A section of the participants

THE second Low Income Settlements Programme (LIS2), a US$27.9M undertaking to further develop the housing sector, got underway yesterday.

Financed by an Inter-American Development Bank (IDB) loan, through the Ministry of Housing and Water, the start was followed by a workshop at Regency Suites, in Hadfield Street, Werk-en-Rust, Georgetown.

It will be executed by the Central Housing and Planning Authority (CH&PA) and is a follow-up to the first, which was successfully implemented by the same agency in 2007.

The document for the financing was signed by the Government and IDB in April and the general objective is to improve the quality of life of low income families, by affording them better access to housing under the following components:

* Development of new sites with services, consolidation of existing schemes and upgrading squatter settlements, covering the costs of design, construction, supervision of construction and upgrading regularised squatter settlements;

* Implementation of pilots to address issues of affordability and sustainability in housing; financing three pilots to lay the groundwork for affordable housing solutions which include subsidies to support housing improvement, serviced lots for partnership with professional groups and subsidies to provide housing solutions to households located in the hinterland with limited access to services and

* Strengthening the CH&PA, which includes consulting goods and services for the finalisation of the National Housing Policy and the preparation of a strategic plan; training of CH&PA staff in project cycle management; management training for CH&PA staff; upgrade of the management information system; creation of a programme evaluation system and activities to strengthen the CH&PA regional housing offices.

Important to the implementation strategy will be the involvement of key stakeholders, including beneficiaries in all phases and aspects of the programme and, in addition, community development plans will be prepared and implemented in all of the selected housing schemes and regularised squatter settlements.

Activities
The activities are expected to be executed during the period 2009 to 2013 and will benefit approximately 10,000 households.

Country Representative, Mr. Marco Nicola reiterated that LIS2 is part of an ongoing collaboration between the Government of Guyana and IDB to address low income housing issues.

He recalled that the process began in 2000 with the first that was completed in late 2007.

Minister of Housing and Water, Mr. Irfaan Ali (second from left) and IDB Country Representative, Mr. Marco Nicola, share a light moment. Also sitting from left are Minister of Amerindian Affairs, Mrs. Pauline Sukhai-Campbell, and CEO of CH&PA, Ms. Myrna Pitt

Nicola said, after executing the first, which benefitted about 19,000 households, some critical challenges remain, among them the level of occupancy, with between 50 and 55 per cent of the allocated lots currently occupied and the limited access to funding for sanitary purposes and house building.

Noting that, in the previous venture, stakeholders participation was still somewhat limited, he said: “We want to ensure enhanced participation of the stakeholders in the project.”

Nicola said, based on the concerns and the lessons learnt from the previous one, this project has a strategic vision that will address issues of affordability and accessibility to the low income housing population.

He said it would include improving infrastructure and housing in the hinterland, characterised by the limited and costly access to services and materials in those regions.

Nicola added that actions will be taken to improve CH&PA interventions in housing schemes and squatter areas and this scheme will be the first to test the local system for accounting and financial management without passing through other systems that are being used by the IDB.

He said IDB investment in CH&PA for institutional strengthening during the previous programme made his institution believe that this test will be very successful and the first example that can be used on the local public financial system to account IDB funds.

Nicola said the Government will, with this programme, address up to 70 per cent of the low income housing deficit in Guyana, approximately 12,000 households.

Minister of Housing and Water, Mr. Irfaan Ali, speaking at the same forum, commended the IDB and CH&PA commitment in the collaborative effort.

He observed that, apart from the core objective, there are certain additional fundamental benefits that can be derived from this programme that is timely and effective.

Learnt
Ali said the IDB and his ministry learnt a lot from the first and, as a result, this next was designed to fit neatly into the national development agenda and poverty reduction strategy of Guyana.

We have a project that goes beyond housing along the coastal region. We have a project that is looking at establishing housing communities in the hinterland regions and this brings with it fundamental changes,” he emphasised.

Ali said it will bring changes in lifestyle, social behaviours, economic opportunities and livelihood options.

These are all intangible yet tangible benefits that this programme will bring to the various communities,” he pledged.

Ali said it reflects, strategically, where the housing policy and the housing agenda will want to be by 2013.

?ut the programme goes beyond this and recognises that, by the end of 2013, there will be logistical and planning changes. That is why, built in it, is a review of the strategic vision and the rebuilding of a new strategy for the CH&PA,” he disclosed.

I think this is an exceptional component in the design of this programme.

?t the Government level, we can develop as many low income lots as we want to, but there are other critical elements in the development of low income lots and that is the enabling environment,” he admitted.

Ali said they include relevant infrastructure, right socio-economic conditions, right cultural environment and developmental agenda.

…the concept or the term low income sometimes gives a narrow definition that we are speaking about poverty and you are talking about removing poverty or addressing poverty issues. Yes, fundamentally, it is this. But, more importantly, it is presently, to persons who are vulnerable and who are within a certain income level, an opportunity to build themselves and develop themselves out of that strategy in improving their livelihood and living conditions,” he offered.

So low income in this context is presenting a new opportunity, a new vision to persons,” Ali stated.

He went on: “For this reason, we must compliment the Government of Guyana on developing and creating that enabling environment.”

Alluding to the announcement that Government has approved an increase in the ceiling on loans granted by approved mortgage finance companies for the purpose of low income housing, Ali said that is the type of leadership and policy driven framework that must be looked at and LIS2 creates an influential factor.

Resources
He said it is, needed, to ensure that people have access to resources from the commercial banks that will enable them to move from land ownership to home ownership.

The minister took the opportunity to request that commercial banks reduce the transaction time and set conditions that are realistic to low income earners.

He said, at the end of LIS2, there will be approximately 4,000 new house lots, creating 20,000 temporary jobs during the process of implementation.

That does not take into account the jobs that will be created as a result of the infrastructural development,” Ali said.

He said another benefit, for example, is in the hinterland communities where livelihood options will be presented for residents in those communities.

It would create greater ownership, greater level of involvement and greater long term benefits for the communities. These are additional benefits this programme would bring,” Ali anticipated.

?t the end of this programme let us say for each of these new homes, you spend a minimum of $2M, at the end of the programme you would have had $8 billion circulated in the economy from purchases of building materials for construction,” he calculated.

Ali said this initiative will also help resolve a number of the health issues and challenges existing, especially in poor vulnerable communities.

We can tell you this because, since 1992, we have regularised more than 20,000 lots in squatting areas and this aspect of sanitation and health has posed the most challenges for us,” he revealed.

According to him, getting people to understand the importance of this, as it relates to their health and the environment, is important.

There are lots of tangible additional benefits that are even more critical that would come directly to the people of the communities that will be derived from the programme,” he said.

The minister reiterated that this programme will benefit directly in excess of 10,000 households with the beneficiaries being 50,000 persons.

It is time that we understand the linkages of development, the trickle down effect that we normally hear about when we speak about economic development and link it to these projects,” he exhorted.

Lauding the project implementers, he said it is a very comprehensive and coordinated one that will bring benefits to thousands of Guyanese and improve accessibility to better livelihood and housing conditions.

Permanent Secretary within the Ministry of Housing and Water, Mr. Emil McGarrell pointed out that one of the exciting aspects of it is the pilot of 400 core houses with sanitary blocks across the country.

Present, as well, were Minister of Amerindian Affairs, Mrs. Pauline Sukhai, Region Three (West Demerara/Essequibo Islands) Chairman, Mr. Julius Faerber and Region Nine (Upper Takutu/Upper Essequibo) Chairman, Mr. Clarindo Lucas.