The Saudi Fund for Development (SFD) is set to provide financing for a water treatment and biogas energy generation project in Central America.

The SFD has just signed a memorandum of understanding (MoU) with the Republic of El Salvador, aiming to establish a framework for promoting development cooperation between the two parties.

The agreement is “a step towards” financing the water treatment and biogas plant on the Acelhuate River in El Salvador, according to a statement on Friday.

The loan agreement for the project will be signed between the two parties, the statement said, without providing further details.

“The MoU comes within the framework of the fund’s developmental efforts to support the growth of vital opportunities in various developing countries around the world, aiming at achieving international prosperity for the beneficiary communities,” the statement added.

(Writing by Cleofe Maceda; editing by Seban Scaria)