Exclusive: Rattled construction sector in Iraq awaits new government for stability
Inflationary prices hinder smooth supply in construction market
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Sectarian clashes between the army and militancy outfits in Iraq is showing its effect on members of the construction sector operating in the country, and industry members have told Big Project ME that they are looking forward to the formation of a new Iraqi government.
A new president and prime minister are expected to be elected during the first session of parliament, scheduled to be held on 1 July, 2014 in the country. Over a phone call from Baghdad, Rebin Mukerji, sales manager for oil well cement for Lafarge Cement’s Iraqi operations told Big Project ME that product prices have increased following the crisis in the country.
“Even though the main road in the country are almost clear, transportation costs to move materials from the northern part of the country to the south have increased almost three-fold,” Mukerji said. “The prices of our products have had to be lowered, and this is something all companies operating in the market have had to do.
“Most companies, much like us, have kept their operations on hold until the end of Ramadan,” Mukerji added.
The holy month of Ramadan is being viewed as a critical time period by the Iraqi construction segment, which believes the upcoming parliamentary session could lend a sense of stability to operations in the country.
Ammar Al Asam, executive director of Dewan Architects & Engineers said a new set of leaders could positively impact Iraqi construction. Al Asam’s firm is currently designing for a university project due to be constructed in Samarra, one of the Iraqi provinces most-deeply impacted by militant presence.
“The original owners of the firm are Iraqi natives themselves,” Al Asam told Big Project ME. “Therefore, we have never been hesitant about working in Iraq, and have in fact enjoyed our experiences in the country.
“Most our projects in Iraq are with the government, which means project payment comes through on time and has rarely ever posed a challenge for us,” Al Asam continued. “Ramadan is, however, going to be a crucial period because a new government could be formed in this duration following the elections of April 2014.
“Maybe it will be a good omen for the country.”
