#

Ease of Doing Business in

Belarus

Belarus Download Profile (1764.2KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 9,513,000
GNI Per Capita (US$) 6,460
City covered Minsk

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 37 50 up
13
74.13 70.89 down
3.24
Starting a Business 31 30 down
1
92.91 92.87 up
0.04
Dealing with Construction Permits 28 25 down
3
78.32 78.31 up
0.01
Getting Electricity 24 74 up
50
86.01 72.20 up
13.81
Registering Property 5 7 up
2
92.19 90.53 up
1.66
Getting Credit 101 109 up
8
45.00 40.00 up
5.00
Protecting Minority Investors 42 62 up
20
63.33 58.33 up
5.00
Paying Taxes 99 95 down
4
70.40 70.70 down
0.30
Trading across Borders 30 30
-
93.71 93.71
-
Enforcing Contracts 27 28 up
1
70.36 70.36
-
Resolving Insolvency 69 95 up
26
49.08 41.86 up
7.22

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

28

DB 2016 Rank:

25

Change in Rank:

down3

DB 2017 DTF (% points):

78.32

DB 2016 DTF (% points):

78.31

Change in DTF (% points):

up0.01

STANDARDIZED WAREHOUSE
Estimated value of warehouse BYR 4,361,059,863
City Minsk
Indicator Belarus Europe & Central Asia OECD high income
Procedures (number) info_outline 16 15.1 12.1
Time (days) info_outline 115 160.7 152.1
Cost (% of warehouse value) info_outline 0.7 4.2 1.6
Building quality control index (0-15) info_outline 13 11.3 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain a decision of the Minsk City Executive Committee permitting project design and construction works on a given land plot

    Agency: Minsk City Executive Committee

    To start construction, BuildCo must receive the Minsk City Executive Committee’s decision to elaborate on design documentation. The permission letter states the main requirements for the intended building and lists the agencies and the institutions where additional technical requirements must be obtained. The request form must contain a brief description of the intended building project and company documents.

    On April 26, 2007 the Minsk City Municipality passed Decision # 859 according to which applicants can choose to obtain technical conditions or request the Centre of Engineering Services to obtain them on behalf of the applicant. Prior to this reform, the Centre used to be under the Department of Technical Conditions of the Committee of Architecture and City Construction. Now the Centre operates as a semi-private entity and if the work load increases, it can recruit additional human resources.

    After the documents are submitted to the Reception Desk they are forwarded to the respective departments, and if the applicant wishes to obtain the technical conditions through the Centre, the documents are directed internally to the Centre.

    All service providers that issue technical conditions have a time limit of 7 working days during which the approvals must be granted. All the approvals can be obtained in parallel. The services that are involved and would be required for BuildCo’s case are: water/sewage, telephone, sanitary epidemiological authority, ecological department and fire safety. By law all technical conditions are granted free of charge. However, if it is done through the Centre for Engineering Services there is a fee -- for BuildCo's case, it would be approximately BYR 1,000,000.00. In practice, majority of companies choose to obtain the necessary technical conditions on their own.

    30 days no charge
    * 2

    Request and obtain technical conditions from the water and sewage authority

    Agency: Unitary enterprise "Minskvodokanal"

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All service providers that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    14 days no charge
    * 3

    Request and obtain technical conditions for electricity from Minsk Cable Grid Company

    Agency: Minsk Cable Grid Company

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All services that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    7 days no charge
    * 4

    Request and obtain technical conditions from the natural gas provider "Mingaz"

    Agency: Mingaz

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All service providers that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    Even though BuildCo will not connect to natural gas service, technical conditions from the Mingaz are necessary because they will specify that there are no pipelines on the land plot or near its borders.

    14 days no charge
    * 5

    Request and obtain technical conditions for fire safety from Minsk City Department of the Ministry of Emergency Situations

    Agency: Minsk City Department of the Ministry of Emergency Situations

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All service providers that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    14 days no charge
    * 6

    Request and obtain technical conditions from the Traffic Control Department of the Minsk City Executive Committee

    Agency: Traffic Control Department of the Minsk City Executive Committee

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All service providers that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    14 days no charge
    * 7

    Request and obtain technical conditions from the Minsk City Committee for Natural Resources & Environment

    Agency: Minskzelenstroy (Minsk City Committee for Natural Resources & Environment)

    The applicants can choose to obtain technical conditions from each agency individually or to request them from the Centre of Engineering Services, which can obtain the technical conditions on behalf of applicant. However, it is very rare that building companies will choose to ask the technical conditions from the Centre of Engineering Services. The overwhelming majority of building companies obtain the technical conditions on their own. According to construction professionals, it is in the best interest of building companies to obtain the technical conditions on their own to ensure that the technical conditions are issued in the most optimal manner for the building company.

    All service providers that issue technical conditions have a time-limit of 7 working days during which the approvals must be granted. However, in practice it might take on average 2 weeks. All the technical conditions can be obtained in parallel.

    14 days no charge
    8

    Obtain state expertise of design documentation

    Agency: Minsk City State Expertise Authority

    Upon developing its design documentation, BuildCo submits it to the Minsk City State Expertise Authority for state approval. The state expertise can be conducted in parallel with the ecological expertise. The State Expertise Authority does not look at ecological aspects of construction documents.

    According to Resolution of Ministry of Architecture and Construction of Belarus #55 as of December 12, 2008, enacted 3 February 2009, the applicable fee would be in the amount of 2.57% to the project cost (which is estimate at 10% of total cost). This amount is approximate and depends on the applicable conversion rate of the base value in the current project.

    30 days BYR 10,379,322
    9

    Obtain the building permit

    Agency: Minsk City Inspectorate of the Department of Construction Control and Supervision

    After having obtained the approval of the state expertise of design documentation, BuildCo applies to the Inspection of State Construction Supervision Department of Minsk City (from hereon, "the Inspection") to obtain a permit for construction and mounting works. The following documents must be submitted:

    • Decision of Minsk City Executive Committee on permission of construction;
    • Positive conclusion of the state examination of the project documentation;
    • Decision on the approval of the project documentation;
    • Payment order confirming the transfer of the fees payable from the cost of construction and installation work.

    The construction permit is granted within 3 working days according to the Resolution of the Council of Ministers of Belarus No.156 of February 17, 2012 "On approval of a single specification of administrative procedures carried out by government agencies and other bodies in relation to legal entities and individual entrepreneurs".

    According to the Regulations on the financing of the Department of Inspection of Control and Supervision of the Construction of the State Committee for Standardization, approved by the Council of Ministers of the Republic of Belarus of 09.08.2013 № 704, the fee to obtain the building permit is 0.35% of the value of the construction and engineering works for projects with private sector financing. For construction projects with an estimated duration of 12 months or less, an advance payment of 50% of the total estimated amount of the payment must be paid during the application for construction permit. The remaining 50% of the fees is paid before obtaining the occupancy permit. The payment is done at the bank, and a receipt is submitted to the Inspection. The duration of the construction works for the case study warehouse is assumed to be 30 weeks; therefore, 50% of the construction and installation costs have to be paid at the time of applying for the building permit.

    3 days BYR 7,631,855
    10

    Receive inspection by the Department of Supervision and Control of Construction

    Agency: Department of supervision and control of construction

    The Department of supervision and control of construction carries out a random inspection to assess the construction process and to control the compliance of the construction with the approved projects and cost estimate documentations.

    1 day no charge
    11

    Apply for water and sewerage connection

    Agency: Unitary enterprise "Minskvodokanal"

    Water and sewerage connections are obtained towards the end of construction, after the unscheduled inspection has taken place. First step for BuildCo is to apply to Minskvodokanal requesting a signing of a contract and connection to the water and sewage network.

    1 day BYR 284,378
    12

    Receive on-site inspection for water and sewerage connection

    Agency: Unitary enterprise "Minskvodokanal"

    After receiving the application for water and sewage connection, Minskvodokanal conducts an inspection of the construction.

    1 day no charge
    13

    Obtain connection of water and sewerage

    Agency: Unitary enterprise "Minskvodokanal"

    Based on the results of the inspection, connection to water and sewerage can be obtained.

    5 days no charge
    14

    Request and receive inspection by the Acceptance Committee and signature of acceptance act

    Agency: Acceptance Commission

    After water and sewerage have been connected, BuildCo requests an inspection by the Acceptance Commission. The Acceptance Commission represents the contractor and building owner, as well as the State Fire Department Authority. Upon agreement of these parties, officials of other state agencies can be included in this committee. According to the law the occupancy certificate must be issued within 15 days, but in practice it takes 3 weeks (depending on size of construction and the presence or absence of defects).

    The Acceptance Commission may come and inspect in one day if BuildCo organizes it in such way. At this point the Builder has to pay the remaining 50% of the fee for the construction permit.

    21 days BYR 7,631,855
    15

    Request and obtain an inventory inspection and technical passport

    Agency: Minsk City Agency

    After receiving an inspection by the Acceptance Commission, BuildCo may request an inspection from a technical inventory specialist. New buildings cannot be registered without first receiving an inspection from a technical inventory specialist who completes a technical passport. There are approximately 120 technical inventory specialists in the city of Minsk.

    The maximum term of technical inspection prior to the registration of a new building was reduced up to 15 working days (21 calendar days) according to the Decision of the Committee on Land Resources, Geodesy and Cartography #39 dated July 28, 2004 amended as of February 25, 2010 (Art. 12).

    21 days BYR 5,202,400
    16

    Register the building with the State Registration and Land Cadastre

    Agency: State Registration and Land Cadastre

    After receiving an inspection from a technical inventory specialist, who completes the technical passport, BuildCo can register the building. In order to register the building, BuildCo must apply to the Registrar's Office. The Registrar authenticates the documents and issues a decision.

    The registration of the warehouse and the title on the warehouse are governed by the Resolution of the Council of Ministers of the Republic of Belarus of 17.02.2012 № 156 "On Approval of the unified list of administrative procedures carried out by public bodies and other organizations in relation to legal entities and individual entrepreneurs" (as amended on 02.23.2015).

    2 days BYR 1,365,000

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 13.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; They must be purchased. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Unscheduled inspections. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision; Construction company. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Passing a certification exam. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Passing a certification exam. 2.0