Technical excellence in green urban development

Acvatot’s main objective is to build efficient and modern urban infrastructure across the country. General Manager Calin Bichir spoke to Business Review about today’s most pressing challenges for the construction engineering sector and the company’s plans for the years to come.

By Anda Sebesi

For cities and communities to develop smartly and sustainably, it is no longer enough to just have a highly developed construction engineering sector. Increasing emphasis is being placed on smart engineering infrastructure. What does this concept mean and how is Acvatot implementing it in Romania?

Developing cities and communities smartly and sustainably requires a holistic approach in which intelligent engineering infrastructure plays a crucial role, as it involves the integration of advanced technologies to optimise the efficiency, sustainability, and functionality of urban systems. In this context, our company has focused primarily on equipment and vehicles with low or even zero carbon footprint. This effort reflects an awareness of our environmental impact and commitment to sustainable mobility because investing in such technologies reduces pollution and promotes a more efficient and environmentally friendly transport infrastructure.

In terms of our work in urban environments, we have taken a significant step forward by acquiring specialised machinery which eliminates possible vibrations and does not affect buildings with seismic risk in the areas where we carry out work. Furthermore, this year, we have embarked on several innovative projects that focus on implementing technologies based on renewable resources. This decision was not by chance, but a decisive step towards building a sustainable and green infrastructure. By integrating these technologies into our projects, we aim to reduce our carbon footprint and promote the use of efficient energy sources, reducing dependence on conventional resources.

Recently, the construction engineering industry in Romania has grown significantly. Can you talk about the factors that have contributed to this growth, including technological ones?

The significant growth in construction engineering in Romania is attributed to a mix of factors emphasising sustained efforts towards adopting innovative technologies and processes. This performance reflects the industry’s continued commitment to integrating advanced solutions that significantly improve work efficiency and reduce operational costs. The growth trend in engineering works is mainly due to the significant increase in investments in road infrastructure and water, sewerage, and gas networks, with a large part of the funding in these segments coming from European funds.

Forging strong partnerships and exploring emerging opportunities in related areas, such as energy efficiency and increased comfort in residential construction, have also played a key role in expanding activities in the construction engineering sector. These collaborations have brought experience, know-how, and additional resources, leading to portfolio diversification and adaptation to changing market demands.

Last year, our company strengthened its position in the construction engineering sector, generating a turnover of over RON 288 million. Based on the balance sheet at the end of 2022, we were first in the national industry ranking by gross profit, turnover, and overall performance in the large enterprise category. In the first half of 2023, our turnover exceeded RON 165 million, with our forecast indicating that at the end of the year, we will reach a turnover of over RON 380 million.

What sorts of challenges do builders face on the Romanian market, and how can they overcome them?

Romanian construction workers are being deeply affected by the introduction of healthcare contributions (CASS) to salaries. The exemption was initially meant to remain in place until 2028, and it represents about 20% of the salary fund. However, Acvatot has decided to bear the CASS expenses for its team because it has always supported and backed its employees.

Another notable challenge for the constructors is the increase in the minimum wage in construction to 4,582 RON. We as an organization wanted this measure to keep the few skilled staff, we have been attracting very hard, but it represents a challenge for the field in which we operate.

OUG 90/2023, which introduced measures to reduce budgetary expenditure for 2023, is another concern for us. It threatens to reduce the pace of work and sometimes may even lead to complete pauses. As a high-cost, time-critical industry, construction needs help maintaining productivity.

At the same time, the prospect of paying VAT and corporate tax upfront while dealing with late receivables adds further pressure on companies’ cash flows. This can lead to industry-wide financial difficulties, with negative consequences for smaller firms, including potential insolvencies and bankruptcies. Instead of supporting the budget, these measures may contribute to a drop in receipts, with potential side effects such as increased unemployment among construction workers.

Faced with these issues, Romanian construction companies must reassess their financial strategies, look for cost-cutting solutions, and intensify dialogue with the authorities to propose legal adjustments that take into account the specifics of industries with long cashflow cycles. Collaboration between the private and public sectors is essential in order to find sustainable solutions that maintain economic balance in the industry.

What projects does Acvatot currently have under development, and is 2024 looking from this perspective?

Acvatot is carrying out ambitious projects, focusing on rehabilitating and expanding critical water and sanitation infrastructure in various areas. One of these projects concerns Pantelimon and Branesti, where the rehabilitation and extension of water and sewerage networks are underway. A sewerage extension project in the Independentei district of Bragadiru is also in full swing, together with rehabilitation and extension works of water and sewerage networks in Petrachioaia, Cernica, and Glina. In addition to these multi-annual projects, our company is involved in four-year framework agreements covering a diverse range of works for the Public Domain Administration of Sector 1. These include street maintenance and repair works, road signage works, upgrading the urban infrastructure in Sector 1 of Bucharest, and repairs and upgrades in Sector 4.

Regarding natural gas distribution, Acvatot focuses on optimising systems, carrying out earthworks to remedy faults for a major natural gas supplier.

New projects also include extending water and sewerage networks in the Fundulea and Ileana localities in Calarasi county as well as in Baleni, Bucsani, and Finta in Dambovita county. Additionally, we are carrying out major projects in the counties of Buzau, Vrancea, and Covasna, covering the design, technical assistance, and works to implement and extend the natural gas distribution system.

With a diversified portfolio, including projects for rehabilitating the heating system in Bucharest, Acvatot is working hard to build an efficient and modern urban infrastructure. Ongoing contracts, valued at around RON 500 million, indicate a robust medium-term commitment, with multiple projects planned over the next three years, mostly financed through European funds.

How much does technological progress influence the sustainability and durability of construction projects?

Technological progress significantly influences the durability and sustainability of construction projects. By integrating new technologies, more robust and energy-efficient building materials can be developed, reducing the carbon footprint of projects. The use of sensors and intelligent systems allows for real-time monitoring of the performance of structures, facilitating preventive interventions and extending their lifetime. Advanced renewable energy technologies can also help reduce resource consumption and implement eco-friendly solutions in construction. Technological advancements are crucial in making projects more environmentally sustainable and economically viable.

ABOUT ACVATOT

With a history of over 30 years in Romania, ACVATOT launched the concept of a complete building package—water, sewerage, gas, heating, lighting, road—enabling it to tackle complex works for clients. The company focuses on the quality of execution and encourages respect for the environment, supporting non-invasive and sustainable development solutions.

DMCA

PROTECTED