This is the second agreement that ICO and CAF sign within the framework of the ICO Canal Internacional Line. The first was subscribed in 2016 for an amount of USD 300 million.
The government is spending more on roads, bridges, schools and water projects in northern regions that suffered major damage due to flooding last year.
The funds will finance different works to upgrade and expand the Las Pavas potable water treatment plant, which supplies residents of capital San Salvador and its metropolitan area.
Current governor and frontrunner in the election race, Paulo Camara, promised major sanitation works for the Brazilian state in the coming years.
The new office will only attend seven municipalities in the department's southern area, but the housing ministry plans a separate water utility for the entire department.