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* Takes place simultaneously with another procedure.
Requirement Details
Procedure 1.
Obtain Decision from the Minsk City Executive Committee for elaboration of design documentation on sepcified land plot
Time to complete:
20 days
Cost to complete:
no charge
Name of Agency:
Committee of Architecture and City Construction of Minsk City Executive Committee and Cetre of Engineering Services
Comment:
To start construction, BuildCo must receive the Minsk City Executive Committee’s decision to elaborate on design documentation. The permission letter states the main requirements for the intended building and lists the agencies and the institutions where additional technical requirements must be obtained. The request form must contain a brief description of the intended building project and company documents.
On 26 April 2007 the Minsk City Municipality passed Decision # 859 according to which the applicants can choose to obtain technical conditions or request Centre of Engineering Services to obtain on behalf of applicant. Prior to reform the Centre used to be Department of Technical Conditions of the Committee of Architecture and City Construction. Now the Centre operates as semi-private entity and if work load increases it can recruit additional human resources. Other significant improvement is that before while being a state entity the Centre could not receive payments in advance. This led to serious delays and lack of funds for paying the consultants. Now applicants can pay the Centre in advance and secure a fast service. Centre does not provide a fast track service yet.
After the documents are submitted to the Reception Desk it is trickled to the respective departments, and if it applicant wishes to obtain the technical conditions through the Centre, the papers go internally to the Centre.
Changes to the Resolution of the Cabinet of Ministers N 223 (20 February 2008) “On Some Measures to Improving Architectural and Construction Activity” have been recorded to have impact on all pre-approval procedures, and will be reflected in the Doing Business 2009. To be specific the procedure for obtaining the Architectural and Planning Terms (APZ in Russian) prior to changes in the above Resolution used to be 30 calendar days. Now the official time-limit is 20 working days which is the same number of days. However, often cases as simple as described for BuildCo are cleared in 20 calendar days, before the official time-limit expires.
The City of Minsk and its Committee of Architecture and City Construction have obtained sophisticated equipment for scanning drawings and plans. Internally all respective departments have access to this network that allows them see updates to cadastre. Since 2004 the City of Minsk and its Committee of Architecture and City Construction work under a new software system that allows all internal documentation to be controlled for approval time-limit compliance. Time-limits are strictly followed and enforced by the authority. In case if they are not respected applicants, however can not take it as silence is consent. But they can resort to writing a formal complaint to the Head of Committee and to State Control Authority. The latter is a special body that is responsible for ensuring the compliance of all state authorities with existing legislation. Besides an administrative penalty and fine of 300 minimal base indices the officials may be charged with criminal offence.
All services that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. All the approvals can be obtained in parallel. The services that are involved and would be required for BuildCo’s case are: water/sewage, telephone, electricity, sanitary epidemiological authority, ecological department, fire safety. Should BuildCo want to have a TV set, it must obtain a separate technical condition from a special authority. By law all technical conditions are granted free of charge. However, if it is done through Centre for Engineering Services there is an average fee, four BuildCo's case approximately BYR 1,000,000.
Procedure 2.
Obtain state expertise of design documentation
Time to complete:
20 days
Cost to complete:
BYR 3,494,400
Name of Agency:
Minsk City State Expertise Authority
Comment:
Upon developing its design documentation, BuildCo submits it to the Minsk City State Expertise Authority for state approval. The state expertise can be conducted in parallel with the ecological expertise. The State Expertise Authority does not look at ecological aspects of construction documents.
Although Presidential Decree #676, 16 November 2006 waived state expertise of typical/model constructions, it applies for projects that will have employers working inside the warehouse.
According to Resolution of Ministry of Architecture and Construction of Belarus #55 as of December 12, 2008, enacted 3 February 2009, the fee schedule for state expertise works has been updated. According to this new fee schedule a project with cost of BYR 64 mln. for project research works (10% of overall project value) would be applied a rate of 5,46%.
Procedure 3.
Obtain the permit for building on specified land plot
Time to complete:
20 days
Cost to complete:
no charge
Name of Agency:
Committee of Architecture and City Construction of Minsk City Executive Committee
Comment:
According to Article 9 of the Decision of the Council of Ministers of the Republic of Belarus No. 1476 of October 8, 2008, the design documentation for the private funded projects is approved by the investor. It no longer requires approval of Committee of Architecture and City Construction of Minsk City Executive Office. Therefore once the investor/s approve the Architectural Plan, BuildCo needs to apply again to Minsk City Committee of Architecture and City Construction to obtain Permit for Construction on Specified Land Plot. This permit must be issued within 10 working days. It is generally respected by authorities.
Procedure 4.
Obtain the building permit
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Inspection of State Construction Supervision Department of Minsk City
Comment:
Once the permit for construction is obtained from Minsk City Committee of Architecture and City Construction, BuildCo applies to Inspection of State Construction Supervision Department of Minsk City (further Inspection) to obtain permit for construction and mounting works. This permit allows companies to begin the actual construction works. As of 29 November 2007, Resolution of Cabinet of Ministers of Belarus provides a time-limit of 10 working days for obtaining the building permit. Previously it would take 40 days.
The fee to obtain the building permit is 0.15% of the value of the building and the construction works. This fee is paid for construction supervision works to be done by the Inspection during construction. Before starting construction, BuildCo must pay 50% (planned term of building up to 6 months), 30% (planned term of building 6 to 12 months), or 20% (planned term of building12 months and more) immediately. The balance is paid quarterly or before obtaining the occupancy permit. The payment is done at the bank, and a receipt is submitted to the Inspection.
Other supervision mechanisms of construction works must be complied with. Besides the construction supervision by Inspection, BuildCo would have to have an author’s supervision (architectural supervision). Technical supervision by a licensed company would be generally required for companies that do not have their own license. For BuildCo does not need to carry out such works, assuming it is acting as investor and builder at the same time and is building its own project and not for a third party.
If no complaints are filed on behalf of neighbors during 6 months of construction BuildCo may never receive inspection from Inspection. Inspection has only 40 inspectors who do both approval of permits and inspections. The average count of sites per inspector is 30 per month. If the inspector shows up BuildCo can continue its works without interruption. Inspector will look at compliance of existing documents and the actual works and records of BuildCo’s own inspectors.
Once the building is completed BuildCo will submit a written request to the Inspection of State Construction Supervision Department of Minsk City. This inspection happens before the general inspection for it must provides its findings to the attention of other authorities and investors. During the inspection the authority looks at technical passport, author’s/architects records and must issue its conclusion within 15 working days.
Procedure 5.
Apply for electric power connection
Time to complete:
1 day
Cost to complete:
BYR 120,000
Name of Agency:
Comment:
To connect new electrical systems or equipment to the electrical network, BuildCo completes and submits an application form for electric power connection to the electrical network divisions closest to the applicant’s place of business. Division personnel will evaluate the application. After the signing of the connection contract or after the connection payment or advance payment, the electrical network division will plan and execute all electrical system work. After BuildCo takes delivery of the internal network, the electrical network inspector will check the electric network connection, seal the calculation chains, and connect the customer’s electric system.
Procedure 6.
Obtain deeds of inspection and testing of engineering networks and systems of the structure for electricity connection
Time to complete:
1 day
Cost to complete:
BYR 20,000
Name of Agency:
Comment:
The inspection and testing of the engineering systems and networks is performed by operators of the corresponding engineering networks and systems. It takes about 10 days for the inspectors to come out to the site.
Procedure 7.
Receive connection to electricity
Time to complete:
13 days
Cost to complete:
no charge
Name of Agency:
Comment:
Procedure 8.
Apply for telephone connection
Time to complete:
1 day
Cost to complete:
BYR 350,000
Name of Agency:
Beltelecom
Comment:
Telephone connections are set during construction. The process normally involves a request, on-site inspection, and installation of a telephone line. The connection fee has been increased in 2008 from BYR 100,000 to BYR 350,000.
Procedure 9.
Receive on-site inspection for telephone connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Beltelecom
Comment:
Procedure 10.
Receive installation of telephone line
Time to complete:
5 days
Cost to complete:
no charge
Name of Agency:
Beltelecom
Comment:
Procedure 11.
Apply for water and sewerage connection
Time to complete:
1 day
Cost to complete:
BYR 310,000
Name of Agency:
Comment:
Water and sewerage connections are obtained during construction. The process normally involves a request, on-site inspection, and installation.
Procedure 12.
Receive on-site inspection and installation for water and sewerage connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Utility and sewerage connections are obtained during construction. The process normally involves a request, on-site inspection, and installation.
Procedure 13.
Receive installation of water and sewerage connection
Time to complete:
5 days
Cost to complete:
no charge
Name of Agency:
Comment:
Procedure 14.
Request inspection by the Acceptance Committee and signature of acceptance act
Time to complete:
21 days
Cost to complete:
no charge
Name of Agency:
Acceptance Commission
Comment:
The Acceptance Commission represents the contractor and building owner, as well as the state fire department authority. On the agreement of these parties, officials of other state agencies can be included in this committee. According to the law the occupancy certificate must be issued within 15 days, but in practice it takes 3 weeks (depending on size of construction and the presence or absence of defects).
The Acceptance Commission can come in one day if BuildCo organizes it in such way.
Procedure 15.
Register the Building with Real Estate Registry
Time to complete:
45 days
Cost to complete:
BYR 340,000
Name of Agency:
Minsk City agency oN State Registration and Land Cadastre
Comment:
To register the building, upon completing construction, BuildCo must apply to the Registrar's Office. The Registrar authenticates the documents and issues a decision. The company is subject to property tax, generally 1% (depending on the firm’s activities).
Resolution No. 1578 of 21 November 2007 sets a maximum time limit of 7 working days for buildings that already have a technical passport and 30 days for buildings that don’t. New buildings cannot be registered without first receiving an inspection from a technical inventory specialist who completes the technical passport. There are approximately 120 technical inventory specialists in the city of Minsk. Previously, the supply of inspectors was too low for the large volume of constructions taking place. However, with the slowdown of the construction sector, technical inventory specialists are more available to complete inspections and register new buildings. Currently, the process from application to registration at the Real Estate Registry takes an average of 45 days, down from 73 days in previous years.
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