Kuwait Grants El Salvador $10 Million Loan for Solar Power Plant - Sarmad
The Kuwait Fund for Arab Economic Development signed a $10 million loan agreement with El Salvador to finance the 11-megawatt San Matias Solar Power Plant project.
Translated by Qiyas from سرمد — Original source
The Kuwait Fund for Arab Economic Development signed a loan agreement with the Government of the Republic of El Salvador worth 3 million Kuwaiti dinars to help finance the San Matias Solar Power Plant project in El Salvador.
In a statement to KUNA on Tuesday, the Fund said the project aims to support economic and social development in the Republic of El Salvador by increasing electricity generation and utilizing available solar energy resources.
It added that the project contributes to meeting the growing demand for reliable energy, enhancing resilience to climate change-related risks, providing clean and sustainable energy for the industrial sector and local communities, creating new job opportunities, and increasing government participation in the electricity generation sector.
The Fund clarified that the project involves the construction of a photovoltaic solar power plant in Hacienda San Lorenzo, within the San Matias area northwest of the capital, San Salvador, with an installed capacity of approximately 11 megawatts. It is expected to generate between 20 and 25 gigawatt-hours annually and will be connected to the national electricity grid.
The total cost of the project is estimated at approximately $13.9 million, with the Fund’s loan covering about 69 percent of the total project costs, while the Government of the Republic of El Salvador will cover the remaining costs.
The implementation of the project is expected to take about two years, with completion anticipated in the first half of 2028. The loan has a term of 25 years, including a grace period of three years.
The project contributes to achieving several Sustainable Development Goals, particularly in the areas of clean energy, economic growth, infrastructure, responsible consumption and production, climate action, and strengthening partnerships to achieve the Sustainable Development Goals.
This agreement marks the first loan agreement signed by the Kuwait Fund for Arab Development with El Salvador, representing a step forward in the developmental cooperation between the two countries, helping to expand cooperation horizons and strengthen partnership in areas of mutual interest.
The agreement was signed by Acting Managing Director of the Fund, Rashid Al-Bader, and El Salvador’s Minister of Finance, Jerson Molina.
