Eritrea’s Construction Permit Process Riddled with Delays and Costs

A Study by Doing Business Reveals a Lengthy and Costly Procedure

ADDIS ABABA - The World Bank’s Doing Business project has released a report highlighting the difficulties faced by businesses in Eritrea when dealing with construction permits. The study found that the procedure takes an average of 15 days to complete, with costs amounting to 12.7% of the warehouse value.

A Lengthy and Costly Process

The time it takes to deal with construction permits in Eritrea is significantly longer compared to other countries in the region. In fact, Eritrea ranks lower than its comparator economies, including Ethiopia, Kenya, and Rwanda, in terms of ease of getting electricity and building quality control index.

Lack of Transparency and Accountability

The study revealed that there is no practice of building quality control index in Eritrea, which means that there are no third-party entities required by law to verify that the building plans comply with existing regulations. This lack of transparency and accountability contributes to the high costs and delays associated with obtaining construction permits.

No Liability Regime for Structural Flaws

Furthermore, the report highlights the absence of liability and insurance regimes for structural flaws or problems in buildings once they are in use. This means that there is no party held liable by law for latent defects or decennial liability, leaving businesses vulnerable to potential losses.

Recommendations for Improvement

The Doing Business project aims to measure the ease of doing business across 190 economies by identifying best practices and areas for improvement. The report provides valuable insights for policymakers and business leaders seeking to improve the business environment in Eritrea. Some key recommendations include:

Key Findings

Average time taken to deal with construction permits: 15 days
Cost associated with obtaining construction permits: 12.7% of warehouse value
No practice of building quality control index
No third-party entities required by law to verify compliance with regulations
No liability and insurance regimes for structural flaws or problems in buildings

Recommendations

Implement a system of building quality control index to ensure compliance with regulations
Introduce liability and insurance regimes for structural flaws or problems in buildings
Simplify the construction permit process to reduce costs and delays
Improve transparency and accountability in the construction sector