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Republic of El Salvador Country Environmental Analysis: Improving Environmental Management to Address Trade Liberalization and Infrastructure Expansion

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The World Bank and DR- CAFTA
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Presentaciones del seminario

Improving Environmental Management to Assess Trade Liberalization and Infrastructure Expansion. (s) Carlos Belausteguigoitia, Senior Economist and Report author, the World Bank

Integral Management of Urban Solid Waste: Investment Projects. (s) Sr. Carlos Belausteguigoitia, Senior Economist and Report author, the World Bank

Progress in the Strategic Environmental Assessment of the Sustainable Development Program of the Northern Area. (s) Juan Carlos Facetti, Coordinating Consultant of Strategic Environmental Assessment, FOMILENIO

San Salvador, June 27 2007 —  A seminar about the Republic of El Salvador Country Environmental Analysis: Improving Environmental Management to Address Trade Liberalization and Infrastructure Expansion was held today in El Salvador, presented by Juan Carlos Belausteguigoitia, lead author and World Bank’s Senior Environmental Economist. The event also benefited from comments by Walter Jokisch, former Ministry of the Environment and consultant; and Juan Francisco Facetti, coordinating consultant for Strategic Environmental Assessment at FOMILENIO.

The report responds to a World Bank need to assess whether WB-supported policies will considerably impact the country’s environment and natural resources. If impacts are considered to be large, the country’s capacity to mitigate negative impacts and maximize positive ones should be assessed.

Developed jointly with the Ministry of Environment and Natural Resources (MARN), the environmental analysis involved consultations with ministries, research centers, NGOs, among other stakeholders, who provided valuable inputs to further clarified the report’s outcomes and recommendations.

The purpose of this Country Environmental Analysis (CEA) is to assess the efficiency and effectiveness of environmental policies and frameworks in El Salvador to address current and future environmental issues, putting special emphasis on those arising from trade liberalization and infrastructure investments. The CEA identified policy and institutional gaps and provides feasible and cost-effective policy recommendations.

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Main Aspects of the El Salvador Country Environmental Analysis

Although DR-CAFTA is expected to bring new investment and trade opportunities, it will also enhance the scrutiny and monitoring of El Salvador’s environmental law compliance by trade partners. The report titled “Republic of El Salvador Country Environmental Analysis: Improving Environmental Management to Address Trade Liberalization and Infrastructure Expansion”, presented by Dr. Juan Carlos Belausteguigoitia, World Bank Senior Environmental Economist, concludes that low levels of environmental compliance would add unnecessary stress while increasing the country’s investment risks.

As of the end of the 90s, El Salvador has made considerable improvements in setting up a solid legal and institutional framework for environmental protection. Environmental issues have gained increased relevance due to the negative impacts of natural disasters and environmental degradation, and also because of the efforts made by the government to deal with them in past years. The government has also put in place several national scale environmental policies about specific issues, thereby raising the importance of environmental issues within the national agenda and civil service, and also enhancing accountability.

In spite of such major progress, the report says that after signing the DR-CAFTA, the country should hasten the consolidation of environmental arrangements and identifies short-term institutional adjustments and improvements, which basically rely on the improved enforcement of the Environmental Act. Perhaps the most important challenge to improve environmental management in El Salvador is improving the institutional framework’s effectiveness and efficiency.

One of the most sensitive issues in the environmental management framework under the DR-CAFTA is the enforcement of environmental regulations. The report states that El Salvador has made a big step with the establishment of a Controllership’s Office in 2005, which will be in charge of monitoring the compliance of environmental laws.

Regarding the institutional framework, El Salvador needs detailed regulations, an effective license awarding process, less burdensome responsibilities and accountability for the Ministry of the Environment and Natural Resources (MARN) and environmental units in public agencies, and greater coordination capacity of the Environmental Executive Council (CEMA).

The country must also improve the effectiveness and efficiency of its Environmental Impact Assessment (EIA) System. Just like in other countries in the region, El Salvador has mostly relied on EIAs to develop environmental management capacities and lacks basic standards to provide requirements for specific cases. EIA preparation includes many activities –some which involve standard and foreseeable impacts. Consequently, this process has become the bottleneck for most projects. The new DR-CAFTA scenario and an ambitious infrastructure plan both point to the need for urgent measures. The study recommends improving the efficiency of the EIA system under a specific approach that includes the use of Strategic Environmental Assessments (SEAs), a tool which could be used as a supplement for the EIA process.

Improving the support for environmental decision-making and monitoring by enhancing the Environmental Information System (EIS) and local participation is another issue considered. The report reveals that the country still lacks a data collection system to regularly gather environmental information in consistency with national, regional or international database systems. One recommendation on this regard is to refresh the system so as to rely on relevant environmental data in order to improve decision-making, implement environmental policies and monitor performance, for the benefit of stakeholders and wider constituencies. 

Since water is one of the most pressing natural resource issues facing the country, the report identifies the need to set up a framework for sustainable water management. Given the lack of a national water development and management policy, decision-makers have been focusing on water users, particularly in irrigation and water supply. While the mandates of several agencies–including the National Board of Aqueducts and Sewer Systems (ANDA), the Hydroelectric Executive Committee of the Lempa River (CEL), and the MARN– provide specific responsibilities regarding water supply and quality, they fail to identify specific monitoring responsibilities for the sustainable management of water resources. 

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Conclusions and Recommendations of the Report

The main recommendations of the Report are as follows:

  • Improving the coordination amount environmental policies and the operation of the National Environmental Management System (SINAMA) and the National Environmental Council (CONAMA);
  • Defining national priorities for environmental protection, establishing quantitative goals for each priority and providing adequate budgets;
  • Improving the effectiveness and efficiency of the Environmental Impact Assessment system; d) Promoting the compliance of environmental regulations by strengthening enforcement capacities;
  • Improving the support for environmental decision-making and monitoring by enhancing the Environmental Information System (EIS) and local participation;
  • Improving the legal framework to promote sustainable water management and strengthen water management under the MARN.

Last updated on October, 2007
By: Karla Ma. Villanueva




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