This week, Minister of Economy Viktors Valainis and representatives from the Construction Policy Department of the Ministry of Economy met with construction industry entrepreneurs to discuss current issues in the sector, including the capacity of the construction industry considering the planned rapid increase in construction volumes in the new EU fund programs.

"The construction industry has experienced a number of shocks in recent years, and it is important for us to overcome these challenges together to maintain the industry's competitiveness. In the coming years, significant investments will enter the Latvian economy and construction sector within the framework of the EU funds and the Recovery Fund programs. In various formats, including government sessions, concerns about the construction industry's capacity to implement planned projects are increasingly being raised. Therefore, it is important for us that the industry can work efficiently and ensure the successful implementation of projects," emphasized Minister of Economy Viktors Valainis during the meeting.

At the same time, the minister called for more active dialogue with industry representatives to collaboratively address current issues. "We have identified certain aspects in the Ministry of Economy, the resolution of which will promote more stable industry operations and development. We also encourage the industry to more actively propose improvements necessary for more successful industry operations. Unfortunately, based on the questions received before the meeting, we concluded that communication needs to be improved, as the ministry has already offered solutions for a number of problem issues and has made several necessary changes in regulations, but for some unknown reason, this information has not reached the industry," acknowledged the Minister of Economy.

During the meeting, construction contractors positively evaluated the measures included in the Real Estate Development Process Improvement Plan, while also pointing out complications in other areas, such as procurement and its procedures, the operation of construction supervisors, low quality of construction projects, disputes between the client and the contractor, significantly influenced by the client's competence, etc.

In the discussion, contractors noted that the industry's capacity would be sufficient, and projects could be implemented on time if there were a plan from the state for announcing programs, which would allow entrepreneurs to prepare in time for participating in project contests and procurement procedures.

Entrepreneurs also highlighted difficulties caused by bureaucratic burdens significantly hindering project implementation, as well as disproportionate prices by insurers. The industry also expressed concerns about municipalities' ability to implement planned projects and provide necessary co-financing, considering the difficulties with funding availability in numerous municipalities.

At the end of the meeting, the minister called for more active involvement in communication and exchange of opinions from the industry and informed about the plan to meet with the Competition Council and the Consumer Rights Protection Center soon, where, among other things, the issue of insurer operations will be addressed.

Ministry of Economy Public Relations Department presse@em.gov.lv