
The Finance and Special Budget Committee of the Legislative Assembly issued a favorable opinion authorizing the Government of El Salvador to secure a loan of up to US$9.6 million to finance the San Matías Photovoltaic Solar Plant Project, located in the department of La Libertad.
The request was submitted by the Executive Branch through the Ministry of Finance and involves signing a loan agreement with the Kuwait Fund for Arab Economic Development, the organization that would provide the resources for the energy initiative.
According to information presented during the working session, the financing amounts to 3 million Kuwaiti dinars, equivalent to approximately US$9,689,609.51.
The Deputy director of Investment and Public Credit at the Ministry of Finance, Delia Reyes, explained to the members of parliament that the funds will be used to strengthen renewable energy generation in the country through the incorporation of photovoltaic solar technology.

According to the official, the project is part of the efforts aimed at expanding the installed capacity for electricity generation from clean and sustainable sources, contributing to the diversification of the national energy matrix.
Reyes said that one of the main objectives of the solar plant will be to help meet the growing demand for electricity in the country, taking advantage of renewable resources that will strengthen the long-term energy supply.
The initiative also seeks to continue promoting projects that reduce dependence on traditional generation sources and promote the use of solar energy as an alternative for national energy development.

Regarding the financial terms, the Finance representative detailed that the loan would have a term of up to 25 years, including a three-year grace period, during which no principal payments would be made.
With the favorable opinion issued by the Finance Committee, the request will then be reviewed by the full Legislative Assembly, where the representatives will decide whether to authorize the international financing.
If approved, the loan will allow progress in the construction and development of the San Matías Photovoltaic Solar Plant, a project that seeks to increase renewable energy generation and contribute to the country’s electricity supply by harnessing solar energy.
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