El Salvador Prepares First Public-Private Partnerships

A new wind farm and the expansion of the International Airport of El Salvador, are the first two projects to be conducted under this system.

Wednesday, May 29, 2013

"Today (yesterday) I called a meeting with the president of CEPA (Autonomous Executive Port Commission) and CEL (Executive Hydroelectric Commission of the Lempa River) to immediately structure the first two projects: the expansion of the international airport and the wind project which the CEL is working with," said Alexander Segovia, Technical Secretary of the Presidency.

The official estimated that the construction of the wind farm alone will involve an investment of $120 million, while thE amount to be used for the airport expansion will depend on what is dictated in the master plan, however according Segovia, it could be more than the CEL wind farm.

Following the adoption of the law, Arnoldo Jimenez, executive director of the National Association of Private Enterprise (ANEP), said the partnerships could be used to build infrastructure for the National Administration of Aqueducts and Sewers (ANDA), and also to build prisons.

According to Segovia, they are still "analyzing" these changes, but noted that the passage of the bill by 84 votes "has sent an important message to the world."



More on this topic

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. 

Public Private Partnerships for Infrastructure and Energy

March 2013

The expansion of the International Airport of El Salvador and energy projects are some of the works that the State plans to make in conjunction with private companies.

In reference to the Public-Private Partnerships Bill under study in the Legislature, the Technical Secretary of the Presidency, Alexander Segovia, said there are many infrastructure needs that the state can not meet in the short or long term and in which private enterprises could intervene, "under appropriate legislation."

El Salvador Airport to Invite Private Partners

December 2012

The Goverment of El Salvador has decided that the expansion of the International Airport of El Salvador will be conducted via a public-private association.

The technical secretary of the presidency announced that they decided to use this mechanism due to the “large resources required by the expansion”.

Do Public-Private Partnerships in El Salvador Work?

July 2011

The way that the government handles the arbitration failure at the International Chamber of Commerce on the La Geo case could dictate the success or failure of state-business partnerships.

The private-public scheme has been promoted recently by the Salvadoran government for the implementation of large public infrastructure projects because they can free the state from the significant investments that such works require.

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