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Competitive Infrastructure

The World Economic Forum places El Salvador’s infrastructure among the most competitive in Latin America and Central American region. A modern port, airport and road infrastructure. Enable efficient logistical operations, while solid and advanced telecommunications and electricity markets guarantee access to high quality and cost-competitive services

Free Trade Zones and Service Parks

El Salvador has developed free trade zones and service parks designed for companies involved in the export of goods and services worldwide. These industrial spaces provide companies the necessary services to operate efficiently: a customs clearing office, advisory services and staff recruitment, perimeter security, fire protection systems, wastewater treatment, telecommunications infrastructure, outdoor lighting, cafeteria, a training center and a medical clinic, among others.

Attractive tax incentives are offered at the free trade zones and services parks:

  • Full income tax exemption
  • Full municipal taxes exemption
  • Duty-free import of machinery, equipment, raw materials and goods that are necessary for the execution of the company´s activity

Companies that conduct their operations outside the free zones or service parks may apply for exemption benefits regardless of where they are established.

There are 17 free trade zones in El Salvador, five of which also function as service parks. These industrial zones stand out due to their strategic location and ease of access to competitive infrastructure: they are near the capital and other major cities, and close to high level highways, airports and ports.

 

Electricity

The electrical system in El Salvador is characterized by the participation of seasoned operators with extensive experience in the electrical industry and a regulatory framework that promotes the efficient operation of the electricity system.

The Salvadoran electricity market is the most open in the region. Such opening was promoted in 1996 with the approval of the General Electricity Law and its regulations, which fostered a competitive market and private participation in the generation, distribution and commercialization of electricity.

El Salvador has an institutional structure adequate for the development, regulation and operation of the electricity market:

SIGET (The Superintendence for Electricity and Telecommunications) established quality standards for the continuity, voltage levels and disruption in the power supply, thus insuring the quality of service provided to end users by distributors.

Source: (2010) ECLAC. *Percentage of available power

The electrical grid in El Salvador combines hydroelectric and geothermal sources, cogeneration and thermal plants. Of these, renewable sources constitute the bulk of the electrical supply.

Source: UT(2011)

El Salvador is a leader in the geothermal energy use (25% of its generation), and ranks among the ten most productive locations in geothermal energy in the world. The existence of substantial geothermal resources, added to the extensive professional experience in the development of this type of generation and the appropriate expansion policies, will allow furthering the country´s potential in this energy source.

Salvadoran regulation allows companies to generate their own energy and sell their surplus.

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