THE "INFRASTRUCTURE AND REAL ESTATE - KEY AREAS FOR ECONOMIC DEVELOPMENT" CONFERENCE / TIBERIU ANDRIOAIEI, PROFESSIONAL ASSOCIATION OF CONSTRUCTION COMPANIES (PSC): "The drop in public investments has furthered the decapitalization of entrepreneurs"

A.T. (Translated by Cosmin Ghidoveanu)
Ziarul BURSA #English Section / 22 decembrie 2014

"The drop in public investments has furthered the decapitalization of entrepreneurs"

Construction entrepreneurs absolutely need the resumption of public sector investments, said Tiberiu Andrioaiei, the executive director of the Professional Association of Construction Companies (PSC).

He said that the acute lack of public sector investments in 2014 has worsened the negative effects in the sector: "Construction companies are still facing a decapitalization caused by arrears and by the freezing of their cash in guarantees for call for tenders. The most important problem, however, concerns the professional human resources, which are very hard to rebuild if lost. There are still some problems concerning the multitude of unjustified contestations of auctions which are delaying the beginning of the works".

The PSC representative is convinced that an increase of the investments made by the state will lead to an increase in private investments, and he mentioned that the hike of the rate of public works shows confidence and provides stability to the construction sector.

Tiberiu Andrioaiei has asked the authorities to pass a programmatic, strategic document, concerning medium and long term infrastructure projects, which would no longer be amended by governments and politicians.

The construction market has seen a drop of approximately 10% this year, which the executive director of the PSC considers surprising: "Our forecasts in the beginning of the year were not so pessimistic. Public investments have just come to an unexpected slowdown. It is very hard to make forecasts for 2015".

Tiberiu Andrioaiei added that if the state were to ensure, for instance, the funds needed for the rehabilitation of old blocks of flats, which are estimated at approximately 7 billion Euros, then the construction sector wouldn't even feel the crisis.

The PSC supports a simplified legislation for public procurement, which would shorten the delays for the implementation of major projects.

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