CAF supports the leap in air and digital connectivity in El Salvador with USD 465 million in loans
July 18, 2024
The first project focuses on the modernization, strengthening, and construction of aeronautical infrastructure, while the second involves the deployment of the first submarine cable aimed at improving national digital infrastructure and reducing international connectivity costs.
CAF's Board of Directors, composed of ministers of economy and finance, central bank presidents, and high economic authorities of the shareholder countries, reaffirmed its commitment to El Salvador's sustainable and inclusive growth by approving a USD 320 million loan for the aviation sector development program 'El Salvador Vuela' and another USD 145 million for the 'Strengthening of Connectivity Sovereignty: Submarine Cable'.
“At CAF, we are proud to contribute to the leap in air and digital connectivity that El Salvador will experience with investments in the expansion and upgrading of the airport network and the first submarine cable that will expand and improve access to high-speed internet through fiber optic cables to facilitate access to online education services, telemedicine, and e-government, among others, thus improving the quality of life of the population. In this way, we reaffirm ourselves as the ally of sustainable and inclusive growth for El Salvador and the region”, said Sergio Díaz-Granados, executive president of CAF.
With the El Salvador Vuela program, the modernization, strengthening, and construction of aeronautical infrastructure will be promoted, aimed at reducing costs and connectivity times by air to boost the tourism sector and the country's competitiveness, while also strengthening resilience and response capacity to natural disasters.
The program proposes the construction and/or modernization of regional airports in El Salvador through three projects: the construction of the Pacific International Airport, the remodeling and modernization of Ilopango Airport, and the design and construction of Tonalá Airfield, aligned with the 2030 Infrastructure Master Plan and the National Tourism Plan of President Nayib Bukele's government.
The other project involves deploying El Salvador's first submarine cable, which represents the main tool to transform the country's digital infrastructure and expand digital connectivity. The project proposes deploying a high-capacity submarine cable that connects El Salvador with major traffic and content hubs and strengthening the institutional capacities of the General Superintendency of Electricity and Telecommunications (SIGET) for its management.
Submarine telecommunications cables are fundamental for international connectivity, allowing a greater flow of data, more agility, and lower latency, necessary for online education services, telemedicine, and attracting more investments from companies related to the ICT sector.
These operations are aligned with the Sustainable Development Goals (SDGs), specifically SDG 1 to end poverty in all its forms; SDG 8 to promote inclusive and sustainable economic growth, employment, and decent work for all; SDG 9: Industry, innovation, and infrastructure; SDG 10: reducing inequalities; SDG 11: sustainable cities and communities; and SDG 12: responsible production and consumption.