IDB Supports Enhanced Public Services and Urban Infrastructure in El Salvador

WASHINGTON - The Inter-American Development Bank (IDB) has approved a $170 million loan to help El Salvador bolster the economies of the Santa Tecla and La Libertad districts through a program to improve access to quality public services and urban infrastructure in both areas.

The operation, which has been approved by the IDB's Board of Executive Directors, will particularly focus on revitalizing the municipal markets in Santa Tecla and La Libertad, making them universally accessible and climate-resilient. The program will also renew public spaces in these communities, including streets, parks, plazas, and green areas.

The program supports small-scale merchants in expanding their productive and commercial capacity, and it promotes digital payment solutions.

In addition, the loan will strengthen the institutional and financial capacities of the municipalities of Libertad Sur and Libertad Costa to better prepare them to successfully manage their urban growth.

The interventions will directly benefit 2,000 small-scale merchants: 1,500 in Santa Tecla and 500 in La Libertad. The improved urban environment, better public services, and more dynamic economy will also positively affect approximately 1,800 residents of Santa Tecla and 2,500 of La Libertad. The improvements to infrastructure and amenities will also benefit domestic and international tourists. La Libertad's estimated 3.8 million annual visitors will enjoy safer, more orderly, and more attractive spaces.

The IDB loan has a 25-year repayment term, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).