Republic of Mauritius- Construction industry to drive the economic recovery of Mauritius, states National Infrastructure Minister

This statement was made during
budgetary debates, on Friday 12 June 2020, at the National Assembly, by the
Minister of National Infrastructure and Community Development, Mr Mahendranuth
Sharma Hurreeram.

Projects undertaken by the Road
Development Authority (RDA) and the National Development Unit (NDU) are
numerous, he pointed out. The RDA will be implementing 27 projects over a
three-year period and presently, nine projects to the tune of Rs 5.5 billion
are being implemented and 18 new ones will be undertaken with an overall project
value of Rs 5.2 billion, underpinned Mr Hurreeram.

The NDU, highlighted the Minister, is
currently carrying out upgrading, resurfacing and drain works across Mauritius
and has mobilised more than 500 workers in this endeavour.  An additional sum of Rs 1.2 billion has been
allocated to the NDU to undertake major drain works in high-risk flood prone areas
identified by the Land Drainage Authority, he indicated.

Speaking about the community development
component, the Mr Hurreeram announced the construction and upgrading of a
series of structures such as market fairs, multipurpose complexes, incinerators
and around 200 secondary roads and 27 amenities in Mauritius.  A new sports centre will be constructed at
Plaine Verte and a leisure park at Quartier Militaire to the tune of Rs 1.3
billion, he added.

Budget 2020-2021 provides for:

• A sum of Rs 12 billion
  for the construction of 12 000 social housing units across the island.

• Rs 7.5 billion
  for the construction of the Rivière des Anguilles dam.

• Rs 6 billion to
  transform the main bus terminals along the Port Louis – Curepipe corridor
  into multi-modal Urban Terminals.

• Rs 5.2 billion
  for the construction of new roads and bridges.

• Rs 5 billion for
  the completion of the Metro System from Rose Hill to Curepipe.

• Extending the
  bus terminals modernisation programme to other main agglomerations of the
  country, starting with Flacq, St Pierre, Mahebourg and Rivière du
  Rempart.  The private sector will
  invest some Rs 3.2 billion over the next three years.

• Rs 2.2 billion
  in a Breakwater, Fishing Port and the Cruise Terminal Building.

The National Budget will also stimulate
private investment.  Currently, there are
some 34 projects in the pipeline at the EDB worth some sixty-two billion
rupees. A High-Level Committee chaired by the Prime Minister will be set up to
expedite processing and approvals of these projects.

In addition, the construction industry will
be boosted through the following measures:

• Waiving fees
  related to the Building and Land Use Permit (BLUP) for construction of
  pharmaceutical manufacturing factories, food processing plants and warehouses.

• Facilitating
  purchases of immovable properties by foreign buyers through digital Power
  of Attorney.

• Extending the
  Construction of Housing Estate Scheme and Acquisition of Newly Built
  Dwellings Scheme for another period of two years; and also raising the
  eligibility threshold under these schemes from 6 to 7 million rupees.

• Payment of VAT will
  be allowed as from the date of receipt instead of the date of invoice for
  Government contracts in relation to construction works.

• For Government
  projects of up to Rs 300 million, contractors will be paid within a
  shorter period of 28 days instead of 56 days currently.

• Any retention
  amount will be paid fully within six months instead of twelve months.

• The Construction
  Industry Development Board Act will be amended to review the grading of
  contractors.

• Public projects
  with investments of less than Rs 300 million and where pre-qualification
  is not required by the Central Procurement Board, will be opened to
  Mauritian companies only.