Procedures Take Longer Than the Works Themselves

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.

Thursday, September 18, 2014

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.

According to the union, "... the institutions where most problems reported are the Ministry of Environment, in relation to environmental permits and the National Administration of Aqueducts and Sewers (ANDA) regarding the feasibility of projects." reports that "... President Casalco claims the law streamlining procedures adopted in November 2013" ... has not served its purpose because 'some institutions have seen it as optional rather than mandatory.'"

More on this topic

Nicaragua: Facilitation of Procedures for New Businesses

March 2017

The procedures required for making investments of over $500,000 outside of Managua can now be made through a single window that includes all entities.

The Superior Council of Private Enterprise (COSEP) has announced that the window is already operating in Managua, and will allow companies to make investments in the departments in the interior of the country, centralizing all of their paperwork in one place, without having to manage multiple processes in different institutions.

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.

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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