Dealing with Construction Permits in
Kazakhstan
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:
KZT 52,253,577
- City: Almaty
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain land allocation permit from Almaty City Akimat
BuildCo applies to City Akimat to obtain the Decision of Mayor of City of Almaty. The Decision gives the right to design the project for the next 12 months on the specified land. Resolution of Government of Kazakhstan N 425 as of 6 May 2008 provides for a new “Rule of issuance of baseline materials and data for designing of new construction”. According to this Rule all local municipalities must issue the location permit for small and medium companies within 10 days, and for large scale companies within 30 days. However, the Akimat of Almaty continues to issue the location permit regardless of size of companies in 30 days. In some cases in practice this procedure may end up taking up to 12 months.
Agency: Akimat of Almaty City
|
10 days
|
no charge
|
| * 2 |
Notarize documents
BuildCo provides a copy of the following four documents totaling seven pages: governmental registration certificate (double sided), statistical card (single sided), taxpayer registration number (double sided), and the deed of ownership of land (two pages).
This procedure is required when applicants do not have all the original documents. In case applicants have the original of all documents, they can submit their documents without notarization and can show them for verification.
Notarizations may be carried out by private notaries or state notaries. The fees of both private notaries and state notaries are calculated with reference to a monthly calculation index (MCI) which is established by Parliament for each year in the national budget. The MCI for 2011 is equal to KZT 1,512. State notaries charge 10% of the MCI for each side of a page to be notarized. Thus, for 7 pages the charge is KZT 1,058.40 (10% of 1,512 X 7). The fees for private notaries in Almaty were established at 20% of MCI at a meeting of the private notaries on 31 January 2008. It is most likely that companies will opt for public notaries since it is cheaper. Notarization is completed in a day.
Agency: Private Notary/ State Notary
|
1 day
|
KZT 1,058
|
| 3 |
Request and obtain architectural planning Assignment (APZ) and technical conditions for utility connections
To obtain an architectural-planning assignment, the company must submit a business plan and project feasibility study to the city architecture department. The application must include any plans for construction, a description of the business activities to take place on site, and estimated utility hook-up and consumption requirements. In addition, the company must submit a copy of the property title along with the plot document, approval of engineering-geological estimation of the plot ,and company registration documents
The architectural-planning assignment is a permit to develop a building plan/design/project. The design estimates are valid for 3 years from the date of its approval. It includes some provisions and requirements that must be taken into account while developing the project and building, in particular, the requirement that an opinion be obtained on the project from the seismological agency and the sanitary and epidemiologic authorities, as well as project appraisal, and so forth.
After obtaining the architectural-planning assignment, the company should develop a project (design) and must then obtain several agencies' approvals of the project in accordance with the architectural-planning assignment and the applicable laws. Each of these agencies reviews the application documents and the project, and may physically inspect the land.
As a prerequisite to signing the permit, each department signs a technical approval or “contract” with the company. The contract often requires the signatures of several officers in a department. The contract indicates the department’s approval of the company’s technical proposals and sets forth the responsibilities of the investor to abide by the terms and conditions of the approval.
As of May 6, 2008 Government Resolution N 425 approved new “Rule of issuance of baseline materials and data for designing of new construction”. According to it the architectural-planning assignment should be issued within 3 working days for small enterprises, and for all the rest no more than 5 working days. In case of BuildCo it is 5 working days, since it has 60 employees and is considered a medium company. There is no official charge for it. There is no official charge by law, but the architectural-planning assignment is prepared by the commercial organization in the administration which charges KZT 30,000 for the architectural-planning assignment based on the decision of Almaty City Architecture and Town-Planning Department. Based on the technical conditions issued by the utility providers, the Almaty City Architecture and Town-Planning Department issues an architectural-planning assignment, which serves as the authorization to start the development of the project from the design organizations. The applicable law is the Law on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan,” Law No. 232-II, dated July 16, 2001.
On 29 September 2009 amendments were adopted to the regulation approved by the above mentioned Government Resolution No. 425, dated 6 May 2008. Pursuant to these amendments: (i) architectural-planning assignment (APZ) and technical conditions for the connection to sources of engineering and municipal utilities (Technical Conditions) are issued by local Akimat; (ii) in order to obtain APZ and Technical Conditions BuildCo will have to submit to Akimat of Almaty City an application which must include (i) permit to use the land plot for the construction of a warehouse and (ii) assignement for construction approved by BuildCo; (iii) local Akimat is required not later than on the next day following the receipt of an application to forward the request for Technical Conditions to the appropriate utilities providers, and (iv) utilities providers are required to provide the Technical Conditions or, in case of refusal, the motivated explanation of the refusal. The term for the consideration and issue of APZ and Technical Conditions by local Akimat may not exceed 8 business days, except for certain construction projects specified in the regulation where the relevant term may be not more than 15 business days from the date of the application.
Agency: Almaty City Akimat
|
30 days
|
no charge
|
| * 4 |
Hire a topographic specialist and obtain topographic plan
Topographical surveying of land is a licensed activity (complex procedure) performed by very few companies. As of January 2009 due to severe construction crisis in Kazakhstan’s financial capital Almaty, and decline in demand, topographic surveying companies have reduced their prices. Cost per hectare of conducting a topographic survey now can range anywhere between KZT 9000 to KZT 20,000. This is a significant jump from previous cost of KZT 33,000 to KZT 95,000.
Agency: Topographical surveying company
|
1 day
|
KZT 14,500
|
| * 5 |
Receive on-site inspection
This inspection happens parallel to the issuance of Architectural Planning Assignment.
|
1 day
|
no charge
|
| * 6 |
Request and obtain project clearance from Sanitation and Epidemiological Authority (SES)
According to Law on Radiological Safety of Population N 219-I as of 23 April 1998 and other by-laws the Sanitation and Epidemiologic Authority (SES) examines the construction projects for their compliance with state radiological, sanitary and hygienic regulations. No specific time limit is expressly provided by law for this procedure. However, according to practice it takes 1-3 months. The SES will conduct an inspection to undertake a radiological measurement. The approval is obtained after the fee is paid. The fee is based on various factors is approximately KZT 30,000.
Agency: Sanitary and Epidemiologic Authority
|
30 days
|
KZT 30,000
|
| * 7 |
Request and obtain approval from local fire department
This procedure is regulated by the Government Resolution No. 48, as of January 24, 2005 "On approval of the Rules of obtaining approval on projects standards, regulations and rules established requirements of fire protection on construction objects".
The Fire Service Department issues the project clearance to ensure that fire norms have been adequately met in the project design. Comments for revision or endorsement are also issued. There is no time-limit stipulated for this procedure and it can take up to 1 month. Any subsequent consideration would take 15 days.
Agency: Fire Service Department
|
21 days
|
no charge
|
| * 8 |
Request and obtain approval from water authority
It is the responsibility of the State Expertise Authority to issue the technical conditions for connection to water, heat, and electricity, under the Governmental Decree on the Order of Conducting State Expertise, Decree No. 918, dated August 19, 2002 (with changes and amendments dated July 7, 2006). Yet companies have to consult with the Water and Sewage company. No on-site inspection is required by law; however, in practice, inspections take place. Water and Sewage company examines the submitted project of devices and constructions for the connection and issues its conclusion on it. With inspection this procedure may take 30 days. The state act which regulated specified provision (Instructions for use of municipal water pipe and sewage in cities and settlements of Republic Kazakhstan, adopted by The Order of the Ministry of Economy and Trade of Republic Kazakhstan #80, 30 May 1997) was not registered by Ministry of Justice and has no legal effect but yet is continued to be used.
Agency: JSC Vodokanal
|
24 days
|
no charge
|
| * 9 |
Request and obtain environmental expertise of documentation
In accordance with the Article 50 of Ecological Code RK No 212-III January 9, 2007 the time for getting approval of local Environment Protection Authority can't be more than 3 months.
Subjects of environmental expertise are divided into 4 categories depending on the hazard class of the facility to be inspected pursuant to the sanitary classification. The environmental expertise with respect to facilities of the 2nd, 3rd and 4th categories is performed by the Akimats of Almaty City. A warehouse falls under the 4th category. Once the documents are provided for the environmental expertise, the Agency conducts the preliminary examination of the submitted documents as to their completeness and compliance with the legal requirements. The term for the preliminary examination of documents may not exceed 2 weeks from the date of submission of documents. Once the preliminary examination of documents is completed, the environmental expertise is performed which term may not exceed 3 months.
Agency: Environmental Protection Authority
|
25 days
|
no charge
|
| * 10 |
Request and obtain opinion of the seismological agency on the project from Republican Enterprise Kazakhstan Scientific Institute “Kaz NIISA”
Republican Enterprise Kazakhstan Scientific Institute (Kaz NIISA) carries out the seismological survey, required for areas subject to dangerous levels of seismic activity. The only document required is the project design. A specialist makes a field visit, reviews the project design documents, and issues a finding that is attached to the project. The minimum time it takes is 10 days and may cost anywhere from KZT 10,000 to KZT 100,000.
Agency: Republican Enterprise Kazakhstan Scientific Institute "Kaz NIISA"
|
16 days
|
KZT 10,000
|
| 11 |
Request and obtain expert examination of project documentation
With limited exceptions provided by law, all projects must undergo expert examination to ascertain if the project conforms to the numerous constructions standards. What might be called state expertise is conducted by Republican State Enterprise "Gosekspertiza" which is authorized by the Government to conduct expertise of state-related projects, projects of high technical complexity, social, transport and recreational infrastructure projects. The projects will be subject to expertise on compliance with regulations on frame stability, frame functioning stability, and labor conditions and protection. In essence, the project is checked against numerous construction standards (SNIPs). Subject to the limited exceptions, the expertise for all other projects may be performed by any duly licensed expert specialist or non-governmental expert organisation. The cost and time for performance of services by private expert individuals or organisations are not established by law and will be subject to negotiation and the circumstances of each project. The cost will be 247 x 1300.6 sq.m = 321,248 KZT.
On 23 October 2009 the Government Resolution No. 1656 established the criteria for determining whether a facility is of high or low technical complexity. According to this regulation, free-standing warehouses which do not require special conditions for the storage of goods are considered to be facilities of low technical complexity. The expert examination of the warehouse construction project be handled by Gosekspertiza, it should not take more than 15 calendar days.
If the project is sent to Gosexpertiza the official timelimit is 45 days. If the project is complex it may be extended to 60 days and for technically simple projects of small business time should not exceed 15 days.
Agency: State Examination Committee/Licensed expert individual or organisation
|
15 days
|
KZT 321,248
|
| 12 |
Request and obtain Project Clearance from the local architecture and town-planning authorities
Project clearance from the local architecture and town-planning authorities involves verifying the project’s conformity with the architectural-planning assignment and with the set of technical conditions. The following documents should be submitted: an application to the Architecture and Town-Planning Department Chief Executive; the architectural-planning assignment; documentation confirming the title to the land; topographical survey; approvals and opinions of the seismological, fire, sanitary-and-epidemiologic, and environmental agencies; independent or state experts’ examinations; licenses of the developer and the expert organization; and so forth.
Agency: Almaty City Architecture and Town-Planning Department
|
30 days
|
no charge
|
| 13 |
Request and obtain Rendering Building and Assembly Jobs Permit from the State Architectural Supervision Authorities
The following documents should be submitted to obtain this permit: an application form; land plot permit for construction purposes, approved project with a favorable expert examination; a license to perform architectural activities, town-planning and building activity with a list of building types and assembly jobs; approved building general plan; agreement made with the developer to conduct supervision and maintenance of the construction process; a form signed by the general contractor and building owner; certificates of “earthquake-proof construction” and “geodesy in construction” (if applicable). The applicable law is the Law on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan,” Law No. 232-II, dated July 16, 2001. Before starting construction work, the company must notify the proper authorities.
Under Government Decree Number 1467, signed on September 29, 2009, amended the Government Decree Number 425 of May 6, 2008 "On Measures for improving the issuance of construction permits", the time for obtaining building and assembly jobs permit has been reduced from 14 days to 11 days.
Agency: Almaty City Department of Architecture and Town-Planning Control
|
11 days
|
no charge
|
| 14 |
Receive inspection by Sanitary and Epidemiology Service - I
The SES will inspect the site during construction. The inspector issues an inspection report identifying any irregularities and may return to verify that adequate changes have been made. In addition to that SES will charge KZT 3,000 for radiological measurement.
Agency: Sanitary and Epidemiology Service
|
1 day
|
KZT 3,000
|
| 15 |
Receive inspection by the Fire Service - II
The Fire Service may inspect the site one or two times during construction. The inspector issues an inspection report identifying any irregularities and may return to verify that adequate changes have been made. Administrative fines could be imposed if mistakes are found. The applicable law is the Law on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan, Law No. 242-II, dated July 16, 2001; and the Governmental Decree Confirming the Rules of Obtaining Approval Procedures for Construction of New and Reconstruction of Existing Buildings, Decree No. 1313, dated December 13, 2002.
Agency: Fire Service Department
|
1 day
|
no charge
|
| 16 |
Receive inspection by the Social Protection - III
Agency: Social Protection Authority
|
1 day
|
no charge
|
| 17 |
Receive an inspection by the Almaty City Department of Architecture and Town-Planning Control after foundation works-IV
BuildCo may receive inspections from the Almaty City Department on Architecture and Town-Planning Control at various stages of the construction process: laying the foundation, finishing the first floor, roofing, and so forth. The inspector issues an inspection report identifying any irregularities and may return to verify that adequate changes have been made. Administrative fines could be imposed if mistakes are found. The building control agency does not require prior request of inspection. The applicable law is the Law of the Republic of Kazakhstan on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan, Law No. 242-11, dated July 16, 2001. In practice there may be more inspections.
Agency: Almaty City Department of Architecture and Town-Planning Control
|
1 day
|
no charge
|
| 18 |
Receive inspection by Almaty City Department of Architecture and Town-Planning Control after floor works - V
BuildCo receives an inspection from the Almaty City Department on Architecture and Town-Planning Control at various stages of the construction process: laying the foundation, finishing the first floor, roofing, and so forth. The inspector issues an inspection report identifying any irregularities and may return to verify that adequate changes have been made. Administrative fines could be imposed if mistakes are found. The building control agency does not require prior request of inspection. The applicable law is the Law of the Republic of Kazakhstan on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan, Law No. 242-11, dated July 16, 2001.
Agency: Almaty City Department of Architecture and Town-Planning Control
|
1 day
|
no charge
|
| 19 |
Receive inspection by Almaty City Department of Architecture and Town-Planning Control after roof works - VI
BuildCo receives an inspection from the Almaty City Department on Architecture and Town-Planning Control at various stages of the construction process: laying the foundation, finishing the first floor, roofing, and so forth. The inspector issues an inspection report identifying any irregularities and may return to verify that adequate changes have been made. Administrative fines could be imposed if mistakes are found. The building control agency does not require prior request of inspection. The applicable law is the Law of the Republic of Kazakhstan on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan, Law No. 242-11, dated July 16, 2001.
Agency: Almaty City Department of Architecture and Town-Planning Control
|
1 day
|
no charge
|
| 20 |
Hire Construction Technology Supervision Company
A licensed construction engineering supervision company carries out the technical process of checking the different stages of the building. BuildCo is unlikely to have a license for this area of expertise. Such activities do not replace the inspections mentioned above but occur in parallel to them. The average price is USD 3–6 dollars per square meter, and may depend on the complexity of construction. For new construction, the rate is USD 6; for reconstruction, USD 3 (USD 3 x 1300.6 square meters).
Agency: Construction Technology Supervision Company
|
1 day
|
KZT 491,652
|
| * 21 |
Receive inspection from water authorities
Agency: JSC Vodokanal
|
1 day
|
no charge
|
| * 22 |
Connect to water services
Agency: JSC Vodokanal
|
6 days
|
no charge
|
| * 23 |
Request and obtain telephone connection
The connection fee for fixed telephone line services by Kazakhtelecom was reduced in 2009 from KZT 36,800 to KZT 26,800.
Agency: Kazakhtelecom
|
3 days
|
KZT 26,800
|
| 24 |
Request acceptance of the building from Working Commission
The company convenes a Working Commission upon the completion of construction. Although the the legislation stipulates for Working Commission to be an exclusive relationship between building owner and contractor. However, in practice the companies will have to involve Sanitary and Epidemiological Authority and Fire Department at this stage. Inspection will take place before the Act of Working Commission is drafted and signed by all parties.
Agency: Working Commission
|
1 day
|
KZT 28,844
|
| 25 |
Receive inspection by the Working Commission
The Working Commission, which is also comprised of Sanitary and Epidemiological Authority and Fire Department will have to inspect the site. If the building has been built according to specifications, the inspection takes 1–2 days.
Agency: Working Commission
|
1 day
|
no charge
|
| 26 |
Obtain Act from Working Commission
The applicable law is the Law on Architectural, City Planning, and Construction Activity in the Republic of Kazakhstan, Law No. 242-II, dated July 16, 2001; and the Governmental Decree Confirming the Rules of Obtaining Approval Procedures for Construction of New and Reconstruction of Existing Buildings, Decree No. 1313, dated December 13, 2002.
Agency: Working Commission
|
20 days
|
no charge
|
| 27 |
Request acceptance of the building from the Acceptance Commission
After the Working Commission, the Acceptance Commission will inspect the building. The approval is signed by all members of the Commission: construction authority, city office of the land agency, city department of sanitation, city fire department, state agency for construction control, local water company, local electric company, and Kazakh Telecom, and then sent it to the Akimat for approval. If the building has been built according to specifications, the inspections take 1–2 days.
The SES will inspect the building along with other authorities but a separate application must be filed. It may come together with others or on a separate day to undertake a final radiological measurement. The cost for that is KZT 6,000. If not followed up it may take 1-3 months. The approval from the SES is pre-requisite to obtain the approval of Acceptance Commission.
Agency: Acceptance Commission
|
1 day
|
KZT 34,844
|
| 28 |
Receive inspection by the Acceptance Commission
The Acceptance Commission may inspect the building. The approval is signed by all members of the commission and then sent to the Akimat for approval. If the building has been built according to specifications, the inspections will take 1–2 days.
Agency: Acceptance Commission
|
1 day
|
no charge
|
| 29 |
Obtain approval of Acceptance Commission
Once the Act of Acceptance Commission is signed it needs to be endorsed by amity City Akim.
Agency: Acceptance Commission
|
20 days
|
no charge
|
| 30 |
Obtain a technical passport
Before registering the building with the real property registry, it is required to obtain a “technical passport”.
Agency: Public Service Center (PSC) or Center for Immovable Property of Alamaty City.
|
30 days
|
KZT 800
|
| * 31 |
Receive inspection for the technical passport
Agency: Public Service Center (PSC) or Center for Immovable Property of Alamaty City.
|
1 day
|
KZT 26,800
|
| 32 |
Register BuildCo's right to the warehouse
Time: 15 business days if the building is registered in the usual order, and 2 business days if it is registered in an accelerated procedure.
Cost: KZT 12,730 if the building is registered in the usual order, and KZT 70,650 if it is registered in an accelerated procedure.
BuildCo must register the building with the Department of Justice at the place of location of the warehouse. Amendments were made to the Kazakhstan Law on State Registration of Immovable Property and Transactions Related in 2008, which provide for both usual and accelerated registration. The standard term for the registration in the usual order is 15 business days, and for the accelerated registration - 2 business days. The registration fees are calculated on the basis of MCI which is for 2009 year is equal to KZT 1,413. The registration fee for the registration performed in the usual order is 10MCI = KZT 14 130, and for the accelerated registration - 50 MCI = KZT 73,650.
The documents to be submitted include an application, legal documents proving ownership, payment receipt, identification or legal entity registration certificate, charter, decision of the Akimat approving the building for use, the act of the state commission on approval for use, and so forth. An officer of the Registration Service Committee accepts the documents and issues a receipt that lists the documents received and indicates date and time the documents were received.
Agency: Registration Service Committee
|
2 days
|
KZT 70,650
|
* Takes place simultaneously with another procedure.