$1.16b for housing, contractors, low-income earners top beneficiaries

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 allocated, through the HDC, 2,580 units (between the same period).”

For the year thus far, he said, HDC has delivered 469 units, with a further 1,204 housing units being constructed at various sites under the corporation’s Financed Project Programme.

He said construction will soon begin on housing 430 units at Almond Drive (Port of Spain), Citrus Grove, Caura Royal Road (El Dorado) and Exchange (Couva) at a cost of $357 million.

Additionally, Imbert said the government is constructing 600 housing units under the Design Build Finance Programme via public-private partnerships.

“We are utilising small and medium contractors under our Small and Medium Contractors Initiative to construct 110 housing units,” he said, noting that 193 units have been delivered since the policy began, including 57 this year.

Following Imbert’s presentation, Newsday spoke with president of the TT Contractors Association, Glenn Mahabirsingh, who welcomed the news of countrywide construction projects.

“It will help stimulate the economy by means of (increased) employment for all levels of workers.

Without going into the details of the presentation, Mahabirsingh said, “We could definitely see an increase in construction in almost all economic sectors.”

Mahabirsingh said it was “difficult to state” how much government owed contractors but he anticipated a considerable uptick in the economy if Imbert’s announcements were followed through.

“What we definitely want to see with respect to these projects is to see procurement plans, which is a requirement under clause 27.1 of the procurement legislation.”

The clause referred to by Mahabirsingh in the Public Procurement and Disposal of Property Act states: A procuring entity shall – no later than six weeks after the approval of the National Budget, publish on its website or in any other electronic format information regarding all planned procurement activities for the following twelve months; (b) update the information referred to in paragraph (a) as necessary; and (c) provide a printed copy of the information referred to in paragraph (a) upon request and payment of the prescribed fee.

Mahabirsingh suggested that failure to exercise regulations causes unnecessary delay, expense and many other issues.