Palau

Dealing with Construction Permits in

Palau

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: USD 80,660
  • City: Koror

About This Topic

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No. Procedure Time to Complete Associated Costs
1 Visit the Koror State Planning Commission to obtain an application form for a Building and Zoning Permit

The application form has two pages: the first one contains information about the building, while the second indicates the clearances to be signed by the following agencies:
- Land authority.
- Bureau of Arts and Culture.
- Environmental protection authority.
- Public works (for utilities).
- Palau National Communication Company (PNCC).

Agency: Koror State Planning Commission
1 day no charge
2 Request a clearance from the Land Authority

Public land should be cleared by the Koror State Public Land Authority. Private land should be cleared by the National Bureau of Land and Survey. The authority will inspect the land to confirm ownership and boundary.

Agency: National Bureau of Land & Survey
1 day no charge
3 Receive inspection and obtain clearance from the Land Authority



Agency: National Bureau of Land & Survey
1 day no charge
4 Request a Historic Preservation Clearance from the Bureau of Arts and Culture

Before the beginning of any project that involves earthmoving or alteration or demolition of a historic property, a historic clearance permit must be obtained from the Bureau of Arts and Culture. An application for historic clearance, available at the Bureau of Arts and Culture, must be completely filled out, signed, and submitted with a location map, plot map, construction plan, excavation and grading plan, and any additional pertinent documents. An official inspects and assesses the land. If the building is on previously developed land, the process is faster.

Agency: Bureau of Arts and Culture
1 day no charge
5 Receive inspection and clearance from the Bureau of Arts and Culture



Agency: Bureau of Arts and Culture
1 day no charge
6 Request a clearance from the Environmental Quality Preservation Board (EQPB)

Any construction project that involves earthmoving needs an approval from the Environmental Quality Preservation Board (EQPB), which will inspect the building site. In some instances, according to EQPB Regulation No. 240161, an environmental assessment or an environmental impact statement should be obtained. An environmental assessment can be completed in months; an environmental impact statement could take a year or more. Last, projects must go through an EQPB board meeting, which is held every other Thursday.

Agency: Environmental Quality Preservation Board (EQPB)
1 day USD 100
7 Receive inspection from the Environmental Quality Preservation Board (EQPB)



Agency: Environmental Quality Preservation Board (EQPB)
1 day no charge
8 Obtain the clearance from the Environmental Quality Preservation Board (EQPB)



Agency: Environmental Quality Preservation Board (EQPB)
14 days no charge
9 Request clearance on utilities from the Public Works Authority

The Public Works Authority checks plumbing system and the distance between the building and the public line.

Agency: Public Works Authority
1 day no charge
10 Receive inspection and clearance from the Public Works Authority



Agency: Public Works Authority
1 day no charge
11 Request clearance from the Palau National Communication Co.



Agency: Palau National Communication Co.
1 day no charge
12 Receive inspection and clearance from the Palau National Communication Co.



Agency: Palau National Communication Co.
1 day no charge
13 Request and obtain the Building Permit from the Koror State Planning Commission

The board meets on the last Wednesday of every month. The officials inspect the site to verify the submitted information. It takes at least 10 days for the authority to confirm whether the file is complete. The building permit is valid for 2 years. Time varies from a week to 2 months; for commercial development, it is 15–30 days.

The cost of a building permit for three types of construction is as follows :
- Type X (less than USD 10,000): USD 10 from 0 USD to USD 1,000, USD 5 for each additional USD 1,000.
- Type Y (USD 10,000 to USD 50,000): USD 10 from 0 to USD 1,000, USD 2 for each additional USD 1,000.
- Type Z (over USD 50,000): USD 10 from 0 to USD 1,000, USD 1 for each additional USD 1,000.

Agency: Koror State Planning Commission
24 days USD 85
14 Receive pre-construction inspection by State Planning Commission

According to the State Planning Commission, at least four inspections are normally carried out before construction starts and during construction: inspections of the foundation, inspections of the surroundings and structure of the building, and final inspection.

Agency: State Planning Commission
1 day no charge
15 Receive foundation inspection by State Planning Commission



Agency: State Planning Commission
1 day no charge
16 Receive inspection on surroundings



Agency: State Planning Commission
1 day no charge
17 Receive inspection on structure



Agency: State Planning Commission
1 day no charge
18 Request an Occupancy Permit



Agency: State Planning Commission
1 day no charge
19 Receive final inspection



Agency: State Planning Commission
1 day no charge
20 Obtain Occupancy Permit



Agency: State Planning Commission
1 day no charge
21 Request and connect to water and sewage services

The agency in charge is the National Public Works Department, Water Unit, Ministry of Resources.
The documents needed to apply for water connection include a map and land location. The application fee is USD 15 for residential establishments and USD 30 for commercial establishments. A specialized meter fee must also be determined.

Agency: National Public Works Department, Water unit, Ministry of Resources
1 day USD 30
* 22 Request and connect to phone services

An application form is submitted at the office of Palau National Communication Co.

Agency: Palau National Communication Co.
14 days USD 120
* Takes place simultaneously with another procedure.