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* Takes place simultaneously with another procedure.
Requirement Details
Procedure 1.
Apply for the allotment of land for construction from the Baku city executive authority (in reality Construction Permit)
Time to complete:
15 days
Cost to complete:
AZN 1,100
Name of Agency:
Baku City Executive Authority
Comment:
An application is required for the allotment of land for the construction only if that land is already owned by a builder. A preliminary permit for the project is granted and eligibility of the land plot for construction is determined.
The application for the allotment of land must include the following information, as applicable to BuildCo: - Architectural peculiarities of the planned construction. - Scope and terms of the planned construction. - Dimensions of the land. - Land ownership documents. Note that these informational requirements are based on the assumption that the land is already legally owned by and registered in BuildCo’s name.
The application must also include an attestation to BuildCo’s legal status and to its land plot ownership, the “certificate of state registration.”
Procedure 2.
The Department of Architecture and City Building of the Baku city executive authority verifies the plot dimensions on site
Time to complete:
20 days
Cost to complete:
AZN 800
Name of Agency:
Baku City Executive Authority (Department of Architecture and City Building)
Comment:
After 15 days from the date of submission of the land allotment application (see Procedure 1), the Department of Architecture and City Building and BuildCo representatives examine the land plot to determine the allocation of the construction. This procedure is carried out in compliance with the General Plan and other municipal building regulations. For land plot allocation, the department verifies all information in the application, as well as the following: the area’s land economic and management plan, its populated area general plan, and its planning and construction projects (area plans). The Department of Architecture and City Building carries out an on-site inspection of the land plot. The application can be approved if the land plot complies with the area plans. If authorities deny the land plot allocation, they should notify the owner or file a complaint.
If that application is approved, the application to prepare the relevant drawings must be filed within 5 days with the corresponding executive authority. Within 10 days of allotting the land plot, the executive authority determines the location (the place and the zone, to determine the standard price of the plot). Subsequently, the executive authority carries out land management tasks (planning) and prepares the plan (drawing) of the plot on the required scale (1:500, 1:2,000, 1:5,000, or 1:10,000), depending on the area dimensions. The land owner pays the cost of these procedures. Prices are not stipulated in the law. There is no fixed charge, but as for other service costs, costs can range from AZN 2 million to AZN 10 million, depending on the land plot and other variables.
Procedure 3.
Obtain decree on allotment of land for construction by the Baku City Executive Authority
Time to complete:
20 days
Cost to complete:
AZN 6
Name of Agency:
Baku City Executive Authority
Comment:
The Decree on the Allotment of the Land does not authorize the construction itself. It just permits BuildCo to start the procedure to obtain a construction passport or building permit. The permit is valid for 1 year and may be revoked if no construction activity has been commenced within that period.
After the review of the documents obtained from the relevant executive authority, a decision is made within 5 days on the allotment of the land plot to ownership, use, or rent for construction (if the land plot is allotted for ownership or property, the decision is made after the associated fee has been paid).
After the order or decree is passed, the area’s boundaries must be fixed on the site, according to land management regulations. The order or decree authorizes the procedure of projecting construction on the land plot and the start of construction activity, after the project is deemed to be in good order.
The order or decree and the land plot sketch are sent within 5 days to the relevant executive authority to prepare an entitlement.
At BuildCo’s expense, the relevant executive authority prepares a certificate of right to land within 10 days. The executive authority also registers the right at the Public Land Cadastre and the Public Land Register in BuildCo’s name and submits the related documents to the company. The right must also be registered at the State Registry of Real Estate.
Before beginning construction on the allotted land plot, the design and engineering-communication passports are prepared and approved. The construction cannot begin without that approval.
If the land plot, subject to unreasonable excuse, is not used for its intended purpose, the authorization may be withdrawn and the order or decree shall be considered invalid. There is no statutory time limit.
Procedure 4.
Obtain consent/opinion/terms from the water and sewage authority (Azersu State Company)
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Azersu Joint- Stock Company
Comment:
Under the law “On Water Supply and Waste Waters,” the water and sewage authority will grant a permit and issue guidelines for the construction design and implementation phases. In doing so, the authorities must consider prohibitions and limitations for the water system and wastes. Connection to the main lines is permitted after construction is done.
Procedure 5.
Obtain consent/opinion/terms from the Baku City Sanitation and Epidemiology Center
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Baku City Sanitation and Epidemiology Center
Comment:
Under the law “On Sanitary and Epidemiology Safety,” the authority shall grant a permit and, if necessary, issue guidelines for the construction design and implementation phases.
Procedure 6.
Obtain consent/opinion/terms from the State Fire Control Service of the Ministry for Emergency Situations (MES)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Fire department (Ministry for Emergency Situations)
Comment:
Under the law “On Fire Safety” and according to other norms of Azerbaijan, the authorities (taking into account prohibitions and limitations) shall grant a permit and, if necessary, present specific guidelines for the construction design and implementation phases. A fire inspection must be carried out. According to a presidential order (dated December 16, 2005), the fire department of the Ministry of Internal Affairs has been placed under the subordination of the Ministry of Extraordinary Situations (established early 2006).
Procedure 7.
Obtain consent/opinion/terms from the Ministry of Ecology and Natural Resources
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Ministry of Ecology and Natural Resources
Comment:
According to Under the law “On Environmental Protection,” a permit shall be granted and the conditions adjusted to meet environmental protection regulations, land reclamation, rehabilitation and efficient use of natural resources, improvement of territories, and enhancement of the environment.
Procedure 8.
Obtain consent/opinion/terms from the Baku Electric Network (Bakielektrikshebeke)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Baku Electric Network (Bakielektrikshebeke)
Comment:
According to the “Regulations on Electric Power Use“ (2005), state-owned utility companies grant permits, upon considering prohibitions and limitations. If necessary, further technical specifications are indicated. The permit is valid for 2 years. Connections can be obtained from any of the two state-owned companies, Azerenerzhy or Baku Electric Shabaka. (The private power distribution company Barmek ceased operations in Azerbaijan.)
Procedure 9.
Obtain consent/opinion/terms from the Baku city Heating Systems production unit (subordinate to the Baku city Executive Authority)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Aezerbaijan Heating Network (Azeristiliktejhizat)
Comment:
Upon considering prohibitions and limitations, the authorities grant a permit for centralized heating systems, according to “Regulations on State Energy Control in the Republic of Azerbaijan.” If necessary, further technical specifications are indicated.
Procedure 10.
Obtain permission from the Baku city Telephone Network
Time to complete:
15 days
Cost to complete:
AZN 60
Name of Agency:
Baku city Telephone Network
Comment:
The Baku City Telephone Network grants a permit, considering prohibitions and limitations on the exploitation and security of communications networks, and indicates technical specifications if necessary.
Procedure 11.
Obtain Construction Passport from the Department of Architecture and City-building of the Baku city executive authority
Time to complete:
75 days
Cost to complete:
AZN 10,000
Name of Agency:
Baku City Executive Authority (Department of Architecture and City Building)
Comment:
Although currently under discussion, no law exists on construction activity. Moreover, laws on city building and on architectural activity do not specify the procedures to obtain a construction passport. New construction standards have not yet been developed. Therefore, delays might be expected when applying for this document.
The construction passport application includes the following: - An evaluation of the construction work. BuildCo inquires with different local executive authorities and supply and supervisory organizations to asses their opinions and conclusions. - Architectural and planning instructions, including information on land surface, existing buildings, plants, communication and utilities lines, scope of the project, and other construction specifications. These instructions shall be signed by the chief of the Architecture and the City Building Department of Baku City or a deputy. - The drawing of the land plot, indicating adjacent streets and crossroads. The drawing must be extracted from the city’s General Plan and from the district’s Development Plan. - The verification of dimensions and marking of the land plot (as accepted on-site by the applicant). - The locations and directions of the engineering communication lines (utilities and the like), indicating their marking and placement on existing buildings, streets, crossroads, and so forth. - Copies of consents, opinions, and technical conditions issued by all relevant agencies and utility operators. - A topographic plan of the land plot.
Three copies of the construction passport will be issued: two for the applicant and one for the municipality. After the construction passport has been issued, BuildCo may incur an additional fee if extra work was needed for this process.
The construction passport authorizes BuildCo to draw the building’s technical project documentation (TPD). The construction passport is valid for 2 years, as are all consents and technical terms contained in them. The passport can be renewed, upon request. However, the renewal is subject to additional inspections by the Architecture and City Building Department.
Procedure 12.
Obtain technical project documentation (TPD) clearance from the Fire Control Service (Ministry for Emergency Situations)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Fire department (Ministry for Emergency Situations)
Comment:
Upon its issuance, the construction passport authorizes technical project documentation (TPD) preparation. The passport does not constitute a permit to start construction. Showing only architectural peculiarities, the TPD provides clearance for a 2-year term in compliance with the technical terms set by the utilities operators and other relevant agencies. Any change proposed by BuildCo while preparing the TPD must be reviewed by the Baku City Executive Authority's Architecture and City Building Department.
The fire inspection is conducted at no cost by the Main State Fire Service Department. The department determines the procedure time at its discretion.
Procedure 13.
Obtain project (TPD) clearance from the Sanitation and Epidemiology Center
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Baku City Sanitation and Epidemiology Center
Comment:
The TPD gives its consent based on sanitary and hygienic standards, regulations considering the clearance in the construction passport, and public health requirements (sanitary conditions, epidemiological safety) prescribed by the law.
Procedure 14.
Obtain project (TPD) clearance from the Water and Sewage Authority (Azersu State Company)
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
AzerSu (State Water Agency)
Comment:
The TPD gives consent, which is valid for 2 years. It is based on clearance included in the construction passport and on regulatory wastewater and water supply requirements.
Procedure 15.
Obtain project (TPD) clearance from the Baku Electric Network (Bakielektrikshebeke)
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Aezerbaijan Heating Network (Azeristiliktejhizat)
Comment:
The TPD gives consent based on compliance with technical specifications, “Rules on Installation of Electrical Facilities” and other normative documents, the clearance in the construction passport, and regulatory requirements for power and heating supply.
Procedure 16.
Obtain project (TPD) clearance from telephone provider
Time to complete:
15 days
Cost to complete:
AZN 60
Name of Agency:
Aztelecom
Comment:
The TPD gives consent based on the clearance in the construction passport and regulatory requirements for general electrical and communication networks.
Procedure 17.
Obtain project (TPD) clearance from the Ministry of Ecology and Natural Resources
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Ministry of Ecology and Natural Resources
Comment:
This procedure is required under the Decree of the Cabinet of Ministers No. 41 (dated February 22, 2001).
Procedure 18.
Obtain expert opinion of project safety from the State Supervision Agency for Construction Safety of the Ministry of Emergency Situations
Time to complete:
15 days
Cost to complete:
AZN 30
Name of Agency:
Ministry for Emergency Situations
Comment:
The expert opinion is a prerequisite for obtaining project design approval from the Architecture and City Building Department of the Baku City Executive Authority. Obtaining expert opinion of project safety from the State Supervision Agency for Construction Safety of the Ministry of Emergency Situations is now fee based and costs AZN 30.
Procedure 19.
Obtain Engineering-geological opinion from the Ministry of Emergencies
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Ministry for Emergency Situations
Comment:
The engineering/geological opinion is a prerequisite for obtaining the project design approval from the Architecture and City Building Department of the Baku City Executive Authority.
Procedure 20.
Obtain approval of the project designs from the Architecture and City-building Department of the Baku city Executive Authority
Time to complete:
30 days
Cost to complete:
AZN 60
Name of Agency:
Baku City Executive Authority (Department of Architecture and City Building)
Comment:
The TPD is investigated under the requirements and instructions in the construction passport, and the decision is made in compliance with regulatory requirements for architecture and city building terms and conditions.
Procedure 21.
State examination of Technical Project Documentation, mainly on seismic stability, by the Ministry for Emergency Situations
Time to complete:
20 days
Cost to complete:
AZN 1,541
Name of Agency:
Ministry for Emergency Situations
Comment:
The Ministry for Emergency Situations grants consent upon checking the TPD for appropriate seismic stability and for compliance with construction regulations and normative standards. For private projects, approval takes only 20 days (and for public projects, 30 days). The approval cost is 0.2–0.5% of the project cost, depending on project size. In the example here, the cost is under 0.4% and assumed to be 0.3%.
Procedure 22.
Register the project documentation with the Chief Agency of Supervision on Safety at Construction under the Ministry for Emergency Situations (MES)
Time to complete:
15 days
Cost to complete:
AZN 60
Name of Agency:
Ministry for Emergency Situations (Chief Agency of Supervision on Safety at Construction)
Comment:
The registration is valid for 2 years and may be renewed. After obtaining all necessary consents, BuildCo will register the TPD with the state.
Procedure 23.
Receive Examination from Labor Inspection - Examinations by state authorities in the order of control during construction works
Time to complete:
3 days
Cost to complete:
no charge
Name of Agency:
Ministry of Economic Development
Comment:
All examinations, except for tax, may be carried out only with the participation of a representative from the Azerbaijan Republic Ministry of Economic Development. Pursuant to the Labor Code and its implementing rules and regulations, the state labor authorities may examine the workplace and labor protection and technical security policies. These examinations are uncommon for new companies. A report is issued with the examination results.
Procedure 24.
Receive inspection from Ministry of Ecology and Natural Resources
Time to complete:
3 days
Cost to complete:
no charge
Name of Agency:
Ministry of Ecology and Natural Resources
Comment:
If environmental standards were not in full compliance during construction, the Ministry of Ecology and Natural Resources could inspect the site. An act or statement is issued with the examination results. This procedure involves facilitation fees.
Procedure 25.
The State Supervision Agency for Construction Safety of Ministry of Emergency Situations inspects compliance to construction safety rules
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Ministry for Emergency Situations
Comment:
The inspection for compliance with construction safety rules covers mainly employees’ places of eating and sanitary facilities.
Procedure 26.
Receive inspection from Sate Fire Control Service of the Ministry of Emergency Situations
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Ministry for Emergency Situations (Chief Agency of Supervision on Safety at Construction)
Comment:
Fire inspections could be conducted to check if fire prevention measures are in order. A report is issued with the examination results.
Procedure 27.
Obtain electricity connection
Time to complete:
7 days
Cost to complete:
AZN 120
Name of Agency:
Azenerzhy State Company, Baku Electric Shabaka, or AzerEnerji
Comment:
According to the Cabinet of Ministers' Decree No. 143, electricity is free of charge in Azerbaijan. There is no application fee, however there is a cost associated with obtaining documents for application (procedure 8, estimate of electric needs by a licensed company, 400 AZN).
Connection fee is calculated per kW according to the voltage. The prices of connection change very often and more information can be found on web-site www.bes.az. BuildCo has to buy a meter. The cost of three phase meter is 50 to 70 manads (installation cost included), if no transformer is required; about 300 manads if a transformer is required.
There is also cost of cable (300 AZN for 10 meters). There are no stamp duties.
Bakielektrikshebeke can carry out works, or the company can enter into a contract with a licensed company (электромонтажная организация). If works are done by another company, Bakielektrikshebeke carries out security inspection upon completion.
In the end, even if the works are done by Bakielektrikshebeke, there is an inspection by Energy Supervisory Agency (Энергонадзор), who issues exploitation permit. Request for inspection can be made in advance and if they come the approval is issued on -site.
Cost for electricity connection is composed of: AZN 120/kava(x140 kava) -connection fee= AZN 16,800 + 300 AZN for 10 meters of cable + cost of meter (50 - 70 AZN).
Procedure 28.
Obtain water and sewage connection
Time to complete:
7 days
Cost to complete:
no charge
Name of Agency:
AzerSu (State Water Agency)
Comment:
The fee to obtain a water and sewage connection is AZN 2 multiplied by the water volume to be delivered in 24 hours (based on the connected pipe’s diameter) Here, it is assumed that 100 cubic meters can be delivered in 24 hours.
Procedure 29.
Obtain telephone line
Time to complete:
7 days
Cost to complete:
AZN 200
Name of Agency:
Aztelecom
Comment:
Procedure 30.
Obtain approval of construction and put it into operation
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
State control authorities: Architecture and City Building Department; and ecology, energy, sanitation, fire inspection, and supply organizations.
Comment:
After BuildCo completes construction, a commission will examine the building quality and determine the feasibility of putting the building into operation. The commission consists of representatives from the state control authorities, especially the Architecture and City Building Department, and representatives of organizations for ecology, energy, sanitation, supply, and fire inspection.
Procedure 31.
Register building with Real Estate Registry
Time to complete:
20 days
Cost to complete:
AZN 305
Name of Agency:
Real Estate Registry
Comment:
This procedure is governed by the Civil Code of the Azerbaijan Republic and the Law of the Azerbaijan Republic on State Registry of Real Estate. Attached to the application must be the documents defining the company status, construction documents, and a copy of the act or the statement on the operation license. Relevant fees must also be paid. The State Registry of Real Estate registers the building (warehouse) within 20 days and provides the company with a private property right certificate. BuildCo will obtain the complete property right (ownership, order, and use) over the building (warehouse) from the date the certificate is registered.
Effective May 2006, new fees for registering a building with the Real Estate Registry have been approved by a decision of the Tariff Council of the Republic of Azerbaijan (dated December 4, 2006). The registration process is governed by the Azerbaijan’s Civil Code and its Law on State Registry of Real Estate.
Fees schedule for registration of ownership right on a nonresidential building: - One-floor construction, area under 2,500 sq. m.: AZN 11 flat fee. - One-floor construction, area over 2,500 sq. m.: AZN 11 per 1,000 sq. m. - Two-floor (or more) construction, area of each floor under 1,000 sq. m.: AZN 11 per floor.
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