Identifier
Created
Classification
Origin
09VLADIVOSTOK54
2009-04-27 07:48:00
UNCLASSIFIED
Consulate Vladivostok
Cable title:  

NEW APEC LAW TO STREAMLINE PROJECTS

Tags:  ECON PGOV RS 
pdf how-to read a cable
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FM AMCONSUL VLADIVOSTOK
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RUEHVK/AMCONSUL VLADIVOSTOK 1231
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