By Gaby Chávez | 2025-04-24

SAN SALVADOR -- The construction of El Salvador's new National Stadium -- touted as a flagship infrastructure project funded by China -- has sparked alarm among transparency advocates over the track record of the Chinese state-owned firm leading the build.

The China State Construction Engineering Corporation (CSCEC), one of the world's largest construction companies, has faced corruption allegations, fraud investigations and other charges of misconduct in multiple countries, including Bolivia.

Its record has led to blacklisting and sanctions by global institutions, including the World Bank.

Scrutiny over the agreement

Even after those institutions penalized CSCEC for alleged bribery, collusion, fraudulent practices, labor exploitation and environmental harm, Beijing chose it to lead the construction of El Salvador's National Stadium -- part of a grant from the Chinese government.

The Salvadoran government announced in December 2021, via social media, that construction would begin in 2022. But it was not until late 2023 that China's ambassador to El Salvador, Zhang Yanhu, confirmed that work had commenced, with a reported budget of almost $100 million.

Workers are building the stadium on the former site of a military academy, and oversight of the project falls nominally to El Salvador's National Sports Institute (INDES).

However, the process has attracted widespread criticism for its opacity. By the end of 2024, INDES officials stated they had no access to contractual or budgetary information, as Chinese officials were exclusively managing the project.

In its transparency report last May, Citizen Action executive director Eduardo Escobar condemned the agreement as a violation of the public's right to access information, warning that the lack of local oversight erodes transparency and accountability in the use of public funds.

"The Salvadoran government cannot wash its hands of a project being built on its own soil," said Escobar, emphasizing the state's obligation to its citizens.

'The worst deal'

Salvadoran projects tied to China are being handled with "great secrecy," political analyst Napoleón Campos on April 22 told El Diario de Hoy, a Salvadoran newspaper.

"Even though the stadium is under construction, it's clear that diplomatic relations with China have been shrouded in opacity since the purchase of Chinese vaccines during the COVID-19 pandemic," Campos said, referencing the confidentiality agreements signed in 2020 for vaccine procurement.

Salvadoran business leaders have voiced concerns over the terms of the agreement with China, which they say give Chinese firms broad latitude in project design and contracting -- potentially sidelining domestic labor and companies.

"This is the worst deal for El Salvador," said Federico Hernandez, executive director of the Chamber of Commerce, in a May 2021 interview with Summa magazine, following the Legislative Assembly's ratification that month of an agreement with China, which included the construction of the stadium, a water treatment plant and a national library.

"It's shameful that Salvadoran workers are not given opportunities in these projects," he added.

Leonor Selva, executive director of the National Association of Private Enterprise (ANEP), echoed those concerns in the same article, arguing that infrastructure deals with Chinese firms typically exclude Salvadoran labor and materials, limiting any real impact on the local economy.

Salvadoran labor unions have denounced the agreements, saying they exclude local contractors entirely and generate no employment for Salvadorans. Critics further allege a double standard: while Chinese firms enjoy full autonomy over project design, execution and timelines, Salvadoran companies must comply with lengthy approval processes.

In March, INDES President Yamil Bukele -- brother of Salvadoran President Nayib Bukele -- unveiled a model of the new stadium alongside Zhang, the Chinese ambassador.

The stadium is expected to open in mid-2027 with planned capacity for 50,000 spectators.

Violations in Bolivia

CSCEC, the state-owned company building the stadium, has a long worldwide history of allegations of misconduct.

Between 2009 and 2015, the World Bank blacklisted CSCEC for fraudulent practices during bidding processes, rendering it ineligible for Bank-funded contracts.

In an investigation last May reported by the Business & Human Rights Resource Center, the World Bank outlined a pattern of abuses tied to a $230 million highway project in Bolivia awarded to CSCEC by the Bolivian Highway Administration (ABC).

The World Bank in 2018 financed construction of the 200km-long corridor -- intended to serve an estimated 125,000 residents, more than half of whom are Indigenous.

Consultations consisted only of brief meetings with little opportunity for genuine dialogue, Indigenous leaders told investigators.

CSCEC coerced local residents into signing unfavorable land concession agreements for the extraction of construction materials, often at prices below market value, they said.

The housing that the Chinese promised in return was reportedly incomplete and ill suited for the local climate.

The World Bank accused the company of polluting critical water sources, failing to comply with labor regulations and neglecting to provide essential worker protections, including timely pay and health coverage.

Neither CSCEC nor Bolivian authorities have responded publicly to the allegations.