Large construction projects fuel local economy

Under construction: A five star luxury hotel in a suburb of Tiraspol

TIRASPOL (Tiraspol Times) - If new construction is the sign of a growing economy then Pridnestrovie might soon be booming. In Pridnestrovie a lot of new construction is currently underway. Next door to the Sheriff Stadium, building crews are erecting a new five star hotel on the outskirts of Tiraspol, the capital of Pridnestrovie.

The new seven story hotel will be the largest in the country and will offer five star quality in an international setting. It also includes a conference hall for large conventions and expos.

Just a few miles away, on the banks of the Dniester River, ground has been broken on another construction project for the public: A riverside mall and entertainment complex with international stores, several eateries, and the opportunity for nightlife overlooking the river.

Viktor Kostyrko (middle) examines a scale model of a luxury riverside mall.

Nightlife on the waterfront

Viktor Kostyrko, the mayor of Tiraspol, explains:
“ - With waterfront views, Pridnestrovie is building a shopping and entertainment centre including a cafe and a restaurant. When completed the project will have a VIP rooms for guests, a sports facility and a leisure and entertainment center.”

The project is being built with private investment and matches the governments large-scale privatization efforts, underway since 2002. Pridnestrovie has a flat tax and a low tax rate of just 15%, making investment attractive in the country even in spite its still-unsettled international status.

Closeup of the model for the new mall and entertainment complex.

Investors apparently have no qualms about Pridnestrovie. One investor told Tiraspol Times that for his company, profits and the economic prospects of a country are factors which are far more important than politics, and concluded that for Pridnestrovie, the numbers are excellent. Based on 2005 statistics, the share of companies with foreign investments now stands at 53.4% of the total number of private companies.

On 3 March 2006 the export economy of Pridnestrovie received a blow when Ukraine announced that it would no longer accept Pridnestrovie-issued customs certification for goods transiting its territory. The move, which the government in Tiraspol called an economic blockade, severely affected export earnings from products such as steel, shoes and textiles. Not withstanding illintentioned but unproven propaganda to the contrary, Pridnestrovie does not export weapons.

Now, with new construction on the way and the domestic economy on the rebound, investors are actively moving money into Pridnestrovie again. Despite its unrecognized international status, and a cold shoulder from both Moldova and Ukraine, a small but steady flow of investments continue arriving unabated into Pridnestrovie. The economy, while not perfect, is moving forward. A reliable indicator for growth, the upsurge in new construction, is one of the signs which make the population of Pridnestrovie optimistic abouts its future.