Hospitals, schools and housing projects’ completion withdrawn from the bankrupt contractors

Government imposed new measures to regulate the private contractors work in obtaining properties for projects, especially those relating to the completion of schools, hospitals and residential programs by providing detailed financial and technical presentation before granting the deal.

The financial offer contains providing 100% of the sums that are allocated to the housing projects, through presenting detailed financial sums that are allocated for the project, while the technical presentation includes the identification of the final deadline for the project’s completion, and prevented in this framework pumping additional funds that exceed more than 20% of the total cost of the projects.

Sources from the Algerian Contractors’ Association explained that the work with the new procedures in the granting of achievement deals for private contractors includes managing the full amount of money for the completion of the special projects, schools and hospitals before starting it by 100% of the amount and preventing recourse to borrowing money from banks to complete the project, and this after a study confirmed that there is a progress of the projects which were deposited on the government’s table, showing that a large number of government projects that noticed delays, and other that stalled due to the bankruptcy of their owners and their inability to arrange the necessary sums for the achievement.

According to the same sources, the technical presentation of the achievement also includes the identification of additional cost of the projects, if there is any emergency along the lines of the collapse of the dinar’s price or rising the prices of raw materials that are destined for the completion of the cement, iron, wood, and plastic, as the latter was identified by 20% of the total amount that was determined in the financial offer, noting that a large number of private entrepreneurial companies stopped their achievement, after declaring their bankruptcy because of not studying the expectations in the financial offer, a the dinar’s exchange value noticed includes volatility witnessed the possibility of any increase in the prices of raw materials at any moment.