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Dealing with Construction Permits in Antigua and Barbuda: A Complex and Time-Consuming Process

A recent report by the World Bank reveals that obtaining construction permits in Antigua and Barbuda is a lengthy and costly process, ranking 70th out of 190 economies worldwide. The study evaluated procedures, time, and costs associated with dealing with construction permits, finding that it takes an average of 50 days to complete all necessary steps.

Challenges Facing Entrepreneurs and Developers

The report highlights several key challenges facing entrepreneurs and developers in Antigua and Barbuda. One of the most significant hurdles is the requirement for a geo-technical study, which can take up to 25 days to complete at a cost of XCD 8,000 (approximately USD 3,000). Additionally, obtaining an “approval in principle” from the Development Control Authority can take another 21 days and costs XCD 30 (approximately USD 12).

Delays and Lack of Transparency

The report also notes that the process is plagued by delays and lack of transparency. For example, while the Fire Department provides project clearance within 14 days, there are no legal repercussions for failing to notify the Development Control Authority of commencement of work or failing to carry out inspections as required.

Total Cost of Obtaining Construction Permits

The total cost of obtaining construction permits in Antigua and Barbuda amounts to XCD 12,065 (approximately USD 4,500), which is equivalent to 8.6% of the warehouse value. This figure includes fees paid to the Treasury Department, Development Control Authority, and other agencies involved in the process.

Comparison with Neighboring Countries

In comparison, neighboring countries such as Dominica, Grenada, St. Kitts and Nevis, and Trinidad and Tobago have more streamlined procedures for obtaining construction permits, with average costs ranging from 2.4% to 5.0% of warehouse value.

Call to Action: Simplifying the Process

The World Bank report urges governments in the region to simplify and expedite the process for obtaining construction permits, citing the importance of a supportive business environment for economic growth and development.