El Salvador Airport and Train Development

El Salvador’s legislative assembly approved a special regulatory framework which aims to fast-track the planning, construction, exploitation, and administration of the new airport,  known as “Aeropuerto Internacional del Pacifico”. The legislation makes the Autonomous Port and Airport Administration (CEPA) responsible for the planning, construction, exploitation, and administration of the new airport.

It also provides a new procurement and contracts guideline as the Law of Acquisitions and Contracts of the Public Administration (LACAP) will not be applied. Tax incentives will be given to companies and industries that locate within the airport zone, applicable during the construction period and for 25 years of operation. Tax exemptions include 13% value added tax, income tax, any and every tax imposed on machinery, equipment, tools, materials, spare parts, accessories, utensils, lubricants, and fuels needed for the construction, administration, operation, and maintenance of the airport. Also, the legislation authorized CEPA and Ministry of Public Works and Transportation to enter into private agreements or to create companies to guarantee the construction, operation, administration, and maintenance of the new airport.

Additionally, a special regime for the simplification of procedures and administrative acts related to the train, known as “Tren del Pacifico” was approved by the legislative assembly with the intention to expedite the procurement and acquisitions process related, meaning the Law of Acquisitions and Contracts of the Public Administration (LACAP) will not be applied.  All construction permits will be process in an agile manner, purchases will be exempt from taxes, and the acquisition of real estate for the railway will be made under this special regime. The Tren del Pacifico project is in the bidding stage for basic engineering design, including topographic study, geometric design, hydrological and seismicity study, main and complementary structures, and implementation of risk analysis and contingencies. 

Copy of the laws are available in El Salvador’s Official Gazette 

For more information, contact the U.S. Commercial Service Office in San Salvador at office.sansalvador@trade.gov.