After registering a 12% growth in 2019, this year in the construction sector is expected to keep up investments and exceed $1.3 billion.
Directors of the Salvadoran Chamber of the Construction Industry (Casalco), expect that this year public infrastructure projects will maintain the dynamism of investments in the sector.
With the deadline for Congress to approve the 2020 public budget expiring, the Guatemalan government must work with the 2019 budget, so some investments in public infrastructure could come to a halt in the first months of the year.
Last November 30, the deadline for the Congress of the Republic to approve the draft budget of income and expenditures of the nation for 2020, which amounted to Q91.9 billion ($11.9 billion) and was not endorsed by most deputies.
In the first six months of the year, government entities from the countries of the region submitted 73 environmental impact studies for the construction of different public infrastructure projects.
The interactive platform "Construction in Central America", from the Trade Intelligence Area of CentralAmericaData, provides the updated list of public and private construction projects that present the environmental impact studies (EIA) to the respective institutions of each country.
The Municipality of Guatemala City reported that it plans to implement two new lines of the Transmetro service, which will involve bringing 28 stations into operation.
The mayor of the Guatemalan capital, Ricardo Quiñónez, explained to Dca.gob.gt that "... medium and long-term planning has been established, in relation to the Transmetro service, which includes the implementation of two new lines: 7, to zone 12, and 5, to zone 5."
In the four years that the law of associations between the State and private companies in El Salvador has been in effect, not a single infrastructure project has been able to materialize using this business scheme.
Although there are at least seven infrastructure projects that were initially proposed as being those with the highest priority and ideals to be developed under the public-private partnership scheme and with funding from Fomilenio II, none of them has managed to materialize.
In August 2017, 36 environmental impact studies were submitted in the centralamerican countries to build sewer systems, roads and government offices, among other things.
Data from the interactive platform "Construction in Central America", compiled by the Business Intelligence Unit at CentralAmericaData:
Details of the ten most important public infrastructure construction projects in terms of investment, for which environmental impact studies were presented in the last year.
Of the 10 most important public construction projects for which Environmental Impact Studies (EIAs) were submitted to the respective authorities in Central American countries between August 2016 and July 2017, the most noteworthy are three that are to be developed in Costa Rica, with an estimated total investment of $437 million.
In Guatemala a proposal has been made for private companies to build toll roads, where, in some cases the State pays for the tolls, instead of charging road users.
The proposal of this investment model was raised in the context of the National Entrepreneurs Encounter (Enade), focused this year on the theme of infrastructure.
From March 28th to 30th potential international investors will learn about public and private projects in infrastructure, tourism, energy and industrial development.
From a statement issued by Proesa El Salvador:
The country will open the first International Investment Forum El Salvador 2017 and present the Country Brand for El Salvador on March 28, reported officials this morning from the Agency for Promoting Export and Investment in El Salvador (PROESA), during a press conference.
The OECD has warned that "underinvestment" in infrastructure is a critical element that inhibits the country's ability to trade.
An analysis of the degree of market opening by the Organisation for Economic Co-operation and Development (OECD), showed positive and negative results, with the most noteworthy among the favorable being an annual increase of 9% in the volume of exports of goods between 1994 and 2013 and a reduction in tariffs and negotiation of free trade agreements.
Deficiencies in the regulatory framework, lack of political will and public capacity to plan and monitor partnerships are the reasons why this model of financing has not been used more fully in the country.
A report called Infrascope, prepared by The Economist Intelligence Unit and FOMIN at the World Bank outlines the reasons why the legal concept of partnerships between state agencies and private businesses is not thriving in Costa Rica.
A third and final call has started for companies and investors interested in participating in the development of projects in the program 'Apuesta por InversionES'.
Applications are open for national and international companies with the financial capacity to invest anywhere in the country.
Elsalvador.com reports that "...Interested investors should do so in a new project or expansion of an existing one in the category of tradables, which includes goods or services that can be traded internationally, said a statement issued by Fomilenio II.These are projects that can be set up in any part of the country, with a minimum investment of $100,000 by the applicant. "
As the country suffers from a serious crisis of inability to develop public works, one Costa Rican company is helping build the Panama Canal and highways and another infrastructure works in other countries.
EDITORIAL
Costa Ricans do not lack capacity to design and implement large infrastructure projects.One example that confirms this is the participation of MECO in building the third set of locks of the Panama Canal and major roadworks in Colombia.