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The Legislative Assembly of El Salvador approved with 57 votes to authorize the Executive Body to sign a loan contract in kind with the company A.G.M. El Salvador S.A. de C.V., for an amount of US$23,785,985.87, intended for the project of supply and installation of luminaires with LED technology in strategic areas of the country’s mains network.
According to official information, this initiative aims to improve road safety conditions by optimizing nighttime visibility on roads with high vehicle flow. The incorporation of LED technology will allow for more efficient, modern and sustainable lighting, contributing to the reduction of traffic accidents.
The project includes interventions in important road corridors at national level. Between them is the CA08W road, which starts at the edge of the district of Sacacoyo, in La Libertad Oeste; the CA12S road, which connects the Sonsonate bypass with the district of Acajutla, in Sonsonate Oeste; as well as the RN23S road, known as the Claudia Lars peripheral.
It will also include the Troncal del Norte, on the section that connects San Salvador with Apopa, and the Carretera de Oro, between Apopa and San Martín, key roads for daily movement and the transport of goods.
The execution of the project will be the responsibility of the Ministry of Public Works and Transport, the institution that has initiated the contracting process for the supply and installation of lights in the prioritized sections.
In addition to improving safety for drivers and pedestrians, the lighting system will allow for more efficient vehicle circulation, which could translate into a reduction in travel and operating costs. Accordingly, it is expected that these improvements will contribute to boosting sectors such as tourism and facilitating traffic at night.
The project corresponds to the contract identified as C-06/2025, with a total amount of US$26,428,873.19. Of this total, the contracting company will provide a cash loan for US$23,785,985.87, while the Government will contribute US$2,642,887.32, equivalent to 10% of the total value.
In this context, the “in kind” loan implies that the company does not deliver the money in cash but directly provides the goods and services necessary to carry out the work, such as LED lighting, equipment, materials and installation. That is to say, the financing is translated into infrastructure that is built, which the State will later pay under the conditions agreed in the contract.
With this approval, the Legislative Assembly seeks to strengthen the country’s road infrastructure through the incorporation of efficient technology, in a bid to improve security, mobility and competitiveness at the national level.
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