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21 Nov 2017

Construction industry under scrutiny at Belarusian government conference

Construction industry under scrutiny at Belarusian government conferenceMINSK, 21 November (BelTA) – The situation in the construction industry is far from being acceptable. The systemic crisis of the industry is looming, Chairman of the State Control Committee Leonid Anfimov said during the government conference held by Belarus President Alexander Lukashenko on 21 November to hear out reports covering the national economy’s performance so far this year, evaluations of this year’s results, the draft social and economic development forecast, the draft budget, and the draft monetary management policy for 2018, BelTA has learned.

According to Leonid Anfimov, some government officials view the evolving situation in the construction industry as acceptable. However, it is not so, he said. In 2014 the construction industry accounted for 10% of GDP, whereas now the figure has fallen to 5%. “Enterprises in the construction industry are in an extremely difficult situation: 38% of organizations are loss-making. We have never had such situation before,” Leonid Anfimov said.

He recalled that a few years ago the head of state instructed to develop the the mobile mechanical divisions (PMK) in the districts. Today, however, this work is on the wane, many organizations are on the verge of bankruptcy. “We are approaching the systemic crisis of the industry,” Leonid Anfimov said.

Head of the President Administration Natalya Kochanova supported this position. “Not only PMK companies are closing down in the district. So are the construction companies in the cities. The situation is dire. It is necessary to get heavily engaged to deal with the issues in the industry,” she said.

Natalya Kochanova also drew attention to the lack of qualified personnel in construction companies. This is the reason why the volumes of construction and quality of work are declining, she said.

Prime Minister Andrei Kobyakov noted that the government is dealing with the problems in this industry. Work is under way to optimize the construction industry, merge enterprises, attract sought-after specialists.

According to the head of government, the construction companies do have projects to implement today. However, Andrei Kobyakov drew attention to the fact that many are forsaking the services of PMK companies due to their high cost.

Alexander Lukashenko stressed that the government was responsible for the construction industry and will be held accountable. “We are all aware of the situation in the construction industry. Take these matters under your control and please remember if the construction industry underperforms, the minister and deputy prime minister will have no place in the new government,” the president said.

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