Moscow makes developers’ life easier
In Moscow construction is one of the spheres allowing the city to boost its budget revenues. With this in mind, the city officials are ready to maximally lift administrative barriers hampering developers.
Information about underground utilities, structures and preliminary conditions for connection to water supply and sewage networks will now be present in the development plan of a land plot (GPZU), the Vedomosti newspaper was told by the Moscow Construction Complex. This decision was taken on the instruction of Mayor Sergey Sobyanin and approved by the Ministry of Construction, the Ministry of Economic Development and the Agency for Strategic Initiatives (supervising working groups of the National Entrepreneurial Initiative developing mechanisms to improve the country’s business climate).
As the first step the city authorities are launching the process of issuing GPZUs with preliminary conditions for connection to water supply and sewage networks. This is the way for the city authorities to minimize communication between developers, Moscow Water and Sewage Company (Mosvodokanal) and Mosgorgeotrest reporting to the Mayor’s Office. If the experiment proves to be successful gas and electricity providers might join it as well. This innovation will not change the timing for issuing a development plan – it should still be ready in no more than 30 days. Moreover, according to the Moscow Construction Complex, all information about underground facilities for projects under construction will be obtained by developers automatically and free of charge. According to developers surveyed by the Vedomosti, a GPZU containing information about underground utilities and preliminary terms of connection to water supply and sewage systems increases capitalization of the site for which the plan is issued. And lower costs will allow the industry to become more or less comfortable for investors.
Transferring the majority of administrative approvals to electronic format has become one of the most conspicuous reforms. In 2013 the city authorities provided seven services in this format while by the end of 2014 this figure reached 12 services. The legislative base regulating this process was adjusted on November 1, 2014 when an amendment to government decree #145-PP dated April 12, 2012 came into force in Moscow. Demand for online services is confirmed by the positive dynamics of online state services. In 2013 only 12% of all applications were submitted in electronic format while in 2014 this figure stood at 45% and in 2015 reached 70%.
Last year’s most conspicuous result is cancellation of government decree # 857 regulating earthwork preparation and execution that happened in May. Since the approval of this document in 2004 interdepartmental interaction technologies have developed and federal legislation on urban development activity has changed (City Law #18 ‘On Urban Land Improvement’ was passed in April 2014). The work on this new document reflecting the city’s new approach to earthworks had been ongoing since 2012.
According to officials, the main achievement of the reform is strict regulation of procedures required from developers for earthwork execution: maximum timings, complete document lists, and grounds for refusal are now specified. That said, construction is not the only industry affected by these innovations. Amendments to legislation directly affect land improvement in the city, including preservation of cultural heritage sites, capital repair and furnishing of roads, tram tracks and railways, installation of lighting posts, an overhead contact system, architectural decorative lighting and a complex approach to urban amenities.
“Today Moscow authorities have assumed a position of maximum support regarding approval of urban development documentation,’ says CEO of Pioneer Group Andrey Grudin. ‘They support investors and contractors in this respect and understand that it is necessary to meet assumed obligations on time. It is especially acute amid contracting profitability and more expensive working assets. The faster we build and the quicker projects finish the more lucrative it is,” sums up Andrey Grudin.