El Salvador has announced it has secured a $1.6 billion investment from a Turkish firm Yilport Holding which will be used to modernize its infrastructure including at a new port at La Union where the Bitcoin City will be developed.
The investment, which will be administered in phases starting this year is also expected to bolster El Salvadorâs booming cryptocurrency market, in addition to general economic activity.
This funding, will also be utilized to enhance the port at Acajutla and it marks significant steps towards its infrastructure and economic growth.
The new investment to transform infrastructure
The country recently revealed its plans for billions worth of investment for the development of its ambitious Bitcoin City. This investment will focus on improving infrastructure; especially the ports at Acajutla and La Union with the aim of transforming the region into a high-tech hub. The project is expected to result in reduced wait times at the ports, among other benefits.
The port at La Union is reportedly not realizing its full potential due to poor infrastructure, a situation that is about to change with the latest investment, coupled with development of the Bitcoin City.
El Salvador President Nayib Bukele shared the news in a video posted on the X platform. He said:
âYılport Holding Inc. will allocate over $1.615 billion to the Pacific Ports Union. This includes modernizing the Acajutla port and eventually operationalizing La Union port.â
The investment is being facilitated by Yilport Holdings. The $1.6 billion investments also becomes the most significant financial commitment by the private sector in the country.
El Salvadorâs sojourn into becoming a logistics hub
The deal entails that Yilport Holdings and the Autonomous Executive Port Commission (AEPC) will manage the port facilities for 50 years, which aligns with the countryâs broader vision of being a vibrant logistics hub for Latin America. CEPA leader Federico Anliker said:
âStrengthening our ports with this historic private investment will elevate El Salvadorâs position significantly.â
The investment is expected to reinforce the countryâs plans of increased cryptocurrency adoption. With infrastructure improvements at Acajutla and La Union, El Salvador anticipates to start witnessing the expected growth and economic activity.
This will also fall in line with its planned Bitcoin City project, which will have residential and commercial areas as well as several landmarks. Further adoption of Bitcoin and other digital assets is expected to continue growing as the project starts to take shape.
This latest initiative is a set of plans meant to make Bitcoin an integral part of the national economy as per President Bukeleâs plans since 2021.
