NewsWhore
06-18-2008, 06:50 PM
The stories continue to roll in on the rising cost of all types of construction. Today's Hoy reports that engineers and businessmen from the sector are requesting a meeting with the Minister of Industry and Commerce and the Superintendent of Banking. As construction is considered to be a major player in the Dominican economic process, the sector is somewhat in disarray, and both government and the private sector are seeking relief. Reporter Aleida Plasencia said that the basic industry ingredients, re-bar, cement and sand have all seen large increases in costs. Cement was up more than 10% between May and June, an 8" cinder block was up 25%, and bundled rebar has gone from RD$54,000 just a few weeks ago to RD$73,000 today. Nonetheless, raw material costs are just part of the problem, according to representatives from the sector. Jaime Gonzalez, the head of the Builders and Housing Promoters Association (ACOPRVI) told the reporter that financing costs have also increased, with home loans going from 12% to 17% just recently. Short-term building loans that constructors receive to build their projects have gone from 14% to as much as 18%, and just a month ago this rate was 10%.
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More... (http://www.dr1.com/index.html#11)