Second phase of mass houses cheaper: NHE

01 Sep 2014 15:00pm
WINDHOEK, 01 SEP (NAMPA) - The second phase of the mass housing programme could be much cheaper and affordable, the National Housing Enterprises (NHE) chief executive officer (CEO) says.
In the second edition of the company’s brochure ‘Mass Housing in focus’ issued in a local daily on Monday, Vinson Hailulu said the company used conventional housing methods in phase one, and alternative building mechanisms will be considered in phase two.
“Conventional housing methods were utilised in phase one because we were not ready to roll out alternative building mechanisms that will be considered in phase two, that might be cost-effective, resulting in the reduction of the housing prices. Equally, the implementation modalities will be reviewed, together with refined roles and responsibilities of the various stakeholders,” he said.
The programme aims to build at least 185 000 affordable houses by the year 2030. It will be implemented in phases, and is projected to cost N.dollars 45 billion.
The first phase will see at least 8 800 housing units built and 10 200 plots serviced at an estimated cost of N.dollars 2.7 billion. More than 1 000 houses will be handed over to the government at the end of this month.
Hailulu said funding models will be reviewed at the end of phase one, where sustainability has to be anchored into the way forward for the programme not to depend on Government subsidy throughout its implementation.
He said the NHE wants to avoid placing the government treasury under strain and in so doing, investigate whether it will enter into public-private-partnerships (PPP).
“We want to attract private sector funding into the programme,” he noted.
The mass housing programme also has a rural housing component which will be implemented in the second phase with both housing and sanitation components. Because of the proclamation and the investment it attracts, a tailor-made funding model will be conceptualised, according to Hailulu.
He said the project is the biggest the government has undertaken and as a result requires support from all stakeholders as the country stands to benefit, instead of the current negativity surrounding this project.
Phase one will be rolled out over a period of two years, with a production output of N.dollars 10 000 houses. Phase two will be rolled out upon the completion of phase one, with the possibility of refinement and lessons learned.
Strategically aligned to take stock of phase one, the NHE will learn and implement a much better co-ordinated roll-out in phase two, said the CEO.
The implementation of the programme will be up-scaled for the remaining 15 years to ensure that approximately 12 000 houses are built per year in different parts of the country.
The programme targets middle, low and ultra-low income groups in terms of providing access to land and housing.