Request and obtain a good standing certificate (certificado de paz y salvo)
Agency: Public Registry Office (Registro Público de Panamá)
For the construction of a warehouse the first step is to obtain a good standing certificate issued by the Public Registry Office (Registro Público de Panamá). This certificate is required by the Directorate of Works and Construction of the Municipality of Panama to verify who the property owner is, where the project will be developed, the property number and the lot area. In particular, construction plans, the construction permit, and the occupation permit all must include the property number.
Time and cost: 2 days, USD 30
Obtain results of geotechnical study / soil test
Agency: Private licensed company
According to Article 21.4 from Acuerdo 281 adopted by the Consejo Municipal de Panama in December 2016, as well as its earlier versions, a soil test is required for all new constructions. A soil test is a necessary step for development of the project. The soil investigation helps to determine the bearing capacity of the land, which helps to determine the load capability, the type and depth of foundation, in order to make sure to select a suitable construction technique.
Time and cost: 30 days, USD 2,000
Request and obtain environmental study
Agency: Independent Environmental Consultant
The environmental impact study must be conducted by an independent environmental consultant and certified by the National Environmental Authority (Ministerio de Medio Ambiente-ANAM). In the Doing Business case, given the intended use of the warehouse, the required environmental impact study is that of Type I.
The process of completing an environmental impact study may take from 15 to 30 days, but the approval by the National Environmental Authority could take approximately 45 days, depending on the category of the environmental impact study.
Time and cost: 23 days, USD 2,500
Obtain results of topographical survey
Agency: Private Engineer
According to Article 3.02 of the Municipal Decree No 116 of July 9, 1996, Build Co. needs to obtain the topographical survey to design the location map
Time and cost: 14 days, USD 1,250
Notarize form to deposit the environmental study
Agency: Notary
The environmental expert will issue the environmental impact study to BuildCo. BuildCo must then complete a form and both the environmental impact study and the form must be notarized. The entire file is then submitted to the Ministry of Environment for further review.
Time and cost: 1 day, USD 3
Request and obtain preliminary approval from the Environmental Authority
Agency: Municipal Office (Environmental Authority)
While BuildCo. submits the paper work to the Municipaity, they can pay the fee at the head office of the Environmental Authority.
Time and cost: 15 days, USD 350
Submit drawings (anteproyecto) to the Municipality and obtain clearance
Agency: Municipality of Panama, Works and Construction Department (Dirección de Obras y Construcciones Municipales)
The architect must fill out the petition form and submit the preliminary design (anteproyecto). The Municipal Office has created a centralized window for filing of the preliminary project design.
Time and cost: 7 days, USD 1
Hold consultation with the Municipality to determine approvals
Agency: Municipality of Panama, Works and Construction Department (Dirección de Obras y Construcciones Municipales)
This procedure is in the process of being incorporated into the online system administered through Panama Tramita. This will allow for a parallel approval process to be completed online. Until this electronic platform is fully implemented, a public official from the Municipal Office determines the government offices that must approve the project. Representatives of the different offices are located in the Municipality but in separate offices. The company or architect must obtain approvals from those offices directly.
Time and cost: 6 days, no charge
Request and obtain signature of certified fire specialist
Agency: Certified Fire Specialist
BuildCo must receive an approval of the project drawings related to fire safety from an independent and certified specialist. This is then submitted to the Fire Department Safety Office (Benemerito Cuerpo de Bomberos de la Republica) for approval.
Time and cost: 2 days, USD 359
Request and obtain preliminary approval from Ministry of Public Works and Fire Department Safety Office
Agency: Ministry of Public Works and Fire Department Safety Office
BuildCo must obtain a preliminary approval from the Works and Construction Department. In order to obtain the approval the project needs to comply with urban zoning regulations. The certification of land use is issued by the Land Management and Housing Department and requested by the Works and Construction Department only if the zoning lot does not appear in the following book “Documento gráfico de zonificación para la ciudad de Panamá- MIVI’2004”, which is where the established land uses (zoning) are shown.
Time and cost: 1 day, USD 80
Request and obtain construction permit
Agency: Municipality of Panama, Works and Construction Department (Dirección de Obras y Construcciones Municipales)
BuildCo must present the application to the director of the Municipal Construction and Works Authority, accompanied by two copies of the blueprints; the land use certification issued by the the approvals issued by the Fire Department Safety Office, Ministry of Health, Ministry of Public Works, and Environmental Authority; the municipal good standing certificate; and proof of registration of BuildCo with the Technical Board.
Time and cost: 15 days, USD 7,722
Request and connect to water and sewerage services
Agency: Water and Sewerage Authority (Instituto de Acueductos y Alcantarillados Nacionales-IDAAN)
The cost is based on the latest fee schedule provided in Resolution No. 9484 (December 2015) by the Water and Sewerage Authority (Instituto de Acueductos y Alcantarillados Nacionales-IDAAN). The breakdown is as follows:
- Water meter: USD 165.52
- Installation USD 70.88
- Metal deposit box: USD 48.14
- Installation: USD 51.1
Time and cost: 14 days, USD 336
Receive inspection from Municipal Office (Ministry of Public Works)
Agency: Municipal Office (Ministry of Public Works)
While waiting for the water and sewage services, BuildCo, according to Article 64 of Building Regulations, receives an inspection by the Municipal Office (Ministry of Public Works) in order to obtain the occupancy permit.
Time and cost: 1 day, no charge
Receive inspection from Fire Department Safety Office
Agency: Municipal Office (Fire Department Safety Office)
At the same time BuildCo receives an inspection from the Fire Department so that the department can issue a permit. Inspectors come according to a schedule of visits that is defined when the preliminary approval has been granted.
Time and cost: 1 day, no charge
BuildCo. obtains the permit by Fire Department Safety Office
Agency: Municipal Office (Fire Department Safety Office)
BuildCo. must obtain an approval from the Fire Department Safety Office after receiving the inspection (Benemerito Cuerpo de Bomberos de la Republica).
Time and cost: 2 days, USD 400
Request and obtain occupancy permit
Agency: Municipal Office (Fire Department Safety Office)
After receiving the approvals, BuildCo. obtains an occupancy permit issued by the Fire Department Safety Office (Benemerito Cuerpo de Bomberos de la Republica).
Time and cost: 10 days, USD 320
Notary notarizes “declaration of improvement” (declaración de mejora)
Agency: Notary
When the occupancy permit has been issued, BuildCo will need to notarize a declaration, which must be drafted on an official form (escritura pública)
Time and cost: 2 days, USD 100
Register building with the Central Property Registry
Agency: Central Property Registry
According to the fees published by the Public Registry (Resolution No. 212 of April 18, 2013 ) the “entry fee” for the constitution or transfer of ownership of real property (including improvements declaration) is USD 3 for each USD 1,000 of the property value.
Time and cost: 7 days, USD 2,153
