Dealing with Construction Permits in Bolivia

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: USD 235,000
City: La Paz

Requirement Details

Procedure 1.
Request and obtain a form from the Municipality (can be obtained online)
Time to complete:
1 day
Cost to complete:
BOB 70
Name of Agency:
Cadastre (Municipality)
Comment:
The relevant application form may be downloaded from the municipality’s Web site (www.lapaz.bo).
(see Procedure 2 comment).
Procedure 2.
Request and obtain Cadastre Certificate
Time to complete:
60 days
Cost to complete:
BOB 1,690
Name of Agency:
Cadastre (Municipality)
Comment:
To request the cadastre certificate, a form must be picked up at the municipality (where stamps must be purchased) for a fee of BOB 70). The form must be completed by an architect recognized by the municipality (the architect is assumed to be a BuildCo employee). Typically, such an architect would charge about BOB 200 to BOB 500. Finally, a topographic plot plan must be acquired and attached to the form. Such plan costs about BOB 1,620. Fees are paid at the municipality and amount to BOB 1,620 + BOB 70 = BOB 1,690.

Fee schedule for cadastre certificate request:
- Form: BOB 70.
- Topographic plot plan: BOB 1,620.
- Architect fee: BOB 200 to BOB 500.
Procedure 3.
Request and obtain Royal Folio (Folio Real en Oficina de Derechos Reales)
Time to complete:
20 days
Cost to complete:
BOB 53
Name of Agency:
Property Registry Office
Comment:
The royal folio indicates the land’s location, surface and limits, and ownership history. To obtain this folio, BuildCo must present an application letter, attaching two copies of the testimony of property from the real estate office and two copies of the owner’s identity card.
Procedure 4.
Request and obtain a "Traso Vial" from Municipality
Time to complete:
45 days
Cost to complete:
BOB 96
Name of Agency:
Municipality
Comment:
To obtain a zoning permit (Traso Vial) a special form must be completed by a professional licensed by the College of Architects of La Paz. The professional may be a BuildCo staff member. La Paz does not have updated, comprehensive maps of some zones (particularly industrial zones). The current maps date back to 1986. This document defines construction impact on adjacent zones.

Owing to the backlog created by newly hired professionals, the procedure takes on average 45–60 days.
Procedure 5.
Submit and obtain approval of plans by Architects' Association
Time to complete:
30 days
Cost to complete:
BOB 1,522
Name of Agency:
Architects Association (Colegio de Arquitectos)
Comment:
The actual cost is based on a table of fees determined by the Architects Association. Given the characteristics of the warehouse, the following cost formula applies: A * B * C = R, where
A = Area of the terrain (expressed in square meters).
B = USD 2.76 (may vary, depending on the actual area of the terrain).
C = 0.055 (a percentage given by the Architects Association).
R = The real cost (assumed to be USD 197.43 or its equivalent in BOB).
Procedure 6.
Request construction permit
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality (Dirección de Administración Predial)
Comment:
To request a construction permit, BuildCo must submit the following documentation:
- Written letter to the municipality.
- Single registration form (formulario único de administración predial) (download at the municipality Web site).
- Cadastre certificate (Procedure 3).
- Property title (copy).
- Royal folio (Procedure 5).
- Receipt of last five property tax payments.
- Identification card (copy).
- Plans (original and copy).

Cost is calculated by the square meter (about BS 0.85/ sq. m.).

The municipality reviews the documents and enters the application data into the electronic system SITR@M. After 5 business days, the architect in charge returns to the Municipality to arrange a date for the on-site inspection (preferably scheduled more than 2 business days later). In case of objections or observations, all documents are returned to the architect, and the rejection is documented on the single form (FUAP). After the inspection, the municipality informs BuildCo of the fee assessed and fills out the single municipal form (formulario unico municipal). After the inspection, GENISIS (the computerized system) calculates the overall fees and produces the single municipal form (formulario unico municipal).
Procedure 7.
Receive inspection by the Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The inspectors confirm that the plans and the site fulfill all regulatory requirements.
Procedure 8.
Obtain the construction permit at the Municipality
Time to complete:
43 days
Cost to complete:
BOB 1,951
Name of Agency:
Municipality
Comment:
Fees are paid at the municipality after the plans have been approved. Owing to backlogs at the municipality, the total time is 45 days (from date of request to receipt of permit).
Procedure 9.
Request water and sewage connection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Pública de Agua y Saneamiento
Comment:
To request a water and sewage connection, BuildCo must submit the following required documents:
- Royal folio (folio real en derechos reales).
- Identification.
- Location plan.
- Sanitary plan (if the building has two or more floors).
Procedure 10.
Receive a technical inspection (water connection feasibility study)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Empresa Pública de Agua y Saneamiento
Comment:
Once the application form has been received, the technical inspection determines the feasibility of service. Following the inspection, @ the water utility provider, Aguas de Illimani, calculates the water and sewage connection fee.
Procedure 11.
Connect to water and sewage services
Time to complete:
46 days
Cost to complete:
BOB 4,581
Name of Agency:
Empresa Pública de Agua y Saneamiento
Comment:
Procedure 12.
Request electricity connection from ELECTROPAZ
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
ELECTROPAZ
Comment:
To request an electrical connection, BuildCo must submit the following:
- Identification.
- Proof of ownership.
- Attestation of no pending debts for electricity services.
Procedure 13.
Receive inspection by electricity provider
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
ELECTROPAZ
Comment:
Once the application form has been received, ELECTROPAZ visits the site the next business day.
Procedure 14.
Receive connection to electricity services by ELECTROPAZ
Time to complete:
6 days
Cost to complete:
BOB 2,689
Name of Agency:
ELECTROPAZ
Comment:
The cost depends on which of the two types of meters (monophasic or triphasic), as follows:
1. Monophasic meters, used for buildings with a relatively low rate of electricity consumption. The cost of installation varies with the zone where the building is located. In this example, the fee would be BOB 450, in addition to a special fee, paid only once and added to the first bill, of BOB 53.
2 Triphasic meters, used for buildings with a relatively high rate of electricity consumption. Because the warehouse will have air conditioning and electrical heat systems, this type of meter would probably be required. The installation cost is BOB 600 plus the special fee, paid only once and added to the first bill, of BOB 89.

When a triphasic meter is required, BuildCo must purchase its own meter, the cost of which depends on specific technical conditions and varies between BOB 2,000 and BOB 3,000.
The cost is thus BOB 2,000+ BOB 689 = BOB 2,689.
Procedure 15.
Request telephone line services from COTEL
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Co-operativa de Teléfonos Automáticos La Paz (COTEL)
Comment:
The telephone line should be requested at COTEL, where a technician conducts an inspection and decides on the availability of a connection. If available, the line would be installed in 7 working days. Otherwise, it might take up to 2 months until a connection is available. In this case, it is assumed that a connection is available.
Procedure 16.
Receive telephone line inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Co-operativa de Teléfonos Automáticos La Paz (COTEL)
Comment:
Procedure 17.
Connect to telephone line
Time to complete:
8 days
Cost to complete:
BOB 300
Name of Agency:
Co-operativa de Teléfonos Automáticos La Paz (COTEL)
Comment: