BAKU, Azerbaijan, May 18
By Tamilla Mammadova – Trend:
Depreciation of Georgia’s national currency lari is a risk for the construction sector, since the bulk of the revenues are in the national currency, and expenses (material, credit, leasing) are in the foreign currency, Trend reports via the report on “The Impact of COVID-19 on the Georgian Economy” of TBC Capital, Georgian TBC Bank.
According to the report, in May, economic activity in the construction sector will partially recover. Large infrastructure projects will also continue, which is an incentive for the entire sector.
However, the risk of delays is still great.
“In the private sector, delays in new construction are more expected (development, hotels, commercial real estate). In the development sector, due to the fact that construction is dependent on sales, it is expected that delays will occur in new construction,” the TBC Capital report says.
As reported, the state will reimburse part of the cost of materials (maximum 20 percent of the contract) necessary for the construction, which was started on the basis of a tender.
Meanwhile, from January through March 2020, construction of 484 objects (21.8 percent less compared to the same months of previous year) with a total area of 419,700 square meters (32.8 percent less compared to the same months of previous year) was completed in Georgia.
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