WASHINGTON — The Executive Board of the Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects (CCLIP) of up to $500 million, aimed at reducing the vulnerability of El Salvador’s population to flooding.
As part of this credit line, the Board also approved an initial individual loan of $150 million to finance a project focused on the Metropolitan Area of San Salvador (AMSS).
The AMSS population faces high vulnerability to increasingly frequent and intense flood events that cause loss of life, significant economic damage, and disruptions to daily activities. The project financed by the first loan will address the main causes of this vulnerability, including gaps in access to adequate urban drainage services, challenges in planning and strengthening technical capacities for efficient management, the need to improve early-warning systems, and limitations in the proper disposal of solid waste within drainage systems.
The program will fund the development and maintenance of urban drainage infrastructure, including the construction of detention ponds and the rehabilitation and operation of sustainable urban drainage systems. It will also support the rehabilitation of vaults designed to store large volumes of rainwater during intense storms and release it in a controlled manner, as well as the recovery and strengthening of culverts.
This project will directly benefit about 5,100 households (15,200 people) and approximately 700 establishments (businesses, public institutions), which will have access to adequate urban drainage.
Additionally, 100% of the AMSS population will benefit from an improved early warning system and awareness campaigns. Likewise, 70% of the personnel participating in the planned workshops will obtain certifications in urban drainage management and early warning systems.
The project also includes institutional strengthening of the Ministry of Public Works and Transportation and improving the effectiveness of the flood early warning system.
The first individual loan of $150 million has a repayment term of 23 years, a grace period of 7.5 years, and an interest rate based on SOFR
About the IDB
The Inter-American Development Bank (IDB), a member of the IDB Group, is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the Bank works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise, and knowledge, it promotes growth and well-being in 26 countries. Visit our website: www.iadb.org
Simon, Luis Alejandro
Project Information
Support Program for the Urban Mobility System of the San Salvador Metropolitan Area (AMSS)
El Salvador and the IDB