It should also hasten to adopt new laws to fight crime and reform the Special Act on Public Private Partnerships.
These were some of the recommendations made by José W. Fernandez, Assistant Secretary of State for Economic, Energy and Business from the U.S.
During his visit to the Central American nation, officials met with entrepreneurs who are part of the National Council for Growth who said he came "to see how we can help ...
The government has presented to the Legislative Assembly a draft for the Media Act on state property.
The government of President Mauricio Funes presented today to the Legislative Assembly a draft Law on Public Media which seeks to turn Televisión de El Salvador (Channel 10) and Radio Nacional de El Salvador (96.9 FM) into public media, starting from the establishment of legal and institutional framework necessary for its fully independent operation.
The countries in the region are working on the development of a standard to regulate anti-competitive practices by regional companies.
The first draft of the new regulations was presented at the VII Central American Competition Forum.
"There are markets where competition problems cross borders and affect more than one country, we are working on a competition law and on the creation of an authority which has the power to implement it in Central America," said Francisco Diaz Rodriguez, Superintendent of Competition in El Salvador.
FUSADES is asking the Salvadoran Congress to make reforms to the Special Act on Public-Private Partnerships in order to ensure its effectiveness.
The Salvadoran Foundation for Economic and Social Development (FUSADES) is refering to the reforms that have been put forward by the ARENA party which among other things suggest that the Agency for Promotion of Exports and Investments of El Salvador (PROESA) be in charge of monitoring the administration of the law. The recently passed legislation "includes a new administrative institution: the Directorate of Public-Private Partnerships", reported Laprensagrafica.com.
Businessmen want to expedite the process of approval by the Legislature, in which Proesa is the governing body, and which may include water and sanitation projects.
Members of the Council for Growth are seeking Congressional support in order to make three amendments to the Special Act on Public-Private Partnerships.
Carlos Guerrero, private sector representative on the Board and president of the Salvadoran Chamber of Construction (Casalco) explained that the reforms revolve around three themes. "One is to expedite the approval process of a partnership in the legislature. Currently, a project has to gain approval of the Assembly many times," noted an article in Elmundo.com.sv.
Just like in a never ending story, there are now plans in El Salvador to modify the legal framework regulating the conditions of the tender process, which is already underway.
The aim is to avoid future conflicts which could lead to subsequent international arbitration. For this reason the Salvadoran Congress and Executive Port Commission (CEPA) is starting a process to discuss the law next week.
The fulfillment of the obligation to report on foreign bank accounts belonging to U.S. citizens has been postponed to July 1, 2014.
This was announced by the U.S. Treasury through a statement, explaining that "due to the huge interest from countries around the world" the deadline to comply with the Law on Foreign Account Tax Compliance (FATCA), will be extend by six months, that is until July 1, 2014.
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.
Private sector operators see in the Law of Public-Private Partnerships serious deficiencies which would prevent the bill from obtaining the desired results.
"The law, as it has been approved, will not achieve the expected results, we believe that it is not a good law, it has serious deficiencies that will make it very difficult to obtain the expected results," said Javier Castro, director of Department of Legal Studies (DEL) of the Salvadoran Foundation for Economic and Social Development (FUSADES).
Salvadoran Congress has passed a law that will allow public institutions to form partnerships with private companies for infrastructure and public services projects.
From a press release issued by the Legislative Assembly of El Salvador:
In order to establish the regulatory framework for the development of projects for the provision of infrastructure and public services of general interest effectively and efficiently, the Legislative Assembly in Plenary approved with 84 votes in favor, the "Special Law on Public Private Partnerships"(PPP).
The project aims to facilitate the arrival of foreign investment in the country, but it remains trapped in Congress.
"The law presented by the government is positive. Hopefully this is a good law, but in itself it is not enough. If conditions (such as uncertainty, bureaucracy, etc..) carry on being reinforced, then the law will not help "said Roberto Rubio, from Funde.
El Salvador's Congress could pass a law on road freight transport, regulating permits, routes, itineraries, parking, weight and dimensions of vehicles.
The current draft, soon to be approved by the Public Works Commission, does not include mandatory insurance requirements for third parties.
"The law imposes penalties on owners, drivers and shippers of goods vehicles", reported Elmundo.com.sv article.
National regulations are to be adjusted to conform to the Association Agreement with the European Union, giving added value to designations of origin or geographical identifications.
From a press release issued by the Legislative Assembly of El Salvador:
The full legislature has passed amendments to the Law on Trademarks and Other Distinctive Signs, with 79 votes, which will allow the maximization of production by small and medium businesses, the specialization of product quality and diversification of export markets.
An IDB study indicates that delays in the approval of the law on public-private partnerships is jeopardizing private investment.
According to a study by the Economist Intelligence Unit, a project funded by the Inter-American Development Bank (IDB), while El Salvador has made progress in preparations for Public-Private Partnerships (PPPs), delays in the approval of a regulatory framework are jeopardizing private investment.
Pharmaceutical unions in El Salvador have denounced the regulations determining maximum pricing as being contradictory to the Medicines Act
Elsalvador.com reports that the legal counsel for Fedefarma y Diprofa, Luis Chávez, explained that the pricing for drugs is based on the active ingredient and not on each product: "This is the same as me asking for a point of law establishing a price ceiling on mobile phones.