Regulation of construction permit

KINGDOM OF CAMBODIA

NATION    RELIGION    KING

REGULATION

Below is a detailed summary of the procedures, time and costs to build a warehouse in Cambodia. This includes obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.

No.	Procedure	Time to Complete	Associated Costs
1	Pick up application form Agency: Municipal Department of Land Management, Construction and Urban Planning	1 day	KHR 4,500
2	File documents with the Sangkat Office for review According to Subdecree No.86 (dated December 19, 1997), relating to the construction permit, the documents attached to the official letter application must contain at least the following (10 copies on 21 x 29.7 cm. paper): • Certificate to the estate or title certificate to the estate or the temporary occupation permit to the land • Sheet of plot: this plan (title certificate to the land) shall be made by a private land surveyor or by the land office’s private agent • Plan of warehouse location on the plot. This plan specifies the stationing of construction in the plot, the object of the application, by stating the following: the distance between one or more buildings and boundaries of the plot and the distance of the neighboring existing buildings; all arrangements of other sectors of the vacant land, with clarification on the type of land and existing crops and would-be car parks and fences; drainage pipes outside the building (substance, diameter, slope, height level, checking hole) up to the connection point of public network for draining sewage and for clean water, latrine, sink, and well; and stable point of the height of plot after the arrangement • Plan of all warehouse floors (scale 1:100) • Plan of the underground parts and latrine sinks (scale 1:100) • Plan of front warehouse (scale 1:100) • Plan of divided parts (scale 1:100). This plan shows the same as the front face plan, with one part showing the hygienic latrine sink • Table of the surface area for each floor • Technical specifications for calculating the ground level surface. Upon receiving the construction permit, BuildCo must prepare a detailed plan of the construction integration. The Ministry of Public Works and Transportation will review this plan before the construction site is opened Procedures 1 to 5 take 30 days. The time frame for completing the permit approval process has been shortened. Under the relevant sub decree on construction permits, the time frame is fixed to at least 45 days to complete any project broader than more than 3,000 square meters. There is no official fee; however, an informal fee must be paid to facilitate the application. Agency: Sangkat Office	14 days	no charge
3	Request and obtain certification from the Khan or District Governor According to the Decision No. 05 SSR dated February 6, 2006 from the Ministry of Land Management Urban Planning and Construction, this procedure must follow Procedure 2. The time frame should be 5 working days. The certification fee is not provided for by law. If informal fees are not paid, it generally takes between 4 months to a year to obtain the certification. Agency: Khan/ District Governor	182 days	no charge
4	File documents to the Khan Land Management, Urban Planning, and Construction Office for review, and obtain approval The following documents must be submitted within 6 days after Procedure 2 has been completed: • Plot plan - Structural and engineering plans • Plan of the location of the warehouse on the plot • Plan of all warehouse floors. This plan specifies the purpose of using the rooms and the area, sanitation installation, and areas for pipes placing • Plan of the underground parts and the latrine sinks (scale, 1:100) • Plan of front building (scale 1:100): This plan specifies the front face plan, showing the height level of the following: each floor; land at the bottom of the building, by specifying the height level of natural land, filled land, or removal land; the roof and limit of roof or height of existing terrace and the wall barriers; existing flower's pole and substance for front face • Plan of divided parts (scale, 1:100): This plan shows the same as the front face plan with one part showing the hygienic latrine sink • Table of surface area for each floor • Technical specifications for calculating the ground level surface • Additional documents: the applicant may be requested to provide additional documents for reasons of hydrology, prevention against all types of annoyance, public order, and protection of patrimony or landscape • Title certificate • Application for construction permit (10 copies) There is no official fee; however, an informal fee must be paid. Agency: Khan Land Management, Urban Planning, and Construction Office	14 days	no charge
5	Request and obtain the approval (building permit) of the Municipality/Ministry of Land Management Urban Planning and Construction BuildCo must file the documents with the Sangkat/Commune first (to Khan/District), then with (a) the Municipality/ Province for plots under 3,000 sq. m. or (b) the Ministry of Land Management, Urban Planning and Construction for plots above 3,000 sq. m. However, BuildCo does not need to visit each government office if the builder hires an agent who handles the construction permit application to completion. Fee schedule for construction permit: • Surface of the construction on the land (SCL) less than or equal to 100 sq. m.: KHR 140,000.00 • Less than or equal to 200.00 sq. m.: KHR 160,000.00 • Less than or equal to 300.00 sq. M.: KHR 180,000.00 • Less than or equal to 400.00 sq. m.: KHR 200,000.00 • Less than or equal to 500.00 sq. m.: KHR 220,000.00 • Less than or equal to 1,000.00 sq. m.: KHR 260,000.00 • Less than or equal to 2,000.00 sq. m.: KHR 300,000.00 • Less than or equal to 3,000.00 sq. m.: KHR 340,000.00 Total building permit fee is about USD 6,000.00 to USD 7,000.00 (mainly a negotiable facilitation fee). Based on the Decision No. 5 SSR from the Ministry of Land Management Urban Planning and Construction after the examination by the Khan Land office, the documents will be forwarded to the Phnom Penh Municipal Department of Land Management Urban Planning and Construction and Cadastre (the "PP LO"). At the PP LO, the documents will be examined by relevant office such as the Cadastral Office, Technical and Geography Office, Construction Office, Land management office. After the approval of the PP LO, the documents will be forwarded to the Phnom Penh Municipality (the "PPM") for last examination and issuance of Construction Permit to the applicant. The PPM shall have only 5 days to complete the review and issue the Construction Permit to the applicant. The construction permit is valid one year from the date of its issuance by the PPM and can be extended once for another year. The Sub Decree No. 86 on construction Permit, in its Article 9.10 stipulates that, after obtaining the Construction Permit, there shall be an iron structure plan which will be examined by the Ministry of Public work and Transport. However, this is not enforced in practice, but maybe arbitrarily used by some officials. Agency: Sangkat/ Commune and Municipality / Provincial Authority	365 days	no charge
6	Notify the Sangkat authority of obtainment of building permit Under Cambodian regulation, after receiving the building permit from the provincial or municipal authority, the company must notify the other relevant authorities. Construction work must start within a year from the date of issuance of the construction permit. Agency: Sangkat Office	1 day	no charge
7	Notify the Khan authority of obtainment of building permit The Khan authority is notified about the building permit. Agency: Khan Office/ District	1 day	no charge
8	Request official opening of the construction from the Phnom Penh Municipal Department of Land Management Urban Planning and Construction and Cadastre (the "PP LO") BuildCo must inform the authorities about the start of the construction within 7 days. Then the authority will issue a declaration of "construction site opening". In order to start the construction and as required by Sub Decree No. 86 on Construction Permit and the decision No. 05, the construction owner shall apply to the PP LO (not the Khan Land Office or the Sala Khan) for an approval to open the construction site. The PP LO will respond to the request within 6 days. Agency: Phnom Penh Municipal Department of Land Management Urban Planning and Construction and Cadastre (the "PP LO")	1 day	KHR 300,000
9	Receive an inspection from technical official The Technical Department sends an expert to inspect the construction site before the construction starts. Agency: Technical Department	1 day	no charge
10	Inform the building authority of the poles setup and receive inspection The inspector may visit the site without notifying BuildCo. The inspection takes a few hours, depending on the construction size and complexity. After receiving notification from BuildCo, an inspector will visit the site within 2 or 3 days. It is not necessary to stop the construction work. Agency: Technical Department	1 day	no charge
11	Inform the building authority after foundation work and receive inspection Agency: Technical Department	1 day	no charge
12	Inform the building authority when columns are built and receive inspection Agency: Technical Department	1 day	no charge
13	Inform the building authority when walls are erected and receive inspection Agency: Technical Department	1 day	no charge
14	Inform the building authority when floors are built and receive inspection Agency: Technical Department	1 day	no charge
15	Inform the building authority of the end of main works Agency: Technical Department	1 day	no charge
16	Receive final inspection by the building authorities and departments concerned that issue the certificate of compliance At the end of construction, the district or khan office and the construction permit office (urbanization and construction office) may check, simultaneously, that the erected building complies with the construction permit specifications. The municipal or provincial authority issues the certificate of compliance or could take legal action for noncompliance. Agency: Khan Office/ District, Urbanization & Construction Office, Municipality/ Provincial Authority	21 days	no charge
	Request and receive connection to water and sewage services BuildCo must fill out some application forms for water and sewage connection. BuildCo is not required to prepay government and service fees before, or at the time of, the connection. Instead, it must pay the following only after approval: the government fee [as listed below), the plumbing service fee (between KHR 200,000.00 (USD 50.00) and KHR 300,000.00 (USD 75.00) plus KHR 457,750.00 (USD 114.44)], and the water meter network length connection [plus KHR 92,800.00 (USD 23.20: water subscription cost)] = KHR 800,550.00. The water subscription fee for networks varies by water connection type (Point A and Point B) and is based on network length and water-meter size: Point A: Water subscription for new network is calculated as follows (for a network length of 15 mm): • 0 to 10 mm: KHR 457,750.00 (USD 114.44) • 11 mm to 20 mm: KHR 460,400.00 (USD 115.10) • 21 mm to 30 mm: KHR 665,200.00 (USD 166.30) • 31mm to 40 mm: KHR 772,250.00 (USD 193.06) • 41 mm up to 50 mm: KHR 878,500.00 (USD 219.62) Point B: Water subscription for available network with meter is calculated as follows (SN meter size water subscription fee): • 15 mm: KHR 92,800.00 (USD 23.20) • 20 mm: KHR 98,900.00 (USD 24.73) • 25 mm: KHR 106,900.00 (USD 26.73) • 30 mm: KHR 225,000.00 (USD 56.25) • 40 mm: KHR 271,000.00 (USD 67.75) Agency: Phnom Penh Water supply Authority (PPWSA)	42 days	KHR 800,550
* 18	Request and receive connection to telephone To obtain a telephone connection, BuildCo submits an application and documentation. The telephone service provider does not conduct an on-site inspection before issuing the approval, but checks the cable system around the construction site. Payment must be made in full (for all services) after an agreement is reached between BuildCo and the service provider. Agency: Telecom Cambodia	6 days	KHR 190,000
19	Inform the building authorities of the utilities setup Although it is not stipulated in the law, it happens in practice. Agency: Khan Office/ District	1 day	no charge
20	Receive inspection by building authorities The building authorities inspect the construction site for compliance with the approved plan. Agency: Khan Office/ District	1 day	no charge
* 21	Receive inspection by water authorities In general, water and power supply companies must conduct on-site inspections to determine how to connect the construction to the network and to estimate the cost of this connection. In addition to providing water services, the utilities must ensure the connection is made according to the approved plan. Agency: Phnom Penh Water Supply Authority (PPWSA)