El Salvador confirms CAF financing for development of its first subsea cable

El Salvador’s power and telecoms regulator Siget confirmed it intends to use resources from a US$145mn loan provided by Latin American development bank CAF for the acquisition of supplies, equipment and services related to its first submarine cable.

At present, El Salvador has no international systems landing on its shores and instead relies on ground connections with neighbors or other technologies.

The CAF financing was signed on September 13 by economy ministry and CAF representatives in the country.

In the tender notice, available here, Siget said the resources “will be used for the acquisition of supplies and related services for the infrastructure of El Salvador’s first submarine cable, plus the contracting of technical, environmental and social supervision services.”

Announced last December, the high-capacity cable is expected to connect to other countries in the region and is backed by the MCDF, a group of multilaterals focused on development financing.

Previously, Siget’s head Manuel Aguilar said the country had begun studies to have its autonomous internet connection from the port of Acajutla, in Sonsonate municipality.