The Inter-American Development Bank (IDB) has approved a Conditional Credit Line for Investment Projects (CCLIP) of up to $500 million to help reduce flood vulnerability in El Salvador. As part of this initiative, the IDB’s Executive Board has authorized an initial $150 million loan to finance a project specifically targeting the Metropolitan Area of San Salvador (AMSS), where frequent and intense floods pose serious risks to life, disrupt daily activities, and cause significant economic damage.
The project will tackle the main drivers of flood vulnerability, including limited access to adequate urban drainage, gaps in technical planning and management, weaknesses in early-warning systems, and challenges with solid waste disposal in drainage networks. Funding will support the construction and maintenance of urban drainage infrastructure, including detention ponds, sustainable urban drainage systems, rehabilitated vaults for controlled rainwater storage, and strengthened culverts.
The initiative is expected to directly benefit around 5,100 households, totaling 15,200 people, and approximately 700 businesses and public institutions by providing access to improved urban drainage. The project will also enhance flood preparedness across the AMSS, with all residents benefiting from upgraded early-warning systems and public awareness campaigns. In addition, 70% of participants in training workshops will receive certifications in urban drainage management and early-warning system operations.
Institutional strengthening of the Ministry of Public Works and Transportation is another key component, ensuring that local authorities can manage flood risks effectively and sustain the improvements over time. The $150 million loan has a repayment term of 23 years, including a grace period of 7.5 years, with an interest rate tied to the Secured Overnight Financing Rate (SOFR), reflecting IDB’s long-term commitment to climate resilience and urban safety in El Salvador.
