Dealing with Construction Permits in Chile

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: USD 650,300
City: Santiago

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain indication on water and sewage availability with sanitation company 21 days no charge
*2 Request and obtain preliminary information from the municipality 10 days no charge
*3 Request and obtain indication on electric power availability with electric power company 15 days no charge
4 Request and obtain location permit from the environmental health service 21 days CLP 16,000
5 Request and obtain Provisional Installation Permit from the municipality 25 days no charge
6 Request and obtain environmental impact assessment from the national environmental commission 30 days no charge
*7 Request and obtain water and sewerage supply certificate from Sanitation company 19 days no charge
*8 Request and obtain electricity supply certificate from the electric power company 10 days no charge
*9 Request and obtain telephone service provision certificate from the telecom company 10 days CLP 200
10 Request and obtain operation permit from Environmental health services 21 days no charge
11 Request and obtain building permit 14 days CLP 4,092,930
12 Request and recieve inspection at the beginning of construction 1 day no charge
13 Request and recieve inspection in the middle of construction 1 day no charge
14 Request and receive final inspection 1 day no charge
15 Request and obtain project approval 20 days no charge
*16 Receive connection to water services 7 days CLP 315,671
*17 Receive connection to electricity 7 days CLP 315,671
*18 Receive connection to a telephone line 7 days no charge
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Request and obtain indication on water and sewage availability with sanitation company
Time to complete:
21 days
Cost to complete:
no charge
Name of Agency:
Sanitation Company
Comment:
Procedure 2.
Request and obtain preliminary information from the municipality
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
Procedure 3.
Request and obtain indication on electric power availability with electric power company
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
National Electricity Company of Chile, Inc.
Comment:
Procedure 4.
Request and obtain location permit from the environmental health service
Time to complete:
21 days
Cost to complete:
CLP 16,000
Name of Agency:
Environmental Health Service
Comment:
Procedure 5.
Request and obtain Provisional Installation Permit from the municipality
Time to complete:
25 days
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
To obtain a provisional permit for installation of temporary facilities, BuildCo’s architects must meet the municipality’s architects to review the drawings and designs. This permit enables BuildCo to have bathrooms, electricity, and so forth on the construction site.
Procedure 6.
Request and obtain environmental impact assessment from the national environmental commission
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
National Environmental Commission
Comment:
This procedure must completed before the building permit is obtained.
Procedure 7.
Request and obtain water and sewerage supply certificate from Sanitation company
Time to complete:
19 days
Cost to complete:
no charge
Name of Agency:
Sanitation Company
Comment:
Upon issuing the permit, the municipality requests a copy of this certificate, proving that the company is able to obtain a water and sewerage connection.
Procedure 8.
Request and obtain electricity supply certificate from the electric power company
Time to complete:
10 days
Cost to complete:
no charge
Name of Agency:
Electrical and Combustible Superintendency (SEC)
Comment:
Upon issuing the permit, the municipality requests a copy of this certificate, proving that the company is able to connect.
Procedure 9.
Request and obtain telephone service provision certificate from the telecom company
Time to complete:
10 days
Cost to complete:
CLP 200
Name of Agency:
Empresa Nacional Telecom Chile SA (Entel)
Comment:
Upon issuing the permit, the municipality will request a copy of this certificate, proving that the company is able to connect.
Procedure 10.
Request and obtain operation permit from Environmental health services
Time to complete:
21 days
Cost to complete:
no charge
Name of Agency:
Environmental Health Service
Comment:
Procedure 11.
Request and obtain building permit
Time to complete:
14 days
Cost to complete:
CLP 4,092,930
Name of Agency:
Municipality
Comment:
The company must obtain a municipal building permit. An external reviewer is also involved in this process.

In 2005, a number of municipalities introduced a pilot program for a one-stop shop (la Ventanilla Transaccional de Trámites Municipales, VTM), an Internet platform where nine proceedings can be completed. The project was expected to be in full operation in 26 municipalities by 2006. The system is expected to cut processing time to 8 days. On January 12, 2006, the Municipality of Santiago introduced major changes to its regulatory plan (plano regulador) to regulate some omissions from the construction ordinance (ordenanza de construcción), without changing the current rules of construction.

Some municipalities—for example, Las Condes, Providencia, San Miguel, and Ñuñoa—have restricted construction in terms of density and building height. The same restrictions were expected in Santiago in 2007. The latter is due to community pressures, reduced municipal revenues for this type of building permit, and the impact of the projects on public services and infrastructure.

Other municipalities in the greater Santiago area are planning the opposite to attract investments, such as La Florida, San Bernardo, Maipú, and Quinta Normal. Environmental requirements are requested to obtain building permits, which in turn, can affect the schedule of a construction project. The plot for this warehouse might be located in Los Andes, which has not been affected by either change.
Procedure 12.
Request and recieve inspection at the beginning of construction
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
During construction, at least three inspections are conducted by an independent inspector associated with the municipality. Each inspection must be requested in advance. During the inspection, the works may continue without interruption.
Procedure 13.
Request and recieve inspection in the middle of construction
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
Procedure 14.
Request and receive final inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
Procedure 15.
Request and obtain project approval
Time to complete:
20 days
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The Municipality is notified of project completion after the independent inspector gives a positive project evaluation.
Procedure 16.
Receive connection to water services
Time to complete:
7 days
Cost to complete:
CLP 315,671
Name of Agency:
Sanitation Company
Comment:
The connection takes place at any time upon BuildCo’s request within not more than 7 days, at maximum, for each utility service.
Procedure 17.
Receive connection to electricity
Time to complete:
7 days
Cost to complete:
CLP 315,671
Name of Agency:
National Electricity Company of Chile, Inc.
Comment:
The connection takes place at any time upon BuildCo’s request within not more than 7 days, at maximum for each utility service.
Procedure 18.
Receive connection to a telephone line
Time to complete:
7 days
Cost to complete:
no charge
Name of Agency:
Empresa Nacional Telecom Chile SA (Entel)
Comment:
The connection takes place at any time upon BuildCo’s request within not more than 7 days, at maximum, for each utility service.