El Salvador has taken a new step to strengthen its energy and construction sectors with the signing of an interinstitutional cooperation agreement between the Directorate of Territorial Planning and Construction (DOT) and the Transmission Company of El Salvador (ETESAL). The agreement seeks to create better conditions for the development of electricity generation, transmission, and distribution projects, with the goal of attracting more investment and ensuring orderly and sustainable territorial integration.
During the signing ceremony, DOT Executive Director Paola Bardi explained that the agreement will enhance the technical analysis applied to every energy project submitted to the DOT system, ensuring compliance with territorial planning and environmental regulations. “We promote that energy projects align with territorial planning, because this guarantees investment and encourages safe and sustainable development,” Bardi stated.
A key component of the agreement is the strengthening of thematic portals and geospatial analysis tools, which will allow a more comprehensive evaluation of the location and impact of energy projects. According to Bardi, the exchange of technical information and ETESAL’s support throughout project assessments will make processes more efficient. The agreement also aims to modernize user services for both the construction and energy sectors by streamlining permit issuance and reducing response times, which is expected to support job creation.
ETESAL President Edwin Núñez highlighted that the agreement is part of the government’s broader strategy to attract investment and stimulate economic growth. “For ETESAL, this agreement is important because it strengthens the conditions for all companies that want to invest in the country,” he said. Núñez also emphasized the positive impact of faster permitting processes on investor confidence. “Making all permits faster and more efficient allows investors to complete procedures more quickly and, of course, results in greater investment,” he added.
As the sole authority responsible for granting feasibility approvals for new power generation projects, ETESAL’s coordination with the DOT is key to providing legal certainty for both national and foreign investors. The agreement includes technical data sharing, joint evaluations, institutional capacity building, and the development of geospatial tools to support informed decision-making, reinforcing El Salvador’s strategy for balanced, orderly, and sustainable economic growth.