El Salvador signs LOI with Laxmi Capital to build metro line

El Salvador and Nepal-based financial company Laxmi Capital signed a letter of intent (LOI) to begin preparations to build a metro line in capital San Salvador. 

The document was signed on December 4 by the minister of public works and transport, Romeo Rodríguez, and Russell Alexander Luther Rodas, representing Laxmi Capital, according to news outlet The Indian Panorama. 

Also present was the Indian ambassador to Guatemala, El Salvador and Honduras, Manoj Kumar Mohapatra. 

The letter of intent establishes that the MOPT will provide pre-feasibility studies, designs, legal frameworks and mechanisms essential for the successful implementation of the project.

“Laxmi Capital, in turn, will contribute technical expertise and investment mechanisms to facilitate the development, construction, implementation, operation, management and maintenance of the mass transport system of passengers in the metropolitan area of San Salvador,” it is also reported as saying by the daily.

The technical expertise provided by Laxmi Capital will also include providing leading-edge technology. 

The signing ceremony was reportedly preceded by a series of meetings between MOPT and Laxmi Capital officials, where they agreed to form a follow-up committee. This will ensure adherence to the letter of intent and address any queries that may arise during the execution of the project. 

No timeline, capex or specific dates were mentioned.