Preferences for Economic Recovery Projects

The Government approved a draft law on simplifying permit procedures for acquiring the right to land and initiation of construction processes during the implementation of projects aimed at economic recovery. It will soon be remanded submitted to the Parliament for consideration.

It is assumed thatThe draft suggests that during within the martial law and within the period of post-war reconstruction period, entrepreneurs implementing projects included in the List of Economic Recovery Projects shall receive the most favourable terms for investment. In particular, it is planned to apply the following preferences:

  • shortening the terms for acquiring rights to a land plot – from 18 to 3 months,
  • the right to a land plot shall be acquired with no auction, no land management documentation and with guarantees of non-alienation of the plot provided,
  • establishment and amendment of the purpose of the land may be committed made with no correlation between a type of purpose and a type of functional purpose of the territory,
  • the design of a construction object may be carried out designed ignoring without compliance of urban planning terms and restrictions, given provided that it complies with building safety regulationsrequirements.

An economy recovery project shall be of value of more than € 500,000.00 to get the preferences and may be aimed at relate to any industry (except for waste management and housing construction).

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In addition, the Government notifies that a mechanism for insurance of investments under the martial law is being composedconsidered. Relevant advisory is currently held by the Cabinet of Ministers with the Multilateral Investment Guarantee Agency (miga).

The mechanism proposed It is assumed that, in the conditions of a military / terrorist threat, the investor may purchase an insurance, the cost of which will depend on the amount of the investment. In the event of a force majeure, the investor will be able to indemnify recover the investment funds.