Guatemala City (TIP): In a significant stride toward strengthening infrastructure and economic development in El Salvador, Lakshmi Capital, a Finance Company, and the Ministry of Public Works and Transportation of the Republic of El Salvador signed a Letter of Intent in San Salvador on 4th December 2023. The signing ceremony, graced by the presence of Ambassador of India in Guatemala, Dr. Manoj Kumar Mohapatra, underscores the commitment to initiate a transformative project – the development of a metro line in San Salvador. The metro line project aims to invigorate the economy and modernize transportation infrastructure in the country. Following a comprehensive pre-feasibility study, the decision was made to embark on the creation of a subway system in San Salvador, leveraging international investment for optimal outcomes.
The Ministry of Public Works and Transportation will play a pivotal role by providing pre-feasibility analyses, designs, legal frameworks, and mechanisms essential for the successful implementation of the project. Lakshmi Capital, in turn, will contribute technical expertise and investment mechanisms to facilitate the development, construction, implementation, operation, management, and maintenance of the Massive Transport System of Passengers in the Metropolitan Area of San Salvador. Laxmi Capital is the first non-bank financial company with capital of Indian origin to facilitate the development of energy, digital transformation, transportation, infrastructure and industrial projects. It is at the forefront of transforming the landscape of cross-border investments between India and Central America by ensuring the smooth availability of working capital for the region. Laxmi Capital is committed to delivering cutting-edge technology from India to facilitate the successful implementation of projects across various industries in the region.
The Letter of Intent was signed between Minister Romeo Rodríguez of Ministry of Public Works, Government of Republic of El Salvador and Transportation and Mr. Russell Alexander Luther Rodas of Laxmi Capital in the presence of Vice Minister of Transport Mr. Nelson Reyes. The event formalizes the shared commitment of both entities to work collaboratively within the regulatory framework of El Salvador. The project aims to enhance the public transport system in the metropolitan area, fostering economic growth and improving road safety.
Recognizing the significance of this partnership, Ambassador Dr. Manoj Kumar Mohapatra expressed his best wishes and stated that the project is not just about infrastructure development; it represents the convergence of nations toward a shared vision of progress. It opens new avenues for Indian companies to contribute to the economic landscape of Central America, an area rich in potential and opportunities for future growth.
The signing ceremony was convened after a series of meetings between the Ministry of Public Works and Transportation and Lakshmi Capital, reflecting their joint commitment to the successful implementation of the project. Both parties will now engage in the exchange of critical information, laying the foundation for the analysis, study, and proposal phases of the initiative. In the spirit of transparency and effective project management, a Follow-up Commission will be established to ensure adherence to the terms outlined in the Letter of Intent. The commission will be tasked with addressing any queries or concerns that may arise during the project’s execution.
The metro line project is poised to redefine transportation infrastructure in El Salvador and offers Indian companies a gateway to leave a lasting impact in the Central American region. The collaboration aligns with the shared commitment to economic progress and sustainable development.
