Infra, water projects stalled due to Hurricane Stan damage

Wednesday, October 26, 2005

El Salvador's government has decided to put on the backburner a number of infrastructure and water projects as it reallocates US$63.8mn for repairing damage in the aftermath of Hurricane Stan and the Santa Ana volcano eruption, newspaper El Mundo reported.

The government has redirected US$30mn from the San Salvador capital beltway project - which was planned to circumvent the city in a 70km ring - to improve the capital's drainage system, build and reinforce retaining walls on rivers, and perform a series of road repairs.

Another US$13.8mn for improving the country's potable water quality and waste collection services have been redirected to unclogging the sewerage system at Ilopango lake and to performing flood mitigation works at Cordillera del Bálsamo, both located in San Salvador department.

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An additional US$20mn, originally set aside to provide subsidies for house reconstruction after the 2001 earthquake, will now be distributed as soft loans for entrepreneurs to restart their businesses.

Total damages sustained in El Salvador due to Hurricane Stan and the Santa Ana volcano eruption amounted to US$240mn, according to past reports.