Final Report January 1 2000 to 30 September 2002
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MUNICIPAL DEVELOPMENT AND CITIZEN PARTICIPATION PROJECT FINAL REPORT JANUARY 1 2000 TO 30 SEPTEMBER 2002 El Salvador SUM Contract No. 7470-806 Co-sponsored by: COMURES-GOES-USAID Table of Contents Exhibits........................................................................................................................................ iii Abbreviations.............................................................................................................................iv Executive Summary...................................................................................................................1 1. Background and Project Design..................................................................................5 1.1 Introduction.................................................................................................................. 5 1.2 Background ................................................................................................................ 5 1.3 Description of the Project Components .................................................................. 9 1.4 Project Inputs............................................................................................................10 1.4.1 Technical Assistance Team.......................................................................10 1.4.2 Training, Models, and Publications...........................................................11 1.4.3 Budget..........................................................................................................12 2. Project Components......................................................................................................13 2.1 Policy Reform and Formulation..............................................................................13 2.1.1 Tax Reforms ................................................................................................13 2.1.2 Decentralization of Rural Road Maintenance ..........................................15 2.1.3 Decentralization of the Water Supply Services .......................................16 2.1.4 Municipal Transparency Mechanisms ......................................................18 2.1.5 Technical Assistance and Training with National Institutions .................20 2.1.6 Nonprogrammed Activities Carried Out...................................................22 2.1.7 Problems with the Component ..................................................................23 2.2 Municipal Strengthening Component.....................................................................24 2.2.1 Financial Strengthening..............................................................................24 2.2.2 Management Capacity...............................................................................28 2.2.3 Municipal Services......................................................................................29 2.2.4 Nonprogrammed Activities Carried Out...................................................41 2.3 Local Democratic Development Component: Citizen Participation..................41 2.3.1 Background .................................................................................................41 2.3.2 Phases and Activities in the Period..........................................................42 2.3.3 Problems with the Component ..................................................................48 2.3.4 Nonprogrammed Activities Carried Out...................................................50 3. Lessons Learned and Recommendations...............................................................53 3.1 Key Lesson: Political Will........................................................................................53 3.2 The Content of Project Assistance.........................................................................54 3.2.1 Citizen Participation...................................................................................54 3.3.2 Municipal Strengthening .............................................................................55 3.2.3 Municipal Services......................................................................................56 3.3 Policy Reform and Formulation..............................................................................58 FINAL REPORT – JANUARY 2000 TO SEPTEMBER 30, 2002 ii 3.3.1 Slow Improvements in the System of Central-Local Government Transfers .....................................................................................................58 3.3.2 Tax Reform ..................................................................................................59 3.3.3 Private Sector Participation.......................................................................60 3.3.4 Multiyear Investment Plans.........................................................................60 Appendices A Financial Indicators (Municipal Strengthening Component) B Services Indicators (Municipal Strengthening Component) C Local Democratic Development Component D Publications Models E Final Provisional Budget F Consultants / Contractors G Summary of Municipalities Assisted H Training Events I Strategic Objective Indicators Result Exhibits Exhibit 1: Project Municipalities, by Number of Inhabitants...............................................8 Exhibit 2: Timing for Incorporating New Municipalities ......................................................8 Exhibit 3: Organizational Structure.....................................................................................10 Exhibit 4: Training Events Summary..................................................................................12 Exhibit 5: Trends in Municipal Income and Expenditures, 1996–2002..........................26 Exhibit 6: Municipal Investments, by Financing Source, for the 28 Project Municipalities, 1998–2002.................................................................................27 Exhibit 7: Models for Municipal Utility Management in Project Municipalities...............31 Exhibit 8: Management Indicators of Decentralized Companies....................................34 Exhibit 9: Training Sessions and Number of Participants...............................................43 FINAL REPORT – JANUARY 2000 TO SEPTEMBER 30, 2002 iii Abbreviations AA ATAP Water Management Association for Ataco-Apaneca ACDAU Association of Departmental Councils of Mayors of Usulután ADA Office for Decentralized Administration of Water and Sewerage, ANDA AFI Governmental Accounting System AMSO Metropolitan Area of Sonsonate ANDA National Water and Wastewater Administration ANEP National Association for Private Enterprise CARE Cooperative for American Remittances Everywhere CASALCO Salvadoran Construction Industry Council CDA Departmental Council of Mayors CDL Local Development Committee CECI Canadian Center of Studies and International Cooperation CHF Cooperative Housing Foundation CNSP National Public Security Council COMURES Association of Municipalities of the Republic of El Salvador CONAMYPE National Commission for Micro and Small Enterprises COP Chief of Party CREA Creative Associates International of El Salvador [operates Citizen Participation and Governance Project] DEMUCA Foundation for Local Development and Municipal and Institutional Strengthening of Central America and the Caribbean DevTech Development Technologies, Incorporated DIGESTYC General Office of Statistics and the Census DIMA Municipal Decentralized Company, San Pedro, Honduras DUI Unique Identification Document [number] EHP Environmental Health Project EMASA Municipal Administrative Agency for Water and Wastewater, Suchitoto EMASIC Municipal Administrative Agency for Water and Wastewater, San Isidro, Cabañas ENADE National Conference on Private Enterprise ENDL National Strategy for Local Development FINAL REPORT – JANUARY 2000 TO SEPTEMBER 30, 2002 iv EPA U.S. Environmental Protection Agency FEPADE Entrepreneurial Foundation for Educational Development FISDL Social Investment Fund for Local Development FODES Fund for Social Development FUNDAMUNI Foundation for Support to Municipalities of El Salvador FUNDASPAD Salvadoran Foundation for Democracy and Development FUNDE National Development Foundation FUSADES Salvadoran Foundation for Economic and Social Development FUSAI Salvadoran Foundation for Integrated Support GOES Government of El Salvador GTZ German Agency for Technical Cooperation IDB Inter-American Development Bank IQC Indefinite quantity contract IR Intermediate Result ISDEM Salvadoran Institute for Municipal Development IUDOP University Institute of Public Opinion, UCA MDCPP Municipal Development and Citizen Participation Project MOP Ministry of Planning NGO Nongovernmental organization PDL Local Development Program PEP Participatory Strategic Planning PSP Private sector participation RED Local Development Network: made up of local development NGOs—FUNDE, FUNDAMUNI, FUSAI, Guillermo Manuel Ungo Foundation (FUNDAUNGO), Latin American Social Sciences Faculty (FLACSO) REF Family Status Registry RTI Research Triangle Institute SACDEL System of Consulting and Training for Local Development SAFI Integrated Financial Management System SAFIMU Municipal Integrated Financial Management System SASA Water Administration System SETEFE Technical Secretariat for External Financing SIFIMU Municipal Financial System SO Strategic Objective FINAL REPORT – JANUARY 2000 TO SEPTEMBER 30, 2002 v SOCINUS, SEM Intermunicipal public-private solid waste service, Usulután de CV (Sociedad Intermunicipal Usuluteca)