COMMISSIONING CONSTRUCTION AND PERMITS

Constructing objects in Moscow regardless of their purpose involves the following main stages: exploratory design, design, obtaining construction permits and construction itself.

The exploratory design is divided into two stages: pre-investment and investment.

During the pre-investment period such urban development documentation as locations of construction objects, layouts for the engineering infrastructure of the construction and re-construction territories, territory planning projects, etc. is developed

This documentation is developed in accordance with the general plan for the development of the city of Moscow.

During the investment period the urban-development justification of the object placement is developed i.e. possibility of construction (re-construction) of the object on the specific territory is determined taking into account historical, cultural, sanitary, hygienic, environmental and other requirements; required permits from the city administration agencies are obtained, etc.

Based on the exploratory design the city administration issues a legal act which sets the Customer and terms for carrying out investment and construction activities.

During the period of the construction project development the architectural project and design and engineering documentation are developed and endorsed.

Based on the exploratory design and project design the project is endorsed, permits obtained and the order for carrying out construction works is issued.

The exploratory and project documents are prepared by legal entities and private persons holding the license for the corresponding type of activity.

Construction Permit

The law on the permits for the construction and re-construction of the urban-development objects in the city of Moscow contains a list of concepts to be used by the parties when obtaining permits for and endorsements of the city authorities, such as: urban-development object and facility; preliminary assessment of city planning terms for the construction; urban-development justification for the placement and construction of objects; initial documents and permits needed for the construction; decision on the construction and permits for the construction, etc. The law sets forth in detail the procedures for obtaining permits and the package of documents needed to start the construction or reconstruction of an object.

The rights of investors and of other persons concerned in what regards construction or reconstruction of objects regardless of their proprietary interest in those objects are protected by the corresponding provisions of federal and Moscow city laws.

A customer may carry out construction, reconstruction or any other type of construction works on the object provided that the following documents are available:

- the legal act issued by the city administration which permits carrying out urban-development activities or

- registered documents on property and land relations or

- registered permit for carrying out construction-assembly work and earthwork operations.

The list of works which require permits includes construction, reconstruction, renovation, etc.

In accordance with the Russian Federation's law “On the Environmental Expert Analysis” the project documentation should pass the state environmental expert analysis.

Before the beginning of the construction works the Customer should have available the following main documents:

- the legal act issued by the city administration which permits construction or reconstruction;

- permit for construction (reconstruction);

- documents confirming the rights to use the real-estate objects;

- project documentation etc.

Permits

The permits are prepared by Moscomarchitectura (Moscow City Committee for Architecture) in accordance with the approved urban-development documentation or on the basis of the urban-development justification for the object placement.

The set of permits includes the following documents:

- basic requirements and recommendations for the object placement;

land lot boundaries;

- technical and economic characteristics of the object;

- report on the environmental expert analysis;

- requirements and recommendations for the design and construction and other documents.

The effective periods are set for permits which depend on the amount of construction (reconstruction) works. After a permit effective period has expired, Moscomarchitektura determines by the Customer's request whether the permit may be re-issued or prolonged or must be annulled.