Doing Business 2018 Kiribati - World Bank Group
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Doing Business 2018 Kiribati
Page 1
Doing Business 2018 Kiribati
Economy Profile of Kiribati
Doing Business 2018 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-
filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2018 Kiribati
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present
the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Kiribati
Ease of Doing Business in DB 2018 Rank
Region East Asia & Pacific
190 1
Kiribati
Income Category Lower middle income 157
DB 2018 Distance to Frontier (DTF)
Population 114,395
0 100
City Covered Tarawa 48.74
DB 2018 Distance to Frontier (DTF)
0 100
62.70: Regional Average (East Asia & Pacific)
58.13: Solomon Islands (Rank: 116)
55.58: Palau (Rank: 130)
51.45: Marshall Islands (Rank: 149)
48.99: Micronesia, Fed. Sts. (Rank: 155)
48.74: Kiribati (Rank: 157)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Kiribati
1
28
55
82 94
Rank
111
109 121
124 127
136 147 146
163 168 170 168
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Distance to Frontier (DTF) on Doing Business topics - Kiribati
100
80 77.47
71.42
65.72
62.08
60
DTF
53.39
49.12
46.67
41.50
40
20.00
20
0.00
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2018 Kiribati
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and
50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of
local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5
married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 Kiribati
Starting a Business - Kiribati
Standardized Company
Legal form Private Limited Liability Company
Paid-in minimum capital requirement AUD 500
City Covered Tarawa
Indicator Kiribati East Asia & OECD high Overall Best
Pacific income Performer
Procedure – Men (number) 7 7.0 4.9 1.00 (New Zealand)
Time – Men (days) 31 22.7 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 40.2 18.4 3.1 0.00 (United Kingdom)
Procedure – Women (number) 7 7.0 4.9 1.00 (New Zealand)
Time – Women (days) 31 22.8 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 40.2 18.4 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 16.2 15.1 8.7 0.00 (113 Economies)
Figure – Starting a Business in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
88.49: Marshall Islands (Rank: 72)
85.42: Solomon Islands (Rank: 94)
82.32: Regional Average (East Asia & Pacific)
81.96: Palau (Rank: 124)
77.47: Kiribati (Rank: 147)
69.56: Micronesia, Fed. Sts. (Rank: 170)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Kiribati
Figure – Starting a Business in Kiribati – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
30
30
Cost (% of income per capita)
25
25
20
20
Time (days)
15 15
10 10
5 5
0 0
1 2 3 4 5 6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2018 Kiribati
Details – Starting a Business in Kiribati – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Deposit the legally required capital in a bank and obtain deposit evidence 1 day no charge
Agency : Bank
New companies must deposit share capital in a bank and obtain the receipt of deposit.
There are only two Banks: ANZ Bank (Kiribati) Ltd and Development Bank of Kiribati
where the procedure can be performed.
2 Check the uniqueness of the proposed company name 1 day no charge
Agency : Ministry of Commerce, Industry and Cooperatives
Searches of business names are done manually by the Companies Office. The Companies
Ordinance (s14 (10)) prescribes the forms of application for approval and reservation of a
business name.
3 Register the company with the Registrar’s Office 11 days on average AUD 50 for name
Agency : Companies Office (Ministry of Commerce, Industry and Cooperatives) reservation + AUD 50
The prescribed forms of registration and fees are part of the Companies Act. These forms for approval of
can be obtained from the Registrar. The cost is UD$ 50 for lodging particulars of the company name +
company and AUD$ 50 for the issuance of the certificate of incorporation, as well as,
incorporation fee
actual incorporation fee assessed based on share capital. The incorporation fee is
assessed by the
calculated pursuant to section 9 of the Companies Act, according to the following
Registrar based on
formula:
share capital (see
• Upon the first $10,000 of the authorized share capital a fee of $3.00 per $100 of such
share (subject to a minimum fee of $250), and procedure comments)
• Upon the next $40,000 of share capital, a fee of $2.00 per $100, and
• Upon any residue of such share capital, a fee of $0.50 cents per $100.
Provide the maximum fee for a company incorporated before the 1st April 1981 shall be
$500.
For a company with start up share capital of AUD 25,645 per Doing Business case study,
the incorporation fee would be AUD 613 (AUD 300 for the first $10,000 and AUD 313
for subsequent 15,645). As such, in total the company would pay AUD 713.
4 Register for taxes 2 days on average no charge
Agency : Ministry for Finance and Economic Planning
Under the Income Tax Act, companies operating locally must register for taxes.
5 Register with the Kiribati Provident Fund (KPF) 1 day no charge
Agency : Kiribati Provident Fund (KPF)
Companies are required to register with KPF to avoid duplication of numbers given to
each applicant.
6 Apply for a business license from the relevant licensing authority 11 days on average AUD 100-600
Agency : Betio Town Council
The Company must apply for a business license from the relevant licensing authority
(e.g., a council) in each jurisdiction in which business activities are carried out. The
license is renewable annually. A retail business license must be obtained from the local
government. The application process takes about a day and about 1 – 2 weeks to obtain
the actual license. Three people will be visiting the business location (the Betio Town
Council Clerk, the Mayor and the Vice Major. In addition to the cost of the license, an
executive fee of AUD 90 is charged (AUD 30 per person).
7 Make a company seal 4 days on average AUD 25-30
Agency : Sealmaker
Although doing so is not compulsory, companies customarily make a company seal by
ordering it from a manufacturer in Australia or another Pacific country. No authorization
is required to make a seal.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2018 Kiribati
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in June 2017. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
Obtaining utility connections for water and
legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage
the local association of architects or engineers. BuildCo is not assumed to have any
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure
upon its completion.
(calendar days)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2018 Kiribati
Dealing with Construction Permits - Kiribati
Standardized Company
Estimated value of warehouse AUD 154,365.00
City Covered Tarawa
Indicator Kiribati East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 15 15.2 12.5 7.00 (Denmark)
Time (days) 150 138.2 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.3 2.2 1.6 0.10 (5 Economies)
Building quality control index (0-15) 6.0 8.9 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
72.74: Solomon Islands (Rank: 57)
70.93: Marshall Islands (Rank: 71)
69.60: Regional Average (East Asia & Pacific)
68.38: Palau (Rank: 85)
65.72: Kiribati (Rank: 111)
61.05: Micronesia, Fed. Sts. (Rank: 137)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.3
140 Cost (% of income per capita)
0.25
120
100 0.2
Time (days)
80
0.15
60
0.1
40
0.05
20
0 0
1 2 3 4 *5 *6 *7 *8 9 10 11 12 13 14 15
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2018 Kiribati
Figure – Dealing with Construction Permits in Kiribati and comparator economies – Measure of Quality
15
Index score
10 8.9
7.0 7.5
6.0
5
1.0
0.0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Dealing with Construction Permits in Kiribati – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Apply for land use sublease at the Land Management Department 1 day no charge
Agency : Land Management Department
Land in South Tarawa is leased to the government for 90 years. The type of warehouse
featured in the Doing Business case study is most likely to be built in South Tarawa's
Betio, Bikenibeu, or Bairiki areas, where land must be subleased from the government.
BuildCo writes an expression of interest for a sublease to the Land Management
Department (LMD) at the Ministry of Environment, Land and Agriculture Development
(MELAD). LMD will then inspect the site and determine any constraints and
opportunities for land use.
2 Receive inspection from the Land Management Department 1 day no charge
Agency : Land Management Department
The application form outlines all requirements for the submission of construction plans.
3 Request and obtain approval from the Public Utility Board (PUB) 7 days AUD 1
Agency : Public Utility Board
BuildCo must submit the site plan and location to PUB so it can visit the site and confirm
that there is no danger to underground electricity cables and water pipes and the plot is
safe to excavate. PUB must then stamp BuildCo's building permit application.
4 Obtain land use sublease approval from the Sublease Advisory Allocation 90 days no charge
Committee (SAAC)
Agency : Sublease Advisory Allocation Committee
The Sublease Advisory Allocation Committee (SAAC) must approve the sublease.
Meetings of SAAC are chaired by the Secretary of MELAD and are supposed to take
place once a month.
Once approved by SAAC, the request is submitted to the Cabinet of Ministers for
approval. The final document is then signed by the Minister.
5 Request and obtain environmental license 15 days AUD 10
Agency : Environment and Conservation Department
According to the Environmental Act 2007, BuildCo must obtain an environmental license
to determine whether its activities will have an environmental impact. BuildCo must
complete an environment license application form and file it, along with the site plan,
zoning certificate, and proof of ownership, with the Environment and Conservation
Department (ECD) of MELAD. ECD will prepare a report and determine whether a full
Environmental Impact Assessment (EIA) is required. However, the type of warehouse
featured in the Doing Business case study would most likely not require a full EIA.
6 Request approval from the Public Works Department 1 day no charge
Agency : Public Works Department
BuildCo must submit the following documents:
• Site plan
• Building layout plan
• Building views
• Building sectional views
• Building details (such as footing, doors and windows)
• Plumbing
• Elevation
The application must be accompanied by plans certified by a qualified engineer. In
practice, the same architects or engineers who prepare the plans are also responsible for
approving them. The plans are returned with a list of building conditions. Several
departments will be approving the plans.
Since the plans are completed by an employee at the Public Work Department, approval
of the plans does not take a long time. Also, it is done in parallel with obtaining all the
other clearances, as there is no need to provide those clearances to the Ministry to obtain
the approval of the plans.
Page 11Doing Business 2018 Kiribati
7 Receive inspection from the Public Works Department before construction 1 day no charge
begins
Agency : Public Works Department
According to the Environmental Act, the Environment Minister’s consent is required for
all commercial developments. The application must be accompanied by the
environmental impact assessment. The time to obtain the consent varies from weeks to
several months.
8 Obtain approval from the Public Works Department 14 days no charge
Agency : Public Works Department
9 Request and receive approval from the Local Land Planning Board and pay 30 days AUD 386
the building permit fee
Agency : Local Land Planning Board
The Local Land Planning Board reviews all submitted documents and assesses whether:
• The site is free for development
• The development is in line with a detailed land use plan
• All clearances from relevant authorities have been collected
The Board is supposed to meet once a month. Another possibility is to call an immediate
meeting, which means that BuildCo must pay for the time and transportation of all 18
members of the Board. The normal cost is 0.25% of the project value.
10 Receive site setout inspection from the Public Works Department 1 day no charge
Agency : Public Works Department
According to the Second Schedule of the Building Act 2006, there are four phased at
which any building must be inspected and work cannot proceed further if each inspection
does not take place.
11 Receive completion of the structural framework and before the placement 1 day no charge
of any internal lining inspection
Agency : Public Works Department
12 Receive completion of water supply piping, waste lines, septic tanks and 1 day no charge
soakways and electrical conduits prior to concealment inspection
Agency : Public Works Department
13 Receive completion of placement of form work, and placement of steel 1 day no charge
reinforcing
Agency : Ministry of Public Works
According to Schedule II of the Building Act 2006, an inspection for the completion of
placement of form work, and placement of steel reinforcing must be conducted prior to
continuation of work
14 Receive final inspection and obtain certificate of occupancy 7 days no charge
Agency : Public Works Department
According to Article 12 of the Building Act, after a construction is completed, the owner
must request a certificate of occupancy.
15 Request and obtain water and sewage connection from Public Works 10 days AUD 30
Department
Agency : Public Works Department
As there is no sewage system, a septic tank is installed.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2018 Kiribati
Details – Dealing with Construction Permits in Kiribati – Measure of Quality
Answer Score
Building quality control index (0-15) 6.0
Quality of building regulations index (0-2) 1.5
How accessible are building laws and regulations in your economy? (0-1) Free of charge; 0.5
Not easily
accessible.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals;
Available only on
request.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 1.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice during
construction;
Mandatory
inspections are
done most of the
time during
construction.
Quality control after construction index (0-3) 2.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 0.5
Which parties (if any) are held liable by law for structural flaws or problems in the building Construction 0.5
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 0.0
What are the qualification requirements for the professional responsible for verifying that the University degree 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering.
Page 13Doing Business 2018 Kiribati
What are the qualification requirements for the professional who supervises the construction University degree 0.0
on the ground? (0-2) in engineering,
construction or
construction
management.
Page 14Doing Business 2018 Kiribati
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 15Doing Business 2018 Kiribati
Getting Electricity - Kiribati
Standardized Company
Price of electricity (US cents per kWh) 42.4
Name of utility Public Utilities Board
City Covered Tarawa
Indicator Kiribati East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 6 4.5 4.7 2 (United Arab
Emirates)
Time (days) 97 71.6 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 4022.3 712.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 3.7 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
72.23: Regional Average (East Asia & Pacific)
64.48: Micronesia, Fed. Sts. (Rank: 109)
63.10: Solomon Islands (Rank: 113)
59.26: Marshall Islands (Rank: 126)
54.84: Palau (Rank: 140)
41.50: Kiribati (Rank: 168)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 16Doing Business 2018 Kiribati
Figure – Getting Electricity in Kiribati – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
4500
4000
Cost (% of income per capita)
80
3500
3000
Time (days)
60
2500
2000
40
1500
20 1000
500
0 0
1 2 *3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Kiribati and comparator economies – Measure of Quality
8
7
6
Index score
5
4 3.7
3
2
1
0 0 0 0 0
0
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Page 17Doing Business 2018 Kiribati
Details – Getting Electricity in Kiribati – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Public Utilities Board and await approval 16 calendar days AUD 1,500
Agency : Public Utilities Board
Either an electrician doing the internal wiring or an applicant (Business owner) submits
an application for a connection.
The applicant may have to submit the application before construction work for the
building starts. The application should include details of the wiring schedules, details of
circuits, main switch board and sub switchboards, details of circuit breakers and their
outgoing circuits and other information relevant for the supply. Credentials of Electrical
Supervisor (person who is in charge of electrical wiring) would be also required when
submitting the application.
Where a substation site selected by the applicant and the utility agrees to its location
remote from the street alignment boundary, the cost of all the utility high and medium
voltage within the site may be charged to the owner of the premises.
There is no practice of signing a supply contract. Once electricity is flowing a customer is
paying a fixed fee for consumption and there is no need to sign a supply contract.
2 Await purchase of substation and accessories by contractor 30 calendar days AUD 0
Agency : Electrical Contractor
In case installation of a transformer is required either the customer and his electrical
contractor or the utility can order the transformer with the specifications given by the
PUB.
3 Obtain excavation permit 19 calendar days AUD 679
Agency : Ministry of Works for Public Roads and at High Way Authority
To excavate the road first an electrician collects a form at the Ministry of Communication
Transport & Tourism Development. The electrician will complete the form providing the
location where the excavation will be done. The Highway Authority at the Ministry of
Communications, Transport and Tourism Development will authorize the work. Meetings
to look into excavation permit applications happen only when there are 20 applications
for a new connection. The applicant can schedule a special meeting, for a fee to issue his
excavation permit. Several other agencies must sign on the excavation permit (Water,
Electricity, Telecom and Police department).
This form must be deposited at the Ministry of Works with a map of the exact work. An
engineer will do a site visit to determine what kind of works are involved. In addition, a
police approval is required to temporarily close the road as well as a police presence to
control traffic flow during the trench digging and filling.
4 Await completion of external works by Public Utilities Board 45 calendar days AUD 122,000
Agency : Public Utilities Board
If a transformer is required then by law PUB are required to supply such equipment. They
must also provide cabling, meters and other equipment that may be required to connect
the power. However, in practice the customer provides the necessary material. The
applicant’s contractor is responsible for the work from the transformer to the warehouse.
5 Await inspection of external works and internal wiring 3 calendar days AUD 0
Agency : Public Utilities Board
At the completion of the work, the completion form (filled by the electrician or
Supervisor) is submitted to the utility. Before a connection to supply is made, all
equipment shall be capable of complying to the tests set out in AS/NZS 3000 and
furthermore the installation shall satisfy to AS/NZS 30007:2007:
The contractor should forward the results of these tests to the utility.
Only basic tests of the internal wiring are performed by the utility. The basic test includes
a visual inspection and overall insulation resistance etc, using basic equipment.
6 Obtain meter installation by Public Utilities Board and then electricity flow 3 calendar days AUD 0
Agency : Public Utilities Board
The meter is installed after the inspection. A meter is installed by the utility at a time
convenient for the applicant. After receiving a notification that the building is ready to be
hooked up and test results for the building are given to the utility. In the utility there is a
separate unit which deals only with final electricity connections.
The electricity starts flowing immediately provided that everything is in order.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2018 Kiribati
Details – Getting Electricity in Kiribati – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? No
Link to the website, if available online n.a
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2018 Kiribati
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in June 2017.See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
â—
Preregistration procedures (for example,
The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
Postregistration procedures (for example, filling
- Have 50 employees each, all of whom are nationals.
title with municipality)
- Perform general commercial activities.
Time required to complete each procedure
The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are
10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
residential use, industrial plants, waste storage or certain types of agricultural
Quality of land administration index (0-30)
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 20Doing Business 2018 Kiribati
Registering Property - Kiribati
Standardized Company
Property value AUD 154,365.00
City Covered Tarawa
Indicator Kiribati East Asia & OECD high Overall Best
Pacific income Performer
Procedures (number) 5 5.5 4.6 1.00 (4 Economies)
Time (days) 513 74.5 22.3 1.00 (3 Economies)
Cost (% of property value) 0.0 4.3 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 9.0 15.8 22.7 29.00 (Singapore)
Figure – Registering Property in Kiribati and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
75.16: Palau (Rank: 43)
57.21: Regional Average (East Asia & Pacific)
49.12: Kiribati (Rank: 146)
47.37: Solomon Islands (Rank: 152)
0.00: Micronesia, Fed. Sts. (Rank: 187)
0.00: Marshall Islands (Rank: 187)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Kiribati – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.025
500
Cost (% of income per capita)
0.02
400
Time (days)
300 0.015
200 0.01
100 0.005
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2018 Kiribati
Figure – Registering Property in Kiribati and comparator economies – Measure of Quality
30
25
Index score
20
15.8
15 12.5
11.0
10 9.0
5
0
no practice no practice
Kiribati Marshall Islands Micronesia, Fed. Sts. Palau Solomon Islands East Asia & Pacific
Details – Registering Property in Kiribati – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Acquire proof of previous ownership at the Land Information Department 1 day no cost
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The buyer will search the title to see if the seller is the rightful owner of this property.
2 Property is surveyed and any changes made on the property are recorded 31 days AUD 30
Agency : Survey and Mapping Technical Department
If the land is freehold, and was not rented to the government, this formality of sub-leasing
from the government is not necessary. But in the case of sub-leased land, then this land is
given back to the government and then it is sub-leased again to the new owner. In this
case, the applicant has to lodge an application with the Land Plannning Department
within Land Management Division and fill out the required form and follow the
procedure stated in the form. Then the Sublease Allocation Advisory Committee (SAAC)
will have to go through the application and decide. Then submitted for Cabinet's final
approval and return to Land Manangement Division for final actions.
3 Both parties appear at the Magistrate Court to endorse the transfer 4 -6 weeks (for the AUD 3 the court
Agency : Magistrates' Court document to be summon + AUD 5 the
There is a waiting period between each phase of the process: the application is filed, the transferred to the land boundary
decision is made, appeals are allowed, then final review of the case, and finally the name court and to
of the new owner is inscribed.
schedule a hearing)
+ 90 days for
appeals
4 Magistrate court reviews case to endorse transfer 365 days no cost
Agency : Magistrates' Court
If after the wait period there were no appeals to the transfer then there is a final review of
the case and the transfer is endorsed. There are still a lot of land disputes in Kiribati as
land belongs to families rather than an individual. If all owners have not agreed and sign
on the sale agreement, then disputes will arise. Land disputes are varied but in general,
most fall into two main categories, being either a registration of land, claiming an interest
in the land from an ancestor (ownership) or a boundary determination dispute. Often,
after these proceedings have been finalized, and a judgment given, the dispute may
continue as a result of either a party entitled to be summoned, not being summoned to the
original proceedings to be heard on the question of ownership, a party arguing that there
was no entitlement for another party to have the land registered in their name or to be
heard, or simply that the boundary outlined by the Magistrate was inconsistent with the
original boundary.
5 Magistrate Court issues a certificate of ownership 1 day AUD 5
Agency : Land Information Department (Ministry of Environment, Land and
Agriculture Development)
The Magistrates' Court provides court minutes and updates of the new registered owners
after the final decisions made by the Magistrates. Then the Land Management Division
updates the Kiribati Land Information & Management System by entering the
information about the new registered landowner and issues the certificate of ownership.
Takes place simultaneously with previous procedure.
Page 22Doing Business 2018 Kiribati
Details – Registering Property in Kiribati – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 9.0
Reliability of infrastructure index (0-8) 2.0
What is the institution in charge of immovable property registration? Land
Management
Division
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Survey and
Mapping
Technical
Department
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 0.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, in person 0.0
publicly available–and if so, how?
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2016:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, in person 0.0
and if so, how?
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