San Salvador, the heart of El Salvador, is undergoing an ambitious transformation. From gleaming new overpasses to sustainable public transportation systems, the city is being reshaped by an unprecedented wave of infrastructure projects. These efforts aim not only to modernize the urban landscape but also to stimulate economic growth, attract investment, and enhance the quality of life for millions.
In this in-depth blog post for Pupusas.com, we explore the major infrastructure projects currently transforming San Salvador. We look at how these developments are making the city more livable, connected, and economically competitive—while also preserving the culture and charm that make it so uniquely Salvadoran.
🌆 A City Reimagined: San Salvador at a Crossroads
For decades, San Salvador has been a city full of contradictions—vibrant yet gridlocked, modern yet under-resourced. But over the past few years, and especially since 2021, the city has embraced a new vision of development. Under the leadership of both national and municipal governments, El Salvador has launched a slew of major public works with the goal of long-term transformation.
The plan is clear: build infrastructure that serves both people and progress.
Key Objectives of the Transformation:
- Reduce urban congestion
- Enhance mobility and public transit
- Create jobs through construction and maintenance
- Improve safety and urban resilience
- Promote tourism and foreign direct investment
🛣️ 1. El Periférico Claudia Lars and the Highway Ring Projects
The completion of El Periférico Claudia Lars is a significant milestone. This modern bypass highway connects key industrial zones and alleviates traffic in heavily populated areas.
Highlights:
- 20+ kilometers of new roadways
- Connects San Juan Opico to Lourdes
- Eases pressure from congested areas like Santa Tecla
- Integrated with El Salvador’s logistics corridors
In addition, Phase 2 of the Periférico Gerardo Barrios is ongoing in the eastern part of the country, with ripple effects felt in the capital. These projects are making freight and commuter traffic more efficient while creating a connected metro-region model.
🚈 2. The San Salvador Electric Train (Tren del Pacífico)
One of the most ambitious projects under consideration is the Tren del Pacífico, part of the government’s plan to create a modern rail network across the nation. The initial phase focuses on connecting San Salvador to the port of Acajutla, with future connections to neighboring countries.
Why it matters:
- Reduces freight costs and boosts exports
- Modernizes logistics infrastructure
- Opens the door for eco-friendly travel options for locals and tourists
The electrification component also signals a turn toward green infrastructure, aligning El Salvador with global sustainability trends.
🏙️ 3. Urban Renewal in the Historic Center
No transformation of San Salvador would be complete without a rebirth of its Historic Center, which includes iconic buildings like the National Palace and Catedral Metropolitana.
What’s happening:
- Pedestrianization of key streets (e.g., Calle Rubén Darío)
- Restoration of colonial architecture
- New lighting, landscaping, and public art
- Boosts in security and accessibility
The result is a cleaner, safer, and more inviting downtown area. It’s fast becoming a must-visit destination for both tourists and Salvadorans rediscovering their capital.
🏗️ 4. Cable Cars and Smart Transit in the Hills
San Salvador’s topography includes many hills and mountains, which often isolate communities. To address this, the government has announced plans to expand cable car infrastructure, similar to Medellín’s Metrocable system.
These aerial cable cars:
- Connect underserved areas like Soyapango and Mejicanos
- Reduce commute times dramatically
- Offer panoramic views of the city
- Integrate with existing bus and road networks
🛍️ 5. New Markets and Economic Hubs
Revamping public markets is central to the vision of a safer, cleaner, and more prosperous capital. Projects include the construction of modern market facilities that comply with hygiene standards and facilitate micro-entrepreneurship.
Notable developments:
- Mercado Hula Hula is now a clean, secure space for over 1,000 vendors
- New business parks in Ilopango and Nejapa attract private-sector investment
- Digital infrastructure upgrades for small businesses, promoting e-commerce
🚰 6. Water and Sanitation Mega Projects
San Salvador has long struggled with water shortages and outdated infrastructure. Through collaboration with international institutions like BCIE and CAF, the city is investing in:
- New wastewater treatment plants
- Pipe replacements in vulnerable neighborhoods
- Rainwater collection systems
These projects aim to deliver 24/7 water access, reduce public health risks, and prepare for climate change.
🏫 7. Educational and Health Infrastructure
The government has made significant investments in:
- 100+ renovated or newly built schools in the greater San Salvador area
- Expansion of Hospital El Salvador, including a high-tech ICU
- New community clinics and maternal care centers in underserved zones
These projects ensure that growth is inclusive, benefiting not just the economy, but also the human capital that will drive it.
🌐 8. Digital Infrastructure and Smart City Innovations
San Salvador is quietly becoming a smart city. With funding from international partners and private tech firms, the city is implementing:
- Free public Wi-Fi zones
- AI-powered traffic lights and smart surveillance
- Digital IDs and online municipal services
- Blockchain-based property registration (part of the Bitcoin City pilot)
This aligns with El Salvador’s broader efforts to embrace digital currencies, positioning the country as a regional hub for fintech innovation.
💸 Investment, Employment & Global Implications
Infrastructure isn’t just about roads and railways. It’s about opportunities.
Economic Impact:
- Tens of thousands of jobs in construction, logistics, and technology
- Boost in foreign direct investment (FDI) due to improved logistics and governance
- Tourism revival, especially in historic areas and along the scenic Pacific Coast
Investment Hotspots:
- Real estate in San Salvador’s Zona Rosa and Antiguo Cuscatlán
- Tech hubs near Multiplaza and La Gran Vía
- Hospitality and retail growth along the Tren del Pacífico corridor
🌍 El Salvador on the Global Stage
As El Salvador grabs headlines for its controversial Bitcoin strategy, these infrastructure projects offer a more grounded story—one of long-term development, modern governance, and national pride.
With the right balance of vision and execution, San Salvador could very well become a regional model for urban development in Central America.
