Background

Urban population in El Salvador reached 73% of the total population in 2020, which makes it the second highest rate of urbanization in Central America.  This rapid urban growth, however, was not accompanied by a comparable improvement of public transport in the city and has therefore contributed to generate heavy traffic congestion. Approximately 43% of the country’s vehicles are concentrated in the metropolitan area of San Salvador, where only 17% of the national population lives.  This traffic congestion can have a detrimental impact on economic performance and society overall. Where traffic congestion is present, associated costs are borne including time lost during travel, increased fuel consumption, higher vehicle operating costs, greater probability of accidents, and higher greenhouse gas emissions.

Objective

Modernize the urban bus transport system of San Salvador, the capital of El Salvador, through an overhaul of the existing bus system.

Expected Results

An in-depth assessment of the current bus transport network in San Salvador. Based on this consultancy, the TC will recommend optimal technical solutions and business models for (i) restructuring and formalization of bus routes, (ii) modernization of bus fleets, with particular focus on electric mobility, and (iii) deployment of a cashless payment system, as well as necessary policy and regulatory reform.