by Nikitas » Tue Jul 20, 2010 9:55 am
VP asked:
"Can the situation be manipulated to such a degree that the TCs will be left out in the cold? Who will hand out the projects?"
given enough bad faith everything can be suborned and corrupted. Since 2004 EU rules also play a big part, every tender is open to all EU resident entities and professionals. But all this is applicable to public projects which would be planned and funded by the Famagusta municipality and the government. Housing and business projects like hotels are private and the owner decides who to hire and employ and hence cost is the major consideration.
Even if the "buddy system" plays out, the main contractor cannot do it all directly, sub contractors must be hired to do the actual work. For instance, the Rio-Antirio bridge in Greece was a French contract, but the consulting engineers were the British firm Wimpey and the actual work was carried out by Greek subcontractors.
We are talking of housing in Famagusta that housed 45000 people which has to be replaced. There is enough work there that is more than the combined total of ALL construction in the north. And it is all concentrated in one place, with town planning matters settled, infrastructure like roads etc in place.
As to the port, Larnaca is 25 miles away, and that adds cost. Let us make a quick calculation: each house needs 10 aluminum windows and doors to be imported from the nearest aluminum manufacturing center which for this item is Greece. 4500 houses times 10 is 450 000 windows. Moving that load from Larnaca would probably double the transport cost. Private owners will not want to pay double the money when there is no benefit.
If the project ever takes off the problem will probably create a huge bottleneck in Famagusta port for five years and thus be a good chance for extending and updating the port itself. It might turn out that TC architects and builders will prove more efficient and get the lions share of the work. Thousands of TCs are already involved in the RoC construction sector.
Overall the project might be a blessing in another way, it will divert resources from the environmentally destructive "development" of unspoilt areas of the island, create a housing oversupply and might lead to some demolition and rehabilitation of land- but that is too much to ask for now.