- This will be the first industrial park in the country to receive an uninterrupted supply of solar energy and will contribute to mitigating greenhouse gas emissions.
IDB Invest, a member of the IDB Group, provided an $8 million loan to the American Industrial Park (AIP) company, which owns one of the most important industrial parks in El Salvador. The financing will support the expansion of AIP, increasing its storage capacity and improving its logistics. Additionally, it will help complete the installation of a self-generating electricity photovoltaic park, mitigating its energy dependence on the national grid with the use of renewable energy.
The financing, which has a tenor of 11 years, will allow AIP to maintain its competitiveness in the medium term with the expansion of 17,000 square meters of industrial rooftops. This will help promote the development of this new industrial zone and workers will be offered access to social and health services that are not currently available. The expansion will generate new jobs for workers from the surrounding areas.
This deal will also help finance over the long term an 8MW photovoltaic self-generation plant on the industrial roof of the park, which will provide 20 percent of the park's energy capacity and reduce dependency on the grid. In addition, the solar energy generated could partially mitigate the increases in electricity rates for the park's client companies and also the increase in consumption resulting from the expansion. AIP will be the first industrial park to receive an uninterrupted supply of solar energy and will contribute to mitigating the emission of greenhouse gases in the country.
In El Salvador, free trade zones and industrial parks are an important area of economic development. They attract foreign investment, generate about 250,000 jobs (direct and indirect) and represent almost 50 percent of the country's exports. In addition, they promote an inclusive work model, with 60 percent of female employment. The economic development of the country requires the growth of these areas, but also that its electricity generation costs are competitive so that they do not impact the profitability of the installed companies.
Working with IDB Invest, AIP will make improvements in its environmental and social practices, particularly in areas such as waste management and in the proper use of water sources (underground and surface) within the park. The operation is part of IDB Invest's support for the industrial development of El Salvador, through projects that generate economic, social, and environmental benefits for the country, especially relevant in the context of the health and economic crisis generated by COVID-19.
This operation potentially contributes to five of the United Nations Sustainable Development Goals (SDGs): Affordable and Clean Energy (SDG 7); Decent Work and Economic Growth (SDG 8); Industry, Innovation and Infrastructure (SDG 9); Responsible Consumption and Production (SDG 12); and Climate Action (SDG 13).
About IDB Invest
IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable companies and projects to achieve financial results and maximize economic, social and environmental development in the region. With a portfolio of $12.1 billion in asset management and 333 clients in 24 countries, IDB Invest provides innovative financial solutions and advisory services that meet the needs of its clients in a variety of industries.
About American Industrial Park
American Industrial Park (AIP), is the largest industrial park in El Salvador with more than 200,000 m2 of industrial rooftop, which houses more than 25 international companies focused mainly on the textile, clothing, logistics and warehousing sectors. The park was founded in 1993, and since then it has continued to grow and diversify, continuously investing in the conceptualization, design, construction and maintenance of industrial warehouses for local and international companies, as well as in the diversification of its business line in the renewable energy sector, mainly in photovoltaic projects for both self-consumption and supply to local distribution companies in the country.