KFAED signs USD 9.7 mln loan agreement with El Salvador to fund solar project

The Kuwait Fund for Arab Economic Development (KFAED) has officially signed a loan agreement with the government of El Salvador to provide funding for the San Matias solar power project. According to a statement released by the Fund, the agreement involves a loan of approximately 3 million Kuwaiti Dinars, equivalent to roughly 9.7 million US dollars.

The project is designed to bolster El Salvador's infrastructure by increasing its national electricity generation capacity through the utilization of solar resources. The planned photovoltaic plant will be situated at Hacienda San Lorenzo in the San Matias area, located northwest of the capital, San Salvador. Once operational, the facility is expected to have an installed capacity of 11 megawatts and contribute between 20 and 25 gigawatt-hours of clean energy to the national grid annually.

KFAED officials stated that this initiative aligns with broader sustainable development goals, focusing on the expansion of clean energy, infrastructure improvement, and climate action. By providing a reliable source of sustainable power, the project aims to support local industries and communities, fostering long-term economic and social development in the region. The integration of this plant into the national grid is expected to enhance energy security for the country.