— low-income housing loans increase from $12M to $15M
— $4.9 billion to improve water sector

SOME $12.4 billion has been allocated to the housing sector and, among other things, will see the upgrading of 45.5km of roads in 31 existing housing areas as well as the construction of drains, structures and the installation of LED street lamps.

This was revealed by Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, during the presentation of the 2022 National Budget at the Arthur Chung Conference Centre at Liliendaal, Georgetown.

Government, Dr Singh said, aims to complete the construction of the electricity distribution networks in the existing housing areas and complete the procurement of electrical hardware for new housing areas.

In 2022, he noted that government will construct 100 core homes at La Parfaite Harmonie and Sophia Housing areas with an additional 125 core homes to be constructed in areas to be identified.

“Mr. Speaker, the PPP/C Government gave its commitment to provide affordable housing to the people of Guyana. We are duty bound to meet that promise and we will deliver on that promise.

To meet this obligation, we are working on several tracks. On the one hand, we have been making serviced-house lots available for allocation, targeting young professionals, individuals with immediate needs, persons who have disposable income to commence construction and plots for private housing developers,” Dr. Singh said.

At the same time, he said government has been developing affordable housing stock for first-time middle and low-income homeowners.

These, he said include one- and two-bedroom flats and elevated properties in numerous housing schemes nationwide.

In addition, he added that negotiations with commercial banks to reduce the mortgage interest rates were successful, as bold steps are also being taken to keep building material costs as low as possible.

“Mr. Speaker, since we assumed office, we announced two increases in the ceiling on low income loans that may be obtained through commercial banks under the low-income housing loans programme supported by government. First was from $8 million to $10 million and the second from $10 million to $12 million. I now wish to announce a further increase in the ceiling from $12 million to $15 million. This will make housing loans from commercial banks more affordable to borrowers within that range and help encourage persons who now have a house lot to proceed to borrow and build,” he disclosed.

ON TRACK
Moreover, he said “we are well on track to achieve our target of providing 50,000 house lots by 2025 through our “Dreams Realised” housing drive across the country. Since the PPP/C Government took office in August 2020, a total of 10,063 house lots were allocated to persons, many of whom had applied decades ago.”

He continued: “Our commitment is not only to distribute house lots, but also to ensure that persons become homeowners by constructing their own homes. In 2021, real estate loans issued by commercial banks totalled $95.6 billion, an increase of $5 billion over the previous year, and this amount is expected to increase further.”

Government, he said has distributed 1,266 land titles and transports in 2021, and plans to target 6,000 applicants in 2022.

Meanwhile, in the areas of water and sanitation, some $4.9 billion has been allocated to continue improvement of the water sector.

Dr. Singh noted that the drilling of the new wells located at Chesney and Parika will be completed during the first half of 2022.

In 2022, he added that $394.5M is budgeted under the Hinterland Water Supply Programme which will make provision for new water supply systems to be installed at Phillipai, Isseneru,
Warwatta and Tasserene in Region Seven; Itabac in Region Eight, as well as Yakarinta and Katoka in Region nine.

“Mr. Speaker, it is estimated that 70 per cent of the hinterland communities will have access to potable water by the end of 2022 compared to 56 per cent currently,” he stated.

INCREASE IN COVERAGE
Given the interventions planned for 2022, the Finance Minister said it is estimated that potable water coverage for the coastland will increase from 96 per cent to 98 per cent.

The Senior Minister noted that a total of 15,340 water metres were installed in 2021 to new and existing service connections to reduce non-revenue water and 20,000 metres planned for installation in 2022 will reduce water losses from 67 per cent to 64 per cent by the end of the year.

Further, he said the upgrading of the transmission lines between Shelterbelt and Lamaha Street, Kitty, was completed, including the transfer of 284 service connections from the old network to the new network, as well as the reinstatement of the carriageway to the benefit of approximately 40,000 residents.

Moreover, he explained that the old existing cast iron transmission main will be replaced with new high density polyethylene pipes between Shelterbelt and Water Street to benefit approximately 100,000 persons.

Additionally, he stated that this year $1.4 billion is allocated to improve sanitary and environmental conditions through infrastructural development across the country.

This includes, he said, the sum of $105 million for the design and construction of a gas management system and storm water ponds for Haags Bosch.