Dealing with Construction Permits in Albania

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: ALL 40,000,000
City: Tirana

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain recent property certificate 30 days ALL 2,870
*2 Request and obtain Extract of Master Plan of the Plot from the Urban Planning Department 30 days ALL 4,000
*3 Request and obtain document attesting that the firm has no unpaid environmental fines 1 day ALL 200
*4 Request and obtain opinion of the District Urban Planning Department 10 days ALL 2,000
*5 Request and obtain Project Clearance from Water Authority 9 days ALL 3,000
*6 Request and obtain Project Clearance from Environmental Protection Agency 8 days no charge
*7 Request and obtain Electricity Authority Approval 5 days ALL 500
*8 Request and obtain Fire Department Approval for Land Permit and Fire Permit 30 days ALL 20,000
9 Request a Land Permit from Urban Planning Department (Technical Commission) 1 day no charge
*10 Receive inspection from Technical Commission 1 day no charge
*11 Request and obtain decision of the Territory Adjustment Commission 90 days ALL 800,000
12 Request and obtain Building Permit 45 days ALL 400,000
13 Receive on-site inspection of construction foundations 1 day no charge
14 Receive on-site inspection of the completion of construction skeleton 1 day no charge
15 Receive on-site inspection of the adjustment of the surroundings of the building according to the drawings 1 day no charge
*16 Request and connect to telecommunications services 30 days ALL 30,000
*17 Request and connect to water and sewage services 20 days ALL 40,000
*18 Request and connect to electricity services 20 days ALL 40,000
19 Submit Report on the Completion of Works and request on-site inspection by an authorized expert 1 day no charge
20 Receive on-site inspection by an authorized expert and obtain approval 30 days no charge
21 Receive inspection from Municipality 1 day no charge
22 Receive compliance report after inspection 2 days no charge
23 Obtain Occupancy permit 30 days no charge
24 Register with the Real Estate Registry 60 days ALL 4,320
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Request and obtain recent property certificate
Time to complete:
30 days
Cost to complete:
ALL 2,870
Name of Agency:
Real Estate Registry
Comment:
The certificate of ownership of property (the construction site) can be obtained from the Real Estate Registry. As of February 2008 the validity term of the certificate should be at most 72 hours. The Registry’s automated system expedites this process. As of February 2008 Real Estate Registry started including the mailing fee into the cost of obtaining a recent copy of property ownership certificate.
Procedure 2.
Request and obtain Extract of Master Plan of the Plot from the Urban Planning Department
Time to complete:
30 days
Cost to complete:
ALL 4,000
Name of Agency:
Municipal Urban Planning Department
Comment:
The master and general plans of the plot are issued by the municipality’s Urban Planning Department. The general plan is a topographic map of the situation of the existing property, while the master plan is a plan of the proposed development. The fee covers both plans. The master plan should contain the approval of the municipality’s Department of Road Projects which can be done internally. Article 36 of the Law On City Planning states that the plot’s master plan must be submitted to the technical secretary of the Territory Management Council and to the municipality within 15 days of the date of its inclusion. It will be available to the company within 30 days.
Procedure 3.
Request and obtain document attesting that the firm has no unpaid environmental fines
Time to complete:
1 day
Cost to complete:
ALL 200
Name of Agency:
Environmental Authority
Comment:
This attestation is required by Point 18 of the Council of Ministers’ approval of the city planning regulations. It must be submitted with the required set of documents when applying for the construction site permit and the construction permit (up to three stories).
Procedure 4.
Request and obtain opinion of the District Urban Planning Department
Time to complete:
10 days
Cost to complete:
ALL 2,000
Name of Agency:
District Urban Planning Department
Comment:
BuildCo should request an attestation on the drawings’ compliance with urban zoning regulations from the district Urban Planning Department. This requirement is provided for by Point 21 of the regulations on construction (of up to three stories), "Documents That an Investor Should Submit for Obtaining Construction Site Permit and Construction Permit," published by the Council of Tirana Municipality.
Procedure 5.
Request and obtain Project Clearance from Water Authority
Time to complete:
9 days
Cost to complete:
ALL 3,000
Name of Agency:
Water Authority
Comment:
The water authority approves the project and indicates the nearest water supply sources. Since January 2008 the Water and Sewage Company introduced a new cost for granting a project clearance at the initial stage of designing at the amount of ALL 3,000.
Procedure 6.
Request and obtain Project Clearance from Environmental Protection Agency
Time to complete:
8 days
Cost to complete:
no charge
Name of Agency:
Environmental Protection Agency
Comment:
Procedure 7.
Request and obtain Electricity Authority Approval
Time to complete:
5 days
Cost to complete:
ALL 500
Name of Agency:
Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure 8.
Request and obtain Fire Department Approval for Land Permit and Fire Permit
Time to complete:
30 days
Cost to complete:
ALL 20,000
Name of Agency:
Fire Department
Comment:
This procedure takes 30 days because while the Fire Department gives the approval, the Prefecture holds the actual seal that must be used to stamp the approval. In practice, the public actually make this request at the Prefecture (although according to the Fire Department, the law stipulates that Fire Department is the handling agency). The Fire Department then has to call the Prefecture to ask for files, which are forwarded to the Fire Department. The Fire Department must then review and send back to the Prefecture to stamp the approval. This procedure can takes place twice, before the Land Permit and before the Building Permit.

The fee for this procedure is 0.5% of the project value for objects with investment value of up to ALL 50 million, according to Decision No. 285 (of June 27, 2002) "On Tariffs of the Police for Protection against Fire Services." The fee is estimated at 0.5% of the design value (generally 10% of the warehouse value, which would be ALL 4 million in the case considered here). Hence, the fee is ALL 20,000. This cost is to cover the both stages- for land permit and for building permit.
Procedure 9.
Request a Land Permit from Urban Planning Department (Technical Commission)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
BuildCo must request the Urban Planning Department to issue a land clearance for the construction site.
Procedure 10.
Receive inspection from Technical Commission
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
Upon inspection, the Technical Commission prepares an authorization letter, attesting that the land is clear for construction.
Procedure 11.
Request and obtain decision of the Territory Adjustment Commission
Time to complete:
90 days
Cost to complete:
ALL 800,000
Name of Agency:
Territory Adjustment Commission
Comment:
The Territory Adjustment Commission convenes every 30 days. It is a commission chaired by the mayor that is constituted of 9 members—the mayor, 6 from political parties, 1 elected by 2/3 of the municipal council and 1 representative of the central government. However, owing to the recent backlog, with too many files processed by too few civil servants, as of April 2007, the Commission had not convened since December 2006. The fee is 2-4% of the overall project value.
Procedure 12.
Request and obtain Building Permit
Time to complete:
45 days
Cost to complete:
ALL 400,000
Name of Agency:
Territory Adjustment Commission
Comment:
The building permit is valid for a term determined by the Territory Adjustment Commission. According to Article 46 of the law "On City Planning," the permit is valid for 180 days. This permit grants the right to build on the site (construction site permit is already granted).

The building permit shall be issued to only juridical persons who are licensed contractors. Several forms and documents are required to obtain this permit:
- Technical project.
- Chart of construction work.
- Table of costs.
- Seismologic study.

According to Article 50 of the law "On City Planning," the Territory Management Council has 45 days to decide on the construction permit. According to Article 51 of the same law, the fee is 1% of the investment value.

As of 2008 construction companies do not have to notify the construction police about the start of construction works. The construction police has been moved under the Municipality’s Urban Planning Department.
Procedure 13.
Receive on-site inspection of construction foundations
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure 14.
Receive on-site inspection of the completion of construction skeleton
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure 15.
Receive on-site inspection of the adjustment of the surroundings of the building according to the drawings
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure 16.
Request and connect to telecommunications services
Time to complete:
30 days
Cost to complete:
ALL 30,000
Name of Agency:
Albtelecom
Comment:
Procedure 17.
Request and connect to water and sewage services
Time to complete:
20 days
Cost to complete:
ALL 40,000
Name of Agency:
Water and Sewerage Agencies
Comment:
Procedure 18.
Request and connect to electricity services
Time to complete:
20 days
Cost to complete:
ALL 40,000
Name of Agency:
Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure 19.
Submit Report on the Completion of Works and request on-site inspection by an authorized expert
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
Within 30 days of completing construction, BuildCo submits to the Urban Planning Department a report that documents construction materials and associated costs and requests an inspection of the construction site.
Procedure 20.
Receive on-site inspection by an authorized expert and obtain approval
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The authorized expert from the Urban Planning Department will sign the inspection completion statement after performing the on-site inspection.
Procedure 21.
Receive inspection from Municipality
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The municipal inspection takes place several weeks later.
Procedure 22.
Receive compliance report after inspection
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The construction firm usually receives the compliance report within 2-3 days of inspection. Another 30 days are required to obtain the occupancy permit.
Procedure 23.
Obtain Occupancy permit
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Municipal Urban Planning Department
Comment:
The occupancy permit grants the right to use the building after construction is completed. Addressed to the Urban Planning Department, the request must be accompanied by a set of documents related to the construction process and by the completion statement, duly signed by the authorized expert.
Procedure 24.
Register with the Real Estate Registry
Time to complete:
60 days
Cost to complete:
ALL 4,320
Name of Agency:
Real Estate Registry
Comment:
Upon receiving the occupancy permit, BuildCo registers the warehouse with the Real Estate Registry. It does so by submitting the construction file, which includes the building permit and inspection reports (cited in Procedure 1). The registration tax is EUR 8 per sq. m., or EUR 10,405. (The total fee thus corresponds to ALL 4,250.)