The infrastructure and road network built with funding from the Millennium Challenge Corporation should be the focus of new development projects in the area.
An article in ElSalvador.com reports that Jose Angel Quiros, former executive director of Fomilenio, said "I have no information on new projects in the north, but without a doubt thought must be given to how to maximize that infrastructure and road network for the country's productive sectors ... the region's strategic programs north of the country, carried out with the first funds from the Millennium Challenge Corporation (MCC) between 2009 and 2012, must be diversified and enhanced with new works. "
Meco of Costa Rica sued the Salvadoran government and Fomilenio for $1.3 million related to increased costs in the contract to build a road.
Elsalvador.com reports: "An international arbitration court has ruled in favor of the Salvadoran government and the Millennium Fund of El Salvador (Fomilenio) who the Costa Rican company MECO sued for $ 1.3 million alleging that El Salvador breached the "financial suitability" clause of the contract for construction of section II of the Northern Longitudinal Highway: Metapan-Santa Rosa Guachipilín. The 'financial suitability', that MECO refers to concerns the calculation of the cost increases of the work over time (known as polynomial formula). "The company explained that this formula did not cover the increases in material that might be seen during the course of the execution of the work.
Resonant rubblization is the process of fracturing existing PCC pavement, in place, ready for a direct asphalt overlay.
Resonant rubblization was the method of choice on one of the busiest and most heavily traveled roads in Panama City, Panama, Avenida Domingo Diaz. Including multiple projects with various contractors throughout Central America that past 5 years, rubblization of Avenida Domingo Diaz was successfully performed in 2012 with the consortium ICA-MECO. Rubblization, with a hot mix asphalt overlay, is proven to have an initial design life of 22+ years, while being 65% less expensive and 5 times faster compared to total reconstruction.
They include the modernization and expansion of the International Airport of El Salvador, the concession for Port of La Union, and the generation of 350 MW of energy, among other things.
From a press release issued by the Presidency of El Salvador:
The President, Mauricio Funes, called today for the creation of a solid alliance involving all of the country's sectors in order to achieve acceptable goals of economic growth, employment generation and equitable distribution of wealth.
There will be additional credit lines for investments in areas where the U.S. government assistance program is carried out.
"Currently, there are 67 expressions of interest for investment in projects to be implemented in the coastal zone, and that number could rise to 80, with a new call be undertaken by the Government in the next few days", reports Diariocolatino.com.
The government and the Millennium Challenge Corporation yesterday signed an agreement to start the process of installing an office for the Millennium Fund II, whose amount is $2.94 million.
From a press release issued by the Government of El Salvador:
On March 20 an agreement was signed between the Millennium Challenge Corporation (MCC) and the government of El Salvador to start the installation process for the Fomilenio 2 offices.
Although still lacking formal approval for Fomilenio II by the board of the Millennium Challenge Corporation, $ 2.9 million has already been authorized for its offices.
The Millennium Challenge Corporation (MCC) has authorized giving El Salvador $2.9 million for setting up the Fomilenio II offices.
In addition, the funds will be used for the completion of technical feasibility studies on the projects to be developed in the country.
The Costa Rican construction company is suing Fomilenio and the Salvadoran government for cost overruns on Longitudinal del Norte Highway.
According to a document submitted by the company before the Public Works Committee of the Legislature, the cost of section six, which includes Ciudad Barrios-Osicala and Delicias de Concepción-Cacopera, went from $23 million to $44.8 million.
Projects that are not covered by funds from the Millennium Challenge Corporation, could have $60 million in financing offered by the IDB.
According to an article Laprensagrafica.com the IDB representative in El Salvador, Rodrigo Parot, indicated that they are in discussions with the Salvadoran government "about the possibility of linking us to the efforts made in the Association for Growth of the coastal strip - marina and we will be working on a project to leverage resources for these projects "
Private investment projects taking place in the coastal area of El Salvador will be supplemented by $50 million in additional projects.
An article in Laprensagrafica.com quotes the U.S. ambassador in El Salvador, Mary Carmen Aponte, reaffirming U.S. support through the Millennium Fund.
The ambassador announced yesterday that they "had an approval of a second donation of Millennium funds, this would be accompanied by $50 million to support with additional works investment projects implemented by private companies. 'The public-private partnerships will be very important and FOMILENIO II will have a component of $50 million. Once received the FOMILENIO II the fund will be available to help private enterprise '. "
Puerto de La Union and the Northern Highway: two major infrastructure projects in the same country which produce very different results depending on who's running them.
An editorial Laprensagrafica.com gives a very clear summary of the facts: the Northern Highway project, managed by Fomilenio with US-funds from the Millennium Challenge Account, who participates in the investment and its supervision.
The abandonment of work on section 3-B of the Longitudinal del Norte in El Salvador by the company in charge, has obliged Fomilenio to hire another company to complete the road.
An article in Laprensagrafica.com reports that "The Colombian consortium Contein-Cortázar and Gutiérrez-La Herrera left the construction site of section 3-B of the Highway Longitudinal del Norte a little over a week ago.
The Road Maintenance Fund of El Salvador will get $25 million for the payment of maintenance contracts on the Longitudinal del Norte highway.
An article in Laprensagrafica.com reports that, "The Millennium Challenge Corporation (MCC) has given the green light to the disbursement of $25 million which had been frozen due to the limited progress that had been made in providing financial stability for the Road Maintenance Fund (FOVIAL) . "
Investment projects will be selected at the coastal area, and will be financed with $300 million from the Millennium Challenge Corporation and the government.
After the stage of territorial consultations, the phase for consultation with interested investors will begin for submission of investment projects to be developed in the coastal zone. The government's goal is to present in September the overall development plan to the Millennium Challenge Corporation (MCC), said Alexander Segovia technical secretary of the presidency.
The Northern Highway, being developed by Fomilenio at a cost of $270 million, is the foundation which supports development, economic growth, and integration of the area.
A statement by Fomilenio reads:
The construction of the Northern Highway, a work being carried out by FOMILENIO through the Road Connectivity Project has a cost of $269.2 million dollars.