Dealing with Construction Permits in Algeria

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

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Data as of: January 2009
Estimated Warehouse Value: DZD 52,024,000
City: Algiers

	Procedure	Time to complete:	Cost to complete:
1	Legalize property act	2 days	DZD 1,800
2	Obtain building permit	150 days	DZD 2,500
3	Receive municipal inspection	5 days	no charge
4	Receive municipal inspection	1 day	no charge
5	Receive municipal inspection	1 day	no charge
6	Receive municipal inspection	1 day	no charge
7	Receive municipal inspection	1 day	no charge
8	Receive municipal inspection	1 day	no charge
9	Request and receive final inspection to obtain certificate of conformity	14 days	no charge
10	Obtain certificate of conformity	1 day	DZD 5,000
11	Notarize the updated property act	1 day	no charge
12	Register the updated property act (title) at the property registry	1 day	no charge
13	Apply for telephone line	1 day	no charge
14	Ministry of Posts and Telecommunications inspects the site and prepares an estimate	30 days	DZD 13,200
15	Obtain telephone connection	30 days	DZD 15,000
*16	Notify municipal/ communal authority of connection to sewer mains	1 day	no charge
17	Apply for electricity connection	1 day	DZD 25,000
18	Electricity company inspects the site and prepares an estimate	14 days	DZD 15,000
19	Obtain electricity connection	25 days	DZD 12,500
20	Apply for water connection	1 day	no charge
21	The water company inspects the site and prepares an estimate	22 days	DZD 13,000
22	Obtain water connection	18 days	DZD 25,000

* Takes place simultaneously with another procedure.

Procedure 4.: Receive municipal inspection
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Municipal authority (Autorité municipale)
Comment:: The law does not specify the number of inspections that take place during construction. However, inspections occur randomly before and during the construction process. The variation depends on the visibility and on the exact location of the construction site.

Procedure 9.: Request and receive final inspection to obtain certificate of conformity
Time to complete:: 14 days
Cost to complete:: no charge
Name of Agency:: Municipal authority (Autorité municipale)
Comment:: When the warehouse is completed, BuildCo must notify the municipality so that it can perform a final inspection of the construction. The inspector will usually arrive on site within 2 weeks of the request.

Procedure 10.: Obtain certificate of conformity
Time to complete:: 1 day
Cost to complete:: DZD 5,000
Name of Agency:: Municipal authority (Autorité municipale)
Comment:: Although the law requires a certificate of conformity, it is seldom issued in practice.

Procedure 12.: Register the updated property act (title) at the property registry
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Municipal authority (Autorité municipale)
Comment:: Before the building can be used as collateral, banks require the property title and the construction license. This case study assumes that BuildCo possesses a construction license.

Procedure 13.: Apply for telephone line
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Ministry of Posts and Telecommunications (Ministère des Postes et Télécommunications)
Comment:

Procedure 14.: Ministry of Posts and Telecommunications inspects the site and prepares an estimate
Time to complete:: 30 days
Cost to complete:: DZD 13,200
Name of Agency:: Ministry of Posts and Telecommunications (Ministère des Postes et Télécommunications)
Comment:: The Ministry of Posts and Telecommunications requires a 50% down payment on the estimated charge before connecting the building.

Procedure 15.: Obtain telephone connection
Time to complete:: 30 days
Cost to complete:: DZD 15,000
Name of Agency:: Ministry of Posts and Telecommunications (Ministère des Postes et Télécommunications)
Comment:: A site visit may be required to prepare the estimate.

Procedure 16.: Notify municipal/ communal authority of connection to sewer mains
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:: Municipal/communal authority (Autorité municipale/communale)
Comment:

Procedure 18.: Electricity company inspects the site and prepares an estimate
Time to complete:: 14 days
Cost to complete:: DZD 15,000
Name of Agency:: Socièté Nationale de l'Electricité et du Gaz (SONELGAZ)
Comment:: A site visit is sometimes required to prepare the estimate.