Construction holding may give state-owned enterprises competitive advantage on construction market

Belstroytsentr, a construction holding consisting of 18 companies under the auspices of Architecture and Construction Ministry has been founded in Belarus in order to consolidate efforts and financial resources on the construction market. The holding is aimed at developing export of construction services. A foundation will be created within the holding, which will collect the dividends from the economic activity of subordinate enterprises. Having a holding may help improving the situation with settlements between enterprises and will reconfigure Belarus’ construction market in favour of the holding companies, prompting some small private construction companies off the market. In addition, it may step up export of construction services to Russia. Private companies will face difficulties when participating in tenders due to the requirement to provide financial guarantees, while the Holding Company will have the advantage of the Holding Fund and will not require banks’ resources. Finally, the Holding will be able to offer the lowest cost of services on the market.