Dealing with Construction Permits in
Kyrgyz Republic
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:
KGS 10,670,343
- City: Bishkek
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
File application-intention and obtain City Planning Regulation of Architectural Planning Conditions (AПЗ) from the unit of State Department for Architecture and Construction Supervision
In accordance with the Regulation “On Order for Issuing Permits for Project Designs, Construction and Real Estate Modification and Order for Commissioning Completed Building the Kyrgyz Republic” approved by Government of KR on May 30, 2008, by Resolution # 252, the issuance of Architectural Planning Terms (APU) shall be conducted according to One-Stop-Shop principle. The list of documents required for issuance of APU was reduced. In particular, a business is only expected to fill up an established application which contains information on the type of upcoming construction and submit it along with the following documents: copy of the land title that verifies that a land plot was purchased or leased, letter of attorney, invoice on advanced payment (advance payment is required while obtaining an APU, the remainder is paid after a business receives the APU).
A territorial architecture and construction body, within 3 business days, performs the check for compliance of an application form with requirements set by urban planning documentation. In case of non-compliance, the territorial architecture and construction body issues a Report on Non-compliance of Construction Intends and returns the application without approval. In each case the body is obliged to indicate the established types of permitted land use pursuant to the urban planning documentation.
In case the territorial architecture and construction body approves the application, it submits the application for further approval to the sanitary and epidemiology body, fire authority, and environmental authority. After that the application is forwarded to utilities companies by the main coordinating agency- State Construction Department for obtaining technical terms to install such utility systems as power supply, water supply, sewage system, heating and gas supply using One-Stop-Shop principle without participation of the applicant. The State Construction Department has 20 working days within which it must obtain approvals, internally from all utilities, and other relevant authorities. Resolution # 252 gives all utility providers 10 working days to approve the technical conditions. Moreover, utility providers cannot reject the possibility of connection without providing alternative options. Lack of an opportunity to connect an object to utilities systems may not be a ground for refusal of issuing APU. Meanwhile, the Sanitary, Fire and Environmental Services will also have a 10 working days to grant their approvals, after which a silence-is-consent rule will apply.
The payment can be made at the counter of State Architecture Department of Bishkek City. Then the shares of each respective utility provider are transferred without BuildCo visiting each separately.
APU is executed in two copies, one of this is issued to the applicant and the other is stored in architecture and construction body.
As of 12 February 2009, new Government Resolution# 121 introduced amendments to the Regulation “On Order for Issuing Permits for Project Designs, Construction and Real Estate Modification and Order for Commissioning Completed Building the Kyrgyz Republic” approved by Government of KR on May 30, 2008, by Resolution # 252. There are now only two technical conditions that must be obtained in a compulsory manner- for water/ sewage and electricity. The remaining communications can be obtained on voluntary basis by applicants and are not linked to obtaining the Architectural Planning Conditions. Meanwhile, if applicant suggests alternative solutions to connecting to engineering facilities, then requests for technical conditions are not filed at all. Based on functional purpose of the building approvals from sanitary and fire authorities are applied using risk based system. Simple objects would not require approvals from these authorities.
Additionally, requirements for documents to be submitted along with application have been clarified. These administrative simplifications made the process of issuance of Architectural Planning Conditions faster and possible to comply within the time-limit of 20 working days (28 calendar days).
Despite reforms in disclosing the information on fee schedules the process of cost calculation for this procedure remains closed and indiscreet.
Agency: State Architecture Department of Bishkek City
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28 days
|
KGS 18,500
|
| * 2 |
Request and obtain technical conditions to connect to networks for telephone line
Resolution #252 provides for the State Architecture Department and its territorial branch in Bishkek to issue the APU without acquiring the technical terms from telephone service providers. For this reason, the procedure is not mandatory and the applicant takes an individual decision on services of which company may be used. The conditions may be requested at any stage of construction. Most applicants requests it right before connecting to telephone services.
Although, the local telecom market has various companies that provide fixed line services, it is most likely that the natural monopolist –Kyrgyztelecom would be the one with the widest network services. According to Kyrgyztelecom’s regulations in order to connect to its services the applicants must obtain technical terms beforehand.
Agency: Kyrgyztelecom
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14 days
|
KGS 720
|
| * 3 |
Request and obtain topographic and geological survey conclusions of land from Kyrgyz GIIZ
Although there are several licensed companies that provide these services KyrgyzGIIZ has the biggest database of maps back from late Soviet years of the country. Engineering –geological studies have not been done since the collapse of Soviet Union, and any new land developed after it would require BuildCo to request the full study. However, there are certain parts of the city that can be considered to have the proper geological study. In that case BuildCo would have to request a certificate on geological survey, assuming that the actual geological survey which is very costly (up to 3,000 USD), or the survey of adjacent plot has been done. The cost for this certificate can be anywhere between 5 to 10,000 KGS. Kyrgyz GIIZ is the only licensed institution in the country with proper equipment and capacity.
Agency: Kyrgyz GIIZ
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14 days
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KGS 7,500
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| 4 |
Request approval of project, expertise of project documents and obtain building permit
This procedure consists of three stages: approval of project documents; expertise of documents; issuance of building permit. All three stages are done under one stop shop principle. A single application is filed by the applicant to obtain all these approvals.
The approval of project documents consists of two stages: initial review of drawings and plans, and other relevant chapters of the projects is done by the territorial branch of State Architecture Department. BuildCo submits at this stage its application along with the following documents:
Project documents (drawings, plans); private projects are not required to submit any financial segment of the project (abolished by the Resolution #252).
Engineer-geological study (for expertise).
Copies of letters authorizing persons responsible for construction works: technical supervision, author supervision; and for contractor (for construction permit).
Copies of licenses for construction works (for construction permit).
Positive conclusion from respective Institute of State Agency of Architecture and Construction and other licensed agencies which have the right to provide engineering assessment of objects no lower than two stories stating possibility of reconstructing, re-profiling or re-planning of objects (for construction permit).
Any other documents are considered illegal.
The authority must issue its approval within 10 working days.
Following that it will send two copies of all documents for review of State Expertise Authority. According to Resolution #252 (30.05.08), and Government Resolution # 75 as of 4 February 2009, the expertise can be conducted by private companies, but until now there has not been a single license issued for expertise works.
The nature of the expert assessment has been changed too. In past, the expert assessment was focused on the cost estimated of the project, which is prohibited by the mentioned above regulation.
The expert assessment of the project design documents is conducted by State Expertise Authority and its territorial bodies or privately licensed companies, to check the following aspects:
Compliance of the object with requirements set by Architectural Planning Terms, Project Design Terms and City Planning Documentation;
Justification of space-planning and construction decisions, construction materials and equipment, solidity and durability of the bearing structure of buildings;
Check the results of geotechnical survey;
Based on results of the conducted expert assessment, State Expertise Authority prepares a report on compliance of the project design documents with normative requirements. In case of any irregularities, State Expertise Authority prepares another report on bringing the project design documentation in compliance which indicates the said irregularities or a report on refusal of approving the project design. Under current legislation there are categories of objects that do not require state expert assessment. There are notions of mandatory and voluntary expert assessment and possibility for expert assessment of project documentation by private experts or organizations. BuildCo’s case would qualify for the expert assessment.
No later than a day following the approval date, which is 20 working days for projects higher than 1000 sq.m., the report with positive expert assessment is submitted to State Architecture and Construction Supervision for issuing a construction permit.
The State Architecture and Construction Supervision has to issue the building permit in 10 working days. Otherwise silence is consent principle applies. Amendments regarding construction supervision process were made to Law “On Changes to Law of the Kyrgyz Republic” #101 as of 30 March 2009, “On City Construction and Architecture of the Kyrgyz Republic” Article 40, and Government Resolution # 95 “On approving the Order on Classification of Construction Object Characteristics and Order of Conducting State Architecture-Construction Supervision, Reconstruction and Other Real Estate Objects in the Kyrgyz Republic”. According to these reforms the building supervision process is now based on risk based approach. Compulsory state control over building process is applied for buildings that fall into high-risk category. Low risk categories, buildings exceeding 1350 sq.m., are now subject to author and technical supervision, and do not require state supervision. Thus, it removes the need for signing a special contract with State Architecture and Construction Supervision and paying respective fees. Both author and technical supervision can be done by BuildCo staff. At the time of issuing the building permit, BuildCo will receive a schedule of inspections to be carried out by State Architecture and Construction Supervision. The inspections will take place three times: foundation works, structure and final one. All inspections can be notified via phone and do not require a special visit.
This brings the overall time to 56 calendar days.
Cost consists of the following components:
- approval of project documentation – KGS 8260
- the expertise of project documents – KGS 9899.4. T Additionally, the base for calculation of expertise fee was reformed by Order of State Agency of Architecture and Construction on 16 June 2008 and it comprises now based on fixed formula – KGS 7,45 x sqm. (excluding 12% VAT). It abolished the previous fee which was based on project value of 0.3%.
- building permit- is free of charge.
Total cost: KGS 18,159.4
Agency: State Architecture Department/ State Expertise Authority/State Department for Architecture and Construction Supervision
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56 days
|
KGS 25,000
|
| 5 |
Request and obtain authorization to conduct earthwork in the road section
According to Decision of Bishkek City Council as of 4 February 2009 which eliminated Resolution of Bishkek City Council # 194 as of 9 June 2003, applicants now need to obtain only a warrant (naryad) for conducting works in public road area. Previous requirement has been eliminated under general administrative simplification process. The authority responsible for issuing this document is now City Road Department under Municipality of Bishkek, formed in August 2008, and replaced the authority of District Administrations. Under the new provision there is no fee related to this procedure.
Agency: City Road Department of Municipality of Bishkek
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5 days
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no charge
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| 6 |
Request and obtain equipment operating authorization
Under the existing regulation this authorization is required to allow the use of cranes and excavators, and elevators. Five days before using the equipment BuildCo will file a request, followed by a visit by inspector from the Inspection by Gostechnadzor. The inspector having reviewed the equipment to be used puts a stamp and signs the technical passport of the new projects.
Regulatory simplification reform process also eliminated duplicating legislation concerning the fees for equipment operation authorization. This eliminated the grounds for officers by State Technical Supervision to levy fees. Eliminated fee amount is KGS 1462.
Agency: State Inspection for Supervision of Industry Safety and Mountain Supervision under the Ministry of Natural Resources of Kyrgyz Republic
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15 days
|
no charge
|
| 7 |
Receive connection to water and sewage services
Connection can be done without prior inspection should the location be with existing utility infrastructure.
Agency: Bishkekvodokanal
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10 days
|
KGS 4,253
|
| * 8 |
Receive connection to telephone
Connection can be done without prior inspection should the location be with existing utility infrastructure.
Agency: Kyrgyztelecom
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10 days
|
KGS 3,380
|
| 9 |
Request Act of Acceptance of Object for Use
Within 10 after completion of construction BuildCo files a request to the State Architecture and Construction Supervision requesting issuance of Act of Acceptance of Object for Use. This approval must be issued within 10 working days. If the Act is not issued within the established timelimit, silence is consent rule applied. The Act must be signed by applicant, author of project, general contractor, representative of State Architecture and Construction Supervision’s regional branch who performed the technical supervision during construction. The Act must be endorsed by the head of territorial branch of State Architecture and Construction Supervision.
Government Resolution #121 as of 12 February 2009 removed requirement for participation of fire and sanitary authorities in the final inspection.
Agency: State Architecture and Construction Supervision
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1 day
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no charge
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| 10 |
Receive inspection and obtain the Act of Acceptance of Object for Use
The inspection may take place, based on the case. Sometimes, if the supervising technical inspector provides sound feedback to the regional head office the inspection may not be required. However, a separate visit is paid to obtain the actual copy of Act. The Act is a legal document that allows the immediate use of building.
Agency: State Architecture and Construction Supervision
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13 days
|
no charge
|
| 11 |
Request and obtain a technical inventory
Before registering the building with the real property registry, it is required to obtain a “technical passport”. This describes the structure of building, units, dimensions, building layout, and the like. The technical inventory in 10 days costs KGS 2,600, and in 4 working days KGS 5,100.
|
6 days
|
KGS 5,100
|
| 12 |
Register the building with the real estate registry
Registration of buildings is a mandatory procedure. BuildCo must provide the following documents to the State Agency for Registration of Real Property Rights:
- Application.
- Documents confirming the ownership title (the plot plan, the local plan, and the “technical passport”* of the warehouse).
- Receipt of payment for registration
- State Certificate on Land Ownership
- Occupancy Permit
- Power of Attorney
After examining the submitted documents, a registrar issues a report for registration of the building, makes a log entry, and issues a registration card, a copy of which is provided to BuildCo.
According to amendment to Law “On State Registration of Rights for immovable property” as of 30 March 2009 and State Registration Agency Decree # 80 as of June 11, 2008, effective 7 July 2008, the first time registration is now conducted in 7 working days. Fast track option can be done in 5 days, which includes one day for registration and 4 working days for technical inventory.
Legal entities may register the building in 7 days for KGS 677.8 and for KGS 1,291 in 1 day.
Agency: State Agency on Registration of Rights on Immovable Property
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7 days
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KGS 1,291
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* Takes place simultaneously with another procedure.