During the compact, in part as a result of MCC’s work with the Government of El Salvador on sustainable road maintenance, the Salvadoran legislature passed two decrees that significantly increased road maintenance funding and improved prospects for sustainability of the road system through appropriate road maintenance. The first decree enables the transfer of traffic fines, license plates and other road user fees directly to the FOVIAL road maintenance fund, and a second decree enables the use of bonds to finance FOVIAL. As of the close of the compact, two additional reforms aimed at further strengthening FOVIAL’s financial position were under consideration in the National Assembly. This is a prime example of MCC’s positive impact in affecting policy changes necessary for sustainable economic growth in a partner country.
| Key Compact Component(s) | Major Condition Precedent or Policy Reform Required | Rating |
|---|---|---|
Compact Undertake Strategic Environmental Assessment (SEA) and Strengthen the National Environmental System (SINAMA) |
Met on Time
El Salvador used World Bank funding to complete the SEA, the first of its kind in Central America. Ministry of Environment and Natural Resources has recently begun new process designed to strengthen SINAMA. |
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Compact Integrated action plan, for the strengthening of property rights and the modernization of the property registration and cadastral systems |
Met Late | |
| Connectivity Project |
Connectivity Project Prior to MCC disbursement for construction or physical works in calendar year 2009 and each year thereafter, FOVIAL has included in its maintenance plan, and will have adequate funding to maintain, all roads constructed under the Connectivity Project, in each case in a manner acceptable to MCC. |
Met on Time |
| Human Development Project |
Human Development Project Individuals with no primary school completion certificate can enroll in selected continuing education and selected professional certificate programs prior to formal technical education sub-activity disbursement |
Met on Time |