ECONOMY

Construction projects risk cancellation due to high costs

Construction projects risk cancellation due to high costs

A multitude of construction projects run the risk of being canceled, with the possible loss of European subsidies too, as the cost of raw materials and fuel has soared in recent months.

The recently revised state-approved rates for various construction materials no longer suffice to cover the new hikes the war in Ukraine has brought, while the cost of fuel such as diesel has jumped 30% in the last few weeks, making it prohibitively expensive to operate machinery.

The Infrastructure Ministry has apparently realized the extent of the problem and has scheduled a meeting on Tuesday with contractor associations to discuss possible solutions.