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El Salvador executes first big project of wind power generation

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Today, the Government of El Salvador and the society Ventus S.A. de C.V., which will develop the Ventus Wind Farm in the country, signed the first contract of legal stability for investments. This project will have the capacity of providing electric energy to, about, 80 thousand homes, an installed generation capacity of 54 megawatts (MW), and an investment of $73,230,000.

 

This project will allow El Salvador to generate energy through wind, for the first time in its history. This plan is part of the projects that were allotted and selected for its development by the Government of El Salvador, years ago. It is promoted by the tender of 170 megawatts of non-conventional renewable energy.

 

The Promoter Organism of Exports and Investments of El Salvador (PROESA), as part of the Government of El Salvador, developed an active role in the promotion of the bid, at an international and national level. PROESA evaluated the fulfillment of the requirements from the businesses that introduced their offers and advised companies on how to fulfill the law requirements, in order to be candidates for the approval of their projects development; like in the development of this wind park.

 

The construction of the project will start this year and will be located in La Joya, Metapán, in the northwestern zone of El Salvador. The operating company will be the Guatemalan Tracia Network Corporation.

 

Some benefits that the execution of this project brings to El Salvador are: the reduction of the oil bill in approximately $14,000,000 every year, the diversification of the energetic matrix, and the generation of 20 direct and 300 indirect jobs.

 

As part of the corporate social responsibility of the company developer of the project, it will allocate three percent of the total investment to the development of local works in Metapán and its direct area of influence.

 

Since the signing of the contract of legal stability, the company acquires guarantees that the terms and conditions that have been introduced will not change during the development of the project. This is a guarantee that gives the Legal Stability Law for the Investments of El Salvador. This law is applicable for sectors like: energy, telecommunications, manufactures, agro industry, aeronautics, logistic, health services, among others.

 

In consideration of the subscription of the contract, the investor will have, for a period of 20 years, the following guarantees: a) Tax stability in the municipal field, derived from the juridical regime of the current taxes. b) Tax stability in the municipal area, derived from the juridical regime of the current municipal taxes. c) Stability in tax benefits, contained in the Special Laws, for the term that the pertinent institution had consented. d) Stability in the customs regime, derived from the Special Laws related with duty refunds, suspensive and non-discharging. e) Stability in the free transference to foreign countries of the funds coming from foreign investments, in accordance to the Investments Law. f) Stability in the migratory regime related with the investor´s residence, consistent with the established in the Investments Law and other current legislation, among other benefits. (Art. 6 of the Legal Stability Law for the Investments).

 

The signature of the contract was presided by the Economy Ministry, Luz Estrella Rodríguez; the Vice-president of the Republic, Óscar Ortiz; and representatives of the company.

 

To know more about the services that PROESA provides, call (503) 25927000 or visit our website: ww.proesa.gob.sv

 

Follow us in our Twitter account @Proesa_sv

February 12th of 2019

 

 

 

Actualizado 05/31/2019
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