Timor-Leste’s Construction Permit Process: A Complex and Time-Consuming Affair

Dealing with construction permits in Timor-Leste is a lengthy and costly process, according to a recent report by the World Bank. The country ranks 176th out of 190 economies in the Ease of Doing Business Index, with a score of 3.0 out of 15 in terms of building quality control.

Complexity and Cost

Obtaining a construction permit in Timor-Leste requires 16 procedures and takes an average of 88 days to complete. The cost of this process is estimated to be around 6% of the warehouse value, making it one of the most expensive processes in the country.

Steps Involved

According to the report, the first step in obtaining a construction permit involves requesting a “no objection” letter from the Directorate of Land and Property, which can take anywhere from 1-2 weeks if the applicant knows the right people, but up to 6 months if they are an outsider. This is followed by a site inspection and the submission of architectural and engineering plans.

Challenges

The report also notes that the country’s building regulations are not easily accessible, making it difficult for investors to understand what requirements need to be met in order to obtain a permit. Additionally, there is no clear list of required documents or procedures available online.

Post-Permit Inspections

Once the permit has been obtained, the construction process must then undergo several inspections, including excavation work, foundations, concrete work, and labor inspections. The final inspection takes place after the project is completed, and approval is granted by the Public Works Office.

Additional Costs

Applying for water and sewerage connections can add an additional 50 days to the overall process, with a cost of USD 500.

Comparison with Other Countries in the Region

To put Timor-Leste’s construction permit process into perspective, here is a comparison with other countries in the region:

• Kiribati: 6 procedures, 30 days, and a cost of 2% of warehouse value
• Micronesia, Fed. Sts.: 8 procedures, 40 days, and a cost of 4% of warehouse value
• Solomon Islands: 10 procedures, 60 days, and a cost of 5% of warehouse value
• Vanuatu: 12 procedures, 80 days, and a cost of 7% of warehouse value

Overall, Timor-Leste’s construction permit process is one of the most complex and costly in the region, making it important for the government to prioritize reforms to improve the business environment.