Audit of the USAID/El Salvador-financed housing reconstruction activities

Audit report covers the period 5/01-7/02. USAID/El Salvador"s housing reconstruction program is not on schedule. As of 7/31/02, only 3,903 houses had been completed against a Phase I target of 7,135. Success has varied sharply according to the implementing organizations For example, the activities carried out by the Cooperative Housing Foundation (CHF), Save the Children, CARE, and World Vision, representing 40% of the houses to be built under Phase I, were either completed or were on schedule. Several factors contributed to the success of these organizations. Two of them -- CHF and CARE -- had recent experience in managing reconstruction programs in El Salvador and so were already mobilized and had trained, experienced staff on hand. Additionally, three of the organizations -- Save the Children, CARE, and World Vision -- focused on relatively small, concentrated geographical areas, simplifying the logistics involved. In addition, Save the Children chose to build houses in areas where CARE was already working with communities to upgrade water systems, which simplified the logistics and coordination issues involved. By contrast, the housing reconstruction activities carried out by the National Popular Housing Fund (FONAVIPO), Samaritan"s Purse, and Catholic Relief Services (CRS), representing 60% of the houses to be built under Phase I, were not on schedule. FONAVIPO"s program was significantly delayed, in general due to coordination and planning problems at the outset of the program, inflexible payment procedures, and weaknesses in FONAVIPO"s supervision of its contractors. Of particular note has been the difficulty experienced by the Foundation for Reconstruction and Development (REDES), a local NGO, in completing environmental assessments of proposed FONAVIPO construction sites. It is recommended that the Mission, in addition to the corrective actions it has already taken, establish timeliness standards and procedures for the environmental assessments. Samaritan Purse has completed only 515 or 47% of 1,100 planned houses, mainly due to delays in obtaining (1) the approval of land titles by the Government of El Salvador"s Institute for Freedom and Progress (ILP) and (2) the Mission"s approval of environmental assessments. Nonetheless, Samaritan Purse should come to completing all the planned houses by the end of October. CRS"s program has been only slightly delayed, and all scheduled 300 houses should be completed by the end of August. Eligibility criteria have been properly applied to potential beneficiary recipients of the new housing.