Reasons to slow down construction companies in Azerbaijan have been announced

Today, construction works continue rapidly throughout Azerbaijan, especially in our lands freed from occupation. This places serious responsibilities on construction companies. Building new infrastructure also opens up great opportunities for construction companies. But to what extent will they be able to respond to the emerging demand? What problems do they face when performing this duty?

Report “The Chairman of the Union of Commercial Legal Entities of the Azerbaijan Association of Azerbaijani Construction Manufacturers Ramiz Isayev answered.

He said that the construction sector is one of the areas that shows the economic status and potential of each country. If there is a revival in this sector, then that country is developing economically:

“Tasks and recommendations on the level of delightful and day requirements of construction and landscaping of the President puts great responsibility on economic entities. In general, the construction of industries and social infrastructure in the country for the last 10 years, as well as residential buildings continued. The real volume of the construction sector has increased by an average of 5.1% per year, and up to 35% of the total volume of work in the field fell to the construction of housing and non-residential buildings.

Isayev noted that the institutional structure of management in the construction of the construction, the construction management system has been improved, and access to all population groups has been increased. The united information provision system of urban planning and construction activities, the provision of information on existing facilities has been launched and put into operation.

“The electronic formal procedure system has been established on the basis of the” one-window “principle of construction and operation of construction facilities in Baku, the number of procedures required, time and expenses are reduced.

As a result of all these measures in the construction sector, high indicators have been achieved in the current field. Thus, during 2021, 1 billion 029.5 million manats (6.4%) of the investments in Azerbaijan were spent on the construction of residential houses. 11 billion 015.7 million manats or 68.3% of the funds directed to the fixed capital were spent directly on the implementation of construction and installation works.

R. Isayev also talked about the impact of the stagnation that covers the whole world during the pandemic on the work of construction companies. He stated that it was possible to overcome this negative effect soon:

“Since the instructions of 2020, as important sectors of President Ilham Aliyev, such urgent projects have been developed and applied to the construction sector, and 100 million with the second half of 2020, 100 million with the Mortgage and Loan Guarantee Foundation for the second half of 2020 A new mortgage loans in the amount of manat have been decided. This decision has launched a new revival in the construction sector, and one of the areas with the least losses during the pandemic was the construction sector, “he said.

R. Isayev stated that very important changes have been made to the Tax Code regarding the taxes paid by construction sector subjects in connection with their activities, which helped to further expand the activities of the sector participants, and also spoke about the shortcomings in the sector:

“In some cases, the procedure for issuing permits for areas for which construction permits are required causes delays in the activities of construction entities. Therefore, this process should be simplified and limited to a certain period. If this happens, transparency in the construction sector will increase, and the development of this sector will increase significantly. As a result, this will make a positive contribution to the country’s economy.”

Interpreting the reasons for the rise in the rise in the rise in the rise in the rise in the rise in the rising in Azerbaijan, the Azerbaijan Issuance of Building Materials said that the prices of many construction materials are observed in the world market:

“The main reason for the rise of the price of construction materials is only related to the increase in the price of raw materials (cement, etc.) of special types of products. Another reason for the price increase is to introduce customs duties in imports of paper bags used for packaging of paper and other construction materials used for gypsum boards.

The association believes that the auctioning of minerals used as the main raw material in the production of construction materials from the ground in the last year is one of the factors causing the price increase: “In the experience of Turkey, there is no auction for such raw materials. Such factors are currently causing the price increase of construction materials. Currently, the special price increase in the construction materials market varies in different percentage ranges. This increase is not regular or regular.”

İstinad: report.az