Govt. pitches housing, other proposals to Islamic Bank
Minister of Communities Ronald Bulkan greets the Acting Director  for the bank’s Country Programme, Mohammed Jamal Aisaati, in the presence of  Islamic Development Bank Vice-President Sayed Aqa and Chairman of the Board of Directors of the Central Housing and Planning Authority, Hamilton Green
Minister of Communities Ronald Bulkan greets the Acting Director for the bank’s Country Programme, Mohammed Jamal Aisaati, in the presence of Islamic Development Bank Vice-President Sayed Aqa and Chairman of the Board of Directors of the Central Housing and Planning Authority, Hamilton Green

THE A Partnership for National Unity + Alliance For Change (APNU+AFC) Government has made several developmental pitches to the Islamic Development Bank (IDB) in the areas of housing, education and social protection. The discourse took place on Thursday at the Arthur Chung Conference Centre between key executives of the IDB and several Ministers of Government, including Minister of Communities Ronald Bulkan and the Minister of Social Protection Volda Lawrence. Other Government officials and representatives from the banking sector were also present.
Minister Bulkan, in making his pitch, told the delegation led by Vice- President of the Islamic Development Bank, Sayed Aqa, that the APNU+AFC Government inherited an “overly ambitious” housing programme when it took office in May 2015.
At its core, he said, the programme sought to provide service lots to anyone so desirous, resulting in the need for large plots of lands. To meet this need, Minister Bulkan explained that many agricultural lands had to be converted for the purpose of housing, attracting huge infrastructural costs.
An investigation into the programme found that 66,000 service lots were developed in 380 areas in Guyana from 1995-2015, however to date approximately 28, 000 or 45 per cent of the lots are unoccupied.
“During the period 2011 to 2015, approximately 20, 000 lots were developed in 13 areas for which approximately a little over 16, 000 (or 80 per cent), currently are unoccupied,” Minister Bulkan further pointed out.
According to him, the housing programme entailed the expenditure of some GUY$13B or US$65M. However, in order to complete infrastructural works in the 38 areas, an estimated GUY$17B or US$85M would be required.
With only 20 per cent of the housing programme achieved over the past five years, and 25,000 active applications within the system, the Minister of Communities said his ministry have taken up the mantle to meet the demands of the growing population, but it would require significant funds.
The ministry’s medium-term objective seeks to deliver approximately 10, 000 housing units in the next five years to eligible Guyanese, particularly state employees, low-income households and the youth population. He said this will come at a time when there is a slowdown in mortgage lending.
The housing programme being pursued by this Administration comprises four components: squatter resettlement, urban regeneration, urban rehabilitation and the provision of housing needs in hinterland communities.
“With regard to the plan, it proposes to move away from that service-lot principle which requires vast areas of land with the accompanying huge infrastructural cost and to move towards high-density settlements where the infrastructural costs can be spread across a greater number of units,” Minister Bulkan explained.
The project, he added, allows for the construction of approximately 3,300 apartment units in three locations, as well as 1000 duplexes in 12 areas spread across five coastal regions. During a closed-door meeting with executives of the bank on Thursday, Minister Bulkan and his team are expected to disclose the finances needed to fulfil government’s five-year housing plan.
However, on Thursday, he pointed out that some GUY$60B is required to complete infrastructural works in the 380 areas that were developed under the previous administration. Acting Director of the bank’s Country Programme, Mohammed Jamal Aisaati, in response to the pitch, said that the bank is open to the proposals being made by the ministry, but it will be up to the government to prioritise.
The areas of intervention of the Islamic Development Bank include human development, rural development and food safety, infrastructural development, trade among member countries, as well as private sector development, research and development.
Guyana acceded to membership of the Islamic Development Bank in March this year. It was seen as a signal development as the country had attempted to join the bank ever since it became a member of the Organisation of Islamic Conference (OIC) in 1998, as this is a prerequisite to joining the bank.
It is the second country in the Americas to join the bank, following on after Suriname. The bank was established in December 1973 and officially opened its doors for business on October 20, 1975, with headquarters in the Kingdom of Saudi Arabia. It also operates through regional offices in Kazakhstan, Senegal, Malaysia and the Kingdom of Morocco.
The bank was established with the purpose of fostering economic development and social progress in member countries and Muslim communities.

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