EU to Fund El Salvador’s Projects with $450 Million.

The European Union has committed to financing strategic projects in El Salvador, providing a total of $450 million for the Pacific Train and the Metropolitan Monorail in San Salvador.

During the EU-Latin America and Caribbean Summit, held as part of the Global Gateway initiative, President of the European Commission, Ursula von der Leyen, announced a shared investment agenda of $45 billion for Latin America and the Caribbean. El Salvador stands to benefit significantly from this initiative, with $450 million already earmarked for specific projects.

Minister of Economy, María Luisa Hayem, revealed that negotiations for the funding are in advanced stages, with $150 million allocated for the Pacific Train and $300 million for the Monorail project in the Metropolitan Area of San Salvador (AMSS).

The proposed investments aim to facilitate trade within El Salvador and improve domestic transportation. Minister Hayem emphasized that President Nayib Bukele’s administration has made substantial progress in securing this financing, which will enhance the movement of goods and provide high-quality transportation to the population.

The recent forum between European Union officials and representatives from the private and public sectors in El Salvador aimed to strengthen commercial and investment relations between the EU, Latin America, and the Caribbean.

The Pacific Train and Monorail projects are expected to create new opportunities for businesses, both locally and internationally, while also expediting imports and exports and enhancing the competitiveness of local industries.

Minister Hayem had a productive meeting with Valdis Dombrovskis, Vice President of the European Commission and Commissioner for Trade. They both expressed their commitment to promoting higher levels of trade and investment between El Salvador and the European Union.

Dombrovskis emphasized the EU’s dedication to supporting bilateral trade and investment to foster inclusive and sustainable growth in El Salvador. He suggested that the existing EU-Central America Association Agreement could further strengthen their ties.

Additionally, during the forum, the Minister of Economy met with Chafic Nassif, President of Ericsson Latin America, and the Caribbean, to discuss innovation and technology adoption driven by the Salvadoran government.

Ericsson pledged to collaborate with over 50 partners under the Economy Ministry to strengthen El Salvador’s innovation ecosystem and develop talent in the technology sector, focusing on current and future digital skills requirements.

Among the agreements reached with the technology company is a joint effort to promote technology adoption in the national productive sector and enhance digital talent and skills development in El Salvador.

Overall, these investments from the European Union represent a significant step towards modernizing El Salvador’s infrastructure, bolstering its economy, and fostering mutually beneficial partnerships between the EU and the country. The projects will not only improve transportation within El Salvador but also open up new avenues for growth and development on the regional and international stage.