SANTO DOMINGO. -The Government, through the Ministry of the Presidency (Minpre), committed yesterday to holding working groups to discuss solutions to the challenges currently facing the Dominican construction sector, whose growth has been overshadowed this year by the adverse circumstances surrounding it.
In the January-July report, the Monthly Indicator of Economic Activity (IMAE) of the Central Bank of the Dominican Republic (BCRD), the construction sector registered a growth of only 1.9%.
During a visit yesterday by a delegation from the Association of Housing Builders and Promoters (Acoprovi) to the Minister of the Presidency, Joel Santos Echavarria, it was agreed to establish joint working groups to find solutions to the various problems in the sector, especially those related to the construction of low-cost and social housing.
Architect Jorge Montalvo, president of Acoprovi, led the delegation, which presented the various challenges facing the sector. The pandemic, the significant increase in construction material costs, and the conflict between Russia and Ukraine have impacted the performance of one of the Dominican Republic's key economic sectors, which saw 23% growth last year.
During the meeting, Santos Echavarría highlighted the importance of developers for the construction of low-cost housing; especially those that would be aimed at beneficiaries of the Happy Family National Housing Plan.
“It is important to continue encouraging the participation of developers and promoters in the construction of low-cost housing, given the importance of this type of housing development for the Dominican Republic,” he said.
The Happy Family National Housing Plan is implemented through a public-private partnership involving state institutions and the developer sector, as well as builders of low-cost housing solutions.
The meeting was attended by Acoprovi's president, Jorge Montalvo; second vice president, Annerys Meléndez; director, Santiago Colomé; and executive vice president, Evelyn Rodríguez. Minister Santos Echavarría was accompanied by the Vice Minister of Investment Projects, Camel Curi, from the Ministry of Foreign Affairs.
The challenges of the construction sector
Since the outbreak of the COVID-19 pandemic, the construction sector has faced several adverse scenarios, generated by the paralysis of maritime freight, whose distribution chain was halted, creating difficulties in supplying materials to the market. This situation triggered a widespread price surge, in some cases with increases of up to 250 and 300% in the inputs needed for construction.
The war that has been raging for six months between Russia and Ukraine has added to the sector's adversities, with the shortage of steel, whose price immediately skyrocketed, going from RD$70,000 per bundle of steel to RD$84,000 pesos at present.
Representatives from Acoprovi have proposed possible solutions to the situation, such as creating agreements with the State that allow for the regulation of prices and thus create opportunities for more Dominicans to have access to decent housing.
