MINSK, 7 July (BelTA) – The creation of construction industry development funds will allow accelerating the modernization of civil engineering enterprises, the press service of the Belarusian Architecture and Construction Ministry told BelTA as it commented on the relevant presidential decree.
The Architecture and Construction Ministry said: “Performance of construction workers depends not only on their skills but on equipment, manufacturing facilities and technologies. No doubt, any machines or mechanisms can last only that long, this is why in order to offer a quality end product or a quality service, plant and equipment need to be regularly renewed.”
Repairs of vehicles and machines, acquisition of new equipment, modernization of the existing physical infrastructure entail considerable expense. Not all the construction enterprises can do it on their own due to a number of reasons. For instance, high accounts receivable and accounts payable can be such a factor. The profit margin of real estate developers is legally limited to 5% and does not always allow covering the cost of physical infrastructure renewal.
According to the Architecture and Construction Ministry, the main purpose of the presidential decree on setting up construction industry development funds is to enable additional conditions conducive to the modernization and retooling of Belarusian civil engineering enterprises. The funds will be distributed among all the construction enterprises, which have proven the maximum effectiveness of investments.
The construction industry development funds will be established from 1 September 2021 through 31 December 2025. The funds will be replenished by transferring 1% of the cost of services that contractors of all types of ownership perform every month to the funds. Deductions will not be levied from the cost of services the state budget and other equal entities pay for to build residential buildings, engineering and transport infrastructure for housing areas, including single-family housing construction areas.
The Architecture and Construction Ministry concluded: “In our opinion, the measures the presidential decree outlines will allow considerably modernizing Belarusian construction enterprises and organizations. It will have a positive effect on the performance of the entire civil engineering industry soon.”
