WASHINGTON, October 30, 2023 – The World Bank's Board of Executive Directors approved a project today for El Salvador that will help improve connectivity and reduce congestion in the Northern Metropolitan Area of San Salvador, providing safer travel for local communities, as well as supporting the country’s transport sector in its efforts towards more strategic, resilient, and inclusive planning.
The El Salvador Resilient Transport and Infrastructure Project, funded with US$150 million and spanning six years, aims to improve the efficiency of the crucial Apopa logistics node, making national travel and development opportunities more accessible for Apopa’s residents.
The project will include the construction of road bypass infrastructure and associated bridges in Apopa, as well as complementary works to improve the mobility conditions and road safety of the existing infrastructure in the center of this municipality.
Additionally, a set of capacity-building activities will foster El Salvador's institutional ability to manage a more inclusive, resilient, sustainable, and safer national road network. This includes developing capacities in project management, monitoring and evaluation, fiduciary administration, and stakeholder engagement, aiming to position it as a national reference for incorporating citizen engagement and gender considerations into the development of economic corridors.
"This project demonstrates our longstanding collaboration with the World Bank in shaping a more resilient and prosperous future for El Salvador," said the Minister of Finance, Jerson Posada. "By prioritizing climate-resilient infrastructure, inclusive job opportunities, and comprehensive safety measures, we reaffirm our commitment to sustainable growth and the welfare of our more vulnerable communities.”
Another fundamental element of the project is helping El Salvador promote its Public-Private Partnership (PPP) agenda by exploring ways to attract private capital for road development and solidifying the country's PPP regulatory framework.
"We are placing particular emphasis on assisting the government in mobilizing private capital to fund the roads sector, as this is pivotal for enhancing the long-term sustainability of critical investments that are much needed to close the country’s infrastructure gap,” said Carine Clert, World Bank Country Manager for El Salvador and Costa Rica. “Our plan includes strengthening El Salvador Road Conservation Fund (FOVIAL) capacity to access capital markets and attract private funding for a future national program aimed at rehabilitating and maintaining the extensive road network.”
The project also includes a Contingency Emergency Response Component (CERC), which will enable El Salvador to respond swiftly and effectively to eligible crises or emergencies, considering the country's vulnerability to natural hazards and climate change.
Financed by the International Bank for Reconstruction and Development, the operation is a variable spread loan and has a final maturity of 25 years including a grace period of 4.5 years.
Learn more about the work of the World Bank in Latin America and the Caribbean.
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