El Salvador has secured a historic $2.9 billion agreement with international utility and infrastructure manager Cox Group, marking the largest private investment in the nation’s history. Representing approximately 7% of the country’s Gross Domestic Product (GDP), the mega-deal surpasses the nation’s previous major foreign investment records combined. Announced by President Nayib Bukele alongside Cox Group CEO Enrique Riquelme, the agreement underpins El Salvador’s 7th Economic Impulse, aimed at modernizing power generation and water infrastructure to sustain regional industrial growth.
The investment framework targets four strategic pillars to transition the nation away from expensive bunker fuel toward clean, modern energy sources. Cox Group will allocate $1,800 million to build high-capacity natural gas infrastructure—including the country’s first onshore gas storage terminal—alongside $300 million for a 440-megawatt solar battery storage system to extend clean energy supply during peak night hours. Additionally, $200 million is designated for direct solar power generation, while a massive $600 million fund will modernize national drinking water and sanitation management.
Beyond upgrading utility performance, the agreement establishes El Salvador as an emerging energy hub capable of supplying fuel and power to neighboring Central American markets like Guatemala. President Bukele emphasized that replacing dirty energy will directly lower utility rates for Salvadoran households while eliminating industrial grid bottlenecks. “This investment is an enabler for future investments that are coming because we will no longer have that bottleneck in our power generation,” Bukele stated during the announcement.
Echoing the enthusiasm, Cox Group executives highlighted the country’s economic trajectory and investment climate as key factors behind the capital commitment. “We want to be part of this success story made possible thanks to President Nayib Bukele,” noted Cox Group Executive President Enrique Riquelme, reinforcing the company’s long-term operational commitment to the region.