Below is a detailed summary of the procedures, time and costs to build a warehouse in Armenia. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Apply and obtain architectural-constructional assignment (АПЗ) Agency: Yerevan Municipality (Architectural and Urban Development Department) The company submits an application form to the Architectural and Urban Development Department of the Yerevan Municipality with the following information: the purpose of usage, building type and address, and the name(s) and license number(s) of the design firm(s). As part of this process, the owner receives technical conditions from appropriate authorities for drawing, building, and using the building’s engineering substructures. The fee and time line are determined by the agreement with the company. For BuildCo to obtain a building permit, the municipality awards an architectural design assignment to a licensed building design firm, upon receiving the application and the drawings. The design firm prepares the drawing(s) with information on technical, urban, and other necessary conditions. The architectural drawing undergoes a review performed by the Chief Architect at the Municipality. The drawings are then approved by the Yerevan Municipality, citing the duration of the construction. Until May 2008, an architectural design assignment and building permit would not be issued without contributing AMD 3 -- 5 million to a charitable ”Yerevan Fund” designated by the municipal authority. There was no specific law or norm about this fund. However, the Mayor of Yerevan abolished this requirement through a municipal decision. This came as result of order by Prime Minister of Republic of Armenia on January 15, 2008 (Cabinet Meeting Protocol #2-2). Companies are no longer required to pay this fee. To further enforce the implementation of the decision, the Mayor’s Office launched a public campaign among construction sector, following allegations of recurring use of this contribution. According to legislation the official time limit to issue the APZ is 15 days. However, because the technical conditions are obtained individually from each agency, the APZ is issued after receiving all technical conditions from utilities. |
15 days | no charge |
| * 2 | Request and obtain technical conditions approval from Yerevan Water and Sewage Company Agency: Yerevan Water and Sewage Company (YWSC) According to Regulation No. 1473 (2002), applicants must seek individual technical condition approvals from each authority. All technical conditions must be free of charge. Before starting earthwork, BuildCo must apply to utility providers, citing the planned route(s) of underground communications. |
15 days | no charge |
| * 3 | Request and obtain technical conditions approval from Civil Defense Agency: Civil Defense |
3 days | no charge |
| * 4 | Hire a licensed expert/company to conduct the expertise approval of architectural drawings Agency: Expertise Company The architectural drawings undergo a review performed by a licensed expertise institution. The licensed expert must stamp each page of the drawings. This stamp indicates that he is bearing responsibility for the quality of the drawings. A number of licensed private organizations exist in Armenia with expertise in architectural drawings. Architectural drawings are subject to both engineering and ecological expertise reviews. The results of the expertise are then submitted to the Municipality along with other documents for the building permit. |
1 day | AMD 25,000 |
| * 5 | Hire licensed technical supervisor Agency: Private Company Following the issuance of APZ, BuildCo starts preparing all the necessary construction documents. BuildCo must hire a technical supervision expert to oversee the quality of works done by builders. Both companies and individual technical supervision experts can be licensed according to Government Resolution N 26 (December 12, 2008) that becomes effective June 21, 2009. The construction supervision contract must be submitted to the Municipality and the State Urban Inspectorate. After BuildCo receives the permit, it receives a construction log book that must be filled out on a daily basis, stating the climate conditions that day and the work covered in that day. The licensed technical supervision expert must be on site every day and fill out the construction log book. This log book must be submitted in the end in order to obtain the completion certificate. |
1 day | no charge |
| 6 | Request and obtain building permit from Yerevan Municipality Agency: Municipality The company must resubmit the approved architectural drawings to the municipality. According to Decision #91 (2002), the permit must be issued within 7 days. Since 2005, the construction permit and the construction document approvals are granted simultaneously. In Yerevan, the mayor grants the construction permit. The construction permit fee for the case study warehouse is AMD 450,150. It is calculated as follows: 250,000 AMD for the first 500 sq mtr. and 250 AMD/sq mtr for each additional sq. mtr. Therefore, the fee is 250,000 [(250*(1300.6-500)] = 450,150 AMD |
15 days | AMD 450,150 |
| * 7 | Notify State Inspection of the Ministry of Urban Development of the start of construction works Agency: Ministry of Urban Development According to Decision #91 (2002), Art. 27, after obtaining the building permit, BuildCo will need to notify State Inspection of Urban Development of Ministry of Urban Development. BuildCo writes a letter 3 days prior to construction works and does not wait for approval. |
1 day | no charge |
| 8 | Receive inspection by the Municipality Agency: Municipality - Urban Development and Land Inspection Department The construction site will be visited at least once by the Municipality during the duration of project, provided all works are done properly. There is no need to stop works. Inspections occur on a random basis. According to the Law on Inspection, all inspections must take place only once a year. However, so-called operational inspections are widespread. |
1 day | no charge |
| 9 | Receive inspection by State Inspection of Urban Development of Ministry of Urban Development Agency: State Inspection of Urban Development of Ministry of Urban Development The construction site will be visited at least once by the State Inspection of Urban Development during the duration of project, provided all works are done properly. There is no need to stop works. Inspections occur on a random basis. According to the Law on Inspection, all inspections must take place only once a year. However, so-called operational inspections are widespread. |
1 day | no charge |
| 10 | Request water and sewage services Agency: Yerevan Water and Sewage Company (YWSC) An additional facilitation fee of AMD 200.00 -- 300.00 is required to expedite the process. |
9 days | AMD 2,600 |
| 11 | Receive water and sewage inspection and obtain connection Agency: Yerevan Water and Sewage Company (YWSC) Upon starting work, BuildCo must request the presence of utility company representatives while connecting the building to utilities. |
1 day | no charge |
| 12 | Submit the construction logbook to the Municipality and request a final inspection Agency: Municipality/State Inspection of Urban Development of Ministry of Urban Development Upon completion of construction, BuildCo must inform the Municipality about the completion and must submit the construction logbook to the Municipality. The Municipality then conducts a final inspection and issues the completion of construction certificate within 2 days after the final inspection. |
1 day | no charge |
| * 13 | Notify the Ministry of Urban Planning about the completion of construction works Agency: Ministry of Urban Planning |
1 day | no charge |
| 14 | Receive final inspection from Ministry of Urban Planning Agency: Municipality/State Inspection of Urban Development of Ministry of Urban Development The completion of construction certificate, obtained upon completion through a joint meeting between the investor and the builder, is required to file for the final inspection process and is required to obtain the occupancy permit from the Municipality. The application is then made to receive a final inspection by the State Inspection of Urban Development under the Ministry of Urban Development and the Municipality. |
1 day | no charge |
| 15 | Receive final inspection from the Municipality Agency: Municipality/State Inspection of Urban Development of Ministry of Urban Development By Ministerial Decree, the Municipality must undertake the final inspection within 15 days of receiving the application. After the inspection, the application is forwarded to the State Expert Office for final approval. This takes another 10 -- 15 business days. Inspection by State Inspection of Urban Development of Ministry of Urban Development takes place separately. |
1 day | no charge |
| * 16 | Receive final inspection from Civil Defense Agency: Civil Defense |
7 days | no charge |
| 17 | Obtain occupancy permit from the Municipality Agency: Municipality After all signatures are signed the occupancy permit is issued by the Mayor's Office. |
28 days | AMD 150,000 |
| 18 | Register the building with the Cadastre Agency: Local Cadastre Office The company must register the building with the cadastre by submitting the land title, the allocation permit, the building permit, and the construction plans. The next step is an on-site inspection required for metering the building. As of second half of 2009 the State Cadastre introduced new fast track options whereby transactions can be done in 2, 4 and 7 days. Fee schedule for "fast track" registration (1 day): Registration: AMD 10,000 Building metering: AMD 45.00 x 929 (Land) + AMD 45.00 x 1300.6 (building surface) = AMD 100,332.00 Building sketch: AMD 500.00 (for each page-2 pages) = AMD 1,000.00 Stamp duty: AMD 1,000.00 Total: AMD 112,332.00 Documents to be submitted are the following: • Construction permit • Architectural construction assignment • Occupancy permit |
2 days | AMD 112,332 |
| * 19 | Receive on-site inspection for building registration Agency: Licensed Private Company On-site inspection is done for all projects, both first time and re-sale of property. The mapping team visits the site and draws all relevant measurements in the records. A BuildCo representative must be present at the moment of inspection. This procedure has been completed by licensed private companies since January 1, 2012 according to the amendments of the Law on Registration of Rights Upon Property." |
1 day | AMD 200,000 |