The coastal transformation of La Libertad is moving into its next phase. Lawmakers on Monday approved a $65 million loan from the Central American Bank for Economic Integration (CABEI) to fund Surf City II.
The Legislative Assembly endorsed Opinion 142, authorizing the Ministry of Finance to sign the loan agreement. The funds will finance the second stage of the Surf City project, which aims to upgrade road and sanitation systems along El Salvador’s Pacific coast.
According to the agreement, the loan will have a 20-year term, including a four-year grace period, and will be administered by the Ministry of Public Works (MOP).
The project is part of the government’s broader coastal development plan to modernize infrastructure and boost tourism.
A central component of the initiative is expanding Highway CA-2, known as the Surf City Route, between Xanadú residential and El Zonte beach.
The 8.2-kilometer stretch will double from two to four lanes, easing travel for tourists and residents alike.
Additional works include the construction of wide sidewalks, bus bays, parking areas, scenic viewpoints, and bike lanes designed to improve safety and mobility in the growing tourist corridor.
The plan also targets wastewater and sanitation upgrades in several beach communities, including El Majahual, San Blas, El Cocal, Conchalío, San Diego, and Cangrejera.
New sewer networks and treatment plants will be constructed in Melara, Santacruz, and San Alfredo to mitigate pollution and safeguard coastal ecosystems.
The project will further incorporate new bridges over the Huiza River in Melara, El Palmar, and El Zonte. The structures will feature climate-resilient designs, drainage systems, and pedestrian and cycling access points.
As part of its modernization approach, Surf City II will deploy an innovative mobility system to monitor traffic flow and enhance road safety. The CABEI loan will also cover engineering studies, audits, and technical oversight.
Representative Dania González, a member of the Finance Committee, said the investment will directly strengthen coastal economies.
“These funds will expand the Surf City route, improve sanitation, and create spaces that revitalize one of El Salvador’s most iconic tourist destinations,” she said.
The improvements are expected to reduce travel times, create construction jobs, and boost local businesses. Officials say Surf City II will solidify La Libertad’s standing as a cornerstone of El Salvador’s tourism and economic growth strategy.
