According to Prime Minister Vasile Tofan, the new requirements could lead to an increase in the cost of construction materials and, as a result, to a further rise in housing prices.
“We have a problem with high housing costs in Moldova—prices have risen significantly. If we look at what makes up the cost of real estate, several factors influence it: the cost of construction materials, labor, and land; how difficult it is to obtain land; and the entire bureaucratic component. And we have to admit—I think corruption in this sector also plays a certain role. All these factors ultimately lead to rising prices,” Tofan said.
He noted that the margins of construction companies need to be analyzed separately; however, the introduction of additional financial obligations for businesses must be carefully balanced.
“If we impose yet another tax burden or an additional guarantee, the cost of construction materials could rise even further. This applies primarily to stone: it cannot be imported in large quantities from Romania or Ukraine due to high transportation costs, so it must be quarried here. That is why we need to find the right balance,” Tofan emphasized.
Initially, the project called for the creation of a financial guarantee, which was to be used to ensure companies fulfilled their obligations to restore the land after mining operations were completed. The guarantee could have been provided in the form of an insurance policy, a bank guarantee, or other financial instruments provided for by law, and the funds would have been earmarked for preventing and remedying environmental damage.
