Government pitches housing development plans to officials

Islamic Development Bank visit

…engaging in technical talks over the next few days

Communities Minister Ronald Bulkan on Thursday raised the Government’s housing development plans tobuild some 10,000 units mainly for state employees to the visiting Islamic Development Bank (IDB).

Bulkan told the IDB delegation that there are 25,000 active applications within the housing system, expounding that the ministry intends to meet the demands which would entail receiving major funding.
According to the Minister, Government is seeking to deliver approximately 10,000 housing units in the next five years to eligible Guyanese, principally to state employees, low-income households and the youth population. He highlighted that this comes at a time when there is a slowdown in mortgage lending.
The minister noted that the housing project consists of four categories: squatter resettlement, urban regeneration, urban rehabilitation and the provision of housing needs in hinterland communities.
The project also consists of the construction of 3300 apartment units in three locations, as well as 1000 duplexes in 12 areas spread across five coastal regions.
Meanwhile, Social Protection Minister, Volda Lawrence, who was at the meeting, stated that the ministry is seeking funding for the rehabilitation of the Palms and the developing of a shelter for victims of domestic violence.
Vice President of the Bank, Sayed Aqa, stated that the bank is attempting to understand the different needs and priorities of the Government and examine how it is aligned to the country’s national development plan. He disclosed that both parties will engage in technical meetings over the next few days and when he returns in January 2017, they would announce which projects will be incorporated in the first and second phases of the new partnership.
He stated that the discussions are positive and it is believed that the “priorities are in line with what we were expecting and focusing on: infrastructure, health and education.”
He noted that the bank offers loans, grants and technical expertise in capacity development, while creating links in developing countries.
“Our aim is to have a sustainable system here not depending on loans but to develop a system that can sustain itself,” he said, adding that while the bank does not have interest attached to their loans, a cost is still attached.
“The Islamic financing is based on profit and loss sharing and some of the projects will have profits and we would like to be a part of the profit,” he said.
He stated that if government or the private sector requests for the establishment of an Islamic Bank in Guyana, the bank would be happy to conform. He indicated that they are presently working in Suriname to transform a local bank into an Islamic Bank.
“It could be possible if the government is interested or the private sector, depending also on if there is a need or a market,” he added.
Islamic Development Bank priorities are deeply involved in human development, rural development and infrastructural development, as well as private sector development, research and development. The bank was established in December 1973, officially opening its doors on October 20, 1975, with its headquarters in the Kingdom of Saudi Arabia.
Guyana assented to membership in March. However, the country has attempted to join since it became a member of the Organisation of Islamic Conference (OIC) in 1998, which is a qualification to joining the bank.
Meanwhile, President David Granger also met with officials from the IDB.
President Granger said that while the wider Caribbean is known for tourism, Guyana, with its pristine forests and tremendous untapped and undiscovered potential, is a new frontier for development.