Construction sector is waiting for lifebuoy

Representatives of the construction sector of Moldova expect investments from the Government to overcome the crisis. Over US$15 billion is needed for the purpose, Leonid Cerescu, the president of the National Employers Confederation, and Grigore Popa, the president of the Employers Federation of Builders, Road Workers and Building Material Producers "Condrumat”, told IDIS “Viitorul”. “The crisis became synonymous with our daily life,” said Leonid Cerescu, who is the director general of the company Monolit. “Compared with last year, the building works dropped by 35-40%. Therefore, we had to take nontraditional measures: cut the salaries by 30%, reduce the work schedule and the number of employees,” he said. Leonid Cerescu explained that the construction sector was hit not only by the economic crisis, but by the political crisis as well. “First of all, we must overcome the political crisis because the decision makers govern the country,” he said. “Our beneficiaries are more suspicious and do not dare to buy apartments so boldly as earlier. The consumer’s distrust also affected us,” said Grigore Popa. The president of “Condrumat” stressed that the costs will be cut, while the infrastructure revised. “There are companies that have only a table and a stamp and nothing more. But there are also serious companies that pay all the contributions. They are the worst-hit as they have many expenses. A large company has to cover costs for using its infrastructure,” Popa said. The employers demand that the government crate better working conditions. “We have to pay taxes to the state beforehand, even if we have not yet paid the salaries. We tabled a proposal whereby we say that we agree to assume responsibilities, but the taxes should be paid simultaneously with the salaries as we can have salary arrears for 1-2 months if we pay taxes to the state in advance,” Leonid Cerescu said, adding that they also proposed a tax relief would be welcome. Grigore Popa said that about US$15 billion is needed to revitalize the sector. “This is a lifebuoy. For us, it is important to regenerate the national economy. It would be normal to meet the needs of the budget-paid workers, for example vulnerable families. We also think of building apartments for the youth. The state would pay the interest rate. It would be a solution,” Grigore Popa said. The employers are dissatisfied with the way in which the companies are selected at public tender contests. ‘The tenders are a sensitive matter, especially for the construction sector. All the officially registered economic entities should have equal access to these tenders. The companies should be selected according to such criteria as experience, accomplishments, implementation of the quality system,” Leonid Cerescu said. “The tender commissions should include representatives of the beneficiaries so that they could defend their interests. The tender contests should be more transparent. The law should work. The access to information should be improved as it is not enough to only publish information on the website,” Grigore Popa added. The representatives of the construction sector say the priorities should be set clearly. “We need a consensus with the business community so that the reanimation of the construction does not hram other sectors,” Grigore Popa also said