Dealing with Construction Permits in Bulgaria - Doing Business - World Bank Group

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Dealing with Construction Permits in

Bulgaria
STANDARDIZED COMPANY

Below is a detailed summary of the procedures, time and costs to build a warehouse in Bulgaria. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections. This information 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 185 economies. The most recent round of data collection was completed in June 2012. Read the methodology. Compare Bulgaria to 184 other economies.

Estimated Warehouse Value: BGN 780,000 City: Sofia

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No. 1

Procedure

Time to Complete

Associated Costs

Apply and obtain the design permit from the chief architect of the municipality To obtain the design permit, BuildCo must submit an application form, a title of property or proof of ownership, a sketch of the acting regulation plan, and a change proposal with tax receipts. The time limit for obtaining the design permit is 14 days, according to the Law of the Spatial Planning (Article 140). The design permit fees are set according to Decision No 894, Protocol No 93 (dated November 23, 2006) of the Sofia Municipal Council, Addendum 4, Article 2, as shown below. Fee schedule for design permit request: Residential buildings: BGN 40.00 Nonresidential buildings: BGN 150.00 As of January 2009, the design visa can be obtained in fast track option. For nonresidential buildings it will cost BGN 300.00. The documents required for issuance of a designing visa are: an application form, a title of ownership and a tax receipt.

3 days

BGN 300

Agency: Municipality
*2

Sign preliminary contracts with the water authorities to connect to the water supply networks and obtain this connection In principle, BuildCo must obtain approval from the water authorities. The approval is valid for a year. Several documents are necessary to obtain this approval, including proof of ownership, the plan, the application form, the design permit, and the investment design by the municipals chief architect. Because this procedure is carried out simultaneously with Procedure 2, the filing is submitted at the same time. On these grounds, the water company undertakes a preliminary survey and subsequently issues a report that contains the necessary technical data and the specifications for the network connection. As of January 2009 the Water Company operating on the territory of Sofia has a new pricelist for the services provided. The fee amounting at BGN 162.00 is payable in regard with the issuance of a report containing the technical data and specifications of the water network connection. The expedited procedure is not effective anymore. It takes on average 20 days to complete this procedure. Agency: Water Authorities

20 days

BGN 162

*3

On-site inspection from water authorities

1 day

no charge

Agency: Water Authorities

4

Obtain preliminary survey from Telecom provider

15 days

no charge

Agency: Bulgaria Telecom (BTC)

5

Apply for the approval for the investment design with the Chief Architect of the Municipality The approval of the investment design is the basis for issuing a construction permit. As of January 2009, after amendment of the Decision No 894, the fees for the approval of the investment design are BGN 0.20 per sq. m. for the nonresidential buildings. The procedure for the construction permit may be completed at the same time and within 7 days if the investment designs are grounds for issuing permission for construction. A respective request must be included in the application for coordination. However, many opt for separate procedures Agency: Municipality

30 days

BGN 260

*6

Request and obtain preliminary assessment of the building for its compliance with energy efficiency requirements from licensed company Every investment project for construction, reconstruction and modernization, on the basis of which permission for construction is granted, has to be assessed for its compliance with the energy efficiency requirements. There is no a fixed price for the issuance of a certificate for energy effectiveness. The rates are subject of negotiation and vary between BGN 1.00 -- BGN 1.50 per sq. m. The assessment is done by a privately licensed company. Agency: Licensed Company

2 days

BGN 2,601

*7

Obtain approval of the Investment project design from the Fire department

30 days

BGN 450

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No.

Procedure

Time to Complete

Associated Costs

The fee for this procedure is equal to 50% of the cost of the certificate for fire safety issued after the completion of the construction. The latter depends on the construction category that the fire department has classified the warehouse. As of the Law of the Ministry of Interior (title amend.) SG 86/00: as of Article 31, Point 3a, Tariff No. 4), the fee formula for warehouses, industrial buildings and premises, and external facilities classified as a fire hazard "A" and "B" is BGN 250.00 plus BGN 0.50 per sq. m. As of May 4, 2007 fire safety procedures have been streamlined by an Order On Conduction Fire Safety Measures. The Order does not stipulate any new requirements regarding the construction process. However, the Order explicitly enumerates the attachments that have to be submitted together with the application in order to obtain a Certificate for Fire Safety. The validity of Certificate has been extended to 3 years. The procedure must be completed within 14 days. However in practice it still takes on average one month. Agency: Fire Department
*8

Obtain decision on the need of environmental impact assessment from the Director of the Regional Inspectorate of Environment and Water The Law on Environment Protection (Appendix 1 and Appendix 2) defines the investment projects subject to an environmental impact assessment (EIA). The warehouse building for storing books and stationary does not fall among the investment projects listed in both appendices. Thus, the EIA is not obligatory. However, a decision issued by the Director of the Regional Inspectorate of Protection of Environment is required to confirm that EIA is not necessary. The decision is issued within 30 days of submitting the request and paying BGN 290.00. The decision is valid for 5 years. Agency: Regional Inspectorate of Environment and Water

30 days

BGN 290

*9

Obtain approval of the Investment project design from a Hygiene Epidemiological Expert Required documents for the issuance of a hygiene certificate are a request form, a permit for designing, approval letters from water and electricity authority, expert opinion from the regional sanitary inspector, and other project documents. The hygiene epidemiological experts fees for consulting services are BGN 4.50 per hour. The overall cost of the approval is based on two criteria the number of experts involved in the inspection and billable hours. Agency: Hygiene Epidemiological Expert

25 days

BGN 70

* 10

Request the chief architect of the municipality to issue the Permission for Construction After the investment design has been approved, the permission for construction is issued within 7 days of the formal application being received. Both steps could be performed simultaneously if required in the application. The fees are BGN 9.00 per sq. m., according to Decision No 894, Protocol No. 93 (dated November 23, 2006, and amended in February 5, 2008) of the Sofia Municipal Council, Addendum 4, Table 1, assuming suburban Zone V. Agency: Municipality

7 days

BGN 11,705

11

Sign a contract with a surveillance company BuildCo should sign a contract with an independent construction supervision firm. This supervisor must be licensed by the Ministry of Regional Development and Public Works. The supervisor will sign all acts and records during construction. The firms instructions and orders are binding for BuildCo and the technical manager. Within 3 days of being issued, objections against supervisory firms instructions can be made before the Directorate for National Construction Control. Construction will be stopped until a decision is reached, and the decision is considered to be a new set of binding rules. The supervisor must notify the Regional Directorate for National Construction control of any irregularities within 3 days of detection. The supervisor will be responsible for damages caused to the assignor and to the other participants in the construction, and jointly responsible with BuildCo for damages caused by not complying with the technical rules and the approved designs. The supervision contract must be valid for the entire construction process. The rates for a contract are between BGN 6.00 and BGN 10.00 per sq. m. of built area. However, the cost for this procedure is subject to negotiation between the investor and the surveillance company. There is no legally regulated minimum cost, but the Bulgarian Association of Architects and Engineers has issued an act containing recommended fees. The fees depend on the value of the construction work but may not be less than BGN 800.00. After the end of the construction, the person exercising construction supervision will prepare a final report to the assignor. Agency: Surveillance Company

5 days

BGN 10,405

12

Map the building on the cadastre The Cadastre Agency issues a document after the building has been mapped. As of June 2007 the procedure can be done in fast track option in 4 hours for BGN 30.00. The fee is collected in the system of the Ministry of Regional Development and Public Works, according to Article 42, Paragraph 1, of the Tariff 14 promulgated SG No.94/1998. As of March 2006 the Agency authorized to map the building on the cadastre is under the name of Agency for Geodesy, Cartography and Cadastre. The amendment is made by 7, item 1 of the Law of the Geodesy and Cartography. Agency: Agency for Geodesy, Cartography and Cadastre

1 day

BGN 30

13

Sign contract with water provider and receive connection The decision is valid for 3 years, according to the order of the environmental protection law. Agency: Water Authorities

10 days

BGN 300

* 14

Sign contract with telephone provider and receive connection

10 days

BGN 70

Agency: Bulgaria Telecom (BTC)

15

Obtain Fire Safety certificate The fee for issuing fire certificates for buildings and premises with industrial purpose, warehouses, and external facilities with fire hazard category "A" and "B" is BGN 250.00 plus BGN 0.50 per sq. m. This fee is set according to Tariff No. 4 for the Charges Collected Within the System of the Interior Ministry, Under the Law of the State Fees, Article 3a (amend. SG 21/07). Agency: Fire Department

1 day

BGN 900

16

The construction surveillance files a report on the completed construction

1 day

no charge

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No.

Procedure

Time to Complete

Associated Costs

After the construction is finished, the assignor, the designer, the constructor, and the supervisor, must issue a document confirming that the construction has been carried out in accordance with the approved designs, the certified executive documentation, the requirements of the construction and the conditions of the contract. The records for conducted trials on the machines and on the facilities should also be attached. The transfer of the construction by the constructor to the assignor is also implemented. Agency: Construction Surveillance
17

A technical passport is registered with the Chief Architect of the Municipality The Law on Spatial Development was supplemented on September 15, 2006, State Gazette, Issue No. 76. The law contains a new requirement for licensed experts performing surveillance control. A technical passport for the construction should be prepared after the completion of construction. This document defines all terms for the performance of any major or current repairs and contains data on all certificates issued (those required by the construction legislation). Inspections should also be recorded in the passport. The technical passport must be prepared by the surveillance company. Either the surveillance company or the investor files two copies of the technical passport (one for the investor and one for the chief architect of the municipality) and an electronic copy with the Chief Architect of the Municipality, Office for Registration. The registration of the technical passport may take 2 or 3 days (no charge) after which the investor or the surveillance company may take back their original (it should bear a stamp with the date and the registration number). Agency: Municipality

3 days

no charge

18

A copy of the registered technical passport is filed with the Cadastre Agency A copy of the registered original technical passport (notarization not required), along with the original technical passport, should be filed with the Cadastre Agency (this second procedure costs BGN 2.00 and is completed in a day). The copy is to be kept by the Cadastre Agency, while the original (with a stamped registration number) is returned to the investor. Agency: Cadastre

1 day

BGN 2

19

Request and obtain certificate for energy efficiency After completing a new construction a certificate for energy efficiency (energy passport) has to be issued, which is a part of the technical passport of the construction. The issuance of the certificate is performed under a contract signed by the assignor and natural person/entity, entered in the Register for the persons authorized to perform certification for energy efficiency. Agency: Licensed Company

7 days

no charge

20

Receive inspection by the municipality A state commission coordinated by national Construction Control Department grants final approval of the building construction. The commission is comprised of members from different authorities, including the Hygienic Epidemiological Institute and the Fire Alarm Security Service. Agency: National Construction Control Department

1 day

no charge

21

The municipality issues the approval of the building After finishing the construction and tests of facilities, to obtain an occupancy permit, the assignor must register before the Chief Architect of the Municipality, present the ultimate report, the utility provider contracts, and document from the cadastral agency that its requirement has been fulfilled. In 7 days, the municipality issues the occupancy permit. Agency: Municipality

7 days

BGN 750

* Takes place simultaneously with another procedure.

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