Feasibility Analyzed

March 2019

The feasibility study for the creation of a PPP will be carried out in the project for the extension of the 43-kilometer stretch between the La Hachadura Border Crossing and the CA12 Road.

From the Fomilenio II statement:

March 7, 2019. The Fondo del Milenio II (FOMILENIO II) and the consortium Unión de Personas Corredor Pacífico (UDP Corredor Pacífico) signed on this day the contract to carry out technical-economic pre-feasibility studies for a possible Public-Private Partnership (PPP) project between La Hachadura Border Crossing and CA12 Highway (Kilo 5). The investment for these pre-feasibility studies will be US$1.5 million. The PPP project seeks to finance, build and maintain the expansion of a 43-kilometer stretch of road.

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. 

A PPP to Expand Ilopango Airport

July 2016

In El Salvador the possibility is being evaluated of making improvements needed by the airport under the guise of a public-private partnership, under the Fomilenio II program.

The executive director of Fomilenio II, Wiliam Pleitez, told Elmundo.sv that "...The pre-feasibility study to determine improvements at the airport ...

El Salvador: Investment Projects for Fomilenio II

August 2015

Construction of roads, renovation and expansion of airports, an industrial park in Zacatecoluca and works at the border crossings in La Hachadura and Anguiatú are the top five proposals to be developed using funding from the U.S. aid program.

The proposals presented to the Millennium Challenge Corporation (MCC) will be developed through public-private partnerships, and will receive technical and financial support for the creation of the partnerships. Wiliam Pleites, executive director of the board of FOMILENIO II, presented the first five projects and said that three new proposals will be presented to be analysed and approved by the MCC.

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