Public-Private Projects Boosted

The Bukele administration plans to develop five infrastructure projects in El Salvador under the Public-Private Partnership model, which would require an investment of approximately $545 million.

Wednesday, October 23, 2019

The works of illumination of highways, the construction of a terminal of load and an administrative center, are some of the projects that the administration Bukele plans to tender and award in El Salvador, under the format of Public Private Partner.

The current administration plans to develop five infrastructure projects under the Public-Private Partnership (PPP) model, which together would require an investment of approximately $545 million.

The cargo terminal at Monseñor Romero Airport for $57 million and the installation of lighting and video surveillance equipment on 144 kilometers of highway are the projects in which most progress has been made and are waiting to be awarded.

See "Lighting and Road Video Surveillance Project being Prepared" and "International Tender: PPP for Cargo Terminal".

The construction of a new government center for $120 million, the section of the perimeter corridor of San Salvador for $260 million and the construction of the customs of El Amatillo that will also include the extension of 43 kilometers of the CA-12, whose global investment would be $90 million, are other projects studied the possibility of developing them via PPP.

Schafik Collazo, in charge of the management of the PPP of the Export and Investment Promotion Agency of El Salvador (Proesa), told that "... The Executive also studies the possibility of developing a new government center near the Ministry of Foreign Affairs, in Merliot city, a project that if executed would mobilize up to $120 million. Likewise, a PPP model is being analyzed for the San Salvador perimeter corridor for $260 million, which would start from Ilopango to the La Libertad port road."

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More on this topic

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. 

Private Public Partnership to Expand Airport

October 2017

Through a public-private alliance, Fomilenio plans to make improvements to the cargo terminal at El Salvador's international airport, Monsenor Romero, and in a second phase, to invest $44 million in its expansion.

Fomilenio authorities detailed that they have completed the feasibility studies and determined that the first project to be carried out under the figure of Public - Private Alliance is the extension of the cargo terminal at the International Airport Monsignor Óscar Arnulfo Romero y Galdámez. 

NO to Public Private Partnership for Airport

October 2015

The government of El Salvador has changed his mind regarding a PPP for the expansion of the International Airport, prompting the withdrawal of technical support for the project from the US.

According to the Technical Secretary of the Presidency, Roberto Lorenzana, the argument to dismiss the PPP is based on the fact that following this business model would only bring the State rental income for 25 years, while the airport currently receives $40 million a year in net income.

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