Costs for getting approvals for construction of facilities in Moscow hit a low of 0.9%


The new program aimed at elimination of administrative barriers in the construction of low-risk facilities helps reduce the cost of one facility to 0.9 % of its project cost, said the head of the Department of Urban Planning policy Sergey Levkin according to RIA Novosti.

“At the moment the construction of low-risk facilities assumes completing only 9 easy steps of administrative procedures. Speaking about low-risk facilities we mean those which are built using the simplified control scheme according to the Construction Code of the Russian Federation (without the mandatory examination of design documentation and the state construction supervision). According to our estimates timing and costs of approvals for such facilities came down to the necessary minimum of 99 days and 0.9% of the project cost,” said Levkin.

The greater part of approvals is received in electronic format, he added. A developer can track the progress of consideration of his appeal in the personal account on the portal of public and municipal services.

In total, 12 approvals were excluded from the list of mandatory procedures; these exclusions concerned not only low-risk but also other types of facilities.

According to Levkin, the work on reducing administrative barriers in construction industry has led to the improvement of Russia’s position in the World Bank Doing Business ranking. While in 2010 the Bank recorded the high developer’s costs of time (589 days) and money (4.2% of investments in a facility) for administrative procedures, in 2015 the figures amounted to 244 days and 1.7%.

The program “9 Steps From Project to Object” was presented on the Investment and Construction Forum in Moscow.

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