Central American Bank for Economic Integration (CABEI).
SANTA TECLA, El Salvador — A new wave of coastal development is expected to improve infrastructure in the coastal areas as part of the Surf City El Salvador project. The government of El Salvador and the Central American Bank for Economic Integration have finalized a $65 million loan for the second phase of this initiative.
The financing deepens CABEI’s role as the initiative’s primary backer, bringing its total support since 2024 to more than $178 million, excluding separate funding from OPEC.
The agreement was signed by Finance Minister Jerson Posada and Alejandro Zelaya, CABEI’s director in El Salvador, during an official ceremony this week.
Authorities say the new phase will improve mobility, tourism services, and basic infrastructure in at least seven popular beach communities, impacting more than 69,000 residents and visitors.
The 20-year loan, approved by the Legislative Assembly on October 6, carries a four-year grace period and will be executed by the Ministry of Public Works and Transportation, MOP.
According to CABEI, the project’s centerpiece is the widening of 8.2 kilometers of the CA-2 highway, expanding it to four lanes between the Xanadú residential area and El Zonte beach.
Plans also include a new bridge over the Huiza River in Melara canton and the installation of two wastewater treatment plants serving beaches such as El Majahual, San Blas, Conchalío, and San Diego.
CABEI documents estimate the project will create at least 241 jobs, including 22 positions designated for women.
The bank described itself as a “strategic partner” in the long-term Surf City rollout, noting that investments are being staged to align with the growth of tourism and coastal urbanization.
CABEI earlier approved a $52,500 non-reimbursable technical cooperation grant in December 2023 to support planning for the program.
In September 2024, the institution authorized an additional $113.9 million for the broader Surf City platform, though no disbursements from that loan have been made.
With the latest signing, CABEI’s backing for Surf City stands at $178.9 million, excluding a separate $70 million loan secured from the Organization of the Petroleum Exporting Countries.
The Surf City initiative, launched under President Nayib Bukele, aims to position El Salvador as a global surf destination while upgrading long-neglected coastal communities.
Government officials argue that the combined investments will spur regional development, boost international tourism, and modernize one of the country’s most popular tourist destinations.
Critics, however, continue to question the program’s transparency, debt load, and long-term economic payoff — concerns the administration has dismissed mainly as political resistance to modernization.
