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El Salvador organizes public-private partnership forum

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Yesterday, the Export and Investment Promotion Agency of El Salvador (known in Spanish as PROESA) participated in the forum under the name of “Public-Private Partnerships: an opportunity to rely on infrastructure for progress”, organized by the Inter-American Development Bank (IDB), the Fundación Salvadoreña para el Desarrollo Económico y Social (FUSADES in Spanish), Fomilenio II and PROESA.


A variety of experts in Public-Private Partnerships (PPP) took part in the forum that discussed on topics related to the role played by PPPs in the development and delivery of quality services, social infrastructure, the role of the State in PPPs, the economic development they represent, its benefits and the challenges in front of Latin America in the face of their implementation.


José Ángel Quirós, executive director of FUSADES, said that “it’s quite recognized that one of the great challenges, mainly in Latin American countries, is how to optimize limited public resources; a viable option identified are precisely the PPPs”.


On the other hand, Schafik Collazo, director of PPP at PROESA, explained the reasons that led to the expansion of the cargo terminal of the San Óscar Arnulfo Romero International Airport as the first project in the country to be carried out via PPP: “It’s an eminently self-sustainable project. You do not need any kind of state subsidy. It does not affect the regular citizens but seeks to give a better competition platform to the private company, which seeks the services of the cargo terminal to allow itself to access more rapidly to more markets, at a lower cost".


Collazo added that “this project will make us rise in rankings, not only in the Infrascope, but in the Doing Business because, in a way, the only infrastructure that manages the country's air cargo will have a significant improvement. So, that already puts the country in an aeronautical hub consolidation status.”


The PPP director referred to the substantial improvement that the development of this partnership would imply in the performance that the country shows in the Infrascope, an index that measures the conditions that a country has for the development of a PPP, and, for its part, the Doing Business, which measures the ability of countries to mature business effectively.


In this sense, Martha Keays, director of the Millennium Challenge Corporation, advanced the development of the second project to be developed via PPP in El Salvador: “This December the government will launch the second PPP in El Salvador, which is a project that will promote the investment and experience necessary to improve the cargo terminal in the country ”.


Public-Private Partnerships are projects where state entities entrust a private investor with the design and construction of an infrastructure and its associated services, or its construction, repair, improvement or equipment. Such activities must involve the operation and maintenance of such structure. They can also deal with groundwork for the provision of public services, the exploitation or execution of activities of general interest, the final being understood as those whose objective is the promotion of strategic sectors of the economy through the promotion of technology, science, innovation, as well as research and development.


The State, for its part, oversees the rector's work of the project, the competence and powers of planning, control, sanction, penalty, regulation and supervision of the implementation of the respective contracts, through the institutions that correspond. The State will guarantee the communal good in the exercise of its rectory.


To learn more about the services provided by PROESA, call (503) 25927000 or visit our website


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October 23, 2019


Actualizado 11/19/2019
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