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Government opens sack for builders, millions of euros subsidy for rising prices

2022-05-17 17:38:37Biznes SHKRUAR NGA REDAKSIA VOX

Government opens sack for builders, millions of euros subsidy for rising prices

The government is expected to establish as a compensation fund for raising the prices of building materials a sum of between 60m and 80m euros.

The figure has not yet been determined, but Voxnews.al sources say the decision is expected to be made at Wednesday's meeting.

The draft envisions intervention in this year's budget, adding capital investment voice. The money will be offered to construction companies which are involved in major infrastructure projects and within the reconstruction process.

About a month ago, Prime Minister Edi Rama understood that many infrastructure projects and investments and in the context of reconstruction were being threatened by the price crisis due to the three-fold increase in the price of iron, cement and other construction materials.

With this intervention, the Government envisions covering about a third of the added cost of construction processes.

Voxnews.al confirms that since at least the end of August there has been increased pressure from construction companies and those that have won tenders in the context of reconstruction and infrastructure for government intervention.

Tenders and contracts with these companies were signed before the price crisis. With the outbreak of this crisis, the cost of construction, according to companies, exceeds the funds made available by the government in these tenders.

Under the government's project, companies that have received contracts in the construction field after 1 January 2020 will benefit from the compensation.

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