Dealing with Construction Permits in
Armenia
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
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Building a warehouse
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Estimated Warehouse Value:
AMD 176,675,175
- City: Yerevan
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Apply and obtain architectural-constructional assignment (АПЗ)
The company submits an application form to the Architectural and Urban Development Department of the Yerevan Municipality with the following information: the purpose of usage, building type and address, and the name(s) and license number (s) of the design firm(s). As part of this process, the owner receives technical conditions from appropriate authorities for drawing, building, and using the building’s engineering substructures. The fee and time line are determined by the agreement with the company.
For BuildCo to obtain a building permit, the municipality awards an architectural-constructional engineering assignment contract to a licensed building design firm, upon receiving the application and the drawings. The design firm prepares the drawing(s) with information on technical, urban, and other necessary conditions. The architectural drawing undergoes a review performed by a specialized institution. The drawings are then approved by the Yerevan municipality, citing the duration of the construction.
Following the issuance of APZ, Build CO start developing all aspects of construction documents. It is assumed that a geologist would be part of BuildCo staff. It is also assumed that the technical supervision expert, normally hired by developers-investors to oversee the quality of works done by builders, in case of BuildCo would be part of its core staff, and do not need to be hired separately. Both companies and individual technical supervision experts can be licensed according to Government Resolution N 26 (12 December 2008) that became effective 21 June 2009.
Agency: Yerevan Municipality (Architectural and Urban Development Department)
|
15 days
|
no charge
|
| * 2 |
Request and obtain technical conditions approval from water authority
According regulation #1473 (2002), applicants must seek individual technical condition approvals from each authority. All technical conditions must be free of charge.
Before starting earthwork, BuildCo must apply to utility providers, citing the planned route(s) of underground communications. Upon starting work, BuildCo must request the presence of utility company representatives during connecting communications of the building.
Agency: Yerevan Water and Sewage Company (YWSC)
|
15 days
|
no charge
|
| * 3 |
Request and obtain architectural plan approval from telecommunications provider
Agency: ArmenTel
|
7 days
|
no charge
|
| * 4 |
Request and obtain architectural plan approval from electricity provider
After obtaining conditions from the utilities, BuildCo assigns an architect or a licensed building design firm to prepare the architectural drawings. During the whole construction process, the drawing company must conduct copyright control to ensure compliance of construction with the architectural-engineering drawings, according to the agreement concluded between the owner and the drawing company.
Agency: Electric Networks of Armenia
|
15 days
|
no charge
|
| * 5 |
Hire a licensed expert/ company to conduct the expertise approval of architectural drawings
The architectural drawings undergo a review performed by a licensed expertise institution.
A number of licensed private organizations exist in Armenia with expertise in architectural drawing. In Armenia, architectural drawing is subject to both engineering and ecological expertise review. The results of expertise are then submitted to Municipality along with other documents for building permit.
Agency: Expertise Company
|
1 day
|
AMD 25,000
|
| 6 |
Request and obtain building permit from Yerevan Municipality
The company must resubmit the approved architectural drawings to the municipality.
According to Decision #91 (2002) the permit must be issued in 7 days.
Since 2005, the construction permit and the construction document approvals are granted simultaneously. In Yerevan, the mayor grants the construction permit. The local construction permit fee is up to AMD 70,000. In some regions and districts, as determined by the central authorities, the fee ranges from AMD 21,000 to AMD 350,000.
According to Decision #91 (2002), Art. 27 after obtaining the building permit, BuildCo will need to notify State Inspection of Urban Development of Ministry of Urban Development. BuildCo writes a letter 3 days prior to construction works, and does not await for approval.
According to Resolution of Yerevan Mayor's Office # 245 as of 23 February 2006, additional fees apply to industrial rubbish produced by BuildCo. It consists of two components: infrastructure use fee and earth excavation and rubbish fee. The fee would be assessed by a municipal company- Technical Decisions Implementation Agency for Development of Yerevan (, created in second half of 2007 by Yerevan Mayor’s Office. The fee for industrial earth excavation and rubbish AMD 300 for each truck, and infrastructure use fee AMD 960 sq. m.. Total cost is: 1) AMD 300 x 10 trucks= AMD 3000 + 2) AMD 960 x 1300.6 = AMD 1,248,576 = AMD 1,251,576
Agency: Municipality
|
15 days
|
AMD 350,000
|
| 7 |
Receive inspection by Municipal Construction Inspection
The construction site may be visited during entire duration of project at least twice, provided all works are done properly. There is no need to stop works. Inspections occur on random basis. According to Law on Inspection all inspections must take place only once a year. However, so called ‘operational inspections’ are widespread.
Agency: Municipal Construction Inspection
|
1 day
|
no charge
|
| 8 |
Receive inspection by Municipal Construction Inspection
The construction site may be visited during entire duration of project at least twice, provided all works are done properly. There is no need to stop works. Inspections occur on random basis. According to Law on Inspection all inspections must take place only once a year. However, so called ‘operational inspections’ are widespread.
Agency: Municipal Construction Inspection/District Authorities
|
1 day
|
no charge
|
| 9 |
Receive Inspection by State Inspection of Urban Development of Ministry of Urban Development
The construction site may be visited during entire duration of project at least twice, even if works are conducted properly. There is no need to stop works. Inspections occur on random basis. According to Law on Inspection all inspections must take place only once a year. However, so called ‘operational inspections’ are widespread.
Agency: State Inspection of Urban Development of Ministry of Urban Development
|
1 day
|
no charge
|
| 10 |
Receive Inspection by State Inspection of Urban Development of Ministry of Urban Development
The construction site may be visited during entire duration of project at least twice, even if works are conducted properly. There is no need to stop works. Inspections occur on random basis. According to Law on Inspection all inspections must take place only once a year. However, so called ‘operational inspections’ are widespread.
Agency: State Inspection of Urban Development of Ministry of Urban Development
|
1 day
|
no charge
|
| 11 |
Request water and sewage services
An additional facilitation fee of AMD 200–300 is required to expedite the process.
Agency: Yerevan Water and Sewage Company (YWSC)
|
9 days
|
AMD 2,600
|
| * 12 |
Receive water and sewage inspection and connect
Agency: Yerevan Water and Sewage Company (YWSC)
|
1 day
|
no charge
|
| * 13 |
Request and connect to telephone
An additional facilitation fee of AMD 200-300 is required to expedite the process.
Agency: ArmenTel
|
8 days
|
AMD 24,000
|
| 14 |
Request final municipal inspection to obtain occupancy permit
The completion of construction certificate, obtained upon completion through joint meeting of investor and builder, is required to file for the final inspection process. This is required to obtain the occupancy permit from the municipality. The application is made to receive final inspection by municipality. State Inspection of Ruban Development under the Ministry of Urban Development, must be notified as well.
Agency: Municipality/State Inspection of Urban Development of Ministry of Urban Development
|
1 day
|
no charge
|
| 15 |
Receive final inspection from the municipality
By ministerial decree, the municipality must undertake the final inspection within 15 days of receiving the application. After the inspection, the application is forwarded to the state expert office for final approval. This takes another 10–15 business days. Inspection by State Inspection of Urban Development of Ministry of Urban Development takes place separately. After all signatures are signed the occupancy permit is issued by the Mayor's Office.
Agency: Municipality/State Inspection of Urban Development of Ministry of Urban Development
|
1 day
|
AMD 150,000
|
| 16 |
Obtain occupancy permit from Municipality
After all signatures are signed the occupancy permit is issued by the Mayor's Office.
Agency: Municipality
|
28 days
|
no charge
|
| 17 |
Register the building with the Cadastre
The company must register the building with the cadastre by submitting the land title, the allocation permit, the building permit, and the construction plans. The next step is an on-site inspection, required for metering the building.
As of second half of 2009 the State Cadastre introduced new fast track options whereby transactions can be done in 2, 4 and 7 days.
Fee schedule for registration:
Registration:AMD 10,000
Building metering: AMD 45 929+AMD 45 1300.6=AMD 100,332(fast track- 1 day)
Building sketch: AMD 500 (for each page-2 pages)= AMD 1,000
Stamp duty:AMD 1,000
Total: AMD 112 332
Documents to be submitted:
Construction permits;
Architectural construction assignment;
Occupancy permit.
Agency: Local Cadastre Office
|
2 days
|
AMD 99,397
|
| * 18 |
Receive on-site inspection for building registration
Inspection of site is done for all projects, both first time and re-sale of property. The mapping team visits the site and thereafter draws all relevant measurements in the records. BuildCo representative must be present at the moment of inspection.
Agency: Local Cadastre Office
|
1 day
|
no charge
|
* Takes place simultaneously with another procedure.