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* Takes place simultaneously with another procedure.
Requirement Details
Procedure 1.
Request and obtain design guidelines and approval of drawings and designs from Urban Planning Office
Time to complete:
1 day
Cost to complete:
HNL 900
Name of Agency:
Urban Planning Office
Comment:
Every company planning to construct a new building must request design guidelines from the Urban Planning Office in the vicinity of the future construction site. As of January 2009, the procedure of obtaining the design guidelines and approval of drawings now takes on average 1 hour and costs HNL 900.
Procedure 2.
Request and obtain environmental approval from Office of Municipal Environmental Development and Management (GMDAM)
Time to complete:
45 days
Cost to complete:
HNL 31,243
Name of Agency:
Office of Municipal Environmental Development and Management of Municipality of Tegucigalpa (UMA)
Comment:
BuildCo's case would be considered by the Office of Municipal Environmental Development and Management . Under a major government initiative, the National Competitiveness Program (Programa Nacional de Competitividad) the municipality (GMDAM) entered into an agreement with SERNA in 2007. Under the agreement, both entities have computerized all the offices responsible for processing the relevant documents and have also trained most of the staff. This has increased the number of licenses issued from 30 per month in 2006 to 140 in 2007. However, more efficient service has also boosted the demand from the private sector. The government is considering ways to increase resources to meet the increased demand.
As of 4 September, 2008, Article 78 of the Law on Environment an inter-ministerial agreement (No. 635-2003) was approved, as well as other implementing regulations, on criterias for different categories of environmental approvals depending on project risks. Commercial warehouses that fit into Category 1 (Art. 5) are only subject to environmental control, not full scale study, at the local level by Office of Municipal Environmental Development and Management ('UGA' or 'UMA'). The time required for such approval has reduced from 45 days to 1 week. It is planned that this requirement which is a precondition for obtaining building permit now will be moved as precondition for operation of the building, and to be complied after the building is completed and all permits are obtained.
The fee for environmental approval, previously calculated as a function of 0,5% of overall project value, is now a fixed rate of HNL 350 ( HNL150 for environmental approval and HNL 200 for inspection).
Procedure 3.
Request and obtain document attesting that the company has no unpaid fines
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Property Registration
Comment:
Certification that BuildCo has no outstanding debts is required for projects financed by loans. BuildCo requests certification from the Registrar of Property..
Procedure 4.
Request and obtain approval for delivery of utility services - electric power from ENEE
Time to complete:
15 days
Cost to complete:
HNL 4,500
Name of Agency:
National Electrical Power Company (Empresa Nacional de Energía Eléctrica)
Comment:
BuildCo applies for an electricity connection at the National Electrical Power Company (Empresa Nacional de Energía Eléctrica, ENEE) indicating the capacity required for the warehouse. All other required documents confirming the ownership of the land must be presented. In addition, BuildCo must present a separate study: electric design or prime line extension. A certificate of no debts owed must also be presented.
Procedure 5.
Request and obtain approval for delivery of utility services - water and sewage from SANAA
Time to complete:
15 days
Cost to complete:
HNL 750
Name of Agency:
SANAA
Comment:
The committee responsible for approving conditions of water and sewerage connections meets once a week.
Procedure 6.
Request and obtain rainwater drainage feasibility analysis
Time to complete:
7 days
Cost to complete:
no charge
Name of Agency:
SANAA
Comment:
The cost is included in the fee paid to the water company (SANAA) as part of Procedure 7.
Procedure 7.
Request and obtain approval of fixed line from HONDUTEL
Time to complete:
7 days
Cost to complete:
HNL 150
Name of Agency:
HONDUTEL
Comment:
There are several telephone companies in Honduras, and the competition between them has resulted in faster services.
Procedure 8.
Request and obtain approval (constancia) from Public Works Secretary (SOPTRAVI)
Time to complete:
7 days
Cost to complete:
HNL 500
Name of Agency:
Public Works Secretary (SOPTRAVI)
Comment:
Approval from the Public Works Secretary (SOPTRAVI) is required for location clearance. A fee of HNL 300 is charged for approval and a fee of HNL 200 for inspection.
Procedure 9.
Request and obtain location clearances (Uso de suelo y factibilidad vial) from the Municipal Authority
Time to complete:
2 days
Cost to complete:
HNL 150
Name of Agency:
Municipal Authority (Alcaldía Municipal)
Comment:
The following documents must be presented to obtain a certificate of occupancy (Uso de Suelo y Factibilidad Vial) from the municipality: - Application. - Proof of property registration. - Designs and drawings. - Approvals from the SANAA and the ENEE, and others. - Environmental license.
The new city zoning plan that was introduced in early 2008 is currently being operationalized. One of the main features of the plan is the change of zoning from residential to commercial and its further digitization based on maps from Cadastre and Management Engineering (Engenieria Gerencial). Further the land use regulations were amended in April 2008, introducing categories based on risk factors. This led to improvement of the process of obtaining the location clearance and time reduction from 15 days to 2 days. The application is checked in back office whether the new land use is compatible with land use regulations.
Procedure 10.
Request and obtain Building Permit
Time to complete:
10 days
Cost to complete:
HNL 39,018
Name of Agency:
Municipal Authority (Alcaldía Municipal)
Comment:
The permit application documents are reviewed by the Legal Department, the Technical Department, the Professional College, the Environmental Section, and the Chief of Construction Permits.
After having submitted the permit application and all other required documents, the applicant pays the application fee at TASA Municipal. The cost of a building permit is calculated using official formula. For projects valued at more than HNL 3 million (in the case considered here, HNL 6,428,622.55), the cost would be HNL 20,897.00 + 0.005% for each million (HNL 150 = HNL 3,000,000).
As of May 27, 2007, the municipality stopped issuing building permits for multistory buildings with commercial/industrial uses, unless the land and all proper zoning were secured prior to this date. This moratorium is to remain in effect for 6 months.
Before starting construction, the company must notify the authority.
Procedure 11.
Request electricity services from Empresa Nacional de Energía Eléctrica (ENEE)
Time to complete:
1 day
Cost to complete:
HNL 54,219
Name of Agency:
National Electrical Power Company (Empresa Nacional de Energía Eléctrica)
Comment:
In 2005, the ENEE underwent company recapitalization, which added, on top of the requirement of purchasing a transformer, a cost per kilowatt. Each kilowatt (140 total kilowatts) now costs 387.28%
Procedure 12.
Receive inspection from electric power services
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
National Electrical Power Company (Empresa Nacional de Energía Eléctrica)
Comment:
The ENEE sends an inspector to verify the connection’s compliance with submitted conditions.
Procedure 13.
Receive connection to electricity from ENEE
Time to complete:
14 days
Cost to complete:
no charge
Name of Agency:
National Electrical Power Company (Empresa Nacional de Energía Eléctrica)
Comment:
Procedure 14.
Receive connection to water and sewage from SANAA
Time to complete:
15 days
Cost to complete:
HNL 30,888
Name of Agency:
SANAA
Comment:
Procedure 15.
Request telephone connection from HONDUTEL
Time to complete:
1 day
Cost to complete:
HNL 1,192
Name of Agency:
Hondutel
Comment:
Procedure 16.
Receive inspection and connection to fixed telephone line from HONDUTEL
Time to complete:
5 days
Cost to complete:
no charge
Name of Agency:
Hondutel
Comment:
Procedure 17.
Register building in real estate registry
Time to complete:
30 days
Cost to complete:
HNL 4,478
Name of Agency:
Real estate registry (Registro de Bienes Raíces)
Comment:
Reforms and optimization of electronic processing have significantly decreased the time to register property. However, in 2009 due to administrative backlog and delays with registration process the procedure for registration of building is now taking on average 30 days, compared to previous 16 days. Additionally, the website of Institute of Property (Instituto de Propiedad) has been shutdown.
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