Inception Report – Streamlining of Building and Occupancy Permitting Process

One purpose of SURGE is to make cities more competitive through regulatory and process reforms that will contribute to the "ease of doing business." A key aspect of starting a business is obtaining construction and occupancy permits, which is often a time-consuming and complex process. In the Philippines, the time, cost, and number of procedures to comply with formalities to build a warehouse, including obtaining utility connections, takes 24 steps, 94 days, and 1.2% of construction costs, placing the country in 124th place among 170 economies. The SURGE program aims to simplify the construction permitting process in six cities in the Philippines, including Cagayan de Oro, Batangas, Tagabilaran, Puerto Princesa, Iloilo, and Zamboanga. The study will involve a review of construction-related procedures in the six cities, identification of best practices, and formulation of plans for improvement. The research will be divided into five phases, with Phase 1 involving a desk review of pertinent laws on construction permitting, Phase 2-3 consisting of focus group discussions with concerned officials and process observation and mapping, Phase 3 involving key informant interviews with private sector stakeholders, Phase 4 including validation interviews with national organizations of developers and contractors, and Phase 5 involving the preparation of a report of assessment and detailed recommendations for improvements per city. The study will also involve the use of a questionnaire to gather information from building officials and concerned city officials, as well as applicants, contractors, and developers. The questionnaire will cover topics such as the first point of contact in applying for a building permit, the number of staff involved in the permitting process, the range of construction costs, and the number of steps and days required to secure a building permit. The SURGE program aims to reduce the number of days and steps required to secure a building permit, as well as to identify and remove unnecessary requirements and submittals. The program also aims to improve the efficiency of the permitting process and to reduce graft and corruption. The study will provide a baseline data and recommendations for improvement, which will be used to inform the development of a streamlined permitting process in the six cities. The proposed schedule for the study is as follows: Phase 1 will take 5 days, Phase 2-3 will take 25 days, and Phase 4-5 will take 10 days. The study will be completed within a period of 40 days, with the submission of the report scheduled for October 30, 2016.