El Salvador: Pressure for Construction Procedures Law

An act to streamline procedures intends to reduce the bureaucratic time delay to 120 days, so that construction companies can dynamize the economy with new buildings.

Monday, October 22, 2012

Currently the number formalities required for a construction project is 18.

Elmundo.com.sv reports that "Carlos Guerrero, president of the Salvadoran Chamber of the Construction Industry (Casalco), who also served as environment minister between 2004 and 2009, indicated that this delay makes the country less competitive and will increase costs unnecessarily. "

"Currently, for an investor to start up a construction of a project in the country, he has to make a long journey that takes at least 880 days in different government institutions.

Over 18 steps are required to make a single construction. However, the problem lies with the current legal framework, as it currently does not set a deadline for the authorities to communicate their responses to the processes. "



More on this topic

Construction Sector Not Growing in El Salvador

December 2013

Lack of private sector confidence in the government and excessive bureaucracy prevented greater investments being made in this industry during 2013.

The construction industry describes 2013 as a year of stagnation, it is estimated that the Gross Domestic Product (GDP) of the sector will be 0% even though the previous year it closed at -2.4%.

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.

Proposal for Act to Streamline Building Permits

May 2013

A proposal by the Salvadoran Chamber of the Construction Industry aims to lower from two years to six months the time taken to obtain the necessary construction permits.

According to Carlos José Guerrero, president of the Salvadoran Chamber of the Construction Industry (Casalco) preparations have been made for the Act to Streamline Procedures for Building Permits which will be sent to Congress in the next few days.

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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