Dealing with Construction Permits in Georgia

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

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: GEL 364,168
City: Tbilisi

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain extract from the National Public Registry 1 day GEL 15
2 Request and obtain Terms of Construction from Tbilisi Urban Planning Service 30 days no charge
3 Request and obtain building permit from Tbilisi Urban Planning Service 10 days GEL 650
4 Request and receive connection to water/sewage service 2 days no charge
5 Request and obtain connection to electricity service 2 days no charge
6 Request and obtain connection to telephone services 5 days GEL 120
7 Request and obtain layout survey and protocol from Archmshen Inspection (Architectural Inspection Agency) 1 day no charge
8 Request and obtain protocol of completion of major building structure from Archmshen Inspection 1 day no charge
9 Request and obtain exploitation of building- construction from Special Commission 15 days no charge
10 Register the building with the National Public registry 1 day GEL 150

Requirement Details

Procedure 1.
Request and obtain extract from the National Public Registry
Time to complete:
1 day
Cost to complete:
GEL 15
Name of Agency:
National Public Registry
Comment:
The extract is proof of the registered ownership right and is the basis for the right to build on a plot. It is valid for 10 days.

In a reform according to Regulation No. 140 of March 27, 2007, the previous requirement that the National Public Registry extract be presented three times during the permit process has been abolished. The extract is presented only once, at the beginning of the permitting process.
Procedure 2.
Request and obtain Terms of Construction from Tbilisi Urban Planning Service
Time to complete:
30 days
Cost to complete:
no charge
Name of Agency:
Tbilisi Urban Planning Service
Comment:
The application must be filled out to obtain the terms of construction. The statutory time is 30 days.
In a reform that made changes to Regulation No. 140 (dated March 27, 2007), the water authority (Tbilisis Tskali) and the electricity provider (Telasi) have become administrative bodies, and Tbilisi Urban Planning Service obtains technical conditions from them as a one-stop shop.

According to amendments as of August 11, 2008, #176 to GOG Resolution #140, confirmation of technical conditions is no longer connected to the process of issuance of building and occupancy permits.

The law provides that an applicant has freedom to choose the option of soliciting the technical condition confirmation personally and independently. The old principle of obtaining the confirmation through Tbilisi Urban Planning Service is still operational, should the applicant decide to use it. The application can be submitted along with project documents submitted for confirmation.

In 2008, the Government of Georgia has finalized its process of developing and updating the city master plans and other city planning and construction documentation. As a result, as of October 27, 2008 by Resolution #214 new amendments to GOG Resolution #140 were made. Under the new amendments, the Tbilisi Urban Planning Service only confirms the conditions of city-planning and construction specifications. The responsibility of drafting and elaborating the city planning conditions for drawings and plans is now on architects and project managers.

Under the GOG Resolution #226, as of November 21, 2008 which amended the GOG Resolution #140, projects that are not located in cultural heritage zones do not require approval of Architectural-Construction Design from Tbilisi Planning Service. Before this approval, also known as Stage –II, was required for all projects.
Procedure 3.
Request and obtain building permit from Tbilisi Urban Planning Service
Time to complete:
10 days
Cost to complete:
GEL 650
Name of Agency:
Tbilisi Urban Planning Service
Comment:
The cost is determined by the project value. According Tbilisi Government Resolution No 2-21, As of February 28, 2008, the fee has been increased to GEL 1 per square meter and only the ground floor space is counted. Thus, the breakdown in the case considered here is 1300.6/2 x 1= 650.3

GOG Resolution # 261 as of December 29, 2008 introduced amendments to GOG Resolution #140. The changes introduce risk based classification of construction projects according to five categories. Depending on complexity of each category different types of procedures are to be followed by applicants. The first category is the low risk one, and the fifth being the most complex one. BuildCo case fits the category –III. Which does not require project expertise, simplified process of approval that also excludes the need for approval of Architectural-Construction Design. It also reduced the time-limit from 30 days to 15 days for obtaining the certificate of completion from Special Commission.
Procedure 4.
Request and receive connection to water/sewage service
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Tbilisi Tskali
Comment:
BuildCo, having obtained the conditions from the water authority, starts building the water and sewage pipes to the main water pipeline. Once there is a connection to the main pipeline, the inspector from the water authority (Tbilisi Tskali) comes to confirm the connection and sign the protocol. It takes 2 days from the request to when they the water authority comes and connects.
Procedure 5.
Request and obtain connection to electricity service
Time to complete:
2 days
Cost to complete:
no charge
Name of Agency:
Telasi
Comment:
Once BuildCo has obtained the conditions from the electricity authorities, it starts laying the cables in line with the company’s design plans. In the phase of connecting to the main cable lines, the inspector from the electricity provider (Telasi) comes to confirm the connection and sign the protocol. It takes 2 days from the request to receive connection.
Procedure 6.
Request and obtain connection to telephone services
Time to complete:
5 days
Cost to complete:
GEL 120
Name of Agency:
Private Telecom Company
Comment:
The companies are privatized, and, on average, the price for subscription is GEL 120.
Procedure 7.
Request and obtain layout survey and protocol from Archmshen Inspection (Architectural Inspection Agency)
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Archmshen Inspection
Comment:
This procedure is part of the architectural planning contract.
Procedure 8.
Request and obtain protocol of completion of major building structure from Archmshen Inspection
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Archmshen Inspection
Comment:
At the end of construction, the company must request this permit and submit all the inspection certificates obtained in the previous procedures.
Procedure 9.
Request and obtain exploitation of building- construction from Special Commission
Time to complete:
15 days
Cost to complete:
no charge
Name of Agency:
Special Commission
Comment:
The procedure for issuing the building exploitation certificate has been streamlined pursuant to a change to Regulation No. 140, Article 20,1dated June 20, 2006. Under the regulation, the statutory time limit is 30 days. The construction permit holder must present the protocols of completion of each construction stage as specified in the terms of construction. The protocols are signed by the permit holder, contractor, and the Architectural Construction Supervision Service (ACSS) representative. The presence and signature of the ACSS is not mandatory. Protocols of completion are considered valid if signed by the permit holder and contractor and if the copies are submitted to the permit issuing agency.

GOG Resolution # 261 as of December 29, 2008 introduced amendments to GOG Resolution #140. The changes introduce risk based classification of construction projects according to five categories. Depending on complexity of each category different types of procedures are to be followed by applicants. The first category is the low risk one, and the fifth being the most complex one. BuildCo case fits the category –III. Which does not require project expertise, simplified process of approval that also excludes the need for approval of Architectural-Construction Design. It also reduced the time-limit from 30 days to 15 days for obtaining the certificate of completion from Special Commission.
Procedure 10.
Register the building with the National Public registry
Time to complete:
1 day
Cost to complete:
GEL 150
Name of Agency:
National Public Registry
Comment:
The company must submit the document obtained in the previous procedure and the exploitation permit. The time line is faster under the Georgian Law on Registration of Rights on Immovable Property (December 28, 2005).