El Salvador: The La Unioin Municipality not up to par with port

One month before inaugurating its port, the City of La Union has serious deficiencies especially regarding health and basic services.

Tuesday, October 28, 2008

The city with the same name as the port is far from offering the minimum conditions that will allow it to enter the development dynamics required in the zone.

Few works show that the city is moving at the same rhythm as the construction of the terminal.

According to the administrative plan of President Antonio Saca, the La Union port would be the starting point for the logistical development of the country. The terminal would be the hub or distribution center for a great part of the cargo that Asia moves throughout Central America and North America. However, the municipality which hosts the port is lacking, especially health and basic services: sewage is dumped in the gulf, the water pipe system is old and obsolete, potable water service is irregular, the market is unsanitary and has piles of garbage in and around it.

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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.

Construction of the La Union Port in El Salvador completed

December 2008

Months will go by before the concession for its operation is granted. President Saca hopes to send the concession project to Congress by January 18.

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.

Port concession urgently needed in El Salvador

December 2008

The Salvadoran Foundation for Economic and Social Development asked the Government and Legislative Assembly to approved the concession for the port system.

The entity supported, via a memorandum on the issue, the proposal to give 90% of the administration of the country's two main ports to private hands, while the State mains 10%.

El Salvador still without political agreement on concession of ports

October 2008

President Antonio Saca confirmed that they presented a proposal to concession 90% of the port to the private sector and 10% to the State.

Saca said that according to the proposal, the State would receive returns based on the tariff system and not just from the percentage it owns.