Mass housing project will stimulate job market: NHE

23 Feb 2014 10:40am
WINDHOEK, 22 FEB (NAMPA) -The National Mass Housing Development Programme (NMHDP) will produce positive economic 'externalities', as the project will require supply of labour, materials and manufacturing beyond the current supply stream.
The National Housing Enterprise (NHE)'s Chief Executive Officer Vinson Hailulu said this during a media briefing on the implementation of the first phase of the (NMHDP) in the capital on Friday.
Hailulu said a total of 185 000 houses will be built within 18 years in line with Vision 2030 at a total investment of N.dollars 45 billion.
The progamme will be implemented in phases, with an annual investment of N.dollars 2.5 million per phase.
He said the land-servicing cost per plot will be N.dollars 75 000, and informal settlements’ upgrading will cost N.dollars 280 000.
A total of 8 850 houses will be built during the first phase in the 2014/15 to 2015/16 financial years, and 10 200 plots will be serviced during the same phase.
“Apart from providing access to affordable housing, the programme is also aimed at enhancing economic empowerment through ownership of tradable assets that can be used as security by those currently without houses for further wealth and asset generation at household level and creating jobs, expanding local manufacturing of building materials and stimulating economic growth in general,” Hailulu said.
He added that the initiative was necessitated by the realisation that Namibia continues to experience an acute shortage of affordable housing, with a national housing backlog estimated at 110 000 housing units – a number which is growing at an annual rate of about 3 700 units.
Hailulu said because of the magnitude of the project, Namibia has to rely on the delivery capacity and experiences of foreign companies that have done mass housing before.
In this regard, NHE CEO said the government encouraged NHE to look at the possibility of emulating the housing development models and experiences of such selected countries such as Singapore, Malaysia, South Africa and Brazil.
“Hence, the involvement of South African companies that were part of the delivery of Reconstruction and Development Programme (RDP) houses in that country, where to date over 3.3 million houses were built under the government mass housing development programme,” he said.
The South African companies contracted to build houses in the first phase include Seven Sirs Group, Power-Oyeno, Calgrow M3 and Delta Group Holding.
Hailulu said these four companies are subjected to surrender 30 per cent of the contracts’ value to local companies, especially black-owned businesses.
“NHE is under government directive that as we move into the next phase of the mass housing, more Namibian companies should lead the mass housing project, and as such the first phase is to be used for capacity enhancement and skills transfer to local companies from foreign companies,” he said.
The second phase will start after two years.