BAG is working on new regulations in the construction sector
4 Jun '20
The Business Association of Georgia (BAG) held a meeting of the Construction and Infrastructure Committee. The meeting was attended by the member companies of the Association, which operate in the construction sector and the real estate market.
It is notable that the participants touched upon the problems that have plagued builders and developers in recent years, and their solutions have had a positive impact on the development of the sector, whereas the companies operating in the industry have to operate in conditions of high financial risk against the background of the economic recession and exchange rate fluctuations that started as a result of the pandemic.
Therefore, it was decided to create a working group within the Business Association of Georgia which will carry out a detailed screening of the existing legislation and regulations, highlighting the outdated norms that hinder the further development of the sector and a package of changes will be prepared, which will be presented to the representatives of the executive and legislative authorities of the country on behalf of the Business Association of Georgia. The meeting noted that revising existing regulations and removing certain bureaucratic barriers could result in a significant increase in the construction sector as one of the largest employers and budget taxpayers, which in turn should contribute to a timely return to pre-pandemic economic growth.
The meeting also touched upon the program proposed by the Georgian government to support the sector, which was positively assessed by both developers and builders.
"We believe that the existing state regulations in terms of construction need a fundamental overhaul, as many norms are quite outdated in the current situation and hinders the development of the sector. In addition to regulations, the stability of the exchange rate is important for builders, as exchange rate volatility has a negative impact and threatens both infrastructure and other construction projects.
Today we decided to study the current regulations in detail and by advocating for the interests of companies operating in the sector, we can achieve a timely reflection of these changes in the legislation, ”said Levan Vepkhvadze, Executive Director of BAG.