El Salvador to get major Chinese infra investments

During a state visit to China, President Xi Jinping promised his Salvadoran counterpart, Nayib Bukele, major infrastructure investments.

Although specific amounts were not disclosed, Bukele said Tuesday the agreement amounts to a “gigantic, non-refundable cooperation.”

El Salvador will have complete control over the investments. On Twitter, Bukele wrote that "all [is] managed by our government, which requested to extend the cooperation that was granted to the previous government (such as rice and water pipes).” 

Chinese officials also said the country will import more goods from El Salvador, including sugar and coffee.

The investment announcement is a result of El Salvador’s decision to cut diplomatic ties with Taiwan last year.

El Salvador "adheres to the principle of one China, categorically rejects any act that goes against this principle and any form of 'independence of Taiwan'," a joint statement read.

Bukele is currently traveling Asia to drum up foreign investment. 

So far, the leader has visited Japan and China, as Qatar will be his last stop on Saturday.

El Salvador will also participate in the Belt and Road initiative, which entails heavy infrastructure spending to link China to the rest of Asia and beyond, the statement said.

PROJECTS

One of the first projects China will finance is another, bigger stadium. 

The Latin American country currently has 16 stadiums, but only two have a capacity for more than 20,000 spectators and most were built before 2000. The biggest stadium is the Estadio Cuscatlá, which accommodates up to 53,000 people and was built in 1976.

The second project is a multi-story library made of glass.

According to Bukele, it will be “one of the best libraries in Latin America” and will be big enough to cover the existing El Salvador National Library and the Mortgage Bank located in downtown San Salvador. 

Third on the list is a water treatment plant that will turn wastewater from the Ilopango Lake into drinking water. The treatment plant will help deal with the water shortage problem the country’s capital currently faces. 

To help distribute clean and wastewaters from the beaches of Surf City, the Chinese government will also invest in a pipe system, “a world-class system for a world-class tourist destination,” the Salvadoran president wrote. 

The fifth project was not as specific as the others, but the president said it concerns modernization works and upgrades to the transportation system of the country and other electric works on roads, parks and beaches. 

Sixth on the list is the restoration of the Joya de Cerén archaeological site in La Libertad district. It is a pre-Columbian Maya farming village that was discovered less than 50 years ago and was conserved covered under volcanic lava. 

Last is a technical assistance agreement covering agriculture, tourism, sports, culture and commerce. 

NATIONAL INVESTMENTS

Six months in office, the government of El Salvador has started infrastructure projects that involve significant private sector participation.

Some of these projects were developed under previous administrations, while others are based on plans of the Bukele administration.

Key projects include a Pacific railway, or coastal cargo and passenger train, an upgrade to the cargo terminal at Monseñor Arnulfo Romero international airport, and the expansion of the port of Acajutla, which will be carried out with the assistance of  South Korea.

Also on the agenda is a PPP to finance, design, build and maintain border crossings at La Hachadura and El Poy, in Ahuachapán and Chalatenango districts, respectively.

Photo Credit: AFP