- The partnership covers the development of energy storage, solar photovoltaic generation, natural gas, and water and sanitation projects
- Cox will structure the financing and will develop, build, operate and maintain the projects, subject to the relevant approvals and the execution of the specific agreements
- The program includes storage systems with an estimated initial capacity of 440–500 MWh, expandable to 1,000 MWh, and two solar plants with an estimated initial capacity of 200 MW, expandable to 400 MW
- The agreement also includes a liquefied natural gas terminal and a combined-cycle power plant of approximately 380 MW, which will help make El Salvador a new regional energy hub
Madrid, October 14, 2026. Cox, the global integrated water and energy utility, has signed an agreement with the Government of the Republic of El Salvador to drive an investment program estimated at US$2.9 billion. The program will develop and modernize strategic water and energy infrastructure in the country.
The agreement was signed at Casa Presidencial by the President of the Republic of El Salvador, Nayib Bukele, and the Executive Chairman of Cox, Enrique Riquelme. It is built around four strategic partnerships in energy storage, solar photovoltaic generation, natural gas, and water and sanitation management.
The transaction is a further step in Cox’s growth strategy in Latin America. It also strengthens Cox’s model as an integrated company that can develop, finance, build, operate and maintain critical water and energy infrastructure. Through this partnership, Cox will put its industrial, technological and financial expertise at El Salvador’s service. The aim is to help strengthen energy security, increase the share of renewables, and improve the quality and coverage of water and sanitation services.
In the energy segment, the State is expected to take part as a partner. Subject to the relevant approvals and the execution of the specific agreements, Cox will structure the financing of the projects through project finance schemes. International financial institutions, multilateral organizations and export credit agencies will take part. The company will also develop, build, operate and maintain the projects.
The work will be carried out over the next three years. The relevant approvals are expected to be completed in the coming weeks, along with progress on the specific agreements.
Four strategic agreements
In energy storage, the agreement provides for battery systems connected to the national power grid. Their estimated initial capacity is between 440 and 500 MWh, expandable to 1,000 MWh. These facilities will help make the power system more stable and allow more renewable energy onto the grid.
The partnership also includes two solar photovoltaic plants, to be developed together with the Lempa River Hydroelectric Executive Commission (CEL). Their estimated initial capacity is 200 MW, expandable to 400 MW.
Plans also include a liquefied natural gas (LNG) regasification terminal and a combined-cycle power plant of approximately 380 MW. This infrastructure will increase generation capacity and help position El Salvador as a regional energy hub.
Finally, the agreement includes measures to improve water and sanitation management, expand coverage and raise service quality. In these areas, Cox will bring its experience as an international operator of water infrastructure.
A long-term strategic partnership
The agreement is part of the Government of El Salvador’s program to modernize the country’s energy and water infrastructure. The program also aims to establish El Salvador as an investment destination in the region.
“Our commitment to El Salvador and Latin America is a long-term one. We will put our experience as a water and energy utility at the country’s service to strengthen its power system, add more renewable energy and improve water service. With the natural gas terminal, El Salvador will become the region’s benchmark and its most important energy hub. We thank President Bukele and his Government for the trust they have placed in Cox,” said Enrique Riquelme, Executive Chairman of Cox.
For his part, Nayib Bukele said: “This agreement allows us to attract international investment for cleaner and more reliable energy, as well as the technical support needed to guarantee a quality water supply, without committing new public funds and with clear rules.”
Latin America, a strategic priority for Cox
The partnership with El Salvador strengthens Cox’s commitment to Latin America. The region accounts for approximately 95% of the company’s activity, and Cox has an investment plan there of more than US$7 billion in strategic water and energy projects.
The agreement adds to other major projects the company has recently launched in the region:
- the Rosarito desalination plant
- the acquisition of Iberdrola México
- new renewable generation and storage projects in Central America
- the expansion of its power transmission platform in Brazil
Cox runs its regional platform for the Americas from Panama, which brings management and decision-making closer to its main markets, projects, financial partners and institutions.
