Study shows that the time required to obtain authorisations and put constructions into operation is one of major problems

The regulations on constructions continue to create serious problems, in contrast to other fields regulated by the state. One of the serious problems is the long period of time required to obtain authorisations and put the constructions into operation, an annual study “The Cost of Business”, presented in Chisinau on Thursday, July 5 shows. The chief specialist of the study of the World Bank, Lilian Bejan said that these problems have been mentioned by 26% of the questioned economic entities engaged in the construction business. Another problem is the unclear procedures which make the process difficult, fact confirmed by 20% of companies. The cost is another important problem, mentioned by 31% of respondents. The average costs increased during the last two years, but they depend on the value of the real estate. The reduced number of respondents who built and put into operation new houses and obtained the necessary authorisations by themselves, is insufficient to draw a certain trend, Bejan says. According to Minister of Economy and Commerce Igor Dodon, the study found that although several fields register positive trends, the certification of goods and the legal system is still a problem. Also the study allows seeing the fields which registered progress or regress. The study shows that both the duration and cost for an authorisation have considerably diminished during the last year. Also, the number of companies which are forced to obtain authorisations has gone down. Even if a license can be obtained faster, the procedure is considered to be as difficult as before, fact mentioned by about 22% of the respondents. Among the most serious obstacles related to the regulation of imports are corruption and the high cost of customs procedures. In the case of exports, an obstacle is the difficult procedures on obtaining the VAT. However, a high number of companies mentioned that the procedures related to the payment of duty are better. The certification of import products was mentioned as an important obstacle for the companies. The poll conducted last year confirms the trend of decreases in the frequency of inspections registered in the previous years. However, the sum of the annually paid fines has increased against the previous period. Most often, the companies are visited by police, even if the frequency of inspections has slightly diminished. The share of companies which had to settle conflicts has decreased from 52% to 16% in 2002-2007. The preferred method for settling the disputes is to address the courts. The biggest problem of the companies is the long period of time in which the courts take decisions. The Study of the Business environment in Moldova “Cost of the Business” was conducted by the Ministry of Economy and Commerce in partnership with the World Bank’s project “Competitiveness Enhancement in Moldova” in March-April 2007.