El Salvador Secures Record $1.6 Billion Investment for Port Development, Potentially Revitalizing Bitcoin City Plans
El Salvador has announced a landmark $1.6 billion investment deal with Turkish port operator Yilport Holdings, marking the largest private investment in the country’s history. This significant development could potentially breathe new life into the nation’s ambitious Bitcoin City project.
President Nayib Bukele revealed the agreement on social media, stating that Yilport and El Salvador’s Comisión Ejecutiva Portuaria Autónoma (CEPA) will jointly operate the Acajutla and La Unión ports for 50 years. This partnership aims to modernize and expand the country’s port infrastructure as part of Bukele’s broader economic revitalization plan.
The investment will focus on two key areas:
- Acajutla Port: El Salvador’s busiest port will see infrastructure improvements and new equipment to reduce response times and triple its capacity.
- La Unión Port: This inactive port, which has been closed since its construction in 2008, will undergo dredging work and receive modern loading equipment to accommodate larger ships.
Notably, La Unión is located near the proposed site of Bitcoin City, a tax-free crypto haven announced by Bukele in 2021. The city was originally intended to be financed by a $1 billion Bitcoin bond, which has faced multiple delays.
While the government has not explicitly linked the port investment to Bitcoin City, some officials have drawn connections. Max Keiser, senior Bitcoin adviser to Bukele, suggested on social media that “Big money is ATTRACTED to BITCOIN COUNTRY.” Stacy Herbert, director of El Salvador’s National Bitcoin Office, also highlighted the potential for job creation and increased local infrastructure investment.
The deal with Yilport comes as El Salvador continues to pursue its crypto-friendly policies, including holding Bitcoin as a national reserve and offering “Freedom Visas” to wealthy Bitcoin investors. According to the National Bitcoin Office, the country currently holds 5,840.76 BTC, valued at approximately $345 million.
This major investment could signal renewed interest in El Salvador’s economic potential, potentially paving the way for further development of Bitcoin City and other crypto-related initiatives. However, it remains to be seen how these plans will unfold and what impact they will have on the country’s broader economic landscape.
