Dealing with Construction Permits in
Nicaragua
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.
-
Building a warehouse
-
Estimated Warehouse Value:
NIO 7,966,790
- City: Managua
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain consultations with Municipality of Managua (Alcaldía de Managua - ALMA) over the Urban Plans
It is common practice to have an initial consultation with the Technical Urban Planning Committee (Comité Técnico Urbanístico) to verify all conditions before submitting any document.
Agency: Municipality of Managua
|
7 days
|
no charge
|
| 2 |
Request and obtain the land use certificate (constancia de uso de suelo) from the Municipality of Managua (Alcaldía de Managua – ALMA))
After the certificate is received, a record number is created (to be used for the following procedures until the project is approved). The documents to be submitted at this stage are an application form, a copy of the location map, a site map, and the cadastral number of the property.
If the applicant does not agree with the decision, an appeal may be filed with the Technical Urban Planning Committee (Comité Técnico Urbanístico).
Agency: Municipality of Managua
|
40 days
|
NIO 500
|
| 3 |
Request feasibility analysis from ENACAL and UNION FENOSA, at ALMA (One-Stop Shop)
A feasibility analysis from the Union FENOSA is required to determine whether the site can be connected to the electrical network. The following documents are needed: the (original) location map, a specification of the electrical capacity to be installed, and the estimated starting date of construction work.
The feasibility analysis is done at no charge, while the pressure measurement costs NIO 500 and other costs come to NIO 2,800.
A feasibility analysis (ENACAL) is required to determine whether the site can be connected to water and sewerage services. If no sewage system exists, an alternative would be a treatment system approved by the MARENA (Environmental Impact Assessment, Ministry of the Environment and Natural Resources).
The documents to be submitted are an application form, the land use certificate, a project description (physical modulation and activities), a plot plan on a scale of 1:10,000, the water demand and use statement, and specifications of the inflow rate and the sewage characteristics.
Agency: Alcaldía de Managua - ALMA (One-stop Shop)
|
15 days
|
NIO 2,800
|
| 4 |
Request and obtain preliminary design approval from ALMA
The company must obtain an approval stating that the proposed preliminary designs conform to the Regulating Plan of the Municipality of Managua and to the land-use certificate.
The required documents are the land-use certificate; a notarized deed certifying ownership of the land; the feasibility analyses by the Nicaraguan Institute of Energy (INE) and the Nicaraguan Company of Water and Sewage (ENACAL); a local fault study endorsed by the Nicaraguan Institute of Territorial Studies INETER , if required by the land use certificate; and two sets of maps, each consisting of a location map on a scale of 1:10,000; a site map on a scale of 1:10,000, 1:500, or 1:200; a contour map; an architectural layout; exterior work drawings; and area frames.
Agency: Alcaldía de Managua - ALMA (One-stop Shop)
|
25 days
|
NIO 1,000
|
| 5 |
Request and obtain project approval ENACAL approval (water and sewage), all at ALMA (One-Stop Shop)
A project approval is a decision stating that the project conforms to the Regulating Plan of the Municipality of Managua. The fee for obtaining the approval is NIO 3 per square meter, and payment can be made either in cash or in two equal installments. The required documents are three sets of plans and the approved preliminary designs.
Union FENOSA provides a review, design approval, and authorization, and issues a decision stating that the proposed project conforms with the Manual of Norms of Construction of Distribution (Manual de Normas de Construcción de Distribución) of the Unión FENOSA, the electrical power supply company. The following documents are required:
- Design license.
- Electrical specifications.
- Stack-out sheet.
- List of materials.
- Project drawings.
- Photocopy of the electrical power and light contract.
- Photocopy of the feasibility certificate.
The INE approves projects that involve heating system or the use of hydrocarbon materials for this purpose.
The ENACAL approval certificate covers the project conceptualization and indicates that the project is compliant with the standards and regulations. The required documents are a project identification title page, topographic maps, an urban development plan, an existing infrastructure plan, design drawings, detail drawings, and a descriptive report.
Agency: Alcaldía de Managua - ALMA (One-stop Shop)
|
30 days
|
NIO 9,212
|
| 6 |
Request and obtain approval from DGB (Dirección General de Bomberos)
Indoor electrical layout drawings must be reviewed and be found to conform to all fire protection standards. For construction projects with commercial and service purposes, the fee is NIO 3 per square meter.
The required documents are electrical installation layouts, fire protection system plans, safety measures, or plans provided for the construction work. Because the national firefighting system (SINACOI) no longer exists, the institution in charge of this procedure is now DGB (Dirección General de Bomberos).
Agency: Dirección General de Bomberos (DGB)
|
15 days
|
NIO 3,902
|
| 7 |
Request and obtain building permit from ALMA
The building permit authorizes the start of construction.
The cost of a building permit includes a tax of 1.1 % of the total market value of the construction (NIO 70,620.20, in this case). This tax must be paid in full at the start of construction work.
Buildings are also subject to an inspection fee, as follows:
- NIO 2 per square meter for areas between 100 and 200 sq. m.
- NIO 3 per square meter for areas between 201 and 1,000 sq. m. (in the care considered here, NIO 3 x 1,300.6 = NIO 3,901.80).
The required documents are a project approval, an annual real estate tax (solvencia de bienes inmuebles), the registration number with ALMA (the business registration), a tax clearance certificate (solvencia municipal) for the project owner and builder, a builder’s license granted by the Ministry of Transportation and Infrastructure (Ministerio de Transporte e Infraestructura, MTI), the builder's signature on the construction plans, bank guarantees, and official payment receipts. The building permit carries the same weight as a public deed.
Inspections may occur during construction. However, these are rare due to a shortage of inspectors. Even if an inspection is carried out, the inspector would simply verify that the building permit is valid.
Agency: Alcaldía de Managua - ALMA (One-stop Shop)
|
20 days
|
NIO 74,522
|
| 8 |
Request fire inspection
The cost of a fire and electricity inspection is included in the inspection fee, which is paid at the Dirección General de Bomberos (DGB). A site visit may be scheduled, but it is not a rigid procedure.
Agency: Dirección General de Bomberos (DGB)
|
1 day
|
no charge
|
| * 9 |
Receive fire inspection
Agency: Dirección General de Bomberos (DGB)
|
1 day
|
no charge
|
| * 10 |
Request and connect to water and sewage services
This cost covers the installation and can be higher or lower depending on a possible rupture of pipelines.
Agency: ENACAL (Empresa Nicaraguense de Acueductos y Alcantarillados), ALMA
|
45 days
|
NIO 3,000
|
| * 11 |
Request and connect to a fixed telephone line
For telephone service connection, the following steps must be taken:
1. Apply for a new telephone line at ENITEL (cell phone provider).
2. Submit an identity card.
3. Complete a form.
4. Pay USD 45 for the procedure, which may take up to a month.
If no telephone line is available, the money is refunded. Otherwise, the remainder of the installation fee must be paid, which in this case would be USD 135. Thus, the total cost amounts to USD 180.
Another option would be to buy a cellular phone or a cellular telephone plan, with either a post-payment plan (12 to 50 minutes, free equipment, pre-paid cards) or a pre-payment plan (coded cards costing between USD 5 and USD 50 and equipment costing from USD 99 to USD 300).
Agency: ENITEL
|
22 days
|
NIO 2,920
|
| 12 |
Receive inspection from Municipality
Municipal inspection is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Agency: Municipality
|
1 day
|
no charge
|
| 13 |
Receive inspection from Ministry of Labor
Inspection by the Ministry of Labor is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Agency: Ministry of Labor
|
1 day
|
no charge
|
| 14 |
Receive inspection from National Commission of Hygiene and Occupational Security
Inspection by the National Commission of Hygiene and Occupational Safety is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction is not stopped during the inspection, and no costs are associated with this procedure.
Agency: National Commission of Hygiene and Occupational Security
|
1 day
|
no charge
|
| 15 |
Receive inspection from National Social Security Institute
Inspection by the National Social Security Institute is a random inspection that may occur at least once during the 30-week construction period. Thus, no request is needed. An inspection report is drafted and provided to the company. The construction work is not stopped during the inspection, and no costs are associated with this procedure.
Agency: National Social Security Institute
|
1 day
|
no charge
|
| 16 |
Register the building with the Real Estate Appraisal Office (Avalúo de Bienes Inmuebles, ALMA)
Agency: Real Estate Appraisal Office (Avalúo de Bienes Inmuebles), ALMA
|
15 days
|
no charge
|
* Takes place simultaneously with another procedure.