By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Bahamian Contractors Association's (BCA) president yesterday said the government's capital works budget for 2018-2019 was "extremely encouraging" for the construction industry.

Leonard Sands, pictured, told Tribune Business: "I have been doing a thorough review of the budget, and I can say that we should be very encouraged in the construction sector given the amount of money that the government has budgeted for improvements of government facilities, infrastructure and new developments. That is extremely encouraging."

He added: "I can say definitively that the industry stands to benefit; it stands to get a boost in a positive way. It will have a positive impact because you're talking about engaging a lot of contractors to do a lot of infrastructural and improvement work, which absolutely helps thousands of men and women who work in construction. It's welcome news in the construction sector."

The government has allocated just over $299m to capital expenditure in the upcoming fiscal year, with the Ministry of Works receiving the largest share at $120.672m or 40 percent, Desmond Bannister, minister of works, has suggested, though, that is insufficient to cover the vast amount of public infrastructure that needs upgrading.

The prime minister, during his wrap-up of the budget debate, said: "In support of the government's focus on public infrastructure, the budget allocates an additional $66m to the capital expenditure budget in 2018-2019." The level of capital expenditure projected in 2017-2018 was $230m, but this increased slightly as a result of the changed accounting treatment for the Bank of The Bahamas' bail-out bonds.

Dr Minnis added that foreign capital investment in The Bahamas, from May 2017 until the present date, is estimated at $767m. "This capital investment is projected to generate 6,004 construction jobs for Bahamian contractors, and 8,040 operational positions within the next five years," he added.