El Salvador sets P3 pipeline

Exclusive: Proesa, the Exports and Investment Promotion Agency of El Salvador, has defined a 16-project pipeline to be delivered in the near future.

Proesa is expected to launch three projects between the end of this year and March 2018, involving an air cargo terminal worth $13m, a lighting and video surveillance project covering 140km of urban roads worth $20m, and a technological scientific park in the grounds of the international airport worth $28m.  

Other projects include a new administrative centre worth $180m and the upgrade of 48.4km of a road that connects with the Acajutla Port and the border with Guatemala, expected to cost $105m.   

“So far the projects in the pipeline are quite small but we are just starting in the P3 business,” José Schafik, P3 director at Proesa, told P3 Bulletin.

“However, in El Salvador we have two major reasons to use P3s, the first one is because we have a very large budget constraint and the second is an over-dimension of the projects which leads us to conclude that the state might not be the best infrastructure provider.”   

Proesa has carried out several market tests to understand how the cashflow of the technological parks was composed and present the Salvadoran case and business model that will deliver the projects.    

“The tests had a very good response and we identified potential interested investors,” Schafik said. “Investors see El Salvador with good eyes because they see we have monetary stability and the good practices of our P3 law”.