The company will start in the near future the geotechnical works on the underground passage from Piata Presei Libere in Bucharest. The general contractor of the project is Apolodor and the value of Octagon’s contract is 600,000 euro.
Expansion of the activity on Iraq and Kurdistan markets
Octagon is also performing construction works abroad, in Iraq and Kurdistan markets. This year the company will consolidate the activity of Iraq branch (open since 2011) and will continue works on 125MW Shatt Al Basra Power Plant, from Basra and of the residential complex Iraq Gate, developed by Iraqi investor Almco in Baghdad. Octagon is also in the negotiation stage for the construction of Bawanur dam din Kurdistan, a project worth 5 million dollars, bid in partnership with Hidroconstructia SA.
Negative conditions to maintain on the Romanian construction market
According to Alexandros Ignatiadis, 2014 will not be very different from 2013. "In the first trimester the sector contracted 3%, while the GDP went up by 3.8%, so the construction sector was not a growth engine for the economy. The private sector was revived by the construction of two malls in Bucharest and of several factories countrywide, but these investments have not generated profit yet. These results, combined with the activity decline in the public sector have led to the 3% contraction of the construction sector", showed Octagon manager. At the same time the elections have not influenced the construction sector positively either, due to political instability. "During the elections a large part of the investments for constructions are redirected towards public sectors that can generate votes, such as social protection, to influence the electorate", explained Alexandros Ignatiadis.
At the same time, according to the manager, the new public bid rules have not solved the major issues in the area. "Maintaining the lowest price as main criteria to determine the winner of a contract can significantly affect the quality of the delivered projects. A more detailed approach and deep changes in this respect are needed.” said Octagon shareholder.
You can read the romanian version of the article here.