Financing, connections for sewerage, water systems affecting housing developments
Published:Saturday | October 28, 2023 | 12:05 AMAlbert Ferguson/Gleaner Writer
WESTERN BUREAU:
PRIME MINISTER Andrew Holness says the National Housing Trust (NHT) has been hampered in meeting its projected target of delivering 43,000 new housing solutions due to a variety of challenges. They include financing, connecting sewerage systems or finding a suitable location for these systems, as well as access to potable water.
Holness, who also has responsibility for the housing ministry, said the NHT has to be planning today for houses that will go on the market in six years’ time or within that period.
He said the NHT’s planning horizon is very long based on steps that must be taken including getting the relevant permits, checks and balances, and procurement processes.
The PM notes, however, that the Trust now has on its books housing options that are in an advanced state of planning, but will not get to market until another three to six years.
“When we [the NHT] say that we are targetting to build 43,000 new housing solutions, effectively, they have identified those 43,000 housing solutions; they have the land where it is going to go; they have designs for many of them, so they are now going through the approvals, they are trying to identify infrastructure,” Holness said.
“There are many projects that are out there on the books, but we haven’t identified the water supply source as yet. We haven’t identified the sewage yet, and those issues elongate the development process,” he continued.
Standard and Poor’s upgrade
Standard and Poor’s (S&P) Global Ratings on September 13, upgraded the Government of Jamaica’s long-term foreign and local currency issuer default rating (IDR) from ‘B+’ to ‘BB-’ with a stable outlook.
S&P also foresees continued economic growth, which is expected to support external balances over the next four years. The outlook reflects S&P’s expectation that Jamaica will continue to pursue ‘cautious macroeconomic policy and maintain its commitment to prudent public sector financing and debt reduction, as well as supportive economic policies including a flexible exchange rate regime and effective monetary policy’.
Amidst that positive rating, Holness said financing remains another part of the issues that are extending a faster turnaround of the NHT’s housing solution projects.
“Financing, previously, was another delay factor. It is still a factor of concern, the NHT is a very well-resourced organisation but the demands on its resources are many and therefore it has to manage its cash flow very carefully so that when projects are ready the financing is there,” he stated.