Bureau of technical supervision

The construction industry can be a key driver of the removal of Ukraine from the crisis

The construction industry can be a key driver of the removal of Ukraine from the crisis, if it will support the government of Ukraine, local authorities and international financial organizations. This opinion was expressed by the expert on the economy, the shareholder of group of companies “Cwgroup” Yevgeny Kazmin.

As the expert noted, the funds from privatization in the period of 2016-2017 years must not dissolve in the budget deficit, but to go solely on projects to stimulate economic growth.

According to Kazmina, program can be divided into several areas. First, promote the construction of affordable housing. Including for internally displaced persons. The second is the establishment of a system of state incentives to improve energy efficiency and utilities sector. The third direction is the development of important infrastructure (roads, bridges, ports, elevators, power lines, etc.). However, such projects must also be financed by international financial organizations.

“As a result of the comprehensive effect can be very noticeable, because it is well known that the creation of one job in construction gives up to 5 additional jobs in related industries,” – said Kazmin.

With regard to the promotion of housing construction, shareholder kvv Group recalled that Ukraine has already acted in the state program “Affordable housing 70/30”, which provides for the payment by the state 30% of the cost of housing (in 2014, its funding has been completely suspended because of lack of funds, – ed). In addition there was the program “Youth credit” and loan program for rural developers “Own house”.

In the Ministry consider plans for the resumption of the first two programs in 2016 and expect to lay for this purpose from the state budget about UAH 2 billion. and an additional 2 billion UAH. get from local budgets.

However, according to the expert, in connection with unclear situation with the tax reform due to the presence of two projects of the tax changes, the allocation of such amounts is unlikely. The implementation of the supervision of construction and technical supervision of construction are the main aspects of the construction business.

According to Kazmina, the state system of incentives for energy efficiency and utilities sector should mainly focus on the products of domestic manufacturers. Thus expanding the base of economic growth in Ukraine. After all, 75-80% of the domestic housing requires thermal modernization. Significant effort and expense is also required on boilers and heating mains.

“This year, the European Bank for reconstruction and development intends to allocate 100 million euros for compensation of the loan when the population of measures for the modernization of housing. What good is this project? It implies the involvement of local authorities, which should also allocate funds from their budgets. Chat with serious European expert will tell you that only such a comprehensive system of incentives give a significant economic effect”, – said the expert.

While Kazmin reminded that certain steps have been taken by the government on the simplification of licensing and conciliation in construction. In particular, the Verkhovna Rada adopted the law on the transfer of functions and powers on the exercise of architectural control from the state to local authorities (the law came into effect on 1 September 2015, – ed).

“It is very desirable to continue the significant simplification of the connection of new housing and other facilities to all communications. Learning from the experience of the European Union, local authorities should gradually assume these costs. Decentralization should contribute to improving the business climate in the country”, – summed up the expert.