Lyubov Tsvetkova: Facilitation of administrative procedures in construction saves money to the city budget and developers


Facilitation of administrative procedures saves money to the city budget and developers themselves, said the chairman of the Association of Investors of Moscow Lyubov Tsvetkova in the interview to radio station Business FM.

“Many administrative procedures in the construction industry have become quite clear; many of them have become available in electronic format. Obtaining state services via the Internet eliminates personal contact of governmental officials and applicants, and thus it saves time,” Lyubov Tsvetkova said.

According to her the Construction Complex of Moscow decided to abolish the most time-consuming procedures for developers. “Of course it is too early to say that everything is perfect and we have no problems. I am glad that the Moscow city government makes balanced decisions on further removal of administrative barriers,” added Tsvetkova.

The Doing Business project provides objective measures of business regulations and their enforcement across 189 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. The ranking is based on anonymous survey of developers, it shows the ease of doing business, including construction.

Moscow has boosted its indicators over the last year and made a leap forward by 37 positions in “Dealing with Construction Permits” indicator. The Russian capital has risen from 156th to 119th position. By 2018, Moscow expects to reach 34th position in terms of “Dealing with construction permits”.

Experts estimate that in 2010 a developer spent 589 days and 4.2% of the total project cost on administrative procedures in Moscow. This year the time and money costs lowered to 244 days and 1.7 %. That is, the time and financial costs have decreased by almost 2.5 times.

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