Dealing with Construction Permits in Afghanistan

The table below summarizes the procedures, time, and costs to build a warehouse in Afghanistan.

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Data as of: January 2009
Estimated Warehouse Value: USD 70,000
City: Kabul

	Procedure	Time to complete:	Cost to complete:
1	Obtain copy of the land deed	7 days	AFN 3,000
2	Obtain zoning approval from Ministry of Urban Planning	7 days	no charge
3	Obtain building permit from Kabul Municipality	270 days	AFN 2,000
4	Receive random inspection from Municipality	1 day	no charge
5	Receive random inspection from the police	1 day	no charge
6	Receive random inspection from Municipality	1 day	no charge
7	Receive random inspection from the police	1 day	no charge
8	Receive random inspection from Municipality	1 day	no charge
9	Receive random inspection from the police	1 day	no charge
10	Drill well for temporary water supply	7 days	USD 10,000
11	Buy and install generator to obtain electricity connection	7 days	USD 30,000
12	Build septic tank for sewage	30 days	USD 15,000
13	Obtain fixed telephone line	7 days	USD 100

Procedure 1.: Obtain copy of the land deed
Time to complete:: 7 days
Cost to complete:: AFN 3,000
Name of Agency:: Appeal court of Kabul
Comment:: After decades of conflict, most people have lost their deeds, relying on informal ownership claims to land. In post-conflict Kabul, a copy of the title deed is part of the documentation needed to apply for a building permit. BuildCo must file a written claim to the appeal court of Kabul stating they lost their deed. The claim must contain the property specification, deed number, district number, and number of the court that issued the deed. It takes about a week to obtain a valid copy of the title deed.

Procedure 2.: Obtain zoning approval from Ministry of Urban Planning
Time to complete:: 7 days
Cost to complete:: no charge
Name of Agency:: Ministry of Urban Planning
Comment:: BuildCo must go to the municipality and to the Ministry of Urban Planning to check the Kabul Master Plan and to obtain a zoning approval. The master plan is 15–20 years old and has not been recently updated. If everything is in order and BuildCo pays a bribe, it may receive zoning approval in a couple of days. However, without paying a bribe, approval takes about a week.

Procedure 3.: Obtain building permit from Kabul Municipality
Time to complete:: 270 days
Cost to complete:: AFN 2,000
Name of Agency:: Kabul Municipality
Comment:: BuildCo submits a copy of the title deed, the zoning approval, the building design(s), and proof of the employees' qualifications. If the property is inside the Kabul Master Plan, the designs are sent to the Engineering Department and a committee will approve them. BuildCo then pays the building permit fee. The municipality sends approval copies to various municipal departments (e.g., the police).

By paying bribes, BuildCo can obtain a building permit within a month of submitting an application. Without bribes, the application process could take between 6 months and a year, or even longer.

Procedure 4.: Receive random inspection from Municipality
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Kabul Municipality
Comment:: On average, either the Kabul municipality or its police department will visit the construction site every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 5.: Receive random inspection from the police
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Police
Comment:: On average, either the Kabul municipality or its police department will visit the construction site every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 6.: Receive random inspection from Municipality
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Kabul Municipality
Comment:: On average, either the Kabul municipality or its police department visit the construction site every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 7.: Receive random inspection from the police
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Police
Comment:: On average, either the Kabul municipality or its police department will visit the construction site every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 8.: Receive random inspection from Municipality
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Kabul Municipality
Comment:: On average, either the Kabul municipality or its police department will visit the construction site every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 9.: Receive random inspection from the police
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Police
Comment:: On average, either the Kabul municipality or its police department will visit the construction every month (about six inspections for a 30-week project). Inspectors often demand bribes of AFN 5,000 to AFN 10,000 for each visit. The Doing Business project, however, does not account for any of these informal payments.

Procedure 11.: Buy and install generator to obtain electricity connection
Time to complete:: 7 days
Cost to complete:: USD 30,000
Name of Agency:: ETC Power
Comment:: In early 2007, access to electricity on the city power grid averaged 4 hours, every other night. Thus, most firms buy and run their own generators.

Procedure 12.: Build septic tank for sewage
Time to complete:: 30 days
Cost to complete:: USD 15,000
Name of Agency:: Central Authority for Water and Sewerage
Comment:: In the absence of a waste management system, Afghan businesses must build their own septic tanks.