What arrangements are usually made with the local authorities and utility suppliers in relation to infrastructure (new roads, sewers etc) to support a new development?
Under Angolan law, land urbanization is a public function whose costs shall be borne by the state, although the execution of urbanization works foreseen in urban plans or other instruments may be of public or private initiative.
The execution of urbanization works of private initiative is regulated by concession or consultation and is subject to licensing. The license may be granted separately or may be contained in the concession or concertation contract. In addition, the license may cover the related allotment and construction operations.
Public works tenders related to infrastructure are regulated in Argentina by Law No. 13,064. This law establishes the procedures and requirements for awarding public works contracts, as well as the obligations of the contracting parties. Among the key aspects of the law are the requirements for bidding companies to have a proven track record in similar projects, as well as the obligation to provide a bidding bond as a guarantee of good faith. The law also establishes the procedures for the evaluating and selecting bids, including the consideration of technical and economic factors, as well as the obligation to justify the final decision. Law 13,064 also establishes the rights and obligations of the contracting parties, including the obligation to comply with the terms of the contract, the procedure for handling claims and disputes, and the penalties for breach of contract. Overall, the law aims to promote transparency, competition and efficiency in awarding public works contracts in Argentina. For individual or residential purposes, the owner won’t contribute financially to the development of the infrastructure required for the provision of any utility (such as power, water). They will contribute to its consumption. If the owner/developer is seeking to develop any other type of commercial project, they can negotiate the most suitable approach with the government or local authority. Usually a percentage of the cost is absorbed by the developer.
Under the states' and territories' local planning legislation, the highways authority and a developer/landowner can enter into an agreement whereby the authority agrees to carry out works to the public highway which concern the development (eg junction improvements) subject to the costs being borne by the developer.
As a condition of development consent for a proposed development, the consent of the relevant authority (council) under state and territorial legislation will require that satisfactory arrangements be made for the payment of contributions and the provision of services to the new development.
Upon receiving a development application, the local authority will investigate the impact of the proposed development on its water and sewerage system. A response is then issued to the developer outlining the charges and/or works that the developer must pay and/or construct for the development. When all the contributions/fees are paid, and works complete and passed by council, then a Certificate of Compliance will be issued.
Infrastructure and utilities are mostly governed by the public planning law of the Flemish, Walloon and Brussels Capital Regions, and are therefore regulated in:
In all three regions, in the case of an application for an allotment permit (which includes the construction of new roads), the Municipal Legislative Body has to decide on the infrastructure and utilities requirements, before the Municipal Council can grant an allotment permit.
Most local building regulations have been created to govern connections to sewage systems. When deciding on individual building permit applications, the municipal council usually refers to this building regulation, or imposes related conditions in the building permit.
In the case of the construction of roads, utilities and infrastructure, a separate permit procedure exists in relation to what is in the ‘public interest’. Related permit applications have to be made at Ministerial level, particularly if the application relates directly or indirectly to private project development.
Investors or developers are usually required to secure the necessary infrastructure to support new developments.
Under the law of the Republika Srpska urban construction land can be either prepared or unprepared. Prepared urban construction land is equipped by the municipal authorities with the necessary infrastructure such as roads, electricity, water, sewers, etc.
During the building permit application process the developer is usually given responsibility for creating the infrastructure to support the new development. Sometimes specific agreements and easements are established so the infrastructure and utilities can access the property.
Development incentives and infrastructure support provided by local authorities and utilities vary by jurisdiction and often, within the same jurisdiction, can differ from project to project based upon local need and other market forces. Counsel in Canada can assist in assessing incentives or other arrangements available for a specific project.
Land grant contracts will usually include general requirements that the grantee will enter into arrangements with local authorities and utility suppliers in relation to new supporting infrastructure.
Developers or builders have to sign contracts with utility companies to ensure that basic services are provided to the new buildings.
To urbanize certain areas, it’s mandatory to obtain urban permits, under which developers must carry out certain public works, such as the construction of roads, public parking lots, green areas in exchange for benefits.
It has recently become more common to enter into specific development agreements with public authorities to facilitate, for example, the provision of access roads.
Infrastructure issues are an integral part of the entire process. When the general rules on regional planning for a particular area are set the possible projections for infrastructure development are reflected. Proposals for the construction of infrastructure (sewers, water, roads, etc) are part of the construction project. The requirements of the transport department and of other authorities and relevant departments are reflected in planning permission and all of these conditions are contained in the building permission.
The Infrastructure Act facilitates permits of strategical infrastructure such as motorways, pipelines, electricity systems, anti-flooding water etc. An amendment to the Infrastructure Act was passed in 2021 to reduce the lead time for strategical transport infrastructure.
As regards financing, in the case of communications (ie roads), the investor usually bears all costs where the road is located on land in the ownership of the investor. However, responsibility for roads is often, by agreement with the municipality, delegated to the municipality to ensure proper maintenance. In the case of sewers, ducts etc, all are paid for by the private entity or by agreement between all relevant persons who are connected to the infrastructure.
On a case by case basis, local authorities determine the arrangements relating to infrastructure that are required for the construction.
Under the French Planning Code (Code de l'urbanisme), the owner (maître d'ouvrage) must make a financial contribution in relation to infrastructure in order to support new development. The owner may be released from this liability by carrying out the infrastructure related works itself.
Any plot of land on which a development is planned must be connected to public infrastructure and utilities, otherwise the building authority may refuse to issue a building permit or may impose a building ban. In order to connect the project to the utility networks, the developer enters into an agreement with the relative utility supplier.
As for the connection to public roads, the municipalities may impose dues for the connection and may require the developer to transfer land to the municipality to facilitate the construction of a road. In this regard, it is particularly common for developers of large building projects to enter into agreements under public law which oblige them to construct the relevant connection at their own cost and then to transfer the areas on which the roadway has been constructed to the authorities free of charge.
Arrangements are usually made with the Hong Kong Police Force and the Transport Department which are the agencies through which transport policy is enforced. Developers also work closely with other departments such as the Water Supplies Department, Drainage Services Department, Civil Engineering and Development Department, Buildings Department, etc, regarding roads and associated drainage. In performing building development works adjacent to public roads, developers also have frequent and close contacts with the utility operators.
It has become rather common in recent years for developers to sign a community development agreement with the local municipality, in which the developer undertakes to finance the rezoning costs of the development area, to carry out certain public works, such as landscaping or the construction of roads, public parking spaces or pavements. The works and structures so constructed would thereafter be handed over to the local municipality free of charge.
In the case of substantial greenfield developments local municipalities may participate in, and partially finance, the costs of creating the necessary utility connections.
Developers must apply for planning permission for all new developments. Each planning permission, depending on the complexity of the development, will contain conditions which must be satisfied prior to construction in relation to all utilities. It may also require payment of fees for road connections and drainage, which the local authority will secure. However, it is the responsibility of the developer to liaise with utility companies in relation to obtaining utility connections, eg gas and electricity.
According to Italian law the construction of a new development involves the prior issue of an administrative permit that usually sets forth the infrastructure works to be carried out in order to support the new development. Depending on the type of permit issued by the competent local authority, the developer may be requested either to construct, at its cost and expense, the necessary infrastructure works should the building works be regulated by a town planning agreement (‘Convenzione’) or, should such infrastructures already exist due to the fact that the building works are carried out in an already developed area, to pay to the local authority monetary contributions in terms of urbanization fees.
Utility suppliers (electric company, gas company, etc.) carry out utility infrastructure construction at the owner's expense.
Also, for water supply works, the owner must submit a notification to the relevant local government and order such works to a construction company designated by the relevant local government.
Project developers and the government usually enter into agreements regarding infrastructure and mains services. Project developers usually make monetary contributions towards the costs that the government will incur in installing mains services. A development agreement will be entered into for this purpose. As a result of net congestion in the Netherlands, we see more often that private initiatives such as setting up energy hubs are taken, so that customers can be provided with sufficient electricity from private parties instead of from public providers.
If a project also includes infrastructure works, those works are commissioned by the government. The government lays down specific rules regarding the carrying out of such works.
Developers engage with local authorities as part of the consenting process (ie obtaining resource and building consents from those authorities) for new developments, and generally liaise with local authorities (which in turn engage with utility suppliers) for the construction/provision of necessary infrastructure surrounding the new development.
Partnerships between local authorities, central government, and private infrastructure providers ensure that funding is targeted at supporting new developments.
Infrastructure and utility arrangements to support a new development are dependent on the project sponsor. Where the project is privately owned, the provision of infrastructures and utilities (roads, sewers etc.) are the responsibility of the owner/developer. The development of infrastructure is subject to layout design planning approvals showing the land and proposed infrastructure.
Where the project is a public sector initiative or a public-private partnership project, there are usually arrangements with the utility suppliers in relation to the necessary infrastructure required for the real estate development.
Infrastructure development should be in the contemplation of the project developers, and it is usual to liaise with the relevant utility companies in relation to obtaining connections such as electricity or water. Electricity generation and distribution have been the sole responsibility of a government-owned Corporation but currently liberalized with private sector involvement and other power generation companies participating. The developer has the option of connecting to the general power grid and making arrangements with the private power companies for the supply of energy.
The requirements with regard to infrastructure (for example roads and sewers), are found in the Planning and Building Act of 2008. The Act regulates both developers' and public authorities’ rights and obligations in respect of infrastructure arrangements.
The development of a site will be subject to requirements regarding access, water supply and the drainage system. The requirements are set out in chapter 18 of the Planning and Building Act of 2008 . Under section 18-1 of this Act, there is a requirement to create a public road and to install public water and drainage pipes in the immediate vicinity of the site. The road and pipes must meet the quality requirements set out in local regulations, the relevant zoning plan and the requirements set out in the Planning and Building Act. A certificate of completion or a provisional permission for the building is usually not granted before these requirements are met.
The Planning and Building Act states that the municipality is responsible for the upkeep of works relating to roads, water and drainage, once completed.
Private developers who have been required to construct a public road, public water system or drainage installations can require other landowners who benefit from the infrastructure project to contribute towards some of the cost of the works.
In large and complex projects, landowners or developers often enter into development agreements with the municipality. Such development agreements generally regulate the implementation and allocation of costs associated with major infrastructure projects. The agreements often replicate the requirements set out in the Planning and Building Act. In some cases, such an agreement may even be a pre-condition to securing permission to carry out the project.
This depends on the nature of the development and can only be determined on a case-by-case basis. Generally, the agreement is entered into between a local planning authority and/or utility suppliers regarding the provision of services and connection of new infrastructure, such as new roads, water, sewage, gas, electricity installations. The costs of services and infrastructure on public land is met by local authorities and utility suppliers. In general, the cost of infrastructure on private land to be connected to public infrastructure system is met by the owner.
As part of the process of obtaining a licence, from the local authorities, for construction work to proceed, the developer may be required to fulfil certain conditions relating to the associated infrastructure that is required to support the development. For example, it is common for a developer to accept an obligation to build roads, electrical grids and other support infrastructures, in accordance with the specifications required by the local authority grantor of the construction permit or to transfer, to the municipality, part of its land and to build parking spaces, gardens and to provide areas for accessible housing or controlled costs housing.
Agreements with Romanian public authorities may be entered into in relation to infrastructure under the applicable legislation regarding public procurement, provision of services and concessions.
Agreements with the utility suppliers must be concluded during the construction work as well as after the work is complete.
Infrastructure and utilities are considered to be elements ancillary to building works and structures. As long as their construction does not significantly affect the environment, it is only necessary to submit a written notice of the creation of infrastructure and utility elements to the relevant building office. Prior to the construction of such matters and prior to the issuance of notification to the relevant building office, the developer must have in place the project documentation for the construction of the elements of infrastructure and utilities. The developer must also have the consents of the respective bodies (eg the consent of the relevant district office for environment protection).
The developer of the building enters into arrangements with the relevant utility supplier (electricity, water, gas and canalisation) in order to connect the infrastructure to the utility networks. For example, a developer that sells plots of land for the subsequent construction of houses may enter into a donation agreement with the respective municipality. As a result of this agreement, the developer will 'donate' the access road at the site to the municipality following completion of the road, thereby releasing himself from his related duty to operate, maintain and clean the respective road.
Depending on the nature of the development, the developer will enter into specific agreements with the utility companies. The location of the project will also determine which reports and authorisations from different authorities are required (eg from the roads department, rail network authority, coastal authority etc) within the licensing process.
During the building permit application process the developer often discusses the zoning plan with the municipality and the developer is often given responsibility for creating the infrastructure to support the new development.
Utility arrangements are normally made prior to the construction of a building with utility suppliers. In Thailand, most utility suppliers are operated by public entities therefore, applications for connection to utilities will be dealt with in accordance with the rules and regulations of the relevant authority.
The main agreements are with:
It is generally the responsibility of the developer/owner to ensure that utilities will and can be provided to the site. During the planning and design phase of the project the developer/owner must obtain Non-Objection Certificates (NOC's) from each of the utility suppliers below.
Once construction is complete NOC's will again need to be obtained for the Completion Certificate to be issued.
The main agreements are:
The main agreements are:
Section 75 agreement
An agreement under section 75 of the Town and Country Planning (Scotland) Act 1997 is entered into between a local planning authority and a developer/landowner and is used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing, after planning permission is awarded. The Section 75 Agreement is normally recorded in the Land Register of Scotland so that its obligations will bind to the land and thereby restrict the development or use of the land in any specified way and require a sum or sums of money to be paid to the local planning authority.
Section 69 agreement
An agreement under Section 69 of the Local Government (Scotland) Act 1973 is entered into between a local planning authority and a developer/landowner and is (in common with a Section 75 Agreement) used to support the provision of services and infrastructure (eg the payment of a financial contribution to the cost of providing new public infrastructure such as roads or sewers). Usually it is entered into before Planning Permission is awarded and, as the obligations of the developer/landowner must be satisfied before planning permission is issued, it is not normally recorded in the Land Register of Scotland (unlike a Section 75 Agreement).
Section 48 agreement
A Section 48 Roads (Scotland) Act 1984 agreement is entered into between the highways authority and the developer/landowner. The authority agrees to carry out works to the public highway and concerning the development (eg junction improvements) at the cost of the developer.
For the period of construction, developers in Ukraine usually enter into temporary agreements with utility suppliers (water, electricity, sewerage etc) to secure the construction site with the utility services necessary for its construction needs. After completion of the construction works, the company which owns or manages the building enters into permanent agreements with utility suppliers.
On 20 September 2020 Ukrainian Parliament passed the law that amended the Law of Ukraine ‘On the Regulation of Town Planning Activity’. From 1 January 2020 till 1 January 2021 there is a transition period during which developers of residential and commercial projects shall pay share investment contribution for settlement's infrastructure under reduced rates (construction of industrial objects is released from paying such contribution). From 1 January 2021 all constructions projects will be released from paying the above contribution.
Development incentives and infrastructure support provided by local authorities and utilities vary by jurisdiction and often, within the same jurisdiction, can differ from project to project based upon local need and other market forces. Counsel in the US can assist in assessing incentives or other arrangements available for a specific project.
The construction of infrastructure to support a new development is ordinarily permitted in a permit issued by the local authority. The local authority would state the minimum specifications of the infrastructure or the need for approvals from the relevant utility that governs the infrastructure. For new roads and sewers the city council or rural district council, whichever is applicable, would authorize this, while electricity supply would be authorized by the Zimbabwe Electricity Transmission and Distribution Company. Water connections would be approved by the Zimbabwe National Water Authority.
