For Immediate Release

SAN SALVADOR (February 9, 2004) – On February 2, 2004, the U.S. Trade and Development Agency (USTDA) awarded a $337,235 grant to the Ministry of Economy (MINEC) of El Salvador to fund the development of a comprehensive plan for designing and implementing a national energy policy that meets the country’s short-term needs and prepares for its long-term goals.  The Honorable Grant Aldonas, Under Secretary of Commerce for International Trade, signed an agreement conferring the grant on behalf of the U.S. Government.  Mr. Miguel Lacayo, Minister of Economy for the Government of El Salvador, signed on behalf of the grantee.

The USTDA grant awarded today is central to MINEC’s efforts to develop a national energy policy sufficient to address national goals related to energy consumption and economic growth.  The grant is the first awarded by the agency to MINEC and reflects the USTDA commitment to support trade capacity-building projects that expand a developing country’s ability to engage in international commerce.  Moreover, the grant was developed consistent with the objectives of the U.S.-Central America Free Trade Agreement (CAFTA), which is currently under review by the Governments of El Salvador, Guatemala, Honduras, Nicaragua and the United States.

The USTDA-funded technical assistance will support El Salvador’s efforts to consolidate recent electric market reforms that the country has undertaken.  The goal is to guarantee price stability in the short run, and assure supply in the long run, as well as establish incentives for the development of the electric sector, including distribution and commercialization activities.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries.  The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.  USTDA’s strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development.  In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.