As the crisis deepens, the Estonian government plans on coming to the rescue of the economy and the construction sector by launching major projects for which procurements could be announced right away, Prime Minister Juri Ratas (Center) has said.
“I believe that toward the end of the year, the situation in the construction sector may grow increasingly complicated,” Ratas said at a government press conference. “This was also one of the wishes of this supplementary budget, to signal as much as possible, regarding the opportunities of the public sector and the budget, to increase these investments in particular. Whether via local governments, whether via road construction, or whether via investments in or the renovation of apartment buildings.”
On May 21, the government and its ministers were also tasked with reviewing major projects that were fundamentally immediately ready for construction procurements should the economic crisis worsen further and which could more quickly activate investing, he added.
Ratas said that the government approved support for sports facilities.
“The goal of this support is providing one-time grants to proprietors of sports facilities to help partially reimburse damages incurred by the viral outbreak-induced crisis,” he explained. “This allowed for sports facilities to reopen and continue operations following the conclusion of the emergency situation. The volume of the measure totaled EUR 400,000.”
Ratas said that the government also approved the minister of economic affairs and infrastructure’s draft regulation regarding the use of support for the increasing of the energy efficiency of small houses.
With this regulation, the maximum amount of small house support to be disbursed via Kredex will be increased, and complete reconstruction will be supported to a greater extent than before. Until now, the maximum amount of support was capped at EUR 15,000 or 30% of qualifying expenses; now, the maximum amount will depend on one’s location.
The maximum support rate and amount for complete reconstruction per small house will be as follows:
– 30% and EUR 30,000: Tallinn, Tartu;
– 40% and EUR 40,000: Harku Municipality, Joelahtme Municipality, Kiili Municipality, the town of Maardu, Rae Municipality, Saku Municipality, Saue Municipality (with the exception of areas falling within the territory of the former Kernu and Nissi Municipalities prior to October 15, 2017), Viimsi Municipality, Luunja Municipality, Kambja Municipality (within the territory of the merged Ulenurme Municipality prior to October 15, 2017), Tartu Municipality (within the territory of the municipality prior to October 15, 2017), within the territory of the former Tahtvere Municipality prior to October 15, 2017;
– 50% and EUR 50,000: all other locations and administrative units.
“We will also continue in the cabinet with discussions regarding what additional relaxations of restrictions will be,” Ratas added.
The Riigikogu passed a supplementary budget in April that focused first and foremost on short-term economic crisis relief measures. (ERR/Business World Magazine)
