Supported by the world’s largest debt conversion for water conservation, the Río Lempa Conservation and Restoration Program is set to launch in 2025. This ambitious 20-plus year, $350 million initiative focuses on revitalizing El Salvador’s most important river and its watershed, advancing the country’s conservation goals while fostering economic development and resilient rural livelihoods.
A River of national importance
Spanning half the country, the Río Lempa and its tributaries account for nearly 70% of El Salvador’s water resources, roviding water for drinking, agriculture, industry, and hydropower, including the metropolitan area of San Salvador. The watershed includes rainforest, coffee agroforestry, and productive agricultural areas, which cover 40% of the land area and support thousands of farmers who rely on its waters to grow crops – mainly maize and corn – and sustain their livelihoods. However, the river and the communities that depend on it face severe challenges from deforestation, pollution, and over-extraction, which have degraded its water quality and ecosystems. Climate change is exacerbating these issues, leading to more frequent and extreme weather events, including severe storms and droughts.
Program Overview
Jointly managed by Catholic Relief Services (CRS) and the Environmental Investment Fund of El Salvador (FIAES), the Río Lempa Conservation and Restoration Program will revitalize the watershed, enhancing water quality, stream flows, aquifer recharge, and biodiversity. The initiative will improve drinking water access for millions, support regenerative agriculture to boost crop yields and climate resilience, and promote sustainable rural livelihoods and economic growth.
The watershed is not just a resource; it is a lifeline, delivering essential water, sustaining ecosystems, and supporting local livelihoods.
This investment in the watershed will:
Co-invest in water and sanitation services, including infrastructure, operations, and governance.
Protect and improve water sources, co-investing in improvements to water supply treatment and wastewater treatment facilities.
Promote land and water resources restoration through sustainable agriculture, green infrastructure, and Nature-based-Solutions.
Support farmers and rural enterprises through strategic collaborations with markets, supply chain actors, and the public sector.
Generate employment opportunities, particularly in farm and rural enterprise.
Innovative Financing for Conservation
The program is funded through an innovative debt conversion initiative for conservation, which enabled the government of El Salvador to repurchase outstanding bonds at discounted rates. The conversion will generate more than $350 million in savings over the next 20-years in principal and interest payments. The government will invest all those savings in the Río Lempa Conservation and Restoration Program, including $200 million for the Río Lempa Conservation Fund activities over the next 20 years plus $150 million for the Río Lempa Endowment. The endowment is expected to grow to at least $250 million by 2044 to support long-term investments in the Río Lempa. Key partners in this initiative include the U.S. International Development Finance Corporation (DFC), the Government of El Salvador, J.P. Morgan, and CAF (Development Bank of Latin America).
Building Partnerships for a Sustainable Future
The initial 18 months will focus on developing a long-term watershed management plan in collaboration with community organizations, NGOs, local governments, and relevant government agencies. Central to this effort is the cultivation of local leadership, as fostering strong community stakeholders is essential for effective planning and management of the watershed project over the long term. Active participation from civil society will guide pRíoritization and investment decisions, ensuring that local voices shape the investments. Additionally, the program aligns with the Salvadoran government’s environmental priorities and supports the implementation of the country’s new General Water Resources Law, contributing to a National Water Integrated Resources Plan. Starting in 2025, grants will be provided to local organizations for field-based projects aimed at expanding access to water and sanitation services, improving water quality, promoting regenerative agriculture, and protecting natural resources. By directing approximately 85 percent of funding to local entities, the initiative ensures that the communities most affected by these challenges play a central role in leading sustainable solutions.
Governance Structure
CRS will serve as the program’s technical lead, directing project planning, monitoring, and evaluation, while FIAES will manage Fund administration. Together, these organizations will form a Program Management Team (PMT) to oversee implementation. A seven-member Program Supervisory Board—comprising representatives from the Government of El Salvador, USAID, and five non-governmental organizations—will uphold standards of performance, transparency, and accountability.
A coordinated and transparent governance framework ensures equitable distribution of resources and benefits, as well as maintaining transparency and accountability for the people of El Salvador and the impacted communities.
Coordination with Key Government Agencies
The PMT will work with El Salvador’s National Water Authority and the Ministry of Environment to monitor and report on progress and provide the public with access to information and reports through an online platform.
About CRS Catholic Relief Services is the official international humanitarian agency of the Catholic community in the United States. The agency alleviates suffering and provides assistance to people in need in more than 100 countries, without regard to race, religion or nationality. With over sixty years of development and humanitarian efforts in El Salvador, Catholic Relief Services embodies its Catholic identity through a commitment to environmental stewardship. By promoting sustainable agriculture projects at a landscape scale, CRS builds on more than a decade of experience in soil restoration and water resource management, honoring the dignity of creation while supporting vulnerable communities impacted by climate change. About FIAES The Environmental Investment Fund of El Salvador (FIAES) was launched in 1993 as a Conservation Trust Fund to manage a debt-for-nature swap between the Government of the United States of America and the Government of El Salvador with the mandated to support the restoration and conservation of natural resources in El Salvador. FIAES manages multiple funds including several debt-for-nature swaps, environmental compensation funds from the Government of El Salvador, and several conservation grants from international organizations. Over the past 31 years, FIAES has invested more than $90 million in conservation and restoration of coastal marine and terrestrial ecosystems. |
Program Managers:
In coordination with:
©2024 Catholic Relief Services and FIAES. All Rights Reserved. 25OS-1416650 Photos by Eduardo Lovo
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