The Ministry of Public Works and Transportation (MOPT) of El Salvador and the non-banking Indian financial firm, Lakshmi Capital, have officially entered into a letter of intent, marking a significant step towards the development of a metro line in San Salvador. The signing ceremony took place on December 4, with the presence of the Indian Ambassador to Guatemala, Manoj Kumar Mohapatra.
The collaboration aims to boost the Salvadoran economy and modernize transportation infrastructure, with Lakshmi Capital providing technical assistance and investment mechanisms for the project. The initiative follows a series of amicable meetings between the involved parties.
The feasibility study conducted by El Salvador before signing the agreement underscores the country’s commitment to leveraging international investment for the advancement of the project. The Ministry of Public Works will play a crucial role in providing pre-feasibility analyses, designs, legal frameworks, and other tools necessary for the project’s implementation.
Lakshmi Capital, as a pioneering Indian financial firm, will offer technical support and facilitate investment mechanisms, primarily for the construction, operation, management, and maintenance of the Metropolitan Area Mass Transit System of San Salvador (AMSS).
Ambassador Manoj Kumar Mohapatra emphasized the significance of such agreements in fostering collaboration between nations. He expressed optimism that this collaboration opens the door for more Indian companies to contribute to the development of the Central American region.
In the presence of Minister Romeo RodrÃguez of the Ministry of Public Works and the representative of Lakshmi Capital, Russell Alexander Luther Rodas, the agreement was formalized. The Indian Embassy’s publication concurrently covering El Salvador and Honduras highlights the initiation of the metro project in El Salvador with technical support from India.
According to The Indian Panorama, Lakshmi Capital is the first of its kind to facilitate the development of projects in energy, transportation, infrastructure, digital transformation, and industry. The company’s commitment is reinforced by the introduction of technology from India.
The MOPT and Lakshmi Capital will soon engage in discussions to facilitate a phase of analysis, study, and proposal for metropolitan transportation in the capital of El Salvador. A Monitoring Commission will be established to ensure adherence to the terms outlined in the letter of intent.
This initiative is not the first attempt by El Salvador to establish a mass transit system in the AMSS. The latest project, presented in July, involved the Korea International Cooperation Agency (Koica), which proposed a master plan for urban transportation, including the construction of a monorail and a cable car connecting the east to the west of the Greater San Salvador.
The Koica’s proposed monorail is anticipated to link with the Pacific Train, a transportation project envisaged by the government to connect the eastern region of the country with San Salvador.
In September, the Terminal of the Integrated Transport System of the Metropolitan Area of San Salvador commenced operations from Soyapango but ceased functioning in 2020. Discussions surrounding the new metro project signal a renewed commitment to enhancing public transportation in the region.