Chinese Government provides grant for Surf City Potable Water, Roads, and Parks Project (Linked to Project ID#71118)

On August 20, 2018, the Government of El Salvador announced that it was severing diplomatic ties with the Republic of China (‘Taiwan’) and establishing diplomatic ties with the People’s Republic of China (‘China’). Then, on September 20, 2019, the Chinese Government and the Government of El Salvador signed and Economic and Technical Cooperation Agreement (ETCA), which committed RMB 400 million ($62.24 million) of grant funding for multiple projects (including the National Library Construction Project, the Surf City Potable Water, Roads, and Parks Project and the Lake Ilopango Water Treatment Plant Project). Approximately two months later, on December 3, 2019, during an official visit of President Xi Jinping to El Salvador, the Chinese Government and the Government of El Salvador signed another ETCA (see Project ID#71118), which committed an additional $500 million for multiple projects (including the National Library Construction Project, the Surf City Potable Water, Roads, and Parks Project, the Lake Ilopango Water Treatment Plant Project, the Port of La Libertad Pier Expansion and Restoration Project, the Joya de Cerén Archaeological Site Restoration Project, and the National Stadium Construction Project). The Chinese Government and the Government of El Salvador also signed an exchange of notes (‘canje de notas’) on the Surf City Potable Water, Roads, and Parks Project on December 3, 2019. Then, in May 2021, El Salvador’s legislative assembly ratified the September 20, 2019 ETCA. The purpose of the Surf City Potable Water, Roads, and Parks Project is to develop the tourist destination of Surf City (or Surfcity) by building a drinking water distribution system and a sewage treatment system as well as developing a circuit of pedestrian streets, sidewalks, parks, boardwalks, and underground wiring. Surf City encompasses the coastal locations of Ahuachapán, Sonsonate, La Libertad, La Paz, San Miguel, Usulután and La Unión, and is a flagship scheme for the country’s President Nayib Bukele. The President of National Administration of Aqueducts and Sewers (ANDA) has stated there is currently no drinking water network in some of these coastal areas which are popular among national and foreign tourists. The monetary value of the Chinese Government grant commitment for the project is unknown. The drinking water distribution system and sewage treatment system are together estimated to cost $30-35 million. Surf City is widely considered to be a flagship scheme of the country’s President Nayib Bukele. As of March 2021, the project had achieved a 50% completion rate. As of May 2021, the project had achieved a 60% completion rate. On February 10, 2022, El Salvador’s Minister of Public Works, Romeo Rodríguez, reported that one of the priority projects in 2022 for the Government of President Nayib Bukele would the development of Surf City. In July 2022, a local media outlet reported that project implementation was still underway and the Chinese Government had donated 5 mechanical rides and games (a ferris wheel, a roller coaster, a carousel, a frog jump, and a boat) for use within the amusement park being constructed along the boardwalk near the pier of La Libertad.

Additional details

1. This project is also known as the Surf City Project and the Surfcity Potable Water, Roads, and Parks Project. The Spanish project title is Proyecto de Asistencia del Agua Potable y Residual del "Surfcity" en la Zona Costera del Departamento de La Libertad or El Complejo Turístico del Puerto de La Libertad. The Chinese project title is “冲浪城市”旅游发展中心基础设施改扩建. 2 The September 20, 2019 ETCA (grant agreement) can be accessed in its entirety via https://www.dropbox.com/s/qnkll6xiq2b650b/E1xG-25XIAMobM6.jpeg?dl=0. 3. For the other projects agreed to under the December 3, 2019 ETCA, see Umbrella Project ID#71118. 4. As of April 2021, work was underway on the sewage treatment plants near El Tunco and El Zonte beaches. At that time, the El Zonte plant was 90% complete and it was being financed by Fondo del Milenio II (FOMILENIO II), which is turn was financed by the U.S. Government’s Millennium Challenge Corporation.

Number of official sources

6

Number of total sources

14