El Salvador has officially partnered with the Kuwait Fund for Arab Economic Development (KFAED) to construct a new solar photovoltaic plant in San Matías, La Libertad, marking the first-ever development deal between the nation and the Kuwaiti institution. Supported by $9.7 million in financing, the project will encompass comprehensive site preparation, installation of solar modules and transformation stations, and full integration into the national electrical grid to bolster the country’s clean energy capacity.
This strategic initiative aims to diversify El Salvador’s energy matrix, reinforce grid reliability, and create solid foundational conditions for sustainable economic growth. Foreign Affairs Vice Minister Adriana Mira highlighted that the international agreement demonstrates growing global confidence in El Salvador’s economic stability and administrative capability. “Development requires vision, firm decisions, and execution capacity. That is the path set by President Nayib Bukele to consolidate a secure, modern, and competitive country,” Mira stated during the signing ceremony.
Beyond immediate infrastructure expansion, the funding reflects the active diplomatic outreach of El Salvador’s embassy network in securing international capital for domestic development. Finance Minister Jerson Posada emphasized that transitioning toward renewable resources directly serves the nation’s long-term productive capability: “The transition toward cleaner energy sources is not only a commitment to the environment, but also a strategic decision to strengthen the country’s productive capacity and prepare us for future energy needs.”
The landmark agreement opens a new chapter of bilateral cooperation between Central America and the Gulf state. Expressing optimism for future collaboration, KFAED Acting Director General Rashaid Al-Bader described the project as a vital stepping stone toward deeper economic alignment: “This project marks the beginning of development cooperation between both parties and is also a significant step toward building a closer relationship based on friendship, mutual respect, and shared aspirations for sustainable development.”