Written by: Fatima Younis
Cox, a company specializing in water and energy solutions, signed a strategic agreement with the government of the Republic of El Salvador aimed at injecting investments estimated at around $2.9 billion to modernize and develop the country's vital infrastructure. This partnership aims to enhance energy security in El Salvador and develop the water and sanitation sector, by implementing a series of integrated projects covering diverse fields ranging from renewable energy to natural gas.
Strategic Partnership Pillars
The project's investments are distributed across four main strategic areas, with Cox undertaking the tasks of financing structuring, development, construction, operation, and maintenance of the required facilities. In the energy sector, the plan includes developing grid-tied battery energy storage systems, with an initial capacity ranging between 440 and 500 megawatt-hours, with the possibility of expanding them to reach 1,000 megawatt-hours to enhance the stability of the electrical grid.
The partnership also includes, in cooperation with the Lempa River Hydroelectric Executive Commission, the establishment of two photovoltaic solar power plants with an initial capacity of 200 megawatts, expandable up to 400 megawatts. Alongside renewable energies, work will be done to establish a liquefied natural gas regasification plant, in addition to a 380-megawatt combined-cycle power generation plant, which enhances El Salvador's position as a regional energy hub.
Sustainable Water and Energy Development
The agreement also includes specific axes on improving the efficiency of water and sanitation management, aiming to expand coverage and raise the quality of services provided to citizens, benefiting from Cox's global expertise in this field. This step is part of the Salvadoran government's plan to raise the efficiency of national infrastructure, with a focus on attracting international investments without imposing additional burdens on the general budget.
For his part, Enrique Riquelme, CEO of Cox, affirmed that this long-term commitment reflects the company's strategy in Latin America, where the company focuses on enhancing the renewable energy mix and improving access to essential water resources. Necessary approvals and the commencement of project implementation are expected to be completed within the next three years, relying on a financing structure that includes international financial institutions and export credit agencies, ensuring the continuity of projects in accordance with the highest technical standards.
