El Salvador Secures $1.6 Billion Investment for Bitcoin City Port Transformation

By: Isha Das

In a historic move, El Salvador’s President Nayib Bukele announced that Turkish firm Yilport Holdings will invest $1.6 billion to upgrade two key ports, Acajutla and La Unión. This investment marks the largest private financial commitment in the nation's history and is a pivotal part of the government's economic development strategy focusing on logistics. In a video statement, Bukele highlighted that this initiative would create enhanced trade opportunities and foster economic growth in the Central American country.

The investment will be structured as a joint venture between Yilport Holdings and El Salvador’s Comision Ejecutiva Portuaria Autónoma (CEPA) and will extend management of the ports for 50 years. The project is scheduled to commence by the end of this year and will progress in phases. The first phase at Acajutla will involve infrastructural modernization and acquisition of new equipment. The second phase aims to significantly expand the port’s capacity. At La Unión, a port that has remained idle for almost two decades, the initial phase will focus on dredging and updating the port’s equipment.

Mauricio Ortiz, a member of El Salvador's Legislative Assembly, emphasized the importance of this investment, stating, “Investing in the modernization of the port of Acajutla and rescuing the port of La Unión is extremely key to generating economic dynamism in the country through foreign investment and local employment.”

Bitcoin City is one of President Bukele's most ambitious initiatives. The envisioned city will serve as a tax haven with residential areas, commercial hubs, museums, entertainment venues, bars, airports, ports, and rail connections. Leveraging geothermal energy, the city will also focus on Bitcoin mining. Despite the grand announcement of funding via the Volcano Bond back in 2021, construction has yet to begin, making this port transformation a crucial initial step towards realizing Bitcoin City.