El Salvador: Obstacles for Construction Sector

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.

Monday, October 26, 2015

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.

The commercial manager for Urbánica, a real estate developer, Alvaro Barrera, told Elsalvador.com that "... "At present we were unable to use the law on streamlining procedures, we can not feel any of these advantages, speeding up processes as stated; they have spoken about a 60 day process with the ANDA, and this has not been fulfilled. '"

"... The feelings of the representative from Urbánica match the accusations made over recent years by the Salvadoran Chamber of Construction Industry (Casalco). According to repeated statements by the executive director of the union, Jose Velasquez, bureaucracy and lack of will are not only affecting businesses, which in the end could look for new markets, but also creating problems for the country. "



More on this topic

El Salvador: Construction Stagnates

November 2016

Excessive bureaucracy, which is holding up the execution of new construction projects, generating uncertainty among investors, is added to a delicate fiscal situation.

Estimates are that 110 construction projects have been left "stagnant" this year  because of the slow pace of analyzing and awarding building permits, leaving $600 million not being executed, according to the president of the Salvadoran Chamber of Construction (Casalco), Angel Diaz.

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.

El Salvador: Bureaucratic Obstacles to Construction Continue

October 2014

Developers claim that the law streamlining procedures adopted in 2013 is not being enforced by state institutions, which continue to impede investment in the sector.

According to representatives of the builder's guild, there are some private and public projects, all medium-term in the area of ​​homes and businesses, which could not be executed because of the amount of bureaucratic processes that are still pending.

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.