SANTO DOMINGO- Despite President Abinader's assurance in his accountability speech that the Ministry of Public Works and Communications (MOPC) has projects underway totaling RD$86 billion, the coordinator of the Construction Industry Observatory (ONIC) says that the perception in the country is quite different.
“What is perceived is that there are very few projects, little infrastructure development in the country,” said construction businessman Melchor Alcántara.
The finance expert also opined that if the government works with more reasonable budgets, as the president mentioned, it should imply greater development of public works across the country, and that more impetus is needed in that regard.
Abinader noted that during his two years in office, 87 projects have been completed with an investment of nearly RD$15.4 billion. Among the projects currently underway, he cited the nine ring roads and the expansion of the Santo Domingo Metro and Cable Car lines.
In evaluating the speech given by the president, Alcántara maintains that among the information offered by Abinader, there are positive aspects regarding the government's monetary, fiscal and financial policies "which I understand are favorable for the development of the economy and the control of inflation.".
“We know that the inflation the country is experiencing, especially in the construction sector, is driven by factors tied to the pandemic situation, product shortages due to the closure of international markets, increased freight costs, and so on.”.
For his part, the former president of the Association of Housing Builders and Promoters (ACOPROVI), Fermin Acosta, said that in general the speech was good, although the head of state did not talk about the housing sector, despite always maintaining his identification with that sector.
Interest rates
The financier believes that if interest rates rise to curb inflation, the development of the construction sector will be slowed because there will be less demand for apartments.
“The construction sector hinges on interest rates reaching reasonable levels.” The ONIC representative suggested that even if rates increase for expenditures, investment rates should remain at previous levels to allow this sector to continue driving the national economy.
