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Viewing cable 09VLADIVOSTOK54, NEW APEC LAW TO STREAMLINE PROJECTS

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Reference ID Created Released Classification Origin
09VLADIVOSTOK54 2009-04-27 07:48 2011-08-24 01:00 UNCLASSIFIED Consulate Vladivostok
VZCZCXRO9461
RR RUEHCHI RUEHDBU RUEHFK RUEHHM RUEHKSO RUEHLN RUEHNAG RUEHPB RUEHPOD
RUEHYG
DE RUEHVK #0054 1170748
ZNR UUUUU ZZH
R 270748Z APR 09
FM AMCONSUL VLADIVOSTOK
TO RUEHC/SECSTATE WASHDC 1128
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION COLLECTIVE
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