El Salvador: Water Feasibility Certificates Slowing Construction

The construction union estimated that $500 million worth of projects are on hold because they have not yet received the water feasibility permits they need.

Tuesday, October 18, 2016

Although months ago the Salvadoran Chamber of the Construction Industry (Casalco) estimated the value of construction projects halted due to lack of various permits at $700 million, union representatives claim that "... a part of that, which is worth $200 million- they have now started to resolve".

The main problem is the permit called "feasibility" of water, which is a "... response from the Administration of Aqueducts and Sewers (ANDA) when a company asks for access to public water services for a new project or for expanding one that already exists (because demand is greater)."

Laprensagrafica.com reports that "..."The situation with that $500 million is that these projects, mostly but not exclusively- have an ANDA feasibility study pending' reiterated the executive director of CASALCO, Jose Antonio Velasquez. Most of them are located in the Metropolitan Area of San Salvador and it is for this reason that the lack of feasibilities have a mixture of motives. "

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More on this topic

El Salvador: Construction to Grow 3.5% in 2017

February 2017

If the projections of the union are accurate, between public and private investment, $900 million will be earmarked for new construction projects this year.

Although official figures have not yet been revealed, the Salvadoran Construction Chamber (Casalco) estimates that in 2016 the sector's growth was 2.5%, and realistically this year they predict an overall increase of just 1% more than last year. 

Upcoming Construction in El Salvador

July 2016

Office buildings, shopping malls and apartments make up the list of projects that the construction union envisages undertaking in the second half of the year.

Although there are still delays in granting permits and other arrangements which have to be undertaken before launching construction projects, the union for this sector foresees a second half with better results. This year there are plans to implement projects worth between $500 million and $750 million in private works.

El Salvador: Lack of Political Will to Revive Construction

May 2015

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.

Procedures Take Longer Than the Works Themselves

September 2014

In El Salvador entrepreneurs from the construction sector say the country loses $500 million in new investment projects because of the slow process of obtaining permits.

The Salvadoran Chamber of Construction Industry (Casalco) is once again asking the government for clear rules and efficient processes in the granting of permits for new construction projects.

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