The Central American Bank for Economic Integration (BCIE) has announced a $646 million allocation for El Salvador for the fiscal year 2025. These funds will be used for both new infrastructure projects and ongoing initiatives aimed at strengthening the country’s development.
The official announcement was made at the conclusion of Salvadoran President Nayib Bukele’s state visit to Costa Rica, where he met with Gisela Sánchez, the executive president of the BCIE. The meeting, which took place on the final day of the visit, was attended by Alejandro Zelaya, BCIE’s director for El Salvador, and Erwen Masis Castro, director for Costa Rica.
Of the total funds, $350 million will be directed toward new infrastructure projects, while $296 million will be allocated to projects already underway. The BCIE emphasized that this investment is a significant step forward in regional cooperation and sustainable development for Central America.
In a statement, the BCIE highlighted the allocation as a key milestone in strengthening ties between regional partners and fostering economic growth. This announcement comes as part of a broader strategy to enhance regional integration and promote prosperity across Central America.
Following the meeting, President Bukele addressed the K-CAFTA Forum, an event aimed at fostering closer economic ties between Central America and South Korea. During his speech, Bukele emphasized El Salvador’s transformation since 2019, particularly in combating gang violence, which has led to improved public security and boosted both domestic and foreign investment.
“We see Korea as a partner, a friend, a brother, and an ally,” Bukele said, underscoring the importance of regional partnerships and the role of trade agreements like the Korea-Central America Free Trade Agreement (K-CAFTA) in driving bilateral trade, which has grown by 200% since the agreement was signed in 2018.
BCIE President Gisela Sánchez also highlighted the importance of the K-CAFTA Forum in assessing the agreement’s impact and exploring opportunities for growth. She stressed the value of continued collaboration between the regions, noting that Guatemala joined the Free Trade Agreement this year, further expanding its reach.
As part of his visit, Bukele also met with Costa Rican business leaders at the Central American Institute of Business Administration (Incae), discussing the recent transformations in El Salvador and encouraging further private investment from Costa Rica. In response, the Chamber of Exporters and the Chamber of Foreign Trade of Costa Rica expressed their support for El Salvador’s improved security climate and ongoing economic reforms.
«Many Costa Rican businesses are already investing in El Salvador, and others are planning to begin operations soon,» Bukele said after the meeting, signaling the growing confidence in El Salvador’s investment climate.
With this new funding and continued foreign interest, El Salvador is poised for further economic growth and infrastructure development in the coming years.