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Infrastructure projects may be stopped in Georgia - Association of Infrastructure Builders

Construction Materials 24 July 2021 19:02 (UTC +04:00)
Infrastructure projects may be stopped in Georgia - Association of Infrastructure Builders

BAKU, Azerbaijan, July 24

By Tamilla Mammadova – Trend:

At present, a stop in Georgia threatens not only planned but also ongoing infrastructure projects, said the head of the Association of Infrastructure Builders of Georgia Anna Sabakhtrishvili, Trend reports referring to the Georgian media.

The reason for this, according to her, is the rise in prices, which violates all financial calculations of the business when fulfilling government orders.

First of all, this concerns building materials, which become more expensive as the national currency devalues ​​and prices rise on world markets.

"For companies involved in infrastructure projects, the most serious challenge is the rise in world prices for building materials. Absolutely everything has risen in price, for example, such fundamental materials for construction as reinforcement and cement. The same applies to secondary, auxiliary materials. It does not matter at all whether it is local or imported. Local building materials are becoming more expensive, as are imported ones. Because of this, our industry is now in a very difficult situation," Sabakhtrishvili said.

According to the head of the association, among the existing problems, there is also a shortage of some types of building materials, in particular, cement.

"Due to import restrictions, there is a deficit of cement in Georgia. Another problem is contracts with government departments, which primarily take into account their interests," Sabakhtrishvili said.

According to her, the risks relate not only to suspended or planned but also ongoing projects.

"The main danger is that companies doing infrastructure work may not be able to withstand the difference in project costs that have arisen due to the rise in prices. When the contracts were signed, building materials were much cheaper than now. No one could have imagined then that the costs of fulfilling contractual obligations would grow so much," she said.

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