El Salvador's $1.6B investment by Yilport Holding modernizes ports, setting the stage for the proposed Bitcoin City.
Yilport Holding's $1.6B investment marks the largest private investment in El Salvador, enhancing trade via port modernization.
The investment aligns with El Salvador's Bitcoin City plan, transforming La Union into a tax haven powered by geothermal energy.
El Salvador has announced a $1.6 billion investment by Turkish company Yilport Holding. The investment aims to modernize two critical ports, Acajutla and La Union, which is also the site for the proposed Bitcoin City. The project marks the largest private investment in the nation's history and is expected to bolster El Salvador's position as a logistics hub.
https://twitter.com/RadarHits/status/1822962831395811698 Major Infrastructure Upgrade
The investment will be rolled out in phases, with the first set to begin at the end of 2024. Yilport Holding will allocate over $1.615 billion to the development of the Pacific Port Union. The project will not only modernize the Acajutla Seaport but will also activate the La Union Seaport, a long-neglected site that has remained dormant since its construction over two decades ago.
According to President Nayib Bukele, this development is a direct result of his diplomatic efforts during a 2022 visit to Turkey. The ports will be operated as a mixed-ownership company between Yilport and CEPA, the state port authority, under a 50-year agreement.
Bitcoin City's Strategic Role
La Union's transformation is particularly significant as it ties into El Salvador's broader vision of establishing Bitcoin City. The city is planned to be a tax haven, utilizing geothermal energy from nearby volcanoes to power Bitcoin mining operations.
President Bukele has promised that Bitcoin City will have zero income tax, property tax, procurement tax, and city tax, aiming for minimal environmental impact with zero CO2 emissions. The only tax in the city will be a Value Added Tax (VAT), half of which will fund municipal bonds and the other half will maintain public infrastructure.
Economic Impact and Future Prospects
This massive investment in port infrastructure is expected to unlock new trade opportunities for El Salvador, especially with the strategic location of the Pacific Port Union. The project’s final phase will enhance the country’s trade routes and contribute to the economic growth associated with Bitcoin City.
As El Salvador continues to harness volcanic power for Bitcoin mining, the country’s Bitcoin reserves have grown to 5,839.76 Bitcoins, valued at over $348 million. The government’s online Bitcoin Treasury provides real-time data on these reserves, highlighting the nation’s commitment to its cryptocurrency initiatives.
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