A. M. 
The Finance Committee agreed to issue special provisions that would allow the ministry to manage the purchase of land to relocate families from areas where road construction projects are underway, such as the Apopa bypass.
The Finance Committee of the Legislative Assembly issued a favorable opinion for the issuance of Special and Transitional Provisions for the execution, supervision, and administration of resources from two loan agreements for US$150 million and US$120 million that the Government signed with Banco Internacional de Reconstrucción y Fomento (BIRF), to finance El Salvador’s Resilient Transportation and Infrastructure Project.
This aims to improve mobility, road safety, and the resilience of public works to climate change. It also ensures environmental protection and the well-being of communities.
The special regulations to be voted on by the full legislature would give the Ministerio de Obras Públicas y de Transporte (MOPT) the legal framework to develop, sign, and manage everything related to both loans.
This would empower the Ministry to purchase land, pay compensation, provide temporary housing, and construct permanent homes for families residing in the areas where road construction projects are underway, including the Apopa bypass.
The MOPT would also be authorized to donate to the Fondo Nacional de Vivienda Popular (FONAVIPO) the land and buildings it acquires and provides free of charge to selected families, according to the Plan de Reasentamiento Involuntario (PRI) approved on august 4.
The document complies with the environmental and social standards established by the World Bank, which governs IBRD lending policies, especially those regulating land acquisition and resettlement processes.
For this process, FONAVIPO would register these properties in its inventory and carry out the accounting entries according to the property valuation determined by the MOPT.
The provisions also aim to ensure that families receiving property as part of the Plan de Reasentamiento Involuntario cannot sell, mortgage, or transfer it in any way for the first 20 years after receiving the deed.
Furthermore, the PRI housing projects would be designated as social housing. Therefore, the registration process for properties granted to families would be exempt from registration and cadastral fees.
In addition, the Ministry of Finance would carry out the necessary budgetary and financial operations to ensure compliance with the obligations arising from the contracts with the BIRF.
Context
On january 9, 2024, the Legislative Assembly authorized the Executive Branch to sign a $150 million loan agreement with the BIRF, to finance the Resilient Transportation and Infrastructure Project. This agreement was signed on february 27 and ratified on april 9 of the same year.
On july 11, the Assembly also authorized a $120 million loan from the same institution to continue the project and contribute to boosting the economy, including works in various parts of the country, such as the northern part of the San Salvador Metropolitan Area.
The MOPT developed the Involuntary Resettlement Plan to support the communities affected by the relocation and to facilitate the project’s implementation.
Tax exemption for cancer medications
Members of the Finance Committee of the Chamber of Deputies endorsed another initiative to exempt the Ministerio de Salud (MINSAL) from paying import taxes on a donation of medications for cancer patients at the Hospital Nacional Especializado Rosales who are low-income and lack access to treatment.
If approved, the institution would not incur any taxes, such as Import Duties (DAI), Value Added Tax (VAT), maritime and port service fees, warehousing costs, or handling fees related to the import.
In may 2019, MINSAL signed an agreement with The Max Foundation, a non-profit organization that supports low-income patients worldwide who cannot access cancer treatment.
As part of this agreement, El Salvador will receive a donation of 500 boxes of Glivec FCT 400 mg and 465 boxes of Glivec FCT 100 mg.
The exemption would not eliminate the oversight that the Ministry of Finance must exercise through the Dirección General de Aduanas (DGA) and Dirección General de Impuestos Internos (DGI), as well as other relevant government agencies.
Reforms to the 2025 Budget
Parliamentarians also approved reforms to the 2025 Budget Law to allocate $267 million to the Ministry of Finance, ensuring it has sufficient funds to cover the government’s strategic priorities, general state obligations, and various transfers. The funds come from the issuance of securities, approved on november 11.
