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Government of El Salvador supports loan with Chinese company Yutong to renew 1,500 buses

There will be up to US$ 179 million in financing.

06 May 2024

The Treasury Commission of El Salvador has approved a favorable opinion for the government to sign a loan agreement with the Chinese company Yutong, for an amount of up to $179 million. This financing will be used to acquire 1,500 bus units, with the objective of renewing 100% of the public transportation units in the country.

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The Yutong company, founded in 1963 in Zhengzhou, Henan, China, is a manufacturer of bodies for buses and minibuses for urban and interurban use, in addition to participating in the heavy machinery industry. Their offer was the best bus financing, according to Salvadoran authorities.

The loan is based on the Special Law for the Contracting of Public Works and Essential Services with Financing Included, approved in El Salvador in 2022. In addition to this agreement with Yutong, the Ministry of Public Works and Transportation (MOPT) is exploring other sources of financing. financing, such as with the Inter-American Development Bank (IDB) and other multilateral organizations, to improve the public transportation fleet in the country.

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According to Minister Romeo Rodríguez, “The buses of that brand were used even in the 2022 World Cup in Qatar, and that gives an idea that it is a good company.” Furthermore, in the United States export market, from January to December 2023, Yutong was the company that sold the most units to that country.

It is important to highlight that the purchase of the 1,500 transport units does not mean that the Salvadoran Government will not work together with businessmen in the sector. It is expected that this renewal of the fleet will contribute to improving public transportation service and promoting more sustainable mobility in El Salvador.