In Kazakhstan the Law on Amending Certain Legislative Acts Regarding Improvement of the Regulatory Approval System (aimed at business liberalisation by reduction of administrative burdens and permits) came into effect on 30 January 2012.

In line with GRATA Law Firm's practice of keeping clients informed of important legal developments that might influence their business, we would like to draw your attention to changes in Kazakh legislation in connection with entry into force of the new Law on Amending Certain Legislative Acts Regarding Improvement of the Regulatory Approval System.

I. OVERVIEW

On 15th July 2011 President of the Republic of Kazakhstan signed the Law on Amending Certain Legislative Acts Regarding Improvement of the Regulatory Approval System (hereinafter – the "Law on Amendments"), which came into effect on 30 January 2012.

The Law on Amendments amended 54 Kazakh Laws, including the Environmental Code, the Tax Code, the Land Code, the Code on Administrative Offences, the Law on Licensing, the Law on Architecture, Town-Planning and Construction Activity, the Law on Industrial Safety and many others.

Some of the most important changes introduced by the Law on Amendments to the Law on Architecture, Town-Planning and Construction Activity are summarized below.

II. AMENDMENTS INTRODUCED TO THE LAW ON ARCHITECTURE, TOWN-PLANNING AND CONSTRUCTION ACTIVITY

The Law on Amendments provides a provision on carrying out examination of projects, design and technical supervision by an expert, having relevant certificate for rendering engineering services in the sphere of architecture, town-planning and construction activity. We remind that previously these services were rendered by organisations which had a relevant license. Please note that state examination of construction projects is carried out by a legal entity that shall have among its staff relevant attested experts.

Individuals as well as legal entities carrying out design activity and construction and assembly works in the sphere of architecture, town-planning and construction are divided into 3 categories depending on the level of responsibility of the constructed facilities.

Permit for carrying out construction and assembly works is not required for reconstruction, alterations, improvement of premises in existing housing buildings, carried out within existing boundaries of land plot (territory) without changes to structures and functional purpose of the facility (except for regions of high seismic hazard or with any other special geological (hydro-geological) or geotechnical conditions).

The Law on Amendments cancels the requirement on non-admission of issued of permits for construction in populated areas or inter-settlement areas without approved detailed planning or housing projects.

The Law also establishes changes in the procedure of facilities commissioning: during commissioning of a constructed facility by the acceptance commission, working commission is not required.

The Law excluded the requirement for approval of the commissioning certificate of a constructed facility, signed by the state acceptance commission. The date of commissioning of the accepted information is the date when the commissioning certificate was signed.

The Law also introduced the necessity to sign a particularly opinion of the working commission instead of certificate of the working commission on constructed facilities of housing facilities.

The list of technically simple facilities, which the owner (client, investor, and constructor) can accept into operation individually, was supplemented by construction of individual housing facilities as well as other buildings designed for private use of individuals.

The Law on Amendments excluded the requirement on commissioning of facilities by the acceptance commissions, if they are facilities belonging to state or of specific social interests, having social (social and economic) character.

The requirement to include into the composition of the commission a sub-designer (developer of sections of a project) during commissioning of industrial facilities was excluded by the Law. The additional list of representatives, which consisted of members of the state acceptance commission on commissioning of the industrial facilities, was also excluded.

The Law also excluded the requirement on including into the composition of the commission the local authority in the sphere of architecture and town-planning as well as state authority for social protection of the population during commissioning of facilities for housing and municipal purpose. The additional list of representatives, which include members of the state acceptance commission on commissioning of the facilities of housing and municipal purpose, was also excluded.

III. CONCLUSION

The Law on Amendments represents a significant step towards improvement of the existing permitting system of the Republic of Kazakhstan. Realisation of this Law will result in decrease of licenses and permits which in turn will simplify construction process and minimise requirements imposed by Kazakhstan state authorities on companies.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.