Dealing with Construction Permits in
Panama
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 429,696
- City: Panama City
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Request and obtain Good Standing Certificate
The good-standing certificate is obtained from the Public Registry Office.
Agency: Public Registry Office
|
2 days
|
USD 30
|
| 2 |
Request and obtain Environmental Study
The environmental impact study must be conducted by an outside independent environmental consultant, and certified by the National Environmental Authority (ANAM). In this case, given the intended use of the warehouse, the required environmental impact study is that of Type I.
The process of completing an environmental impact study may take from 15 to 30 days, but the approval by the National Environmental Authority could take approximately 45 days, depending on the category of the environmental impact study.
Agency: National Environmental Authority (ANAM)
|
23 days
|
USD 700
|
| 3 |
Notarize affidavit
Agency: Notary
|
1 day
|
USD 3
|
| 4 |
Submit Drawings (Anteproyecto) to the Municipality and obtain clearance
The architect must fill out the petition form and submit the preliminary design (anteproyecto). The Municipal Office has created a centralized window for filing of the preliminary project design. However, the one-stop shop does not work well, and BuildCo must follow up with each authority.
Agency: Municipal Office (Departamento de Aprobación de Planos y Permisos)
|
7 days
|
USD 1
|
| 5 |
Consultation with the Municipality to determine approvals
A public official from the Municipal Office determines the government offices that must approve the project. Representatives of the different offices are located in the municipality, but in separate offices. The company or architect must obtain the approvals from those offices directly.
Agency: Municipal Office (Department of Approval of Blueprints and Permits)
|
6 days
|
USD 370
|
| * 6 |
Request and obtain signature of certified fire specialist
BuildCo must receive an approval of the project drawings related to fire safety from an independent and certified specialist. This is then submitted to the Fire Department Safety Office of the Municipal Office for approval.
Agency: Certified Fire Specialist
|
2 days
|
no charge
|
| * 7 |
Request and obtain preliminary approval from Fire Department Safety Office
Agency: Municipal Office (Fire Department Safety Office)
|
2 days
|
no charge
|
| * 8 |
Request and obtain preliminary approval from Ministry of Public Works
Agency: Municipal Office (Ministry of Public Works)
|
1 day
|
USD 10
|
| * 9 |
Request and obtain preliminary approval from Environmental Authority
The fee is paid at the head office of the Environmental Authority rather than at the Municipal Office.
Agency: Municipal Office (Environmental Authority)
|
15 days
|
USD 350
|
| 10 |
Request and obtain Construction Permit
BuildCo must present the application to the director of the Municipal Construction and Works Authority, accompanied by two copies of the blueprints; the approvals issued by the Fire Department Safety Office, Ministry of Health, Ministry of Public Works, and Environmental Authority, and the municipal good standing certificate; and proof of registration of BuildCo with the Technical Board.
The cost is taken to be 1% of the project value (in this case, the warehouse value), which would vary between USD 4,266.95 and USD 422,695.
Unannounced construction permit regulation inspections may take place during construction.
Agency: Municipal Office
|
15 days
|
USD 4,267
|
| 11 |
Request and connect to water and sewerage services
Agency: Instituto de Acueductos y Alcantarillados Nacionales
|
14 days
|
USD 80
|
| * 12 |
Request and connect to phone services
Agency: Cable & Wireless
|
3 days
|
USD 30
|
| * 13 |
Receive inspection from Fire Department Safety Office
BuildCo must receive an inspection from the Fire Department so that the department can issue a permit. Inspectors come according to a schedule of visits that is defined when the preliminary approval has been granted (Procedure 7).
Agency: Municipal Office (Fire Department Safety Office)
|
1 day
|
no charge
|
| 14 |
Request and obtain Occupation Permit
An inspection may be carried out on the site.
Agency: Municipal Office (Fire Department Safety Office)
|
10 days
|
USD 60
|
| 15 |
Obtain permit by Fire Department Safety Office
Agency: Municipal Office (Fire Department Safety Office)
|
2 days
|
USD 230
|
| 16 |
Notary notarizes “Declaration of Improvement” (Declaración de Mejora)
The declaration is drafted on an official form (escritura pública).
Agency: Notary
|
2 days
|
USD 100
|
| 17 |
Register building with the Central Property Registry
Agency: Central Property Registry
|
18 days
|
USD 550
|
* Takes place simultaneously with another procedure.