12,000 to benefit
The Government and the Inter-American Development Bank (IDB) yesterday inked a loan deal totalling $5.7B for the housing sector, which is expected to benefit about 12,000 people, representing 8% of the country’s households.
Dr. Ashni Singh
The second Low Income Settlements Programme is expected to address 70% of Guyana’s low income housing deficit, a statement from the IDB Country Office said. Minister of Finance, Dr. Ashni Singh and IDB Country Representative, Marco Nicola signed the agreement in the presence of Minister of Housing and Water, Irfaan Ali, Chief Executive Officer of the Central Housing and Planning Authority (CHPA), Mryna Pitt and other officials in the Ministry of Finance’s Boardroom.
Yesterday’s signing formalised the US$27.9M loan, which was approved by the IDB Board of Directors last December. The Programme is a follow-up to the first Low Income Settlements Programme, which was implemented by the CHPA and completed in 2007. The general objective of the Programme is to improve the quality of life of low-income families through better access to housing. It has been divided into three major components and will be implemented through the CHPA.
Ali said that the new Programme, under Component One, will encompass the development of new sites with services, consolidation of existing housing schemes and upgrading squatter areas. Component Two will see the implementation of pilots to address the issues of affordability and sustainability in housing.
The minister said that the first sub-component – development of new sites with services, will include sub-divisions with connections to basic infrastructure and community facilities. Additionally, he said that it will include financing for a package of technical assistance and provision of materials for beneficiaries to construct septic tanks. It is expected that 3,766 serviced lots will be realized on 11 sites in Regions Three, Four, five, Six, Seven and Ten.
The second sub-component – consolidation of existing housing schemes, will include on-site investments to complete or rehabilitate infrastructure at eight sites in Regions Three, Four, Five, Nine and Ten with 4,900 lots expected to benefit.
The third sub-component – upgrading of squatter areas, will include improving the physical conditions (such as widening, where possible and paving of streets, drainage, septic tank construction and water distribution). It will also finance the upgrading of 1350 lots in five regularized squatter settlements in Regions Four, Six and Ten.
In addition, US$2M has been allocated for off-site investments such as for new wells, transmission upgrades and leak reduction, to guarantee water supply to the new sites as well as to the existing housing schemes. Provided for in that allocation too is a pilot project for the construction of 400 “core homes” where the basic infrastructure would be provided.
Serviced lots
Component Two will see the implementation of pilot projects to address issues of affordability and sustainability in housing. This includes subsidies to support housing improvement, serviced lots for partnerships with professional groups such as teachers and nurses and subsidies to provide housing solutions to households located in the hinterland with limited access to services.
Component Three will address the strengthening of the CHPA. Ali said that the programme will see a direct improvement in people’s lives and asserted that it comes at a critical time. He pointed out that a unique feature of this new programme is that it will be executed by the staff of the CHPA. There will be strengthening of the existing staff complement through training and the recruitment of additional staff to execute specific programme activities. The programme activities are expected to be executed during the period 2009 – 2013.
Meantime, the IDB statement noted that the Programme will improve low-income families’ access to enhanced living conditions through housing solutions and access to house lots. Although the population in Guyana remains stable, the Bank said, the country still suffers a deficit of 19, 400 homes for the low-income population. Demand for quality housing is also unmet as an estimated 52,000 houses are over 30 years old and not properly maintained, it added.
The IDB’s loan consists of US$13.95M from the Bank’s ordinary capital for a 30-year term including a six-year grace period at a variable interest rate, and US$13.95M from the Fund for Special Operations for a 40-year term and grace period, at 0.25% interest rate. The statement said that based on the positive previous experience with the CHPA, the government and the Bank have agreed an “innovative implementation mechanism of this program that will be executed directly by the beneficiary agency without the interface of an ad-hoc project executing unit”.
Questioned on whether the IDB still harbours concerns about Guyana’s absorptive capacity, Nicola said that this has improved. “In many sectors, not in all, but in many, many sectors, the absorptive capacity of Guyana has improved dramatically”, he stated.
He pointed out though that there are some sectors, which he would not name, which still struggle in terms of achieving absorptive capacity, but these are sectors where they have just started working or where there is a lack of experience in working with the IDB, but the Bank is working closely with those agencies in order to improve their capacity to absorb loans.
Dr. Singh meantime noted that where there is the view that further work can be done to improve absorptive capacity, the benefit of experience and the passage of time helps to strengthen the ability of those sectors to implement their projects.
He said that the new programme and the continued support of the housing sector is a reflection of the fact that the housing sector has accumulated an outstanding record in implementing projects and demonstrating adequate absorptive capacity. He declared that government recognizes the need to address any impediments and bottlenecks as it relates to implementing a project and this is manifested in the recent engagements they have had with contractors, consultants and with permanent secretaries. He added that government has done a lot of work to streamline procurement legislation.
Ah yes but SN please ensure you state that these are not IDB deals that are signed these are loans that have to be paid back.
Be crystal clear about this…….
… OK !,, so the nation’s poor will be helped to achieve housing in what is supposed to be affordable ,, and be part of new communities ,, at 11 sites in 6 regions — regions 3,, 4 ,,
5,, 6 ,, 7 ,, and 10 !
the govt should ,, must ,, now tell us where in the 6 regions the 11 sites will be located ,, considering the misery of the quagmire that is known already to get worse ,, since the coastal plain is no longer conducive to productive settlement for humans and their means of survival it is incumbent on the planners to identify ,, where on the coast the schemes will be located !
Loans loans and more loans, i wonder how guyana is going to repay these loans that the constantly borrowing.
… yuh right ! considering we still payin back de 2 BILLION USD
by those — u know who is dem wah ah talking bowt — who fill dem suitcase and leff de poor people fuh wuk an pay um back !
what a sweet deal !……
there is no country in the world that i know of which is dept free, even the most powerful has gotten loans from other countries,every country borrows and leaves the expence to our children who leaves the expence to their chilren who…. get my drift, a fact.
The game is as old as empire itself. Here is an example of the criminality of this evil game of usery unfolding it’s ugly head, right before our very eyes.
13.9 Million US over 30 years, then another 13.9 Million US over 40 years with a grace period of 0.25% interest. Does this not look like a conventional home mortgage and the other half an adjustable rate subprime mortgage.
Why do they not tell us what is the interest rate on the conventional loan, and what is the blow up rate when the grace period is over on the subprime loan.
In thirty years the loan on these so called affordable houses will multiply itself 64 times my friends.
Remember they also took 20 million US for infrastructure and roads, and another 60,000 British pounds to buy a few buckets of Talapia fingerlings.
They continue to sell out our beautiful country to the vampires of world misery. As long as they get to secure their pound of flesh for themselves, and their political elite following, they do not seem to care.
The nail in the coffin is contained in their following statement: “He pointed out though that there are some sectors, which he would not name, which still struggle in terms of achieving absorptive capacity, but these are sectors where they have just started working or where there is a lack of experience in working with the IDB, but the Bank is working closely with those agencies in order to improve their capacity to absorb loans”.
What do they mean by the capacity of some sectors to absorb loans? In layman terms, they are expressing concern about some sectors slated to be suckered into this deal and not having the ability to repay.
In many cases they will bribe the government to default on these loans, so they can sweep in and buy up all of the countries resources at firesale prices.
The big question here: Is this good minister and his leaders selling the counry out for a hansome bribe?
This is the reason and only reason why the country can not and will never progress into a state of real prosperity.
Where are all of the academics and economists? Why do they not speak out against this brutal rape and assault of the peoples wealth and sovreignty?
Joe.
Tanasee yuh rearview mirror lil dutty clean am.
One thought. NO WOOD HOUSES.The climate of Guyana, rainy, humid,dryrot prone, mold, termite infested,expanson and contraction, is unsuitable for wooden houses.In the long run, a concrete or brick house built is a more economical and safer investment.
Joe well said ,that is what the PPP,GOVERNMENT IS DOING ,