From adaptation to growth

21.10.2020

The construction industry is prescribed intensive development

The Russian government approved the final version of the national economic recovery plan. It includes 500 events, about a tenth of them are devoted to the short-term prospects for the development of the construction industry. The tasks set by the document are planned to be implemented in three stages by the end of next year. The plan was signed by Russian Prime Minister Mikhail Mishustin at the end of September, but it became public only a few days ago.

Recall that the Cabinet began to develop the first version of the restoration plan in May and in early June presented the document to the head of state. Vladimir Putin then agreed to accept the draft as a basis, but instructed to finalize “a number of points.”

The updated version of the plan has become five pages larger, it slightly, within 0.5-1 percentage points, changed the key economic indicators that the country should reach as a result of its implementation. More attention in the document is now paid to the issues of digitalization of the state apparatus – if the first edition provided for about fifty measures, now – seventy. But the second most saturated area is “Construction and Housing and Utilities”, these industries are “prescribed” fifty different support measures aimed at recovery and development. It should be emphasized that the plan includes a significant number of proposals from the business community, which are contained in the plan of measures “Transformation of the business climate” in the direction of “Urban planning”, agreed upon and submitted earlier to the government of the Russian Federation.

The cost of all measures of the national plan for economic recovery is 6.4 trillion rubles (previously they were estimated at 5 trillion). However, a significant part of these funds, more than 4 trillion rubles, has already been spent, since some of the measures contained in it have already been implemented.

The plan itself (available to Stroygazeta) is divided into three stages. The first, June-September 2020, involves the adaptation of the economy to new working conditions. Its main goal is to prevent a further drop in household incomes and a deepening recession and to stabilize the situation in the most affected sectors. Certain provisions of this stage are being implemented starting in July. Among them, for example, extended financial assistance to business on loans, deferral and reduction of tax and insurance payments, etc. A number of measures have been taken to support the construction industry. Among them – a program of preferential mortgages at 6.5%, subsidizing interest rates on loans to developers, loans to SRO members from compensation funds. In addition, the time frame for making amendments to territorial planning documents was reduced (SG wrote about this in detail).

The second phase of the plan, October 2020 – June 2021, aims to recover (return to growth). The third, July-December 2021, is aimed at the active growth of both the economy as a whole and individual industries. It was in the plans of the second and third stages that the most significant changes affecting the construction industry took place. For example, government funding of measures to reduce the weighted average rate on mortgage loans increased (from 5 billion to 12.6 billion rubles). Funds have been redistributed to complete the construction of problem houses and restore the rights of equity holders – 3 billion rubles, planned for these purposes in 2021, will be spent additionally this year. Whereas 1.8 billion rubles, “set aside” now for the creation of mechanisms for lending to contractors for early execution of government contracts, subsidizing the interest rate and attracting government guarantees, on the contrary, will be allocated only next year. By the way, the provision of the state guarantee “DOM.RF” for the purchase of new apartments from developers in the amount of 50 billion rubles has been replaced by financing the completion of houses.

But to save, according to the plan, it was decided on mortgage programs with state support (“Family”, “Dalnevostochnaya”, “Rural” mortgage). Their funding will decrease in total over two years from almost 52 billion to 30.3 billion rubles. Some money will be taken away from the Stimulus program in 2021 (instead of 5 billion, there will be 4.5 billion rubles).

For some activities of the plan, the implementation period has been increased. Thus, the establishment of differentiated minimum requirements for work experience for contracts concluded for federal and municipal needs was postponed from June to October this year. Until this month, the establishment of increased requirements for procurement participants for the implementation of large construction projects worth over 5 billion rubles was also postponed. For the implementation of information modeling technologies in construction, they “threw” a whole year (postponed from December 2020 to December 2021).

In the direction of “Accelerating the development of urban agglomerations and cities”, the plan includes a new event “Formation of the legal framework for inter-municipal cooperation, including in order to increase the investment attractiveness of urban agglomerations and cities” due in December 2020.

Quote:

Mikhail Mishustin, Prime Minister of the Russian Federation:

“We all understand how the spread of the coronavirus has affected the dynamics of the economy as a whole. We need to restart positive processes and continue moving forward. The submitted national plan is aimed at restoring effective employment and effective demand, supporting entrepreneurship, launching a new investment cycle and improving the business climate, as well as accelerating the technological development of the economy ”

Source: Stroitelnaya gazeta No. 41 10/16/2020