Wednesday, 12 April 2017
Construction Sector Development Issues Discussed in Government
Prime Minister Karen Karapetyan held a consultative meeting to discuss ways of boosting urban development processes in Armenia.
The Prime Minister first wanted to know what kind of obstacles developers have met in working with government agencies and suggested discussing options for mutually acceptable solutions.
“It is the fourth month we have been stating that this sector is far behind. We want to activate it in order to enliven our overall performance,” Karen Karapetyan said.
The concerns voiced by developer’s representatives basically had to do with the development – tax administration-marketing chain. In this regard, the Premier discussed with them issues related to the simplification of tax administration mechanisms, increasing transparency, activating the local market, reducing interest rates on mortgage loans, as well as concerning the provision of infrastructure by developers, promotion of local companies through the rating mechanism, government-private sector cooperation and so on.
The Prime Minister said that the ratings applicable in construction industry are being discussed with the Central Bank in order to help encourage good-working companies.
“Considering that a company is in the “white field,” banks will assess the risks and apply ratings. People should be motivated to come to the “white field” knowing that they would get a bonus,” the Head of Government said.
The Head of Government instructed those responsible to hold a discussion on the topic of infrastructure with construction companies and other stakeholders.
The Prime Minister advised that as part of Doing Business, an electronic map will be commissioned in Armenia in cooperation with the State Committee on Immovable Property Cadastre by the Government. The map implies that by calling at any address it would be possible to get information on energy, water and other infrastructure, and if the public service provider proves short of necessary infrastructures, the developer should be prepared to pay for it and hence consider the construction risks.
Summing up the discussion, Prime Minister Karapetyan said the proposals will be discussed in all detail and will get a response.
