A press release from the Presidency of the Republic of El Salvador reads:
The president passed on Wednesday, October 5, 2011, the "Law on the concession for the multi-purpose port specializing in containers, Phase I, the port of Central American Union", approved with 71 votes in the Legislative Assembly on 8 September.
The legislation was presented to Members on 21 March this year on the initiative of the President, through the Minister of Public Works, and consists of 28 articles in which the concession conditions for this infrastructure are set out.
The concession process, according to the law, will be the responsibility of the Autonomous Executive Port Commission (CEPA), an entity that will create an international public tender for selecting a company specialized in handling containers.
The Act provides that the concession period will be up to 30 years and the company who wins the tender will be responsible for administration, equipment, commercial exploitation, infrastructure development, promotion, international positioning and generating business in the port .
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March 2011
By next week, the government will send to the National Assembly a draft law for the concession of the port of La Union.
The concession is to be developed under the “landlord” format, in which the State retains control and ownership of the assets but delegates responsibility to a private operator in order to develop the business on his own account and risk, stated Salvadoran president Mauricio Funes.
September 2010
The Assembly is to receive the bill toward the end of next month and its approval is expected by the end of the year.
Should this happen, by the second half of 2011 the tender process could be launched, according to predictions by the International Finance Corporation (IFC) and El Salvador's state ports authority (CEPA).
September 2011
The Legislature has passed a law allowing the concession for the Puerto La Union.
The new legislation will grant a concession of up to 30 years for the port terminal to private companies, who must invest $30 million in the first five years of the concession for equipment and operation of the terminal.
March 2011
The bill provides for a 30 year concession and an investment plan of at least $30 million.
The company winning the bid will implement the investment plan during the first five years.
"The Minister of Public Works, Gerson Martinez, confirmed that the project will operate under the 'Landlord' system," informs Elsalvador.com.
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