In Conchagua, El Salvador, the Condadillo and Flor de Mangle communities are being displaced from their homes and farmland for construction of Pacific Airport. A linked ‘Bitcoin City’ on the slopes of an inactive volcano has yet to materialise.
El Salvador’s Legislative Assembly approved a new law expediting procedures for building the Pacific Airport on 26th April 2022, allowing the Autonomous Executive Port Commission (CEPA) to acquire title to property deemed necessary. In June 2022 the Earth Journalism Network reported that vegetation was being cut to make way for the airport and eucalyptus trees had been marked for felling. Inhabitants who cultivated crops said government personnel had entered the land to cut plants, without reaching a sale agreement as had been promised. In November 2022 Mongabay reported that the airport faced backlash from local communities after breakdown of negotiations with the government. Residents said they were being pressured to accept buyouts for their properties. Mala-Yerba reported that works on the airport site had begun at the end of February 2023, before the environmental permit was issued by MARN on 21st March. A source from Condadillo expressed concern over irreparable damage to trees, mangroves, animals, birds and aquifers. Flor de Mangle residents, depending on sea fishing and harvesting molluscs from the nearby El Tamarindo mangrove will also be impacted, as the area is a nursery for crabs, molluscs and other crustaceans and many residents make an income from collecting and selling them.
Residents of Condadillo and Flor de Mangle recounted workers entering agricultural and housing land plots with machinery, in the absence of authorisation from landowners or a court order. Drilling and excavation left the area unsuitable for agriculture and unsafe for people and livestock. Residents also denounced pressure from CEPA to sell land at unfair prices. Farming families and MILPA (Indigenous Movement for the Integration of the Struggles of the Ancestral Peoples of El Salvador) representatives said that more than 225 families had been directly affected by being unable to produce crops – including watermelons, tomatoes, grains and chillies. At the beginning of July 2024 MILPA stated that human rights violations against Condadillo and Flor de Mangle inhabitants impacted by construction of Pacific Airport had worsened. More than 225 families said their rights to consultation, legal advice and compensation had been violated. Many inhabitants reported being threatened and intimidated by CEPA.
New laws, tax exemptions and an “air-tropolis”
On 29th September 2021 MARN issued a statement that the Pacific Airport was not environmentally feasible and the Autonomous Executive Port Commission (CEPA) submitted a request to MARN for reconsideration. Within 24 hours the MARN website changed the status of the airport project to ‘high impact’. New environmental zoning and a new eminent domain law approved by the Legislative Assembly on 17th November 2021 made legal provision to continue the project. Then, on 26th April 2022 the Legislative Assembly approved a new law expediting procedures for building the Pacific Airport, allowing CEPA to acquire title to property deemed necessary for construction of the airport. It is estimated that the new airport will handle 1 million passengers per year, possibly rising to 3 million within 25 years. Construction of Pacific Airport, for civilian and military use, is expected to cost $500 million over 10 years. Purchases made within the framework of the airport project will be granted exemptions from income tax, Value Added Tax (VAT) and municipal taxes for 25 years. According to CEPA’s projections, the airport will bring poles of economic development to El Salvador’s eastern zone. CEPA president, Federico Anliker, said the airport terminal will be converted into an “air-tropolis”: a city with industrial plants, resort centres, hospitality and factories for export of technological products. For more information about Pacific Airport, including references for all source material, see the case study on EJAtlas, the world’s largest, most comprehensive online database of social conflict around environmental issues: Pacific Airport (Aeropuerto del Pacífico), El Salvador
An airport for a planned Bitcoin City
Pacific Airport is linked with the Bitcoin City project announced by President Bukele in November 2021, two months after El Salvador became the first country to adopt Bitcoin as legal tender. Bukele unveiled a model and graphics showing a coastal circular city (the shape of a Bitcoin) on the slopes of the volcano, crammed with golden skyscapers radiating from a central plaza with the Bitcoin logo, along with images of an airport. In February 2022 CEPA President Federico Anliker said, “Bitcoin City, well, is going to have its own airport”. The proposed Bitcoin City site is in an inactive volcano in Conchagua and plans include a bitcoin mining complex to be powered by a new geothermal plant. Environmentalist Ricardo Navarro, from Cesta Amigos de la Terra, expressed concerns over geothermal energy generation for Bitcoin mining, saying “The big problem is that it consumes a large amount of electricity”. Lourdes Molina of the Central American Institute for Fiscal Studies said, “Here it is not only the operation of the servers but also that they demand a lot of energy, they have to be at certain controlled temperatures to be able to work, we are talking about the almost industrial use of air conditioning.”
Funding for Bitcoin City is as uncertain as the energy supply. As of July 2024 the ambitious plans for Bitcoin City, compared by Bukele to Alexandria, have not materialised, the ground has yet to be broken. Construction was supposed to be part-funded by $1 billion in government-issued ‘volcano bonds’ with a portion of the earnings to be invested in geothermal energy facilities. Initially scheduled to go on the market in February 2022, several deadlines were missed, most recently in the first guarter of 2024. The government has not announced an alternative source of funding for Bitcoin City. Bitcoin was central to Bukele’s promises of prosperity; three years after it became legal tender few citizens use it. Bitcoin was promoted as a way of making savings on fees for remittances from the US, but only 1.3% of remittances were sent through crypto wallets in the three year period and the amount of saved fees has not been disclosed. The future of Bitcoin City, anticipated to bring in an influx of wealthy crypto investors and returning expats buying luxury apartments and paying no income or property taxes, seems to depend upon construction of Pacific Airport. However, Bitcoin city could be revived by another transportation project. Turkish port operator Yilport Holdings has made the pargest private investment in El Salvador, committing $1.6 billion to two port projects, La Unión, near the Bitcoin City site, and Acajutla. which is the country’s main seaport.
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