Key Points
- El Salvador announced a $1.6 billion private investment, the biggest in the nation’s history.
- The Yilport Holding investment will modernize the Acajutla port and build a new port at La Union.
El Salvador’s President Nayib Bukele announced a massive economic plan that would support the building of a Bitcoin City.
The $1.6 billion private investment is reportedly made by Yilport Holding and is set to modernize the port at Acajutla and build a new port at La Union, where Bitcoin City is planned.
The Largest Private Investment in El Salvador’s History
Via a post shared on X today, August 12, Bukele shared a video detailing Phase 3 of his government’s economic plan. According to the clip, the plan is set on logistics and it starts with the largest private investment in the history of El Salvador.
Yilport Holding will invest over $1.615 billion into the Pacific Port Union. This will modernize the Acajutla Seaport and finally activate the La Union Seaport.
According to the video, the project has been neglected by the previous administrators and it has not operated since it was first built over 20 years ago.
This agreement is reportedly a product of President Bukele’s visit to Turkey back in 2022. The agreement will be a mixed-ownership company between the Yilport company and CEPA which will operate both seaports for the next 50 years.
The investment will be done in phases and the first one will start at the end of 2024. The last phase of the project will generate new and better trade opportunities for the country starting with the Pacific Port Union.
Plan Económico / Fase 3: Logística
Economic Plan / Phase 3:
Logistics pic.twitter.com/2cmn8T3g5p— Nayib Bukele (@nayibbukele) August 12, 2024
El Salvador Bitcoin City
Bitcoin City is a planned smart city project in La Union, El Salvador. This planned city is reportedly intended to be a tax haven, and use geothermal energy to power Bitcoin mining.
Bukele promised that there would be no income tax, forever, zero property tax, no procurement tax, zero city tax, and zero CO2 emissions.
According to him, the only takes that they would have in Bitcoin City is VAT and half of it will be used to pay for the municipality’s bonds and the rest, for the public infrastructure maintenance of the city.
El Salvador has been harnessing volcanic power to fuel Bitcoin mining.
According to their official website showing the nation’s Bitcoin reserves, the country now holds 5,839.76 Bitcoins worth over $348 million.
The country’s online Bitcoin Treasury, launched recently, offers real-time data regarding the country’s Bitcoin reserves.
