It will connect the cities of La Hachadura and Pedro de Alvarado, an area where 60% of intraregional trade circulates.
From a press release by the Government of Panama:
The binational working table between El Salvador and Guatemala, responsible for Transport and Infrastructure matters, agreed to build a four-lane bridge at the border between Ciudad Pedro de Alvarado, Guatemala, and La Hachadura, El Salvador, with the aim of improving commercial traffic between the two countries.
The Asian country confirmed its membership in the Central American Bank for Economic Integration.
The announcement was made by Panamanian President Ricardo Martinelli, at the end of the third summit of the Central American Integration System (SICA) in Panama.
“He added that his counterpart Lee Myung Bank committed to doubling the level economic aid given to the region’s poorest countries, through Korea International Cooperation Agency (KOICA) , although he didn’t provide any specific figures”, reported newspaper La Prensa Libre.
The infrastructure required for a regional electric interconnection system would be ready in 2010, reported CABEI.
Called SIEPAC, this project comprises building a 230 kW electric line spanning 1.790 kilometers. So far, $451 million have been invested in it.
“It is being funded by the Central American Bank for Economic Integration, the Inter American Development bank and other entities”, reported Informador.com.mx.
The real, effective integration of Central America lies more in the hands of businesses than governments.
Deep into their own political agendas, which many times reflect only short term party interests, Central American governments have so far been unable to develop an integration process that is not only indispensable, but also unavoidable.
Integration is indispensable, as it is the only way to overcome underdevelopment barriers through a better use of human and material resources. It is also unavoidable, as Central American corporations are pushing beyond national borders, looking for lower costs through economies of scale and productive chaining from Guatemala to Panama.
Central America and the Dominican Republic are forging ahead with the implementation of a "Central American Mortgage."
This mechanism will facilitate and expand credit access since it will be backed up by mortgage guarantees in any of the Central American countries or the Dominican Republic.
The first stage of the initiative is backed up by the United States Agency for International Development (USAID).
The chief economist at the Central American Bank for Economic Integration (BCIE), Pablo Rojas, said that the regions possibilities for export to the United States continue to be favorable despite the economic recession that is affecting the country to the north.
"Exports to the United States have continued to grow at the same rate as in 2007 according to the latest data from sources in United States as well as from Central America," he said.
The region made a petition to the Central American Bank for Economic Integration that could reach $2 billion, that is $400 for each one of the five countries in SICA.
Central America is seeking its own financial rescue plan. After analyzing the possible effects of the financial crisis in the United States on the region, the Heads of State of the Central American Integration System (SICA) asked the BCIE "to consider the possibility of extending lines of credit for up to $200 million for the Central Banks" in the region.
Honduras has begun construction of its stage of the "Dry Canal", the Central American inter-ocean highway. The project is backed by the Central American Bank for Economic Integration (BCIE).
The 100-kilometer route is to link Goascorán, on the border with El Salvador, with Villa de San Antonio in central Honduras.
The Dry Canal aims to link the Pacific ports of La Unión (El Salvador), Henecán (Honduras) and Corinto (Nicaragua) with the Caribbean ports of Puerto Cortés (Honduras) and Puerto Barrios (Guatemala).