The New Nation - Internet Edition

Staff Reporter

The President of the Real Estate and Housing Association of Bangladesh (REHAB) urged the government to take immediate initiatives to control the rapid price spiral of building construction materials, particularly of steel rods.

Price of this major construction material witnessed over 12 percent rise within a week. Similar condition is prevailing with other materials, which is significantly escalating construction cost and putting the construction companies out of business, said REHAB President Mukarram Husain Khan.

"Still rods were sold at Tk 52,000 per ton just a week ago. Today its price is over Tk 60,000 for the same amount. We can't overcharge our clients as they have signed agreements before two years from the handing over date," he explained.

This reckless price hike is threatening the existence of many construction firms in the country. If action is not taken immediately, the sector, where the maximum number of unskilled labours are employed, will be unemployed soon, he added.

As controlling the price hike of rice is essential for the government, it should also be the same for the construction materials. Because both the food and shelter are basic needs for every citizen, said REHAB President.

He suggested relaxing production and import taxes to ease the price in local market.

He was addressing a press conference yesterday to formally announce the date of REHAB Fair Chittagong-2008 at the National Press Club in the capital. The three-day long fair has been scheduled to start from January 17, 2008 at the Engineers Institutions, Chittagong.

He also asked the Government to provide house finance to middle-income people with easier installment policy and longer period to pay back the loans. "As governments of many developed countries give house finance loans with 20 to 25 years period, Bangladesh government also should follow their policies to secure shelters for every Bangladeshi," he emphasised.

He however asked the Government to reduce installment rate from 12 percent to 10 per cent in its existing house finance scheme for the citizens of Dhaka.

Echoing REHAB President, General Secretary Eng Tanveerul Haque Probal pointed some other problems related to construction business in present, including the revised building code and One Stop Solution policy of Bangladesh Government.

One Step Solution strategy, which was initiated by the present government in order to solve all kinds of formalities in acquiring design approval, is not working as effectively as expected, said the REHAB Secretary General.

According to him, almost every design approval is crossing the maximum fixed duration, 45 days. And in case of a project design over 10 floors, you should not expect any approval as they are rarely approved, he added.

"It is a failure of RAJUK, the Government office, entitled for this job. And Government needs to look into the matter immediately," added by REHAB Secretary General.

However, total 45 stalls have confirmed to set their stalls in the second REHAB fair in Chittagong. Three construction companies, KEARI Limited, Navana Real Estate Limited and Rangs Properties Limited are co-sponsoring the fair, as announced.