<html>World Bank: Czech Republic has one of the longest building permit processes in Europe</html>
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Worse than the Czech Republic are in the rankings, for example, Afghanistan, Bangladesh, or Sudan. The longest time to obtain all necessary stamps is in Cambodia, averaging nearly two years. "But these are probably not countries we would want to compare ourselves to," said Evžen Korec, CEO of the development company Ekospol. According to him, the situation is even worse when it comes to obtaining permits for larger constructions. "There, the timeframe climbs to as much as 1825 days. For example, the approval of large residential projects takes three to five years. We calculated that these unreasonable delays can increase the price of an apartment by up to five percent," added Korec.
He considers the three-tier approval process to be the main problem. Builders must first obtain an environmental impact assessment (EIA), followed by a zoning decision and a building permit. "At all three levels of approval, it is possible to appeal repeatedly to already addressed objections. This prolongs the entire process, which is administratively unbearably demanding. Moreover, it repeatedly calls into question already issued permits," added Marcela Fialková, spokesperson for the competing company Central Group.
Korec would condition the possibility to file appeals on the payment of a deposit. If the appeal turned out to be unfounded or harassing, the deposit would be forfeited. "This would significantly limit the business of purposefully established civil associations that survive by extorting from builders. Currently, anyone, even from the other end of the country, can express an opinion. Not just the affected public," he stated.
According to him, the only possible solution is to merge all three processes into one and clearly set maximum deadlines that the authorities will have to respect. The amendment to the building law, which is currently under discussion in the Chamber of Deputies and could take effect from mid-next year, plans for the possibility of merging the three processes into one.
Last week, Miroslav Zámečník, advisor to the Minister of Industry, said at a press conference that the Czech Republic is likely to deteriorate in the Doing Business ranking, which will be compiled by the World Bank (WB) in 2017, regarding the assessment of the business environment. According to him, the introduction of electronic sales registration will have an impact. Zámečník added that it is also uncertain whether the Czech Republic will manage to adopt the new building law. The Czech Republic is currently at the bottom of the rankings for the speed of processing building permits. "I expect that we will deteriorate. I do not know by how much exactly," Zámečník stated.
In this year's Doing Business ranking, the Czech Republic ranks 27th in the world. Last year's report placed the Czech Republic in 36th place, which would mean an improvement of nine places. However, the WB adjusted last year's position to 26th place due to a change in methodology and other factors in this year's report. Thus, the Czech Republic has worsened by one position.
The World Bank monitors how regulatory measures affect business activity in 190 countries. The latest Doing Business report ranked New Zealand in first place. Among the Visegrád Four countries, Poland performed best, finishing 24th. Slovakia ranked 33rd and Hungary 41st.
The English translation is powered by AI tool. Switch to Czech to view the original text source.
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