The National Housing Agency (ANL) will organize tenders in August to select contractors to build 552 apartments to be leased to young families. The tenders and related procedures will take place between 4 August and 20 August 2009.
The ANL management told BURSA that the largest project to be put up for tender was located in the city of Bacau, where 125 apartments would be built within the Bucegi III A development on Teiului Street. Bids will be opened on 17 August. Another 80 apartments will be built in the Narciselor District in Targu Jiu. The community of Girov in Neamt County will also have 60 new apartments under this programme. Tenders will be organized on 17 August and 18 August. A larger development of 55 apartments will be built on Caramidarii Vechi Street in Giurgiu. ANL has scheduled the tender for this project for 5 August.
Within the same programme, ANL will also build 16 apartments in Azuga, 24 apartments in Costinesti, 27 apartments in Chislaz, Bihor County, 32 apartments in Praid, Harghita County, 49 apartments in Targu Neamt, 30 apartments in Bicaz, 30 apartments in Seini, Maramures County and 24 apartments in Cernat, Covasna County.
The Ministry of Development has announced plans to finish a total of 6,000 homes this year, of which 3,222 via ANL. The rest will be built for those evicted from communist-nationalized homes that have been returned to their legal owners and for social cases. At the end of the first half of the year, ANL reported the delivery of 1,094 homes. The Ministry of Development has also planned to deliver 10,000 homes next year, most of which via ANL.
In order to meet such target, ANL officials told BURSA that tenders needed to be organized this year for the construction of approximately 4,000 homes. In turn, the Ministry promised to allocate the funding necessary for the tender procedures in several steps as the need emerged. The average timeframe for the construction of an ANL-commissioned apartment building for young families is 18 months.
ANL is hoping that the tenders planned for this year will lead to much better construction prices than in 2008 as the price of building materials has been decreasing, while the ongoing crisis is taking a toll on the cost of labour. Moreover, the lack of contracts on the general construction market has prompted very numerous contractors to bid for State-driven projects.
According to ANL, local authorities across the country are making efforts to secure the land necessary for building homes for young families and to ensure the funding for making the land suitable for home construction.
Sorin Bota, Head of the Infrastructure and Regional Development Department of the Social Democrat Party (PSD) has announced that the party is considering a solution by which ANL would purchase half of the apartment buildings started but not finished by private developers for a price to be stipulated in a Government decision. The measure is intended to support the construction industry survive the dire lack of orders and funding and rescue abandoned construction sites. Development Minister Vasile Blaga rejected the idea explaining that homes built by private investors were much more expensive than those built by ANL. Specifically, the price obtained by ANL through tenders is sufficient to build twice as many homes as are available for the same money on the free market.