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The Legislative Assembly’s Finance and Special Budget Committee issued a favorable opinion to ratify two loan agreements signed between the Government of El Salvador and the Central American Bank for Economic Integration (CABEI), for a total amount of US$340 million. The funds will be allocated to road infrastructure projects and to strengthening the drinking water system in the San Salvador Metropolitan Area.
The ratification is a key step for both financing agreements to take effect. The agreements were signed on july 20, 2026, after the Legislative Assembly authorized their signing on june 24. According to officials, these funds will help advance strategic projects aimed at improving connectivity, urban mobility, and access to basic services for the population.
One of the loans amounts to US$155 million and is intended to finance the Programa de Infraestructura Vial y Movilidad Urbana (PIVMU) – Phase II. As explained by Marlon Herrera, Director General of Investment and Public Credit at the Ministry of Finance, this program aims to modernize the national road network and strengthen the conditions for the country’s economic and social development through the implementation of new connectivity projects.
Photo: Legislative Assembly
Among the projects included are the expansion and improvement of the section between the Atiquizaya turnoff and the turnoff to the Ahuachapán bypass, as well as the development of the Northern Corridor and studies for the Eastern Corridor—initiatives that seek to optimize traffic flow and reduce travel times in different areas of the country.
Likewise, the committee endorsed the ratification of a second loan for US$185 million earmarked for the Guluchapa Drinking Water System Improvement Project. This initiative aims to strengthen one of the main infrastructure systems supplying water to the San Salvador Metropolitan Area and expand service coverage to sectors currently facing supply problems.
Photo: Google
According to the information presented to lawmakers, the project will increase the system’s capacity through the construction and rehabilitation of water infrastructure, the installation of new distribution lines, and the modernization of pumping stations. The projects would directly benefit more than 156,000 residents of municipalities in Greater San Salvador and the department of La Paz, in addition to helping reduce water losses and improve service reliability.
With the favorable opinion issued by the Finance Committee, both contracts are moving toward final ratification by the full legislature. If approved, the BCIE funds will help accelerate investments in two areas considered priorities for the country: the modernization of road infrastructure and the expansion of access to drinking water.
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