IN what is being described as one of the largest investments in the housing sector in one year, the government has injected some $13.9 billion into the development of new infrastructure, and the construction of houses, a project that will benefit over 8,000 families.
Having already distributed over 3,800 house lots in a little over six months, the government, through this initiative, will be looking to further strengthen its foundation in the housing sector, by ensuring that the requisite infrastructure and even housing facilities are in place to facilitate adequate and comfortable accommodation.
Access to adequate housing is viewed as a basic human right, and considered to be an integral factor for the enjoyment of other economic, social and cultural rights. And, with Guyana’s economy poised to quadruple in the coming years, the government has started establishing the conditions for Guyanese, especially from the low and middle-income brackets, to have access to adequate housing.

In a disaggregation of the government’s latest investment in the housing sector, Minister of Housing and Water, Collin Croal said some $12 billion will go towards new infrastructural works, while $1.8 billion will be utilised for the construction of houses.
Those funds are being channelled directly through 199 contracts, which were awarded officially to contractors who received their signed agreements from the relevant authorities at a simple ceremony held at the Arthur Chung Conference Centre on Tuesday.
Some 51 contractors received their contracts to start the infrastructural works and the construction of 290 homes, 119 of which will be built in Cummings Lodge, on the East Coast Demerara (ECD), while 100 will be constructed at Prospect, on the East Bank Demerara (EBD).
“The beneficiaries of the entire investment would be allottees, low, middle, moderate and high-income,” Minister Croal said.
In his estimation, Guyanese stand to benefit more in this year alone than they did during the tenure of the A Partnership for National Unity + Alliance For Change (APNU+AFC)’s coalition administration.

HOUSING DRIVE BACK ON TRACK
“Today [Tuesday]’s investment represents more than what they did for that sector [housing] in the past five years… We have wasted no time in doing all that we can after the mess left by the last government,” Minister Croal reasoned.
This investment, he reminded his audience, is just the tip of the iceberg, as the government’s overarching plan over the next five years is to make 50,000 allocations, which include house lots and houses.
And, just as the government is committed to making this promise a reality, Croal challenged the contractors to do their part by producing quality and timely work.
Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh also urged the contractors to produce quality work, since it is the quality of their work that will determine whether they progress from small to medium and large-scale projects.
“I urge you to be diligent in implementing this work. We must not have to chase contractors down to complete work; it is also your responsibility to ensure that contracts are in line with specifications,’’ Dr. Singh said.

IMMEDIATE MOBILISATION
The expectation of the government is for there to be immediate mobilisation of resources, and the commencement of the critical works.
In executing the work, contractors will not only be contributing to the development of new and ‘beautiful’ housing schemes, but also to wider economic advancement through job creation and increased spending.
“We need you to see yourselves as stakeholders in this process; you will not be executing a contract or working for the Ministry of Housing, but you’re working for the people of Guyana,” Minister within the Ministry of Housing and Water, Susan Rodrigues said.
She encouraged the contractors to view themselves as partners in the ministry’s efforts to deliver on their mandate to the people of Guyana.
Already, measures such as the zero-rating of construction materials have been instituted to motivate greater home ownership, and create better conditions for economic advancement.

Specific to facilitating and motivating greater home ownership, the government has increased the ceiling for low-income loans from $10 to $12 million. The ceiling at the New Building Society (NBS) has been increased to $15 million. The NBS has since committed itself to supporting the enhanced housing drive, and delivering finance to thousands of Guyanese who will benefit from the Government’s programmes.
The Bank’s commitment, as said by its Chairman, Floyd McDonald, is justified by the reductions in mortgage interest, which will take effect from April 1, 2021.
In outlining the specific reductions, McDonald said that the interest on loans up to $6 million will be four per cent per annum, instead of 4.25 per cent, while loans above $6 million to $12 million will attract an interest rate of 5.95 per cent, compared to the previous 6.75 per cent. Additionally, loans above $12 million, up to $15 million, will attract a 6.25 per cent interest per annum.
The reduction in interest rates will aggregately put into the pockets of mortgage holders some $100M per annum.