American Industrial Park

repaid

American Industrial Park, S.A. de C.V. (AIP) is one of the main industrial parks in El Salvador with more than 190,000 m2 of industrial space, most of which houses international companies primarily in the textile sector. It has been in operation since 1993 and plans to invest in expansion of its industrial space and the installation of solar panels for own-use renewable energy.IDB Invest is considering granting a long-term loan to finance installation of the solar plant, which will have a nominal capacity of 6.5 MW, for which the Nordic Development Fund is expected to provide a first loss guarantee for up to $1.25 million. The loan would also cover the construction of industrial space infrastructure, targeting the logistics and storage sector, with the construction of 17,000 m2 in a new park called the Sirius Industrial Park (SIP), which will belong to AIP, and will offer additional medical clinic services for the employees of the companies to be installed there. All of the above is called “the Project.”Both AIP and its SIP expansion program are located on the Pan American Highway, 30 minutes from the country’s main seaport and close to rural cities outside the metropolitan area of greater San Salvador such as La Libertad, Santa Ana, and Sonsonate, where 48% of the population is concentrated.The proposed loan has the following objectives: (i) to convert AIP into the first industrial park and free zone in El Salvador with a fully redundant power supply, which will serve as a model to be replicated; (ii) to help develop with AIP a plan for comprehensive utilization of wastewater for different uses in the park; and (iii) to increase employment opportunities in the zone by providing a greater supply of services for the logistics and storage sector in the zone, supplemented by an approach that integrates health with clinic services not existing in the area of expansion.