El Salvador to Expand Digital Infrastructure with IDB Support

The Inter-American Development Bank (IDB) has approved a $60 million loan to help El Salvador enhance its digital government services, acting as a catalyst for the country's economy.

The Program for the Development of El Salvador's Data Infrastructure, approved by the IDB's Board of Executive Directors, will enable the country to expand its digital infrastructure and improve people's skills in using this infrastructure and the state's digital services.

The program will benefit approximately 57 government institutions, 1,140 information technology workers, and 10,000 public employees. It will train around 2,000 women in advanced digital skills and 40,000 citizens in basic digital skills. The initiative aims to provide all government institutions access to the state cloud making online services more available and improving governance. As many as 6.3 million citizens and businesses in El Salvador will benefit from more accessible and efficient digital services.

"The Program for the Development of El Salvador's Data Infrastructure is designed to optimize and modernize the state's data infrastructure, in line with how hybrid cloud computing models are being used globally. This will give the state greater control over sensitive information, boost interoperability, and help upgrade its technology," said Anderson Caputo, Chief of the IDB's Connectivity, Finance and Markets Division.

The program is structured around two components. The first will finance work to adapt and equip a building to operate a State Data Center. This component will also focus on migrating digital services and strengthening connectivity for interoperability, among other activities.

The second component centers on boosting digital skills by training specialists in digital government infrastructure, as well as information technology personnel at user institutions. It will also train citizens in digital skills, with a special focus on women, girls and people with disabilities through modules that build awareness about the importance it is for these groups to access technologies.

The $60 million IDB loan has a 25-year repayment period, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).