Press release. Peculiarities of legal regulation in the China-Belarus Industrial Park
The Great Stone became the first special economic zone of Belarus, where a land lease contract initially is customized, comprehensively respecting the interests of both the Industrial Park Development Company and the resident (or an investor), to whom it’s granted. Cooperation is, on the one hand, that the Industrial Park Development Company guarantees the entire necessary infrastructure of the land parcels provided to residents (investors). On the other hand - the resident (an investor) assumes the obligation to develop the territory within the deadlines which have been agreed upon by the parties.
It significantly accelerates the process of development of the Great Stone territories.
How is a land lease contract concluded according to the general rule?
Under the Decree of the President on final land allocation, leasing a land parcel to a future land-user, a lease contract must be concluded being prepared in the standard form prescribed by the Council of Ministers.
How is it in the Park?
At the same time the Decree of the President, regulating operations of the China-Belarus Industrial Park, allows the Industrial Park Development Company in the event of (sub)leasing land parcels to residents (investors) to specify the terms of a land (sub)lease contract by mutual consent of the parties.
In such a way, the parties even at the stage of leasing a land parcel may approve a distinct progress schedule of project implementation on the land parcel (including periods of design or construction and etc.) or agree upon a deadline, when such the schedule must be worked out.
In fact, a progress schedule, which is technically only an annex to the design and construction contract, it is already knownbecause of its territory development tothe Park, and also to the resident (an investor) and assists the parties at best value for either party in developing the land parcel.
Settledmechanisms allow the Park and the resident (an investor) to build up their relationship openly:
- a resident (an investor) assumes the obligation to develop all of it in due time;
- in return the Park facilitates compliance with this deadline, accepts the duties of infrastructure guaranteeing within the land parcel line.
Why is this?
We are talking about a vast territory of 80 square kilometers. The investor (the resident) is uninterested to lay kilometers of all the necessary the service lines - the Park makes it instead of him, to lay on gas, water supply, the electricity and roads towards the land parcel line. In such a manner the investor (the resident) develops and invests only in the lease land. It is a commonly held global practice while constructing such the projects. It should be noted that this preparatory work is more than logical and reasonable, because it increases land parcel attractiveness for investment projects a lot. And this is an element of paramount importance in operation to attract new residents and investors.
For reference: the law firm Revera Consulting Groupapart from the general counseling regarding the China-Belarus JSC «Industrial Park Development Company» comprehensively conducted the negotiation process of choice among general contracting organizations to carry out the construction project "Engineering infrastructure of starting zone in the grounds of primary development of the China-Belarus Industrial Park".
The associate of the Construction and real estate practice, Anna Aniskevich, will manage to comment upon the point in question.
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PR-manager Revera Consulting Group