El Salvador Local Economic Resilience Project

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The objective of Local Economic Resilience Project for El Salvador is to improve institutional performance of municipalities and increase access for citizens to services and resilient infrastructure. The project has 5 components. (1) Investments in services and in resilient municipal infrastructure to support Local Economic Development component will finance resilient municipal infrastructure, including the preparation of technical designs, as needed, in municipalities that meet certain minimum conditions and incremental goals. (2) Competitive fund for high-impact investments on regional economic development component will support the government’s territorial development strategy by financing strategic investments for local economic development. (3) Institutional strengthening and capacity building component will finance institutional strengthening activities at two levels: (i) support to municipal governments to help them achieve the minimum conditions and goals, as well as technical support to Mancomunides; and (ii) support to government agencies at the national level, including: (a) technical assistance to Minister of Finance for the implementation of SAFIM and the adaptation of a revised regulatory framework for managing municipal investments, (b) technical assistance/support to selected government entities for the creation of a national registry of municipal investments through the development of an interoperable platform accessible to various national and local agencies; and (c) creation of a pilot municipal innovation behavioral lab for fostering innovation in the public sector. (4) Contingent emergency response component will provide immediate response to an eligible emergency, as needed and is intended to strengthen the country’s fiscal resilience and immediate response capacity, safeguarding against higher levels of disaster vulnerability, including those driven by climate change. This component is designed to enable rapid access to funds for response and recovery purposes under streamlined procedures for procuring goods, works, and services. (5) Project management and implementation component will create a Project Implementation Unit (PIU) and strengthening activities to Social Investment Fund for Local Development, verify minimum conditions and goals under Component 1, and create a citizen engagement platform.