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Government of El Salvador promotes investment attraction through legal stability contract

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The Government of El Salvador carried out the firm of the Legal Stability Contract between the Ministry of Economy (known as MINEC) and Sonsonate Solar company. This action has the approval of the Export and Investment Promotion Agency of El Salvador (known as PROESA) and seeks to guarantee the legal security of investment in the strategic renewable energy sector, contributing to its growth and to sustainable economic and social development, and to employment generation in the country.

 

The signing ceremony was headed by the minister of economy, María Luisa Hayem; the representative of Sonsonate Solar, Sebastián Libkind; and the president of PROESA, Salvador Gómez Góchez, as a witness of honor.

 

According to minister Hayem, "this is the first act of this nature managed within president Nayib Bukele's Despegue Económico Plan, and the second one signed in the country's history. Actions such as these are being carried out thank to the confidence that this government brings to investors and which has been concretized with the teamwork of MINEC and PROESA".

 

On the other hand, the head of PROESA added that "this legal stability contract signed today constitutes more certainty and guarantee over time, which we are giving from the government to national and foreign companies so that they come and invest in El Salvador. We are going to bet on the economic areas that generate many jobs and sustainable development, such as the renewable energy sector".

 

Sonsonate Solar will invest $13 million in an investment project that has begun with the installation of an electric generation plant based on photovoltaic solar technology, with an installed capacity of 10 MW that is expected to start operations on April 1st 2020, in the municipality of Acajutla, department of Sonsonate.

 

This plant will have 38,460 solar panels that will produce 23,200 MWh of clean and more economical energy per year, which represents the electricity consumption of at least 12,000 Salvadoran homes, a decrease of approximately 17,300 tons of CO2 and the generation of 186 direct jobs only in its construction phase.  Besides, 3% of Sonsonate Solar's investment will be assigned to the construction of projects in Acajutla.

 

On the State side, is guaranteed to Sonsonate Solar the stability of the current conditions applicable to direct taxes at the national and municipal levels, the maintenance of customs procedures, the free transfer of funds and no less favorable migratory conditions for the key people in this investment.

 

This contract has as a regulatory framework in the Law of Legal Stability for Investments, and is according to the National Energy Policy promoted by the National Energy Council (known as CNE).

 

San Salvador, February 25th, 2020

Actualizado 04/01/2020
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