OPEC Fund Commits US$100 Million To Enhance Tourism And Rural Development In El Salvador

The OPEC Fund for International Development has entered into two new loan agreements with El Salvador, amounting to US$100 million. These funds are earmarked for key investments in tourism, infrastructure, agriculture, and rural livelihoods. The agreements were formalised during a mission led by OPEC Fund President Abdulhamid Alkhalifa, who met with President Nayib Bukele and other senior officials.

President Alkhalifa expressed the significance of this collaboration, stating: "Our cooperation with El Salvador reflects a shared focus on sustainable growth and opportunity. Our new investments will improve livelihoods, expand access to markets and services, and strengthen resilience across the country’s tourism and rural sectors. We are proud to partner with El Salvador in building a more inclusive and sustainable future."

A significant portion of the funding, US$70 million, is allocated to the Surf City Programme – Phase II. This project is co-financed with the Central American Bank for Economic Integration (CABEI). It aims to enhance infrastructure and climate resilience along La Libertad's coastal corridor, a key tourism area in El Salvador. The project includes rehabilitating over 23 km of roads and expanding sanitation systems.

This initiative is expected to benefit around 125,000 residents by boosting sustainable tourism and creating jobs. It also supports inclusive economic growth by improving essential infrastructure in the region. The development of these facilities is crucial for enhancing the area's appeal as a tourist destination.

The remaining US$30 million will fund the Rural Adelante 2.0 Program, in partnership with the International Fund for Agricultural Development (IFAD). This program focuses on enhancing income, resilience, and food security for 74,000 rural households through climate-smart agriculture practices. Improved market access and upgraded rural infrastructure are also key components of this initiative.

At least half of the beneficiaries of this program will be women. There is also dedicated support for youth and indigenous communities to promote inclusion and sustainable rural transformation. These efforts aim to foster long-term development in rural areas.

Long-standing Partnership

The OPEC Fund's collaboration with El Salvador began in 1976. With these new agreements, the fund has committed over US$350 million across various sectors including public, private, and trade finance. Their support spans projects in agriculture, energy, health, infrastructure, and financial inclusion.

During his visit, President Alkhalifa also toured Zacamil Hospital. This facility benefited from the OPEC Fund’s COVID-19 response package back in 2020. Such initiatives highlight the ongoing commitment of the OPEC Fund to support healthcare improvements in El Salvador.

The recent agreements between the OPEC Fund and El Salvador underscore their mutual dedication to fostering sustainable development across multiple sectors within the country. By investing in both urban and rural projects, they aim to create a more resilient economy that benefits all citizens.

With inputs from WAM