Dealing with Construction Permits in Estonia

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

Export to Excel | Local partners | Methodology

   View all indicator data and topic details for this economy.

Change Selection

Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: EEK 10,404,800
City: Tallinn

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Obtain design criteria from Municipal authority 15 days no charge
2 Obtain project clearance from fire department 30 days no charge
*3 Submit Environmental Impact Assessment 7 days no charge
*4 Obtain project clearance from Environment Department 29 days no charge
*5 Obtain project clearance from health care department 28 days no charge
*6 Obtain project clearance from labor inspections department 27 days no charge
7 Obtain building permit 25 days EEK 8,503
8 Receive on-site inspection by municipal authority 1 day no charge
9 Receive on-site inspection by Estonian Technical Surveyllance Authority 1 day no charge
10 Apply for permit of use and request final inspection from municipal authority 25 days EEK 1,000
*11 Receive final inspection from municipal authority 1 day no charge
12 Obtain sewerage and water connection 20 days EEK 17,500
13 Obtain electric power connection 15 days EEK 17,972
14 Obtain telephone connection 15 days EEK 1,524
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Obtain design criteria from Municipal authority
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The company must obtain the architectural and structural criteria for the construction from the local authority.
Procedure 2.
Obtain project clearance from fire department
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Fire Department
Comment:
According to the Rescue Act of 1994, 10 days are required to obtain fire safety clearance for the building project from the national rescue service agency or a local government rescue service. However in practice it takes 30 days. If the building project does not conform to the fire safety rules then applicant has five workdays to eliminate deficiences from the project.
Procedure 3.
Submit Environmental Impact Assessment
Time to complete:
7 days
Cost to complete:
no charge
Name of Agency:
Environment Department
Comment:
The Environmental Impact Assessment and Environmental Management System Act does not establish a term for submitting an environmental impact assessment report. Local municipality is the agency which decides whether it is necessary to assess the environmental impact of the project or not (if this is to be decided in the course of applying for a building permit, the matter of assessing the environmental impact of the project is decided in 20 days). The environmental impact of the project will also be assessed if a person wishes it to be assessed in the course of drawing up a construction project.
Procedure 4.
Obtain project clearance from Environment Department
Time to complete:
29 days
Cost to complete:
no charge
Name of Agency:
Environment Department
Comment:
The Environmental Impact Assessment and Environmental Management System Act entered into effect on April 3, 2005, providing legal bases and procedures for assessing likely environmental impact, organization of eco-management and audit schemes, and the legal bases for awarding eco-labels to prevent environmental damage.

The environmental impact shall be assessed upon application for, or application for amendment of, a development consent (a building permit or a permit for the building use), if the proposed activity, which is the basis for the application for, or the amendment of, the development consent, potentially results in significant environmental impact. The impact shall also be assessed if activities are proposed that alone or in conjunction with other activities may potentially significantly affect a Natura 2000 site. A person who proposes an activity and intends to carry it out shall organize an environmental impact assessment and carry all the resulting expenses.

It is up to the local municipality to decide whether it is at all necessary to assess the environmental impact of the project. There are two types of grounds for requiring an environmental impact assessment to be carried out. First of all there are instances in which it is obligatory to conduct environmental impact assessment. The hypothetical warehouse project should not qualify under this category. The second category is such that the local municipality is required to consider whether an environmental impact assessment is needed or not and if the local municipality decides that it is necessary, it must give reasons for such a decision. The hypothetical warehouse project might qualify under this category if for example considered to be (a part of) an industrial area development. Besides the fact that it is in hands of municipality to make a decision, there are no clear definitions on what does not exactly fall into category of projects that do not qualify for Environmental Impact Assessment (EIA). It is likely BuildCo would need to obtain a clearance but not the full scale EIA approval.

The Environmental Impact Assessment and Environmental Management System Act established a term of 30 days for issuing a decision to approve the environmental impact assessment report. The time may vary from 30 days to 1 year for actual EIA approval both from Municipality and Environmental Supervisory Authority. It would also include a period of public hearing. However, that we are just getting a project clearance and our case is simple the procedure should be completed within 30 days.

Procedure 5.
Obtain project clearance from health care department
Time to complete:
28 days
Cost to complete:
no charge
Name of Agency:
Healthcare Board
Comment:
A clearance for the building project from the Healthcare Board is not required. However, this authority may be consulted by the local government before granting or refusing the building permit. In practice, the local government may ask the applicant to personally communicate with these authorities. There is no time limit for such communication. Further, Healthcare Board has the right to perform state supervision over compliance with occupational health requirements when the warehouse is put into use.
Procedure 6.
Obtain project clearance from labor inspections department
Time to complete:
27 days
Cost to complete:
no charge
Name of Agency:
Labor Inspections Department
Comment:
A clearance for the building project from the labor inspections department is not required by law in the stage prior to approval of building permit. However, this authority may be consulted by the local government before granting or refusing the building permit. In practice, the local government may ask the applicant to personally communicate with these authorities. Labor Inspectorate has the right to perform state supervision over compliance with occupational safety requirements during construction and when the warehouse is put into use. According to Occupational Health and Safety Act paragraph 13 lg 1 p 17 employer is obliged to notify local department of Labor Inspectorate in written form or in a format, which can be reproduced in writing before commencing activities. Paragraph 26 lg 3 p 3 provides that after receiving of the notification inspector has the obligation to carry out the inspection. Employee of the Labor Inspectorate ordinarily has to accord the time of inspection with the owner of the building, but in extraordinary situations inspector has the right to commence supervision without informing in advance.
Procedure 7.
Obtain building permit
Time to complete:
25 days
Cost to complete:
EEK 8,503
Name of Agency:
Municipality
Comment:
To obtain a building permit from the municipal authority, the company must submit an application for a construction permit and construction design documentation. According to the Building Act, the local government must approve or refuse the issuance of a building permit within 20 days from the date on which the application for the building permit and the building design documentation are submitted. Municipality conducts internal consultations with various departments and agencies. However in practice BuildCo is likely to follow up with these authorities. In practice this increases the timeline since the Municipality starts counting only after all the clearances have been completed. The state duty for applying is EEK 2,000 and EEK 5 per sq. m.. of the closed net surface of the planned construction in accordance to the construction design documentation.
Procedure 8.
Receive on-site inspection by municipal authority
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
During construction, the municipal authority may monitor work to check compliance with requirements. If the work is noncompliant, construction will be stopped.
Procedure 9.
Receive on-site inspection by Estonian Technical Surveyllance Authority
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Technical Surveyllance Authority
Comment:
According to the amendment of Building Act from 01.01.2008 Estonian Technical Surveillance Authority may carry out state surveillance on construction sites in addition to the surveillance exercised by municipal authority. Before the building is taken into use or in case of emergency in the building already in use Estonian Technical Surveillance Authority does not have to inform the owner about inspection beforehand. In other situations owner has to be notified at least 24 hours in advance.
The number of inspections is not limited by law – it is in the discretion of the Technical Surveillance Authority, however it should comply with the principles of good administration practices. The costs of the evaluation services, of the expert assessment of building design documentation and of the evaluation of construction works ordered to verify conformity to the requirements are borne by the Technical Surveillance Authority. If it is established that the construction works or building design documentation does not conform to the requirements established thereof the owner of the construction works has compensate the Technical Surveillance Authority for the costs of the evaluation services ordered to verify conformity to the requirements, including the costs of expert assessment or evaluation.
Procedure 10.
Apply for permit of use and request final inspection from municipal authority
Time to complete:
25 days
Cost to complete:
EEK 1,000
Name of Agency:
Municipality
Comment:
The local municipality has a discretion on which agencies can be engaged in the inspection before the permit to use the building is issued. According to the law the local municipality issues or refuses to issue a permit to use within twenty days as of the date on which the last document necessary for the issue of the permit is submitted. However in practice it takes longer. BuildCo would have the right to file an action to the administrative court in case 20 days are not maintained. In practice, though few companies file lawsuits against the authorities.
Procedure 11.
Receive final inspection from municipal authority
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Municipality
Comment:
The date and the time of the final inspection is agreed between the builder and the municipal authority. The permit for use is not issued before the final inspection is carried out.
Procedure 12.
Obtain sewerage and water connection
Time to complete:
20 days
Cost to complete:
EEK 17,500
Name of Agency:
AS Tallina Vesi
Comment:
The water and sewage connection is to be obtained from AS Tallina Vesi.
Procedure 13.
Obtain electric power connection
Time to complete:
15 days
Cost to complete:
EEK 17,972
Name of Agency:
Eesti Energia
Comment:
As of March 2008 the fee to connect to electricity mains has been increased. Companies which are connecting for the first time will pay EEK 1750/per ampere. Administrative processing fee is EEK 470.
Procedure 14.
Obtain telephone connection
Time to complete:
15 days
Cost to complete:
EEK 1,524
Name of Agency:
ELION ( Elion Ettevotted AS)
Comment:
ELION ( Elion Ettevotted AS) is the largest telecommunication and IT service provider in Estonia, who provides telephone connection for EEK 824. If company subscribes also to the internet connection no affiliation fee shall be required. ELION has to issue technical conditions for establishing telephone connection. BuildCo has to incur costs of EEK 200 and before connection shall be provided ELION charges additional fee of EEK 500 for controlling the accordance of works to the project. The price has been updated in 2008.