US$245.8 million for road infrastructure in El Salvador
The project will directly benefit 372,000 people, reduce travel times and expenses related to vehicular operation and contribute to industrial competitiveness and mobility in the western part of the country.
San Salvador, November 26, 2019.- Today, the Central American Bank for Economic Integration (CABEI) approved a loan for US$245.8 million to the Republic of El Salvador for the Project denominated “Construction of Viaduct and Expansion of Highway CA01W (Los Chorros Stretch)."
The investment aims to solve the vehicular congestion that occurs during peak hours on this stretch of the CA01W Panamerican Highway, whereby more than 327,000 people and 58,000 vehicles are mobilized. The reduction in travel time of approximately 35 minutes will significantly impact on the quality of life of users. Likewise, it represents a substantial improvement to the safety of users with approximately 3000 linear meters of retaining walls, mitigation works and 11 pedestrian overpasses.
In this regard, CABEI Executive President, Dr. Dante Mossi, assured that the Bank's financial solutions contribute to modernizing and strengthening the productive infrastructure and competitiveness of the Bank's member countries as a necessary condition for economic growth and investment attraction, both of which are considered employment generators.
The Project's total investment represents US$268.7 million, of which CABEI will finance an amount of up to US$245.8 million (US$165.3 million with ordinary CABEI resources and US$80.5 million with external resources managed by CABEI from the Republic of Korea).
Salvadoran Minister of Public Works and Transportation, Mr. Edgar Romeo Rodríguez stated that, "This important project involves the expansion to six lanes of approximately 15 kilometers of highway from the exit of Santa Tecla to San Juan Opico, and will include an innovative solution for the Landslide zone with the construction of a viaduct that will allow driving outside the risk zone, while providing security to the population. The expansion falls under the framework of the West Corridor Master Plan and will connect with the new Santa Ana-Sonsonate By-pass, improving the mobility and logistics of the country’s western area by connecting with the Port of Acajutla and with border crossings, which will promote national and regional trade in Central America.
The financing’s conditions involve a 20-year term with a 5-year grace period and an indicative annual interest rate of 4.6% for the portion financed by CABEI, and a 30-year term with a 10-year grace period and an indicative annual interest rate of 0.2% for the portion financed with resources from the Republic of Korea.