Echorouk's Forum : Algerian building contractors call for government intervention to stop prices crisis

President of Urbanisation and Building Contractors' National Union called on the government to stop the serious repercussions following the increasing prices of building materials in Algeria.

Ahmed Ben Kaoud said execution public and private companies including the state-owned Cosider can not afford continuing the execution of projects in building and public works sector due to a sudden increase in prices of iron and wood in international markets.The price of one ton of iron has gone up to 90,000 Algerian dinars in wholesale markets and to 120,000 dinars in retail ones. One square metre of imported wood is for 850 dinars and cement price increased to 900 dinars per quintal due to speculation.  

“We want the same privileges as foreign companies” 

The only solution is an immediate and urgent intervention from the government to set measures and enable public and private enterprises to face bankruptcy,” Ahmed Ben Kaoud told Echorouk

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 “Those measures include the review of the law on public deals in terms of execution prices in case of increasing prices,” he added.

“Other measures consist in obtaining the same privileges as the ones offered to foreign execution companies especially the Egyptian and Chinese ones.

““A decree signed by the President to guarantee projects   by one percent of the projects value which will come into force in May will help companies and enterprises.”  

Algerian companies can not execute more than 30 percent of the one million houses project 

Algerian public and private companies can not execute more than 30 percent of the one million houses project in Algeria.

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The government did not contribute to create an atmosphere for a natural growth of the Algerian public or private enterprise working in different execution fields including housing and public works

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 “The best Algerian enterprise in building and public works can not execute more than 450 houses per year provided that there is no bureaucratic hindrance,” Ben Kaoud said.   

100,000 enterprises are going to stop working 

Building Contractors’ National Union asked for opening an investigation in the issue of cement distribution and imposing control on factories work.

The union blamed cement factories administration for working with some small contractors and allowing them to “do business” in cement.

“Every one knows about such business by people who have been in the administration for years to support certain persons at the expense of project-taking contractors.

Some 100,000 enterprises employing over 200,000 workers will stop working in the next few days.

“That will disrupt the pace of projects execution if authorities do not review the current prices of building materials.”

“We are ready to respect laws as dissuasive orders are for our good sake,” said the president of Urbanisation and Building Contractors’ National Union.“Producing 5.16 million of tons per year would have met the market needs if there was no such business,” he added.  

 “Cement crisis is fabricated” 

Ahmed Ben Kaoud said every one knows about the phenomenon of speculation in cement field but nothing was changed although the cement national production reaches 16.5 million per year.

“Trade and housing ministries know the persons who are behind the monopoly but non one can stop them,” he said.

According to him, the cement crisis is fabricated and aims at hindering the projects of housing and public works sectors because they contributed in stopping hundreds of projects

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 “As soon as the crisis of valleys and quarries had been solved, we had the problem of cement. As if it was on purpose and planned in advance.”