Bureaucratic obstacles to construction continue and as long as the law streamlining procedures for construction is not operational, around $1,6 billion will remain paralyzed, this being the amount estimated that the private sector would have invested in real estate development projects in the next five years.

The president of the Salvadoran Chamber of Construction Industry, Carlos Guerrero, told Elsalvador.com that "... There are a significant number of projects that could be invested in if we managed to untie the knots in procedures and paperwork. There is about $700 million that could be invested this year alone, but up to now there has not been any progress. "

"... Although there has been discussion over an agreement to facilitate the conditions for obtaining permits, which would help reduce bureaucratic processes, to date the document has yet to be signed. We have been working on the subject for three months ... I hope that in the coming months we will have concrete actions. " "... Under the agreement it is proposed that there be clear rules from the government and specific times stipulated by institutions, to respond to builders. "

Source: elsalvador.com

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El Salvador: Obstacles for Construction Sector

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Two years after its approval, the law streamlining procedures for construction does not operate, delaying projects which are in process and preventing the onset of new ones.

Added to this is lack of investment in public infrastructure, which is preventing the private construction sector from developing new projects, particularly in areas where there is not adequate road infrastructure.

El Salvador: Lack of Political Will to Revive Construction

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The government has yet to make operational the law streamlining procedures for construction approved in late 2013, delaying the start of projects totaling more than $700 million.

Although it seems hard to believe, a law which was approved more than a year ago can not be implemented due to the lack of "real will to make the necessary changes." Meanwhile, construction projects estimated at about $700 million can not advance, having been drowned in excessive state bureaucracy.

El Salvador: Bureaucracy Continues to Hamper Construction

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The industry claims that the law streamlining procedures is not being implemented in all institutions involved in the permitting process.

The law which aims to reduce the time it takes to gain authorization for medium and long term real estate projects from 880 days to 175 days, is not being applied equally by state entities.

El Salvador: Act to Accelerate Construction Paperwork

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The rule is effective immediately for municipalities included in Fomilenio II and for housing projects.

"... After six months of its entry into force it can be used by project developers of any kind nationwide, explained Ismael Nolasco, executive director of CASALCO. "

Carlos Guerrero, president of the Salvadoran Chamber of the Construction Industry (CASALCO) said the Special Act for Streamlining Paperwork for Building Construction Projects will help boost the economy and create more jobs.