Saudi’s SFD extends loan to El Salvador for water treatment and biogas energy plant

SFD greenlights its El Salvador water + biogas project: The Saudi Fund for Development (SFD) signed a USD 83 mn development loan agreement with El Salvador to fund a water treatment and biogas power generation project using water from the Central American country’s Acelhuate River, according to a statement released Thursday. This project — which will benefit over 1.2 mn people — aims to enhance El Salvador’s renewable energy capacity and support environmental sustainability. No timeline for the project or further information was disclosed.

We knew this was coming: The SFD agreed to fund the water treatment and biogas energy general project plant in El Salvador under an MoU signed last month. This marks the first green partnership between the kingdom and the Central American country.

Not KSA’s first partnership in Central/South America: The governments of Brazil and Saudi Arabia discussed potential investments in sectors including renewables, mining, and agriculture in December 2023. The two countries also signed 25 MoUs during the Brazilian-Saudi Investment Forum in August 2023 to boost bilateral cooperation across the desalination, water treatment, and agriculture sectors.