Investment climate warming

09.11.2018

Experts praised the efforts of Russia to combat building barriers

Russia ranked 48th in the World Bank Doing Business 2018 rating in the direction of “Obtaining construction permits”, rising immediately to 67 positions. The Ministry of Construction of Russia believes that this is the result of work to reduce administrative barriers in construction, which has been actively conducted in the country since 2014.

At present, according to estimates of bank experts, in order to obtain permission to build a reference warehouse in Russia, 15.1 administrative procedures will have to be completed (14.4 a year ago). It will take 193.8 days (last year – 239.4) and will cost the investor 1.2% of the total construction cost (a year earlier – 1.3%). Last year, the availability of issuing permits for developers of the Russian Federation took the 115th place. According to the deputy head of the Ministry of Construction, Natalya Antipina, since 2010, Russia has risen in the rating in the direction “Obtaining construction permits” to 131 positions, but the current success – promotion to 67 positions at once – is the most significant.

The ministry reminded that in order to improve Russia’s position in the rankings, the ministry is purposefully working to simplify administrative procedures in construction. In particular, the term for issuing permits for construction and commissioning of facilities, the urban development plan of the land plot was reduced by law, a risk-based approach was introduced during inspections of construction sites, and conditions were created to ensure the provision of services in the field of construction in electronic form. The position of Russia also improved the promotion of the Construction Quality Control Index (14 out of 15 possible points).

“Work on improving Russia’s position in the rating and in general on improving the investment climate in the Russian Federation in the field of construction will continue,” said Vladimir Yakushev, head of the Ministry of Construction, commenting on the results of the rating. “New initiatives and proposals in this area have already been reflected in the national project“ Housing and Urban Environment ”, as well as in the draft unified plan of measures to transform the business climate, which should soon be submitted to the government of the Russian Federation for approval.”

As is known, experts use the data obtained in two cities, Moscow and St. Petersburg, to assess Russia’s position in this area. In early 2018, representatives of the World Bank conducted a selective survey of experts about construction practices there. As told to “Stroygazete” in the press service of the Ministry of Construction, an important factor that determined the place of Russia in the rating was the translation of services in the construction industry into an electronic form. Currently in Moscow and St. Petersburg more than 50 different procedures in the field of construction are available in electronic form. Moscow is the only region in which electronic archives of surveys are created: Geofond and the Consolidated plan of underground utilities and facilities. In addition, the city authorities freed developers from the need to request documents that are available to government agencies, and also opened to developers access to information about the conditions and restrictions on the use of the territory contained in state information systems. In the northern capital, investors are actively using the Unified system of the construction complex.

According to Sergey Levkin, head of the Moscow City Planning Department, this year international experts have taken into account reforms in the field of quality control and construction safety, which have been carried out in the capital over the past few years. “A jerk in the rating is ensured by optimizing the quality checks of construction work depending on the risk category of the object under construction, as well as the introduction of modern instrumental methods for checking the quality of work performed, including using non-destructive methods to assess the quality of hidden works,” said Levkin. – The rating also took into account the reduction of the period for issuing permits for putting the reference facility into operation with connection to the water supply and wastewater networks ”

According to the Federal Ministry of Construction, best practices are used to introduce target models for simplifying business procedures and increasing investment attractiveness in the constituent entities of the Russian Federation, including the target model “Obtaining a building permit”. In addition, in 2019 in Moscow, St. Petersburg and the Moscow Region it is planned to complete an experiment on the transfer of services for connection (technological connection) to the networks of engineering and technical support in electronic form. A key feature of the mechanism is the ability to submit through the regional portals of state and municipal services a single application for the conclusion of connection contracts (technological connection) to all types of engineering networks, including electrical networks.

At the same time, the Ministry of Construction noted more than once that, despite the efforts of the department, the work on simplifying procedures in the urban planning sector is conducted in the regions at a slow pace. Moreover, the claims are caused primarily by the activities of local governments, which, in turn, testifies to the lack of control by the regional authorities over the municipalities.

Quote in topic

Deputy Prime Minister of the Russian Federation Vitaly Mutko:

“Despite the fact that in the rating the experts considered only Moscow and St. Petersburg, the Russian regions also successfully solve the problems of quality and speed of obtaining building permits. The target model introduced in the regions establishes for each region a list of indicators aimed at improving the business environment, including in terms of transferring construction services to electronic form and reducing the time required to complete them, until the end of 2021. Also, the Ministry of Construction of Russia has developed and in December of this year a draft federal law on unified standards for the provision of state and municipal services in the urban planning sector will be submitted to the government for consideration. These standards will become normative legal acts and will receive priority over administrative regulations and will ensure a uniform procedure for all regions in this area. Standards will give a synergistic effect that will make Russian regions attractive for investors. __________________________________

Reference

The World Bank Doing Business report covers 190 countries. Bank experts examine regulatory standards that promote or impede business development at all stages, including the creation of a company, business, foreign trade, payment of taxes, and the level of investor protection. The rating is a ranking of economies (countries) by calculating the procedures, time and financial costs required for the construction of a “reference object”, as well as an index of the quality of construction control. “Reference object” is a 2-storey warehouse with an area of ​​1.3 thousand square meters. m, built by the owner on a plot of 929 square meters. For construction there are appropriate architectural and technical documentation, necessary licenses and insurance, access roads. It takes into account the connection to water supply and drainage. It is believed that the “reference object” is built by the owner’s own organization.

Reference

In the Doing Business 2018 composite rating, Russia climbed four points and ranked 31st among 190 countries.

Source: “Stroitelnaya gazeta” №44

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