Non-project Grant Aid to El Salvador and Grant Aid to El Salvador for the Project for Rebuilding of Infrastructure and Replacement of Equipment of Rosales National Hospital

August 17, 2005

The Government of Japan has decided to extend grant assistance totaling 1,130 million yen to the Government of the Republic of El Salvador, with a view to helping the country's efforts to improve its economic structure and medical health services. Notes to this effect were exchanged on August 17 (Wed) in Tokyo between Mr. Nobutaka Machimura, Minister for Foreign Affairs of Japan, and Mr. Francsico Esteban Lainez Rivas, Minister of Foreign Affairs of El Salvador.
(1) Non-project grant aid 500 million yen
(2) Project for Rebuilding of Infrastructure and Replacement of Equipment of Rosales National Hospital 630 million yen
Non-project grant aid
El Salvador, which has adopted a policy of improving its economic infrastructure and expanding the social sector with a view to rebuilding after the damage caused by Hurricane Mitch in 1998 and the great earthquake of 2001, is in need of additional funds. Under its tight fiscal situation, the Government of El Salvador, although realizing the need for funds for this policy, has been trying to stabilize national revenue while carefully monitoring the increase of its national debt.

This non-project grant aid is intended to help El Salvador reduce poverty and implement its structural adjustment plan and will be used to import goods necessary for further promotion of this plan.
Project for Rebuilding of Infrastructure and Replacement of Equipment for Rosales National Hospital
In recent years, El Salvador has been trying to improve secondary medical services in order to offer better nationwide medical services.

Rosales National Hospital is a tertiary medical facility regarded by secondary medical facilities as the top referral hospital. As the hospital is 100 years old, its facilities and equipment are outdated, and, since the surgery ward was damaged in the 2001 earthquake, operations have been conducted in a makeshift ward.

Under these circumstances, the Government of El Salvador has drawn up a Project for Rehabilitation of Infrastructure and Equipment of Rosales National Hospital and requested the Government of Japan to extend necessary funds to construct a new surgery ward and purchase new medical equipment.

It is expected that the implementation of the project will restore the functions of the hospital and improve medical services for people of the area.

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