El Salvador has taken a major leap toward direct global connectivity as CAF – Development Bank of Latin America and the Caribbean opened bidding for comprehensive feasibility and design studies for the nation’s first submarine fiber-optic cable. Backed by $145 million in sovereign financing from CAF, the landmark project aims to break the country’s reliance on terrestrial links, tripling international bandwidth in the near term and quadrupling data capacity over the next five years.
The selected consulting firm will work alongside El Salvador’s Electricity and Telecommunications Regulatory Authority (Siget) to map technical designs, evaluate operational risks, and maximize the economic footprint of the new infrastructure. Key bidding deadlines extend through early September 2026, with the winning contract expected to be awarded later that month. Build-out efforts are already backed by an $81.24 million allocation in the 2026 national budget for initial construction and equipment deployment.
Spanning 1,800 kilometers to connect directly with primary international internet hubs, the submarine system will be developed by Liberty Networks, following its selection by Siget in 2025. According to official disclosures from CAF, the project is scheduled to become fully operational in the second half of 2028, fundamentally reshaping Central America’s digital landscape by lowering connection costs and unlocking new high-tech trade channels.
Beyond boosting baseline speed, the infrastructure is engineered to establish fertile ground for regional data centers, tech-driven enterprises, and expanded public initiatives. As CAF highlighted during the announcement, “in addition to expanding capacity and helping reduce connection costs, the project seeks to generate conditions for the development of data centers and industries linked to digital transformation, as well as strengthen telehealth and teleeducation initiatives.”