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penaltiesoncompanieswhichdonotmeettheircontractual obligations. There are no restrictions on foreign ownership in the electricitysector. Transmittersanddistributorswillbe obliged to permit use of their installation for international interconnections. No Specific Law for Geothermal According to the Salvadorean Constitution, all the country’s subsurface is State property. ElSalvadorhasnospecificlawforgeothermal. Companies interested in obtaining concessions for geothermal exploitation must present a written request to the SIGET which includes the following: • Information about the company relative to its incorporation and legal capacity; • A feasibility study which includes a descriptive narrative and blue prints; • An environmental impact study which addresses the effects on the environment of the current project as well as any future expansions, and includes a section on all phases of the project (construction, operation,andtermination). Itshouldalso include several options for dealing with any adverse effects that may result from the project. SIGET granted its first license to a company to begin exploitation in San Vicente. All geothermal project proposals are subject to a public offering which will be administered by SIGET. All bids must be accompanied by a guarantee equivalent to 10% of the value of the project. Concessionswillbeawardedtothehighestbidderexceptif the original bidder loses. The original bidder will be awarded the concession if they are willing to pay 85% of the price offered by the winner. Geothermal Resources in Latin America & the Caribbean 20PDF Image | Geothermal Resources in the Caribbean and Latin America
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