The sector continues to operate within the restrictions that have been imposed, but at a slower pace, as it has adjusted its processes to the required health and safety protocols.
Because of the public health threats caused by the covid-19 pandemic, the Government decreed a home quarantine a few days ago. However, some activities may continue to be carried out, provided they meet certain requirements.
After registering a 12% growth in 2019, this year in the construction sector is expected to keep up investments and exceed $1.3 billion.
Directors of the Salvadoran Chamber of the Construction Industry (Casalco), expect that this year public infrastructure projects will maintain the dynamism of investments in the sector.
For the construction guild, in El Salvador it is essential to improve the financing conditions offered by banks to give greater impetus to the construction of low-cost housing.
In December of last year, the Salvadoran Chamber of the Construction Industry (Casalco) announced that they were preparing a law proposal, which contemplated the approval of preferential interest rates on loans for home purchases.
The guild expects 2018 to close with a 7% growth in activity, and for 2019 is forecasted a higher rise, which would range between 8% and 10%.
The Salvadoran Chamber of Construction (Casalco) expects the industry to perform well this year and in 2019, which is reflected in reported increases in cement consumption, issuance of loans to the sector, and other indicators.
The builders' guild in El Salvador is preparing a law proposal, which provides for the approval of preferential interest rates on loans for home purchases.
The proposal to be presented by the Salvadoran Chamber of Construction Industry (CASALCO) will be applicable for bank loans to low- and middle-income families who purchase their first home.
The government has granted access permits for potable water that were pending for 102 construction projects valued at $300 million.
Representatives from the Executive Power and the National Association of Aqueducts and Sewers (ANDA), delivered the package of permits to the Salvadoran Chamber of the Construction Industry (Casalco), "... which will translate into 3,300 new potable water services."
The Salvadoran union for the sector foresees that investments in construction between 2018 and 2019 will add up to $1.4 billion, driven mainly by the execution of several public projects.
The Salvadoran Chamber of the Construction Industry (Casalco) reported that with the investment estimated for this and next year, it is expected that about 136 thousand jobs will be created.
Construction entrepreneurs estimate that the execution of around 160 projects could generate 3% growth this year.
In 2014 and 2015 statistics produced by the builders' association registered drops of 11% and 2% respectively, but this year the situation could change, as they foresee that the execution of 160 public and private projects will generate a growth of up to 3% in activity.
Its been reported that the time it now takes to obtain a construction permit to develop a large project is 125 days, compared to the 279 days it took previously.
The Regulatory Improvement Organization (OMR) reports that in the case of less complex construction projects, the timeframe for completing the process has been reduced from 125 to 50 business days.
Although the guild of construction companies assures that there are about 40 high rise projects intended to be built with private investment in the south zone of San Salvador, supply of these type of houses is still scarce.
Figures from the Planning Office at the Metropolitan Area of San Salvador (OPAMSS)"... which date back to 2014, indicate that only 0.01% of the plots in the urban area in San Salvador cover buildings between 18 and 28 floors, while 46.71% correspond to buildings of one level, equivalent to 36,503 parcels of land."
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.
The government has granted permits for access to drinking water which were needed by 147 construction projects valued at $1.2 billion, which are expected to be developed over the next three years.
The drinking water feasibility studies which have been finally delivered make up some of the paperwork which has held up for several months, leading to complaints from entrepreneurs who put pressure on the government to expedite these formalities.
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.
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.
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 construction union estimates that if approval is given to the reform bill to streamline and simplify procedures, it will take 30 days to obtain a permit.
The Salvadoran Chamber of the Construction Industry (Casalco) proposes amending the Special Law for Streamlining Procedures for Construction Project Development and improving the current timeframes for obtaining building permits and environmental certificates.
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