Dealing with Construction Permits in
Honduras
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
-
Estimated Warehouse Value:
HNL 6,248,623
- City: Tegucigalpa
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain design guidelines and approval of drawings and designs from Urban Planning Office
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.
Agency: Urban Planning Office
|
1 day
|
HNL 900
|
| * 2 |
Request and obtain environmental approval from Office of Municipal Environmental Development and Management (GMDAM)
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).
Agency: Office of Municipal Environmental Development and Management of Municipality of Tegucigalpa (UMA)
|
45 days
|
HNL 31,243
|
| * 3 |
Request and obtain document attesting that the company has no unpaid fines
Certification that BuildCo has no outstanding debts is required for projects financed by loans. BuildCo requests certification from the Registrar of Property..
Agency: Property Registration
|
1 day
|
no charge
|
| * 4 |
Request and obtain approval for delivery of utility services - electric power from ENEE
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.
Agency: National Electrical Power Company (Empresa Nacional de Energía Eléctrica)
|
15 days
|
HNL 4,500
|
| * 5 |
Request and obtain approval for delivery of utility services - water and sewage from SANAA
The committee responsible for approving conditions of water and sewerage connections meets once a week.
Agency: SANAA
|
15 days
|
HNL 750
|
| * 6 |
Request and obtain rainwater drainage feasibility analysis
The cost is included in the fee paid to the water company (SANAA) as part of Procedure 7.
Agency: SANAA
|
7 days
|
no charge
|
| * 7 |
Request and obtain approval of fixed line from HONDUTEL
There are several telephone companies in Honduras, and the competition between them has resulted in faster services.
Agency: HONDUTEL
|
7 days
|
HNL 150
|
| * 8 |
Request and obtain approval (constancia) from Public Works Secretary (SOPTRAVI)
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.
Agency: Public Works Secretary (SOPTRAVI)
|
7 days
|
HNL 500
|
| 9 |
Request and obtain location clearances (Uso de suelo y factibilidad vial) from the Municipal Authority
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.
Agency: Municipal Authority (Alcaldía Municipal)
|
2 days
|
HNL 150
|
| 10 |
Request and obtain Building Permit
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.
Agency: Municipal Authority (Alcaldía Municipal)
|
10 days
|
HNL 39,018
|
| * 11 |
Receive connection to water and sewage from SANAA
Agency: SANAA
|
15 days
|
HNL 30,888
|
| * 12 |
Request telephone connection from HONDUTEL
Agency: Hondutel
|
1 day
|
HNL 1,192
|
| * 13 |
Receive inspection and connection to fixed telephone line from HONDUTEL
Agency: Hondutel
|
5 days
|
no charge
|
| 14 |
Register building in real estate registry
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.
Agency: Real estate registry (Registro de Bienes Raíces)
|
30 days
|
HNL 4,478
|
* Takes place simultaneously with another procedure.