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ANALYSIS: Major uncertainties regarding the contractors activity in 2016
English Section Publicat de Elena Icleanu 02 Mar 2016 10:40
The increase of almost 10% in 2015 on the construction market in Romania has created appropriate context for business increases of the developers and contractors in Romania, and also brought back the optimism on a sector that suffered of five years of crisis. The uptrend tone was given by the building developers, which have restarted to allocate capital for the financing of large projects in Romania since the second half of 2014. Regarding the public sector, the Government again was not in 2015 the investor wished by the private business climate, while a positive breath came from the projects financed from European funds. Overall, the situation of the construction market in 2015 in terms of its main "actors" - contractors and developers - has not lived up to the expectations, while the projections for 2016 in the current context, indicates a more probable contraction on the Romanian sector in 2016.
The period was dominated by the Romanian anti-corruption department (DNA) investigations at the headquarters of many construction companies, and also by the strong competition of the international groups and the poor performance of the Romanian authorities and companies involved in the management of construction and investment activities. For example, Dragoş Pîslaru, economic adviser of the Prime Minister Dacian Cioloş, said recently that the Ministry of Transportation did not spend nearly 3 billion lei (almost 650 million euro) of the investment budget for the last year, while the transportation infrastructure in Romania remains critical and withouth any perspective.
 
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