El Salvador

Ease of Doing Business in

El Salvador

This page summarizes Doing Business 2013 data for El Salvador. The first table lists the overall "Ease of Doing Business" rank (out of 185 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Latin America & Caribbean
Income Category Lower middle income
Population 6,227,491
GNI Per Capita (US$) 3,480
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
113 111 down -2

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
58.1 58.2 down -0.1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 139 135 up -4
Dealing with Construction Permits 146 143 up -3
Getting Electricity 131 126 up -5
Registering Property 56 55 up -1
Getting Credit 53 52 up -1
Protecting Investors 169 167 up -2
Paying Taxes 153 148 up -5
Trading Across Borders 80 72 up -8
Enforcing Contracts 71 67 up -4
Resolving Insolvency 89 92 up 3

Economy Profile

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Getting Electricity

Info

The challenges required for a business to obtain a permanent electricity connection for a newly constructed warehouse are shown below. Included are the number of steps, time, and cost.

DB 2013 Rank 131 DB 2012 Rank 126 Change in Rank down-5
DB 2013 DTF** (% points) 62.8 DB 2012 DTF** (% points) 62.9 Improvement in DTF** (% points) down-0.1
Indicator El Salvador Latin America & Caribbean OECD

The number of procedures to obtain a permanent electricity connection. A procedure is defined as any interaction of the company employees or the company’s main electrician with external parties.

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Procedures (number)
7 5 5

The number of days to obtain a permanent electricity connection. The measure captures the median duration that the electricity utility and experts indicate is necessary in practice, rather than required by law, to complete a procedure.

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Time (days)
78 66 98

The cost is recorded as a percentage of the economy’s income per capita. Costs are recorded exclusive of value added tax.

View methodology
Cost (% of income per capita)
554.8 559.0 93.0
No. Procedure Time to Complete Associated Costs
1 The client hires an electrician authorized by the Superintendence of Electricity and Telecommunications (SIGET) to request the service with AES EL Salvador and to inspect and certify the internal installation 7 calendar days USD 200.0
2 The client or its electrician submits in person the request for "feasibility of electricity service" with AES El Salvador and awaits the outcome of the report 14 calendar days USD 90.5
* 3 In order to identify the point of connection and determine the feasibility, AES El Salvador inspects in situ the client's property 10 calendar days no charge
4 After receiving the certificate of feasibility, the client submits the electrical plans for revision together with the official application and requests a cost estimate from AES El Salvador 12 calendar days USD 213.1
* 5 AES El Salvador inspects for the second time in order to prepare the budget 7 calendar days no charge
6 The client or his authorized contractor installs the transformers and the cables for the external wiring 26 calendar days USD 14,500.0
7 The client pays for the connection, signs the supply agreement and waits for AES El Salvador to finalize the external connection 19 calendar days USD 4,302.0
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the indicators across all economies included in Doing Business since each indicator was included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

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