El Salvador grants tax exemptions to 4 infra projects

El Salvador's legislative assembly has approved tax exemptions for four infrastructure projects overseen by the ministry of public works (MOP), including the Gerardo Barrios peripheral ring road works.

The decree exempts the projects from paying any taxes, duties, and levies related to acquisitions, purchases, contracts and imports.  

Gerardo Barrios peripheral ring project, located in San Miguel municipality, is reportedly 70 percent completed, said the assembly. Its capex tops US$160mn and includes the expansion and construction works along 21km, including the San Miguel bypass located in stretch II of a total of four.

The second project benefitted by tax exemptions is the rehabilitation and repair of collapsed bridges and other structures damaged by tropical storm Julia, whcih struck the country last October.

The third project is the refurbishment of El Salvador’s University facilities (UES), which are meant to house athletes during the 2023 Central American and Caribbean games. 

The fourth project is the program for maintenance of rural roads for development, which aims to improve local mobility, provide inhabitants with access to basic services, and speed up transportation of people and goods across several regions of the country.

In November, the assembly granted tax exemptions for the construction of Francisco Morazán viaduct and expansion of highway CA01W (Los Chorros).