Rio Lempa.
SAN SALVADOR — The Salvadoran government has requested that the Legislative Assembly incorporate $24 million into the Ministry of Finance’s budget to support a far-reaching initiative to restore the Lempa River and enhance water security across the country.
The funding would finance the Comprehensive Water Security Program, a government-led effort to conserve the Lempa River, its tributaries, and the broader watershed.
The program seeks to protect vital ecosystem services that benefit both urban and rural populations, including water for domestic use, agriculture, industry, hydropower generation, biodiversity preservation, and climate risk mitigation.
The executive branch’s request was submitted to the Legislative Assembly’s Finance Committee for review and falls under the Conservation Funding Agreement (CAF), a component of a historic debt conversion deal designed to protect the Lempa River Basin.
This agreement, announced in October, marked the largest debt-for-nature swap in El Salvador’s history. Under its terms, the country repurchased $1.031 billion in sovereign bonds at a discounted rate, saving approximately $350 million.
These savings will be redirected over the next two decades to fund the Lempa River Conservation and Restoration Program.
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Of the $24 million allocated for this year, $12 million is scheduled for disbursement in April and the remaining $12 million in October.
The funds will be drawn from current allocations within the Ministry of Finance’s existing budget.
The Lempa River, El Salvador’s largest and most important waterway, is critical to the nation’s environmental and economic stability.
Salvadoran officials say this long-term investment will help ensure sustainable water management and climate resilience for future generations.
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The Government of El Salvador will lead the Lempa River Conservation and Restoration Program in coordination with the Environmental Investment Fund of El Salvador (FIAES) and Catholic Relief Services (CRS).
According to the Ministry of Environment and Natural Resources, the initiative’s first phase will involve a community assessment to identify local needs and priorities.
