Energy
Cox agrees $2.9bn energy and water deal in El Salvador
El Salvador has partnered with utility company Cox for a $2.9bn infrastructure programme.
Key points
- Cox and El Salvador signed a $2.9bn agreement for energy and water projects.
- Plans include battery storage, solar plants, an LNG terminal and a power plant.
- Implementation is scheduled over three years using project finance models.
What happened
The Government of El Salvador has signed a $2.9bn agreement with global utility company Cox to upgrade the country's energy and water infrastructure. Power Technology reported that the deal was finalised at Casa Presidencial by President Nayib Bukele and Cox executive chairman Enrique Riquelme.
The programme covers the construction and modernisation of solar power, battery storage, and natural gas systems, alongside water and sanitation facilities. Cox will lead the initiatives to enhance power system stability and capacity.
Project details
Battery storage systems will initially provide between 440MWh and 500MWh of capacity, with potential expansion to 1GWh. Two solar photovoltaic plants are planned in partnership with the Lempa River Hydroelectric Executive Commission, starting with 200MW and expandable to 400MW.
The initiative also includes a liquefied natural gas regasification terminal and a combined-cycle power plant with a generation capacity of roughly 380MW. According to Power Technology, Cox will structure financing through project finance models alongside international financial institutions and multilateral organisations.
President Bukele stated that the agreement attracts international investment "without committing new public funds and with clear rules", according to Power Technology.
What comes next
Detailed contracts and necessary approvals are expected within the coming weeks. Implementation of the projects is planned over a three-year period.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
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Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
