ANDREW GIOANNETTI
The government has committed to pay contractors of finished and unfinished state-sanctioned projects by disbursing a $1.5 billion government-guaranteed loan.
Minister of Finance Colm Imbert, during the 2023-2024 presentation in the Parliament on Monday, revealed that the loan was raised in tranches last year to 'reduce the outstanding debt to housing contractors and assist with new and stalled construction projects.'
It was one of several big-money announcements made for the upcoming fiscal year.
'We have in stock 1,692 unfinished units, and we envisage that we will spend approximately $350 million on ongoing and stalled legacy projects.'
Imbert did not disclose government's current debt to contractors. The announcement, however, may appease contractors of the State, who for several years have complained about the government's failure to make timely payments, leaving them to temporarily halt work or completely abandon their projects.
Imbert also announced the allocation of $100 million in 2024 for ongoing and new projects under the Housing and Village Improvement Programme (HVIP) in 26 areas around the country.
The Ministry of Housing's HVIP provides subsidies to private households to purchase construction materials, labour costs and other construction expenses.
'This ($100 million) allocation will allow for the completion of the construction of over 600 (HVIP units) in 2024, improving the accommodation of thousands of persons at the lowest end of the income scale,' Imbert said.
The Aided Self-Help Housing Programme, he added, has allocated some 604 fully-developed residential lots at subsidised prices to eligible citizens.
'The Petrotrin policy framework is currently processing beneficiaries for residential lots or agricultural plots for former Petrotrin workers.
'The Regularisation of Squatter Community Programme ensures security to the squatting communities. This is a three-step process starting with the processing of Certificates of Comfort, then Statutory Leases for a term of 30 years and finally a 199-year Deed of Lease.'
Imbert also announced the allocation of $700 million to the HDC in loan financing to 'accelerate its housing construction programme, which will allow it to construct an additional 500 to 600 housing units, dependent on the required infrastructure and the topography.'
The loan, he said, 'will be raised without a government guarantee and will thus not increase our debt-to-GDP ratio,' adding, 'the security for this innovative loan financing will be the proceeds of the sales of completed housing units.'
Imbert revealed that the HVIP has completed 468 housing units and will soon start building an additional 275 units.
'Our housing stock is being expanded and strengthened through housing programmes of the State and its agencies.
Imbert said the government has funded some 1,319 low-income households with home improvement and construction subsidies between 2020-2023, with a further 2,121 applications actively being processed. 'We have allocate
