Public-Private Partnerships Crippled by the Crisis

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.

Monday, June 8, 2020

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".

The other work, the controversial and delayed modernization of the airport's cargo terminal, had been announced in September of last year, and initially the delivery of documents was scheduled for February and March, but then the deadlines were modified. explains that "... After the beginning of the quarantine in the country, at the end of March, FOMILENIO II informed that the PPP Directorate of PROESA (Export and Investment Promotion Agency) had notified the interested companies that, due to the suspension of terms contained in the decrees related to the national emergency, new dates would be scheduled for these processes. As FOMILENIO II, we are interested in advancing these processes, however, complying with the measures in the face of the covid-19 emergency is a priority,' said FOMILENIO II in March, responding electronically to a consultation on PPP projects".

"... Regarding the cargo terminal project, "the market is still interested in bidding", as commented by Schafik Collazo, director of APP of PROESA, during a conference on the recent experience in infrastructure in the United Kingdom, organized by the British Embassy in the country."

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More on this topic

PPP for Road Lighting and Surveillance

February 2020

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.

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.

Cargo Terminal: New Deadline for PPP Tendering

January 2020

March 13 is the new date for the receipt of bids in the tender for the financing contract, design, construction and operation of the works of the Cargo Terminal at El Salvador's Oscar Romero Airport, under the format of Public-Private Partnership.

The original call for bids set February 12 as the deadline for receipt of proposals, however, because several companies have expressed interest in participating, it was decided to postpone until March 13 the delivery of tenders.

Financing Sought for Airport Expansion

May 2018

$19 million is needed for the expansion of the cargo terminal at the Monseñor Romero Airport in El Salvador, and companies interested in participating in the public-private partnership are being sought.

Authorities at the Ministry of Public Works and Fomilienio II, informed that one of the projects that will be developed under the PPP modality is the " ...Improvement of infrastructure, processes and equipment at the current AIESMOARG Cargo Terminal, to increase the volume of import and export cargo by approximately 40%, which will allow a greater flow of goods and services. The project contemplates the possibility of expansion and construction of a Cargo Terminal." 

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.