Project Factsheet
Tools for » Urban and Productive Integrated Sustainable Settlements in El Salvador
Project ID:00067262Description:MDGF-2066-D-SLV Private Sector
Fund:
MDG Achievement Fund
Start Date *: 31 Mar 2009
Theme:
MDGF Private Sector Devt
End Date*: 30 Jun 2013
Country: El Salvador Project Status: Financially Closed
  Participating Organization:   Multiple
About

Overview:

The JP sought to strengthen regulatory processes, tools and management, while promoting public-private partnerships together with innovative models for affordable housing through poverty reduction and private sector lenses.

One key result was in the area of advocacy with 7 draft bills and 3 laws approved. In addition, policies, regulations and procedures for construction and urbanization were revised with a gender lens. Procedures were simplified with the estimated time required to process a permit significantly reduced (95%). In addition, bottlenecks to private-public partnerships were identified.

The programme promoted increased incomes for the most vulnerable families with over 300 families benefitting. In addition, 6 entrepreneurships and 11 micro enterprises were supported, and capacity building was promoted through training, exchanges and diplomados.

An estimated 500 families were targeted, of which 66% were able to regularize the status of their property, as well as 300,000 homes provided with legal status to thanks to the Subdivision Law.

The programme designed and advocated necessary conditions for what the Sustainable Productive Communities model, a participatory and integrated model that seeks to provide affordable housing, decrease poverty and prevent marginalization using a private sector model. The JP also strengthened the involvement of civil society and institutions in decision making around affordable housing. This model is being perceived as a model for replication by countries such as Colombia, Costa Rica and Guatemala who suffer from similar conditions of extreme poverty in the slum areas.

By the end of the JP the value chain was more inclusive and effective, with an increase in the number of support services available be it for capacity building, access to finance or technical. In addition the knowledge and communication strategy of the JP allowed for continuous monitoring and provided the necessary detail for this pilot to be replicated and scaled up. 

In addition the Programme was able to leverage significant resources. For every dollar of the JP invested, an additional US$1.6 were provided by the counterparts. The JP provided US$5 million, and the partners an additional US$8 million in the form of infrastructure, guarantees, budgets for maintaining activities, micro credit and others. For the first time the country has a Credit Guarantee system for affordable housing.

 

Outcome 1:

Consensus among key players for improved Housing conditions.

 

Outcome Achievements:

  • 500 families and 250 settlements were targeted for improvement of which 66% of families were able to regularize the status of their property, with women owners and women headed households being prioritized.
  • 45% of women have ownership titles.

 

Outcome 2:

Value chain for the construction of affordable products and housing for low-income population improved.

 

Outcome Achievements:

  • Policies, regulations and procedures for construction and urbanization were revised with a gender lens.
  • In total the programme’s advocacy resulted in 7 draft bills and 3 laws being approved.
  • The time to process a permit was reduced by 95% and a draft law for simplification of procedures was presented.
  • Bottlenecks to private-public partnerships were identified.

 

Outcome 3:

Productive, integrated and sustainable urban settlements promoted and developed.

 

Outcome Achievements:

  • Location for new settlements were identified with participation of the private sector, government and civil society.
  • The JP assisted enabling mobile banking through drafting of an  MoU. This is an innovative mechanism for financing affordable housing and implements the National Programme to Guarantee housing. 50% of financing approved has gone to women.
  • Six pacts and one agreement were formalized with support from the beneficiaries to manage community resources.
  • The programme promoted increased incomes for the most vulnerable families, 364 families benefitted from five different value chains mainly agriculture, primary needs, construction, food and services. In addition, 6 entrepreneurships and 11 micro enterprises were supported.
  • Capacity building was promoted through training, exchanges and diplomados.

 

Outcome 4:

M&E and management systems implemented.

 

Outcome Achievements:

  • A baseline was created.
  • Evaluation of impact.
  • M&E system with a final evaluation.

 

Best Practices:

  • Partnership with the government to provide the country with public policies, laws, financial instruments  and regulations, created public-private partnerships for the sustainability of affordable housing has modernized the country and put it in the forefront in the region.
  • The design and promotion of Sustainable Productive Communities model, an integrated model that seeks to prevent marginalization. This model is being perceived as a model for replication by countries such as Colombia, Costa Rica and Guatemala who have similar conditions of extreme poverty in slum areas.
  • The promotion of public-private partnerships with government, private sector, civil society and academia for a more efficient value chain in the production of social affordable housing.
  • The Subdivision Law will provided legal status to 30% of the urban homes, which amounts to 300,000 homes.
  • The Development Banking Law and the Salvadoran Guarantee Fund have established agreements with 26 finance institutions. For the first time the country has a Credit Guarantee system for affordable housing.
  • The Programme was able to leverage significant resources. For every dollar of the JP invested, an additional  US$1.6 were provided by the counterparts. The  JP provided US$5 million and the partners an additional US$8 million in the form of infrastructure, guarantees, budgets for maintaining activities,  micro credit and others.

 

Lessons Learned:

  • The programme initially assigned seed money to the national counterparts which delayed the process. This was a risk as it was difficult to harmonize timing, which had a negative effect. The lesson learned is that resources need to be guaranteed within the programme to ensure the full process, which can be complemented by the national counterparts.
  • Although the programme sought to empower the communities, in fact these were beneficiaries of actions designed by others. Over time the programme was able to let communities implement their own resources.
  • This programme did not work on the basis of ethical businesses, but rather on a private sector model, for this  to work an agency like the UN is necessary to motivate the State to create the right incentives.  

 

More details can be found in the documents below.

Recent Documents
Key Figures
Report by
Financials
Participating Organizations are required to submit final year-end expenditures by April 30 in the following year; Interim expenditure figures are submitted on a voluntary basis and therefore current year figures are not final until the year-end expenditures have been submitted.
Report by
All amounts in US$
View as Excel Print friendly format
Latest Vouchers
This screen shows payment vouchers for transfers made to Participating Organizations. Only payment vouchers from 1 January 2009 and onwards are shown.
All amounts in US$ View as Excel Print friendly format
Contacts

If you have questions about this programme you may wish to contact the RC office in El Salvador or the lead agency for the programme.

The persons with GATEWAY access rights to upload and maintain documents for the programme:

Contact Us | Glossary | Scam alert | Information Disclosure Policy | Feedback