There are several reasons why it’s best to start construction today. The island government’s 2020-2021 budget provides the rationale for this.
The budget flags the construction sector as the country’s engine for recovery from the economic setbacks due to COVID-19, with MUR41,1 billion allocated for seven major government construction projects. Allocations are for mass housing, urban water supply and irrigation, and transportation infrastructure.
7 windows of opportunity:
- MUR12 billion for the construction of 12,000 social housing units
- MUR7,5 billion for the construction of Rivière des Anguilles dam (water treatment plant, service reservoirs, and pipelines downstream)
- MUR6 billion for setting up the main bus terminals along the Port Louis–Curepipe corridor as multimodal urban terminals
- MUR5,2 billion for the construction of new roads and bridges
- MUR5 billion for the completion of the Metro Rail System from Rose Hill to Curepipe
- MUR3,2 billion to extend the bus terminals modernisation programme (with private sector participation) to Flacq, St Pierre, Mahebourg and Rivière du Rempart over three years
- MUR2,2 billion investment in a breakwater, fishing port, and cruise terminal building
Incentives for putting money into private construction
Meanwhile, MUR62 billion is budgeted for 34 private building projects in the pipeline at the Economic Development Board. Prime Minister Pravind Kumar Jugnauth will chair a high-level committee to expedite processing and approvals of these projects.
The budget has identified several measures to further stimulate the construction industry. These include:
- Digital power of attorney for foreigners buying immovable properties
- Building/Land use permit fees waived for pharmaceutical and food manufacturing plants and warehouses
- Extension of the Construction of Housing Estate Scheme and Acquisition of Newly Built Dwellings Scheme for another two years, and raising eligibility for the scheme from MUR6 million to MUR7 million
- Allowing VAT payment from date of receipt instead of date of invoice for government contracts in relation to construction works
- Contractors’ payment within 28 days instead of 56 days for government projects up to MUR300 million; balance payable in full within six instead of 12 months
Continue reading:
Where it’s safe to invest: new Mauritius real estate projects
Transport infrastructure boosts Mauritius property investment
