With the new “9 steps from a project to an object” program, Moscow will save budget money and developers’ money
The Moscow authorities have initiated the large-scale “9 steps from a project to an object” program, which significantly simplifies and pushes forward the process of construction of objects for small business. What is it about?
According to Yan Vallizer, WB Vice-President on Equitable Growth, Finance, and Institutions, Russia has succeeded in significant improvements in the business climate for the last four years. The authorities’ activities, both on the federal and regional levels, have helped, especially in the sphere of regulatory standards simplification.
His words are borne out by the “9 steps from a project to an object” program adopted by the Moscow authorities at the beginning of the year. This set of measures is being implemented in order to create a favorable investment climate in the capital, to simplify administrative procedures, and to save budget money and developers’ money.
The so called “9 steps” program – is the second revolutionary solution after the cancel of resolution №857 in May, 2015. Judge for yourselves: according to the World Bank’s Doing Business report, in 2014 companies in Moscow had to spend up to 239 days for all approvals, and expenses on them achieved 2% of the construction cost. Since 2016, the approval terms will not surpass 99 days, and expenses will make 0.9% of the total cost of the project.
The “9 steps” program includes the construction of low risk objects: low-rise (not more than 3 floors) buildings, storage facilities, etc. not requiring expertise appraisal.
Such measures undertaken by the Moscow government will positively influence the investment activity of small and medium-size businesses, Lubov Tsvetkova, Chair of Board of the Moscow Independent Investors’ Association, thinks.
— The situation with getting a permit has significantly improved lately, and many developers see it, there are a number of positive changes, she said.
According to the program, 12 approvals were expelled from the list of compulsory procedures. Now developers need not ask for the lot’s topographic plan and the cadaster certificate. They may do without site investigations by Moscow Municipal Trust of Geological-Geodesic and Cartographical Works and networks conformity assessment by Municipal Enterprise of Water Supply and Waste Water Treatment.
It is very important that all steps follow each other without duplication. A number of procedures may be fulfilled simultaneously, which one couldn’t even imagine formerly. Due to this the approval terms also reduce significantly.
The Moscow construction complex works with an investor according to the “one window” principle: instead of 10 different types of expertise assessment only one is carried out, and four kinds of construction supervision are integrated into one state construction supervision.
Developers may also sigh with relief. They are also discharged of receiving the adopted architectural and urban planning solution. Besides, they need not inform prefect's office and fire security department on the construction beginning.
All documents are executed in soft form via integrated portal for state and municipal services.
— It takes minimal time now to submit documents to Moscow City Architecture Committee and Moscow State Construction Supervision Committee, as it is done online, — executive director of the “MIC” GC, Daromir Obukhanich, explains. — It both simplifies the procedure of documents submission and allows to follow their execution online, and strictly regulates the terms of documents’ execution on each step.
The Moscow construction complex being in charge of the “9 steps” program is included in the integrated system of interdepartmental interaction. That is why it is forbidden to ask a claimer for the documents present in another regulatory body: they are required via the system.
So, we may say that a simple transparent algorithm of receiving urban development documentation has been created in the capital. The program significantly reduces corruption risks and allows developers to plan their expenditures. And the main thing is that it crucially simplifies the work of small and medium-size business representatives.
Of course, the program adds to the growth of the investment attraction of Moscow for both Russian and foreign developers.
If the experiment is successful, the Moscow authorities are ready to expand the list of the objects, the construction permit for which will be available via simplified procedure.