What does the government's mixed economy company imply for the ports of Acajutla and La Unión?

At the end of the 50 years “everything will be left to the State” and they could evaluate extending the partnership, according to Anliker.

The president of the Autonomous Executive Port Commission (CEPA), Federico Anliker, stated on Tuesday that the agreement between the Turkish company Yilport Hondilg and the Salvadoran government is a mixed economy society, not a concession or a privatization.

In this mixed economy society, the Salvadoran government and the Turkish company Yilport Holding agreed on economic participations, a board of directors, implementation term, extension possibilities and the status of the port employees.

Last Sunday, the government announced the concession of the ports of Acajutla and La Union to the Turkish company for the next 50 years, which will allow an investment of $1.65 billion for both port terminals.

Anliker explained during an interview on Telecorporación Salvadoreña that as a society, they are going to request the Naval, the maritime regulator, to grant Yilport a license to “exploit the administrative and operational part” of the ports of Acajutla and La Unión. He assured that in this way, CEPA will remain as the port operator.

The official reiterated that with this society they are not “ceding the quality of port operator”, but that “the ownership of the ports continues being of the Salvadoran State”.

In addition, he said that Yilport’s participation in the company will be 80%, while CEPA will contribute 20%. While the company’s contribution will be in money, CEPA will put in equipment. “We made enough investments that it can be passed on to be part of this partnership,” he said.

There will be an evaluation for “good workers”.

Anliker was asked about the permanence of CEPA employees currently working at the ports of Acajutla and La Union.

“Everything that has been talked about in previous negotiations is to respect our workers,” affirmed the president of CEPA.

Although he admitted that there will be a transition period “where the good workers will be evaluated”, who will be given priority. “We as a State are there to protect the good worker,” he said.

On the other hand, Anliker revealed that CEPA will be part of the company’s Board of Directors:

President (assigned by Yilport).

Vice President (assigned by CEPA).

Secretary Director (assigned by both parties).

Being part of the Board would allow the State to “expropriate the contract” in case of abuses and defaults. “We maintain the sovereignty of El Salvador’s ports and have both economic and decision-making participation.”

The president of CEPA also asserted that after the 50 years for which the partnership was signed “everything is left to the State”, and assured that extending it is a “possibility that of course exists”, although it will depend on the results and the situation at that moment.

Anliker explained that the agreement will last 50 years because the company proposed more years, which the U.S. company Honton advised the government to establish it for 50 years as “a middle point”.

The $1,615 million investment will be made in three two-phase phases established by the Turkish company together with the Salvadoran government.

Source: Diario El Mundo