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 After the signing of the US$27.9M agreement, Minister of Finance, Dr. Ashni Singh, left, shakes hands with IDB resident representative, Mr. Marco Carlo Nicola. | |
The pact for the second Low Income Settlements Programme (LISP) was signed yesterday in the boardroom of the Ministry of Finance, Main Street, Georgetown.
Finance Minister, Dr. Ashni Singh and IDB Resident Representative, Mr. Marco Carlo Nicola affixed their signatures to the loan documents in the presence of Minister of Housing and Water, Mr. Irfaan Ali and other functionaries.
With Ministry of Housing and Water, being the implementing agency, Ali explained that the undertaking is important because it would provide low cost and affordable houses for the beneficiaries.
“This programme is coming at a time, that is critical in the housing sector, a time when we are trying to expand our services, to improve the level of service, efficiency and reliability,” he stated.
Ali said the LISP has three main components:
* development of new sites with services, consolidation of existing housing schemes and upgrading squatter areas;
* implementation of pilots, to address the issues of affordability and sustainability in housing and
* strengthening the Central Housing and Planning Authority (CH&PA).
Under the first, the Minister said a total of 3,766 serviced lots will be realised on 11 sites in Regions Three(West Demerara/ Essequibo Islands), Four (Demerara/ Mahaica), Five (Mahaica/Berbice), Six (East Berbice/Corentyne), Seven (Cuyuni/ Mazaruni) and 10 (Upper Demerara/ Berbice).
He said, the improvement of 4,900 lots on eight sites in Regions Three, Four, Five, Nine (Upper Takutu/Upper Essequibo) and 10 will also be facilitated.
According to Ali, through the same component, approximately 1,350 lots in five regularised squatter settlements, in Regions Four, Six and 10 will be upgraded and US$2M would be allocated for off sites investments.
Three pilots will be financed, in the second component to lay the groundwork for affordable housing solutions and those pilots would include, subsidies to support housing improvement; services lots for partnerships with professional groups and subsidies to provide housing solutions, to households located in the hinterland with limited access to services.
Improvement
Ali said, 400 families are to benefit in the pilot scheme, to support housing improvement, while the needs in Regions One (Barima/Waini) and Nine communities will be addressed in the pilot, aimed at providing housing solutions in the hinterland regions.
He outlined the third component to include consultancy for goods and servies for:
* finalisation of the National Housing Policy and preparation of a strategic plan;
* upgrading the management information system;
* creation of a programme evaluation system;
* undertaking activities to strengthen, the CH&PA’s regional housing offices;
* management training for CH&PA and
* training CH&PA staff in project cycle management.
Ali maintained that the LISP will benefit Guyanese in a direct way.
“We have embarked on a number of new programmes in the Ministry and this new one will see the continuation of previous ones and the strengthening of the Ministry management system,” he offered.
Minster Singh agreed, this initiative is an indication of the Government’s commitment to develop the social sector.
He said it is a manifestation of the confidence, that the IDB has in Guyana and is indicative of the institution’s recognition of this country’s successes in the housing sector.
The deal inked yesterday is a follow-up to the first LISP, which was successfully implemented and completed by CH&PA.
Recognising the CH&PA’s works, Minister Singh acknowledged the IDB’s confidence in the administrative structure for what must be “speedy and effective implementation” of the second LISP.
Nicola said, based on the positive experience with the CH&PA, the objective of the Government and the IDB arrangement is aligning, with the national systems and building capacity in the public sector.
The diplomat said, the 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 a US$13.95M from the Fund for Special Operations for a 40-year term and a similar grace period at 0.25 per cent interest rate.
Nicola said, the financing is expected to mitigate, the low income housing deficit as Guyana continues to boost access to quality.
