Experts' opinion

Shapochka Ekaterina

Partner, Advisory, Government & Public Sector leader at PwC Russia

Ekaterina Shapochka: the city needs to adopt land use and development plans


ShapochkaIn recent years, the federal government and the Government of Moscow are carrying out extensive work to reduce administrative barriers in construction sector. There are two global key areas: reducing the number, the terms and the cost of procedures and improving the user experience. Only in the last three years due to changes in the federal legislation and the legislation of the city more than 40 procedures related to housing construction have been repealed.

Transferring services to electronic format and introduction of “one stop shop” principle is underway. Nevertheless, some problems persist.

Moscow has not yet approved land use and development plans (PZZ), so often the territories suitable for housing construction does not have necessary infrastructure. This can result in refusal to issue GPZU with construction permit.

Nowadays a developer is obliged to include infrastructure objects in a project on approval stage and to provide the necessary infrastructure. This creates poorly predicted increase in project costs at purchase stage.

The absence of a mechanism of compensation for infrastructure costs leads to complications on approval stage and construction of infrastructure objects without taking into account the City Master Plan.

Therefore, first of all we need to adopt PZZ, update and develop the management and updating of the City Master Plan as well as to develop PZZ which are currently cover no more than 15% of the city.

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