El Salvador: Bureaucracy Continues to Hamper Construction

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

Monday, June 16, 2014

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.

Carlos Guerrero, president of the Salvadoran Chamber of Construction (Casalco) said in an article on Laprensagrafica.com ".... 'Importance has not been given to this law. There are many (government) institutions that are not complying with it.'"

The law "... incorporates the idea of positive administrative silence, in other words if the the deadline is not met, the procedure will be deemed to have been approved." In this regard, Guerrero explained that "... 'the only institution that will attest that the time limit has expired, and therefore that the positive response concept is operational, is the Department of Housing' ... 'That is why it is important that all institutions are reporting, so that the deputy minister can administer this law.' "

More on this topic

El Salvador: Construction Still Suffocated by Paperwork

February 2015

The ineffectiveness of the law streamlining procedures for construction, approved in late 2013, is delaying investment of at least $700 million in projects planned for this year.

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.

El Salvador: Act to Accelerate Construction Paperwork

November 2013

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.

Construction Procedures Bill Passed in El Salvador

November 2013

It is expected that its entry into force will accelerate the procedures for granting permits for construction projects.

From a press release issued by the Legislative Assembly of El Salvador:

During the plenary session, the deputies approved with 70 votes, the Expediting Act on Procedures for Construction Project Development, which aims to promote economic and social development, by streamlining processes and procedures relating to the granting of administrative permits and approvals for the development of construction projects and its subdivisions.

Deadlines Established for Granting Building Permits

October 2012

A draft proposal by the Government of El Salvador, sets specific deadlines for each institution to respond to requests.

If the institution does not respond by the deadline in the new law, the process will be assumed to be approved and passed to the next stage.

"This is known as ‘positive administrative silence’, which was one of the new features presented in this law.

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