February 8, 2023

The National University of Construction and Public Works called on the government to extend the periodicity issued by the Prime Minister in April 2022, aimed at facilitating the work of contractors working in the sector and helping them overcome the high price crisis, noting that the activation of this periodicity was not respected, as this is required by a number of sectors of the government concerned.

In the mentioned publication, the Prime Minister called for the introduction of procedures and measures to regulate the timing of the execution of transactions, the return of penalties for late payment, as well as the possibility of terminating transactions that are in the process of completion without confiscation of financial guarantees. .

He also called for resolving disputes arising from the application of late penalties and decisions to terminate contracts, to work on revising the timing of transactions and works, to update the approved indicators in the context of price revisions and their early publication, and to expedite the payment of contractors’ contributions that have there are deals.

The National University of Construction and Public Works welcomed the circular issued by the Prime Minister, but felt that the circular did not produce the desired results and demanded an extension of its validity period by at least another six months in order to achieve a financial balance for the market, by revising the approved prices taking into account accounting for high commodity prices.

University President Muhammad Mahbub said the sector is in a very difficult situation as a result of a series of crises that began with the Corona virus pandemic and continued after Russia’s war with Ukraine, and the subsequent consequences of high prices for fuel and raw materials for construction.

He added that there are companies that have gone bankrupt and others whose owners have found themselves in court because of the financial difficulties they face and others that are “on the road to death.” He pointed out that sector participants “do not know what to do and are waiting for government intervention to bring them out of the crisis in which they are floundering.”

And university officials said at a press conference Thursday night in Rabat that representatives of some state administrations interacted positively with the prime minister’s patrol, but others poorly translated the directives contained therein.

The incompletely implemented procedures within the package of procedures that the Prime Minister’s Patrol came up with are related to the termination of transactions in the process of completion, without the confiscation of financial guarantees due to the impossibility of completing them as a result of exceptional economic conditions, the settlement of the timing of the transactions, and not restoration of the financial balance of the market, Failure to take into account the current inflationary economic context.

The construction and public works sector also complains about the rejection of requests for price revisions and adjustments and the timing of the release of the periodical issued by the Prime Minister, since its activation period expired on 18 October. .

The public works sector is considered the second sector that generates jobs in Morocco after the agricultural sector, as it employs 1.2 million people, representing 6 percent of the gross domestic product, and has a turnover of 60 billion dirhams.

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