Kuwait Fund for Arab Economic Development provides $9.6 million loan to finance the San Matías Photovoltaic Solar Power Plant in El Salvador
Type: Financing · Technology: Solar · Country: El Salvador · Capacity: 20 MWh · Value: $9.6M · Announced: 2026-06-12
The Legislative Assembly of El Salvador secured a $9.6 million loan from the Kuwait Fund for Arab Economic Development to finance the San Matías Photovoltaic Solar Power Plant, a 20,000 MWh annual capacity solar project located in San Matías. The financing will cover photovoltaic panels, electrical substations, interconnection systems, access roads, and operational infrastructure, with construction and operational jobs expected to be created. The project aims to diversify El Salvador's energy generation mix and reduce reliance on hydroelectric resources during dry seasons, while supporting carbon-emission reduction targets. Authorities highlighted the strategic importance of the project in enhancing energy security and sustainability for the country. The loan agreement was authorized through a favorable Finance Committee ruling, marking a concrete step toward advancing renewable energy infrastructure in El Salvador.
Counterparties
- Legislative Assembly of El Salvador (Borrower)
- Kuwait Fund for Arab Economic Development (Lender)
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