Cox, a global integrated water and energy utility, signed an agreement with the Government of the Republic of El Salvador to promote an investment program estimated at $2.9 billion aimed at the development and modernization of strategic water and energy infrastructure in the country.
The agreement was signed at the Presidential Palace by the President of the Republic of El Salvador, Nayib Bukele, and the CEO of Cox, Enrique Riquelme, and is structured around four strategic alliances in the areas of energy storage, solar photovoltaic generation, natural gas, and water and sanitation management.
The transaction represents a further step in Cox's growth strategy in Latin America and reinforces its model as an integrated company with the capacity to develop, finance, build, operate, and maintain critical water and energy infrastructure. Through this alliance, Cox will leverage its industrial, technological, and financial expertise in El Salvador to help strengthen energy security, increase the presence of renewable energy, and improve the quality and coverage of water and sanitation services.
In the energy sector, the State is slated to participate as a partner. Subject to the necessary approvals and the formalization of specific agreements, Cox will structure project financing through project finance schemes, with the participation of international financial institutions, multilateral organizations, and export credit agencies. The company will also be responsible for the development, construction, operation, and maintenance of the projects.
The actions will be implemented over the next three years. The necessary approvals are expected to be finalized in the coming weeks, along with progress in formalizing the specific agreements.
Four strategic agreements
In terms of energy storage, the agreement includes the development of battery systems connected to the national electricity grid, with an initial estimated capacity of between 440 and 500 MWh, expandable to 1,000 MWh. These facilities will contribute to strengthening the stability of the electricity system and will facilitate greater integration of renewable energy sources.
The alliance also includes the development, together with the Lempa River Hydroelectric Executive Commission, CEL, of two photovoltaic solar plants with an initial estimated capacity of 200 MW, expandable to 400 MW.
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Additionally, plans include the development of a liquefied natural gas regasification terminal and a combined-cycle power plant of approximately 380 MW. These infrastructures will strengthen generation capacity and help position El Salvador as a regional energy hub.
Finally, the agreement includes actions to improve water and sanitation management, expand coverage and strengthen service quality, areas in which Cox will contribute its experience as an international water infrastructure operator.
A long-term strategic alliance
The agreement is part of the Salvadoran government's program to modernize the country's energy and water infrastructure and consolidate the country as an investment destination in the region.
“Our commitment to El Salvador and Latin America is long-term. We will leverage our experience as a water and energy utility to strengthen the country's electrical system, incorporate more renewable energy, and improve water service. With the natural gas terminal, El Salvador will become the benchmark and most important energy hub in the region. We thank President Bukele and his government for the trust they have placed in Cox,” said Enrique Riquelme, CEO of Cox.
For his part, Nayib Bukele stated: “This agreement allows us to attract international investment to obtain cleaner and more reliable energy, as well as the necessary technical support to guarantee the supply of quality water, without committing new public funds and with clear rules.”
Latin America, a strategic priority for Cox
The alliance with El Salvador reinforces Cox's commitment to Latin America, a region where it concentrates approximately 95% of its activity and where it has an investment plan exceeding $7 billion in strategic water and energy projects.
The agreement adds to other significant projects recently undertaken by the company in the region, such as the Rosarito desalination plant and the acquisition of Iberdrola México; new renewable generation and storage developments in Central America; and the expansion of its electricity transmission platform in Brazil. Cox coordinates its regional platform for the Americas from Panama, bringing management and decision-making closer to its main markets, projects, financial partners, and institutions.