Just like in a never ending story, a new problem always arises, such as the requirement now for the State to provide funding for dredging.
Although the Port Act Grant approved by the Legislature in 2011 established that the cost of dredging the Port of La Union shall be borne by the State through the Executive Port Commission (CEPA), the companies pre-qualified to take part in the competition for the award of the operation of the port are now demanding more assurances that the Salvadoran state will meet that commitment.
The disbursement of $277 million for development of the coastal zone will be delayed at least until after the next elections in El Salvador.
The decision to postpone Fomilenio II until 2014 was publicised by the Millennium Challenge Corporation (MCC).
According to the Salvadoran president, Mauricio Funes and the technical secretary of the presidency, Alexander Segovia, the project could be signed after presidential elections next year.
It has been announced that under the DR-CAFTA, a U.S. company will participate in the bidding for the concession without having to be prequalified.
"I will receive this company next week and want them to take part because under the Free Trade Agreement between Central America, the Dominican Republic and the U.S. (CAFTA), a company from the United States can enter the last phase of the tender directly without going through the prequalification stage" said Alexander Segovia, Technical Secretary of the Presidency.
The auction of 40 MHz of mobile spectrum has launched a discussion on whether to add new operators to the market in order to avoid dominant players.
According to Giovanni Berti, CEO of Proesa, companies have already begun to enter the contest. "The information I have is that in addition to the phone companies that are already established in the country, to date an international company whose name I'm not allowed to reveal yet has expressed interest," he said.
NanYang Footwear is to invest $3 million in the country to produce footwear and export it to other markets.
From a press release from the Presidency of El Salvador:
The Taiwanese company engaged in the manufacture of footwear NanYang Footwear, in a clear commitment to El Salvador, started operations in the country by establishing and expand its subsidiary in the country under the name of ADI FOOTWEAR SA de CV, with an initial investment of $1.5 million, plus plans to invest an additional $1.5 million and carry out an expansion which will generate more than 1,000 new jobs over the next year.
The Investment Committee of the Millennium Challenge Corporation has given approval for the implementation of Fomelino II in the marine coastal area of El Salvador.
This "is a momentous step for the realization of this strategic commitment which will bring significant benefits to the population of the coastal area and the country in general," said Alexander Segovia, Technical Secretary of the Presidency.
The government has started a consultation process in order to define an updated measurement system for national data, governed by an independent body.
From a press release by the Ministry of Economy of El Salvador:
The Minister of Economy, Armando Flores, the Technical Secretary of the Presidency, Alexander Segovia and the representative of the Inter-American Development Bank (IDB) in El Salvador, Rodrigo Parot, inaugurated a forum on a new statistics system which the Government of El Salvador wishes to implement. The two-day event will include the participation of experts in the field, from Mexico, Chile and Peru.
Some of the main businesses from El Salvador will be advocating for the realization of Fomilenio II and for a deepening of the Association for Growth pact signed between the two countries two years ago.
From a press release by the Presidency of El Salvador:
A delegation from the National Council for Growth will make an official visit to Washington DC from 24 to 26 June, where meetings will be held with senior government officials and the Congress of the United States, under the framework of the first 18 months of the Partnership for Growth.
A new wind farm and the expansion of the International Airport of El Salvador, are the first two projects to be conducted under this system.
"Today (yesterday) I called a meeting with the president of CEPA (Autonomous Executive Port Commission) and CEL (Executive Hydroelectric Commission of the Lempa River) to immediately structure the first two projects: the expansion of the international airport and the wind project which the CEL is working with," said Alexander Segovia, Technical Secretary of the Presidency.
Toshiba has expressed interest to the Government of El Salvador in investing in the energy sector.
From a press release by the Ministry of Foreign Affairs of El Salvador:
The Deputy Minister for Development Cooperation, Jaime Miranda and the Technical Secretary of the Presidency, Alexander Segovia held a meeting today with a Japanese business delegation which has shown interest in promoting investment projects in the national energy sector.
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.
The expansion of the International Airport of El Salvador and energy projects are some of the works that the State plans to make in conjunction with private companies.
In reference to the Public-Private Partnerships Bill under study in the Legislature, the Technical Secretary of the Presidency, Alexander Segovia, said there are many infrastructure needs that the state can not meet in the short or long term and in which private enterprises could intervene, "under appropriate legislation."
47 companies replied to the call by the Government of El Salvador to present investment projects supported by grant funds from FOMILENIO II.
Elmundo.com.sv reports that the Salvadoran government "already has 47 expressions of interest to run future investment projects in the coastal zone of the country, as part of the second Fomilenio, which together amount to $413 million."
For all the statements made to the contrary by government officials in El Salvador, the truth can't be hidden: legal certainty is the primary factor in making investment decisions.
EDITORIAL
An article published in Elmundo.com.sv entitled "Conflict of LaGeo Still Affecting Investment", reports that "according to the Government, the legal battle for majority control of the power generation company LaGeo has not caused, for the moment, concern among potential investors who may be attracted to the country. "
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