NEW APEC LAW TO STREAMLINE PROJECTS

UNCLAS VLADIVOSTOK 000054 SIPDIS E.O. 12958: N/A TAGS: ECON PGOV RS SUBJECT: NEW APEC LAW TO STREAMLINE PROJECTS Summary. In preparation for the 2012 APEC summit to be held in Vladivostok, the State Duma on April 24 approved a law designed to streamline processes involved in constructing necessary projects for the summit. It increases eminent domain powers for the government; simplifies the approval process for clearing land of vegetation; makes it easier for construction firms to hire foreign labor above established quotas; and allows for no-bid contracts. The draft law is now awaiting final approval by the Federal Council. State Duma Deputy and Head of Construction and Land Relations Martin Shakkum initiated the law in December of last year. The draft of law was approved by 315 deputies on April 24 during its third review and has been passed to the Federal Council for final approval. If the law is ultimately passed -- which analysts say will likely happen by March -- its measures will be in force until January 2012. First, the law strengthens the government's eminent domain powers when procuring land for APEC-related construction by cutting the review and approval process time for federal land purchases from one year to three months. Property owners will, therefore, have less time to evaluate offers put forth by the government. Second, clearing Russkiy Island of its forest will be made easier. The current Forest Code limits the felling of trees in urban areas to sanitary cuts. Russkiy Island, the main location for the summit, lies within the municipal territory of Vladivostok city. The new law will allow clear cutting in areas deemed necessary for APEC construction projects. Third, contractors will be able to increase their labor pools by hiring foreign workers who will not be counted towards regional quotas provided they are to be used on APEC projects. The issuance of work permits will also be accelerated. Finally, the government will be allowed to forego the usual bidding process for APEC projects, and appoint contractors in a no-bid process. Comment -------------- As the final reading was just completed, there has been little comment about it in the media. Further media and political reaction will be covered septel. In any case, residents on Russkiy Island will likely raise concerns about the law's environmental impact and shortening of property procurement review. Though not officially law yet, it passed in the State Duma faster than normal and final passage is very likely. MMILLER