
The Central American Bank for Economic Integration (CABEI) and the Ministry of Finance of El Salvador signed a loan agreement to implement the Guluchapa Drinking Water System Improvement Project, an initiative that seeks to strengthen the water supply in the San Salvador Metropolitan Area.
The agreement will allow for an investment of US$185 million to modernize the drinking water infrastructure and improve the continuity, safety, and efficiency of the service for residents of seven districts in the departments of San Salvador and La Paz. The Administración Nacional de Acueductos y Alcantarillados (ANDA) will be responsible for executing the project.
The minister of Finance, Jerson Posada, emphasized that the signing of the agreement represents a new step toward developing strategic projects that generate direct benefits for the population. In a post on social media, the official noted that the projects aim to strengthen essential services and expand development opportunities in the country.

The investment includes a comprehensive overhaul of the system, from water intake to distribution. Key projects include the construction and rehabilitation of 25 intake structures, the installation of a new drinking water treatment plant with a capacity to process 650 liters per second, and the modernization of pumping and repumping stations.
The project will also incorporate monitoring and control technologies to improve the system’s operational management, enabling more efficient resource management and a faster response to service needs.
The Central American Bank for Economic Integration (CABEI) reported that its support for this initiative began in 2022, when it provided US$600,000 in non-reimbursable technical cooperation through the Korea-CABEI Single Donor Trust Fund. These resources enabled studies and evaluations of the existing water supply system, the results of which served as the basis for designing the new infrastructure solutions.

With the signing of the agreement, the implementation phase begins for a project that seeks to address the growing demand for drinking water in an area with increasing population, strengthening water security and improving access to the service for thousands of salvadoran families.
The Central American Bank for Economic Integration (CABEI) indicated that this operation is part of its support for the sustainable development of El Salvador, through the financing of projects focused on strategic infrastructure and improving the quality of life of the population.
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