Easy-access environment is developing in Moscow
Moscow is a special city in terms of regulation of construction industry. A new city planning system established in the capital is constantly being improved, including the adjustment of electronic procedures for developers.
It is known fact that there are a lot of procedures relating to the ratification of projects and getting permissions in construction industry. Due to administrative barriers the process of implementation of projects may be unnecessarily extended. Sometimes the process of preparation for construction associated with ratification of documents and expertise takes a long while. To solve this problem the Moscow authorities have set the task to reduce the timeline for receipt of documentation and to eliminate unnecessary procedures, integrating several of them in one.
– In recent years a new trend of eliminating administrative barriers appeared – conversion of public services in construction to electronic format, – says the president of the National Research Moscow State University of Civil Engineering, the Moscow City Duma deputy Valery Telichenko. – This is a leading-edge step. Many regions are following this trend, and Moscow is the leader in this regard. Out of 14 sorts of public services in the field of investment and construction 12 are provided in e-format.
In Moscow, there was a multistage system of organization and ratification of the construction process. High urban density, underground utility systems and facilities, traffic intensity, the importance of preserving architectural appearance predetermine high control over the quality of design and construction works. This leads to the presence of specific “Moscow” procedures, which are not required in many other regions. At the same time Moscow is one of the leaders in the country in terms of optimization of the interaction between the applicants and the city authorities.
In a year, the Russian capital has become a region with favorable conditions for business. This is evidenced by the fact that Moscow has risen to 13th place in the rating of the investment environment of the Russian regions. This led to improvement of the rating of the country.
“Doing Business” is another key indicator, which is crucial for determining the status of the country on the global stage. In this annual ranking the World Bank experts estimate the ease of doing business in 189 countries based on 10 indicators. The Russian Federation now occupies 51st rating position, having risen from 62nd place in a year. According to the head of the Department of urban policy Sergei Levkin for the first time ever the Quality of Construction Index was added in evaluation of the rating “Doing Business”. Moscow scored 14 points out of 15. For the countries of Europe and Central Asia the average index is 11.2 points, and for the countries of the Organization for Economic Co-operation and Development (OECD) it amounts to 11,4.
A small storage facility on the skirts of the city is taken as a reference object for the rating. Over the past 5 years the construction of a reference object in Moscow implies a reduced number of procedures. The number of procedures decreased by 2.5 times – from 48 to 19; the time for obtaining building permits decreased by 1.7 times – from 452 to 244 days; the cost of the procedures decreased by more than 2 times.
Russia and Moscow show good rates in financial costs associated with obtaining permits for construction. A further potential to improve Russia’s position in the World Bank ranking (indicator “Getting permits for construction works”) involves the reduction the number and timing of the procedures. To meet this end, the Road Map is developed and implementing – the goal is to improve the position of Moscow in the ranking of the World Bank’s “Doing Business” on the indicator “Dealing with Construction Permits”.
It is also important to mention the adoption of new rules for earthwork operations and processing of warrants for it: in order to obtain a warrant it is no longer necessary to provide 13 documents. The Urban Planning and Land Commission doesn’t issue city development plans for land for construction of reference objects anymore. From now on Moskomarkhitektura (the Moscow City Architecture Committee) issues it, the time period of issuing is reduced to 30 days.
– Over the past five years the Moscow construction complex has changed dramatically – both in terms of decision-making quality on urban policy and in terms of productivity measures. Many large infrastructure projects were implemented, the urban environment has improved. Construction is an area in which an adequate level of safety and quality of the urban objects is vital. In all countries of the world the construction sector of economy is regulated by the state, this fact explains the presence of administrative barriers. The task is to minimize such barriers, eliminate excessive regulation, and to simplify the form of processing documents (obtaining permits and approvals),” – said the executive supervisor of the Fund “Institute for Urban Economics” Tatyana Polidi.
Experts use to say that business community including representatives of the construction industry make high demands on the development of online services. Therefore reducing the number of direct contacts between the developer and government agencies will enhance the availability of services, and reduce the time and cost for both the business and the state. It is important to spread the word about the implementation of the recent reforms and changes in completing procedures to the companies involved in construction industry of the city. It is also vital to get feedback from business in order to understand which reforms prove themselves and what else can be improved.
Source: Moskovsky Komsomolets, January, 27, 2016