Myanmar Doing Business

Dealing with Construction Permits

At a glance – Dealing with Construction Permits

2020 Ranking: 46

2020 Distance to Frontier Score*: 75.4 (up from 70.5 in DB2019)

Regional Average (East Asia Pacific): 70

More information on Myanmar’s performance in Dealing with Construction Permits - ybps.ycdc.gov.mm

* The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. (Source; World Bank)

What it measures

Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system

Why does it matter?

No regulation
  • If procedures are too complicated or costly, builders tend to proceed without a permit.
  • An estimated 60-80% of building projects in developing economies are undertaken without proper permits and approvals.
Sound regulation of construction
  • Helps strengthen property rights.
  • Protects the public from faulty building practices.
  • Contributes to the process of capital formation.
For entrepreneurs
  • Construction regulation is an important consideration when deciding where to establish their business.

Measure of Quality

  Answer Score assigned to Myanmar in the Doing Business2019 report
Building Quality Control Index (0-15)   12.0
Quality of building regulations index (0-2)   2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals; Available only on request. 1.0
Quality control before construction index (0-1)   1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; licensed engineer 1.0
Quality control during construction index (0-3)   2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases 1.0
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
Quality control after construction index (0-3)   3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
Liability and insurance regimes index (0-2)   0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) No party is held liable under the law 0.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance 0.0
Professional certifications index (0-4)   4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. 2.0
What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certification exam. 2.0

 

Procedures

Step Details Time Required/Charges
1. Apply and Obtain a Demarcation Map at the Yangon City Development Committee (YCDC) Department of City Planning and Land Administration

BuildCo visits the Yangon City Development Committee (YCDC) – City Planning and Land Department in order to request a land title certificate, which will prove ownership of the land that is to be developed, and a cadastral map, which will show the plot's dimensions. Land surveyors from YCDC will go on field to verify the measurement of the proposed land boundary.

Build Co visits the Yangon City Development Committee (YCDC) – Department of City Planning and Land Administration in order to request  a cadastral map (Demarcation map / D-map), which will show ownership of the land and  the plot's dimensions. Land surveyors from YCDC will go on field to verify the measurement of the proposed land boundary. Documents required: (a) Form prescribed by  the Department (YCDC) 
(b) Copy of  proof of  land possession (Need to check with the original.) 
(c) Copy of  National Registration Card (NRC) of applicant (GP/SP) – to copy them within one page of A4 size paper 
(d) No objection signed by the neighboring land owners on the form prescribed by the  Department (YCDC).

17 days
2. Apply and obtain a construction permit at the Engineering Department (Building), YCDC

BuildCo will submit following documents to the Permit Section of Engineering Department (Building) of YCDC.  
(a) Forms prescribed by the Department (YCDC) -Construction permit application form 
 
-Confirmation by the registered engineer/architect of undertaking supervision 
-Agreement of the land owner to follow the directives of YCDC if construction is undertaken prior to the approval and in case land disputes arise. 
-Confirmation by the registered engineer of  taking  responsibility for the structural integrity of the building. 
-If GP/SP is applying on behalf of the owner, proof that the owner is still alive and the owner’s delegation of power. 
 
(b) Copy of  National Registration Card (NRC) of applicant (GP/SP) – to copy them within one page of A4 size paper. 
 
(c) Copy of  proof of  land  possession . (Need to check with the original )  
 
(d) Copy of   cadastral map (Demarcation map /D-map) from City Planning and Land Administration Department of YCDC.  (If proof of land possession describes only the area without plot dimension.)                                                      (e) 3 sets of  proposed drawings (A3 size) signed by applicant and certified engineer/ architect. 
 
(f) Suggestion letter and approved drawing from Fire Service Department . 

11 days
 

3. Receive an inspection from a YCDC technician
(at the same time as 2 above)
After YCDC received the application for building permit, district inspection team is assigned to inspect on-ground situation of proposed plot of land to check that it cadastral map (Demarcation map /D-map) and designs provided and to check the conditions for water and electricity connections. While there, the technician also checks with neighbors to ensure there are no land disputes or other issues. The inspection report then is produced and forwarded to permit section of Engineering Department to proceed drawing check and permit process.

1 day

4. Request and receive foundation inspection BuildCo needs to inform certified engineer/ architect to start the construction before the construction starts. The record should be in official logbook issued by YCDC. Then the district inspection team is informed, inspected on field with approved drawing and recorded in logbook.

1 day

5. Request and receive flooring inspection BuildCo is supposed to inform YCDC’s district level inspection team to have inspection. Observation and comments are made in logbook.

1 day

6. Request and receive roofing inspection BuildCo is supposed to inform YCDC’s district level inspection team to have inspection. Observation and comments are made in logbook. 1 day
7. Request a building completion certificate from YCDC After the building is completed for finishing work (including painting, water pipe system, electrical wiring and fire safety equipment), district inspection team is informed to proceed the final inspection.  1 day
8. Receive final inspection to obtain a building completion certificate from YCDC Recommendation for building completion certificate (BCC) is made in the logbook. Later, the company can apply BCC with this logbook. 1 day
9. Obtain a building completion certificate from YCDC
BuildCo can apply Building Completion Certificate (BCC) at YCDC after preparing necessary documents including Fire Safety Certificate (FSC) from Myanmar Fire Service Department (HQ). 
Necessary documents to submit for obtaining BCC are: 

(a) Form prescribed by YCDC

- Application form for BCC

- Owner’s consent on authorization and he/she is alive if the applicant is GP/ SP of land owner

(b) A copy of construction permit

(c) A copy of approved drawings (1 set)

(d) A copy of the receipt of the payment made for construction permit

(e) Log Book containing comments on completion of building by the registered engineer / architect and inspection engineers 

(f) Applicant’s copy of NRC (Owner, GP/SP) (both sides of NRC to be copied on the same page of A4 size paper with back side below the front side)

(g) For commercial buildings, an original recommendation of Fire department and copy of Fire SafetyCertificate.

(h) Photos of the building (front, back, left and right sides)

(i) Recommendation from Assessor department that tax has been paid

(j) For Apartment and Commercial buildings, Relevant Consent required by the Pollution Control and Cleansing Department regardingsolid waste disposal system.

(k) For the buildings with lift, certificate of EI (Electrical Inspection)approval from the Department of Industrial Supervision and Inspection for the use of lift.

BCC can be received within 3 working days for 3 stories and below buildings including for warehouse if necessary documents are completed.

3 days
10. Apply and Obtain water supply connection permit

Documents required: 
(a) Documents prescribed by the Department (YCDC) 
(b) Copy of  National Registration Card (NRC) of applicant (GP/SP) – to copy them within one page of A4 size paper) 
(c) 2 Sets of the Proposed drawings for water supply signed by licensed plumber (LPM/RSE/PE) ( A3 size) 
(d) Copy of  the applicant’s proof for ownership of  Land, Building 

5 days
11. Water supply connection 

Documents Required (a) Water supply connection permit issued by the department

1 day

 

What has improved

The following procedures are no longer required with effect from March 2018:

  • Obtain debt clearance letter from YCDC Township Executive Officer 
  • Obtain Soil Investigation Report
  • Obtain consent from the neighbours
  • Obtain a recommendation letter or certificate from the ward

Note: There has never been a requirement to obtain an excavation permit for digging a well.

  • By supporting of IFC (World Bank Group), city council naming Yangon City Development Committee (YCDC) developed Yangon Building Permit System(YBPS) Website ybps.ycdc.gov.mm for building construction permitting submission upon risk based categorization. Website was fully launched on 15th March 2020, and after that YCDC enforced and awarded to public to submit by using website only, started from 27th April 2020. Submission cases are categorized easily by using Building Categorization Matrix (BCM) in website, and declared required documentation of every risks (Low, Medium and High).

 

Action Plan

Indicator

Calendar

Reform

Recommendation

Additional Information/ Progress

As of November 2019

Institution

(s)

Progressing

Dealing with Construction Permits

Short  Term

(1)

Examine the written response from the World Bank Doing Business team to Myanmar DB 2021 submission when this becomes available.   Plan and initiate any necessary actions arising from that response.

 

 

 

 

Short Term

(2)

Identify any problems arising from the full launch of the online system for building permits and plan and initiate any remedial measures

Pilot testing phase commenced on August 9, 2019. Fully online system launched on April 27,

 2020 with mandatory online application and payment (notification issued March 6, 2020)

The risk-based system is fully automated for all, low, medium and high, risks.

With full launch of the YBPS, existing band width of YCDC (500 MB) has found to be insufficient.

As the sizes of submitted files are large, additional storage space will be required in the long run.

More training for human resource development is needed for both YCDC staff as well as the professionals.

YCDC

The risk based system is fully automated for all risks.( Low, Medium and High).

 

Means and budget to increase the band width and further internet speed are under investigation.

 

Change from server based data storage to cloud based data storage is under consideration.

 

Trainings (including online) are ongoing.

 

Short Term

(3)

Publish statistics about the performance of YCDC for the issuance of building permits. These should include the number of applications received, approved and the average time from lodgement to approval for low, medium and high risk.

It would be helpful also to show these statistics in graph form

YCDC

Statistics about the performance of YCDC for the issuance of building permits including graph form, will be published on YBPS Homepage by the end of August 2020.

 

Short Term

(4)

Review the information relating construction permits on the YCDC website, update the information and remove the old information accordingly to avoid misunderstanding and confusion

The information on the website is not well organized yet.

YCDC

The data has already been updated. Further actions to better organize YCDC website are underway.

 

Short Term

(5)

Amend the Myanmar DB website to reflect the fact that an online system for building permits is available since April 27 2020.

 

YCDC,

DBS

Underway.

 

Medium term

(6)

Consider an option to have a joint application for the demarcation map and the building permit (joint application, joint inspection, joint issuance)

As of now, the demarcation map is one of the documents to be submitted for a building permit. Both documents come from YCDC (two different departments). The demarcation map is considered as a lengthy process for some entrepreneurs and it could be addressed with a joint application at YCDC. [YCDC indicated on October 16 that joint inspection should not be a problem]

YCDC

Right now, there are 2 different things.

There is a need to update the forms and the application.

The software developer is working on the combined application and joint payment.

After, the combined inspection will be implemented.

Ideally, it would have been be ready on April 27 (at the same as the online application becoming mandatory) but it is still under implementation after April 2020. New target date needed.

Joint payment for without D Map applications is available from 19.6.2020.

 

Medium term

(7)

Implementation of risk-based inspections during construction

 

YCDC

Risk based inspections are done.

 

Long Term

(8)

Streamline and consider the issuance of the Completion Building Certificates on the spot

Certificates could be pre-printed and signed at there and then at the conclusion of the final inspection. In some countries, inspectors carry an iPad and small printer.

YCDC

YCDC said the recommendation was not practical.

To be changed to Long Term.

 

Long term

(9)

Cover additional clearances (fire, water and payment of tax) at the time of final inspection for the issuance of the Completion Building Certificate

The IRD clearance and fire safety recommendation will need to be obtained before getting the BCC. Those clearances and certification will need to be reviewed and streamlined. Delays at Fire department are mostly because of the discrepancies between the actual building and the drawing, and the need to meet the safety standards of the materials used for the building.

 

BCC application needs IRD Tax clearance certificate. This is to prevent people using the building despite the fact that they still owe tax payment to IRD. It is very difficult for IRD to trace for tax payment after BCC.

 

 

Link to building regulations to see requirements for BCC application:

https://www.ycdc.gov.mm/download.php?pdffile=MECandMAC_lasted

 

(Link to Fire Force law: https://ybps.ycdc.gov.mm/index.php?id=15)

YCDC, IRD, Fire Dept, YCDC water

Union Level Policy needed.

 

Long term

(10)

Introduce a Decennial Liability for structural flaws or problems in the building once it is in use

 

YCDC

Union Level Policy needed.

 

Long term

(11)

Introduce an insurance policy (Latent Defect Liability Insurance or Decennial Insurance) to cover possible structural flaws or problems in the building once it is in use

Product not currently available. Discuss with MOPFI and CBM in the context of insurance reforms.

YCDC

Union Level Policy needed.

Lead Person

Daw Hlaing Maw Oo

The Dealing with Construction Permits Indicator Support Group is headed by the Secretary, YCDC

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