The President held a meeting dedicated to the construction industry

07/20/22 18:47

The President held a meeting dedicated to the construction industry

Working meeting initiated by the PMR President dedicated to the construction industry of the republic was held at the presidential executive office. The heads of the PMR Government, the Supreme Council, the Ministry of Economic Development, the Ministry of Finance, the Ministry of Internal Affairs, the Ministry of Justice, the PMR Prosecutor's Office, the Accounts Chamber, as well as the Department of Construction, Architecture and Road Facilities, the Parliamentary Committee on Economic Affairs and the Office for Combating Economic Crimes and corruption. Opening the discussion, Vadim Krasnoselsky emphasized that today's meeting was purposefully organized with the participation of exclusively officials. The President listened to the opinion of representatives of construction organizations during the preliminary communication with them, having formed the agenda of the meeting, taking into consideration those issues and problematic aspects that were identified by the heads of repair and construction companies.

The PMR President spoke about the importance of the construction sector for the economy of Pridnestrovie, noting that this industry often acts as a locomotive in times of crisis. The presence of internal resources – labor, natural, industrial – made it possible to intensify activity in the construction industry even during the period of pandemic isolation. Vadim Krasnoselsky recalled that it is possible in Pridnestrovie unlike neighboring states to extract gravel, sand, crushed stone on the spot, a metallurgical plant and a cement plant operate in the republic, high-quality building materials for the construction and road industries are produced, and the construction services market is rich. A serious impetus to the development of the industry was given by the launch of the state capital investment program, thanks to which hundreds of social infrastructure facilities were repaired and built from scratch in a few years. The implementation of the Capital Investment Fund project made it possible to significantly expand the network of construction organizations in the republic and create a significant number of new jobs. The President emphasized at the same time that the construction sector like any other has its own difficulties, which must be solved jointly.

The meeting returned to the issue of pricing in the construction industry. Vadim Krasnoselsky raised this topic back in 2017, insisting on the uniformity of the methods used. The relevant instructions were given. The PMR Government prepared later a legal framework for transferring the industry to the resource pricing method, but construction organizations announced that they were not ready. A transitional period was announced during which the use of both resource and basic methods was considered acceptable. Instructions and manuals have been finalized. They purchased software for the resource model for the formation of the estimated cost of construction. The participants of the meeting stated that organizations are still in no hurry to apply it. They talked about the formation of a "black list" – a list of unscrupulous business entities that have proven themselves negatively and therefore are not allowed to participate in tenders. This work has been underway since 2019.

The President focused on the need to further improve the regulatory framework in the licensing construction activities. The Government Decree that has been in force on behalf of the President since 2013 was amended in 2018 but it still needs to be finalized according to Vadim Krasnoselsky. The President considers that among the licensing requirements should be the availability of own labor resources and equipment in the percentage ratio established by law with those involved from outside. The PMR President is sure that it is necessary in order to obtain permits and the opportunity to participate in competitive procedures to limit the involvement of subcontractors. To date, schemes for concluding contracts with entrepreneurs operating under a simplified taxation system are being actively exploited, which leads to a serious decrease in budget revenues. Vadim Krasnoselsky emphasized that relations between business and the state should be partnerships, based on honesty and mutual benefit. In conditions when the state is forced to cut spending on social items and development programs, turning a blind eye to the fact that dishonest businessmen earn due to the imperfection of legislative norms is an unaffordable luxury, Vadim Krasnoselsky is sure. It is necessary to find the optimal solution to return to the joint discussion, the President considers. He instructed the Government and the Supreme Council to organize a round table meeting with the invitation of representatives of the construction business. It is important to convey the message that attempts by individuals to outsmart the state can lead to the fact that the favorable conditions created for the development of the industry will be changed. The key to common success is honest relationships, the PMR President emphasized.

Profile structures were instructed to return to the issue of improving the legal framework in the field of licensing and taxation of construction industry organizations.


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