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El Salvador launches bidding process for second public-private partnership

Government launches bidding process for second public-private partnership

The launch of the international public bidding for the implementation of the second public-private partnership (PPP) of El Salvador, constituted by the 143-kilometer highway lighting and video surveillance project, was made by FomilenioII / Millennium Challenge Corporation (MCC), together with the Export and Investment Promotion Agency of El Salvador (known as PROESA), the Ministry of Public Works and Transportation (MOPT), and the Ministry of Commerce and Investments.


The project consists of lighting and video surveillance road sections chosen from the departments of La Paz, La Libertad and San Salvador in order to provide users with an adequate quality of service through luminaires and increasing safety levels through the installation of LPR and PTZ cameras.


The road sections chosen are: Santa Tecla-La Libertad, La Gloria-El Espino, El Espino-San Óscar Arnulfo Romero y Galdámez International Airport, and Plaza de Los Cocos-Zacatecoluca.


PROESA has directed from the beginning the pre-investment studies of the project, the economic and financial analysis, the writing of bidding rules and the promotion of the project, whose investment amounts to USD $ 14 million.


“In the first one hundred days of the administration of President Nayib Bukele, we launched the first public-private partnership in the history of El Salvador to an international public tender. And now, a short time later, we are already launching the second one. PROESA is the governing body of public-private partnerships in El Salvador, and as such, we are committed to continue supporting the development of PPPs because we contribute to the country’s progress. These actions are also part of the Economic Takeoff Plan, promoted by President Bukele, which is already reviving the national economy”, president of PROESA, Salvador Gómez Góchez, said.


After this announcement of the launch of the bidding process, the promotion of the project and the bidding rules for potential applicants will be carried out, as well as the clarification of doubts in this regard, the review of bids and the award of the project.


The event was chaired by the Presiding Commissioner, Carolina Recinos; the Minister of Public Works and Transportation, Romeo Rodríguez Herrera; the Acting Minister of the United States Embassy in El Salvador, Brendan O’Brien; and the Secretary of Commerce and Investments, Miguel Kattan. Also, it was attended by the President of the Export and Investment Promotion Agency of El Salvador (PROESA), Salvador Gómez Góchez.


A PPP is a contract between a public and a private entity, where the private party assumes substantial financial, technical and operational risks, in the design, financing, construction and/or operation of a public good or service, for a limited period, in exchange for its exploitation. In this way, the State can concentrate on the orientation of resources to social priorities.