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Dredging in Ukraine: licenses and permits

08.04.11

nitsevych interlegal chebotarenko

Dredging in Ukraine: licenses and permits


Within the last years the interest of the leading global services providers operating in dredging sector to the Ukrainian market has been significantly increasing.
Before entering the Ukrainian market a foreign provider should be aware of certain requirements for carrying out dredging activity in Ukraine. One of them - licenses and permits required for carrying out dredging works in the territory of Ukraine.
Under the Ukrainian law dredging itself is not subject to licensing. However, any activity connected with construction such as shore protection, construction of dikes etc. is subject to licensing. Taking this into account the following licenses and permits should be obtained for carrying out dredging works in Ukraine:

  1. Construction license
  2. Permit for beginning high danger works
  3. Recognition certificate of the Shipping Register of Ukraine

Construction license
In Ukraine the licensing activities are stipulated by the Law of Ukraine “On licensing of certain types of economic activities” No.1775-III dd. 01.06.2000, including the construction activity.
The construction license is obtained pursuant to the Procedure of licensing certain types of economic activities in construction approved by the Decree of the Cabinet of Ministers of Ukraine No. 1396 dd. 05.12.2007. Term of license issuance – 30 working days from the date of filing application. Term of license validity is 5 years, for the companies obtaining it for the first time – 3 years.
The construction license includes the Addendum with the list of construction works the company is entitled to perform. In Ukraine there is a certain List of construction works enclosed to the mentioned Decree. So, when applying for the license it is necessary to provide the list of works with the exact wording as per this List.
The construction activity is to be carried out in compliance with the Licensing terms of carrying out activity in construction connected with creation of architecture objects approved by the Order of the Ministry of the regional development and construction of Ukraine No. 47 dd. 27.01.2009.
Permit for beginning high danger works
This permit is issued in accordance with the Procedure of issuance of permits by the State committee of labour safety control and its territory bodies approved by the Decree of the Cabinet of Minister of Ukraine No. 1631 dd. 15.12.2003. The Addendum 1 to this Procedure is the List of the high danger works, which includes land works carried out on the depth of more than 2 meters or in the area of underground pipeline or under water, diving works etc.
As per Decree the term of issuance of permit is 30 working days from the date of filing application. The permit is issued for 3 years.
Recognition certificate of the Shipping Register of Ukraine.
Pursuant to Clause 1.1 of the Regulations of organization and order of technical control for surveying works in waters and approach canals to ports, shipbuilding facilities and shipyards and navigable paths approved by the Order of the Ministry of transport and communications of Ukraine No. 463 dd. 12.05.2006 dredging works are carried out by companies and organizations provided they have Recognition certificates. The recognition certificate is issued by the Shipping Register of Ukraine for 5 years.
Another import issue is whether foreign dredging companies may apply for obtaining the above mentioned permits directly without Ukrainian element. Under the Ukrainian law foreign dredgers may carry out dredging activity and accordingly apply for the corresponding permits only through their representative offices registered in Ukraine. So, before applying it is necessary to register a representative office that will have the Ukrainian residence. Another option, which is most frequently followed, is establishing a subsidiary company in Ukraine.
Speaking about specific project implementation, a special Permit for carrying out works on the lands of water resources should be obtained. This Permit is obtained by dredging customers in accordance with the Procedure of issuance of the permits for carrying out works on the lands of water resources approved by the Decree of the Cabinet of Ministers No. 557 dd. 12.07.2005. It is issued by the State Committee of Water Economy with the approval of the local bodies of the Ministry of Ecology and Natural Resources of Ukraine. Therefore, such permit is obtained for a certain object and contains its location. Accordingly the permit is issued for a period of carrying out dredging works on it. Depending on the object certain approvals from other state bodies such as fish industry state bodies may be required.
At first, obtaining the mentioned permits and licenses seems rather complicated and time consuming. However, taking into account the specifics of dredging activity, the necessity for obtaining all such permits is quite logical. In particular, it may have a significant influence on the environment and, therefore, is strictly controlled by the state authorities.