Govt consults financiers
GOVERNMENT consulted financiers and other stakeholders in the construction industry on Thursday with a view to formulating strategies which can be implemented to facilitate affordable housing for civil servants.
Local Government, Public Works and National Housing permanent secretary Engineer George Mlilo said after Government expanded the civil servants’ residential stands scheme to incorporate all its workers, it is now expecting to deliver around 500 000 stands countrywide.
Initially, 100 000 civil servants were targeted to get residential stands from the scheme as part of Government’s efforts to give its workers non-monetary incentives, but the number ballooned after Government decided to take on board every civil servant.
Eng Mlilo held a meeting with stakeholders such as financiers, developers, town planners, builders, architects, material suppliers and land surveyors.
“We had a dream to come up with more than 300 000 housing units by 2018 and we are already half way, but the dream cannot be realised because of several factors,” he said.
“I was approached by Apex, the union which represents civil servants, with a view to provide housing for its members.
“When word went around after I sent circulars, ministers, legislators and even parastatals countrywide said they also wanted to be included in the programme.
“All together the responses are over 500 000.
“This cannot be done by Public Works alone, we need the private sector as a partner.”
Eng Mlilo said the programme was necessitated by Government’s desire to come up with practical and sustainable measures to facilitate affordable housing for civil servants.
“This is not a normal project,” he said.
“Let us all sit down and come up with a way of reducing profit margins.
“Banks, I do not know of a country where interests rates go beyond 3,5 percent, but you even go up to 20 percent.”
Eng Mlilo said he would engage Zimra to ensure that materials coming for the project were not heavily taxed.
In light of the financial constraints Government was operating under, he said, it was imperative that cost reduction measures be implemented for efficient and effective housing delivery.
“Of greatest concern to Government is the statutory fees, which are mandatory, yet tend to increase the cost of the final product,” Eng Mlilo said. In an area of engineering, for example, consultancy fees usually amount to 4,5 percent of the total project cost. It is apparent that we come up with lasting solutions in ensuring the reduction of consultancy fees which consume a significant amount which could be used in further development.
“Some of the issues include travel time which usually amounts to $132 per hour, mileage charges, accommodation charges and supervision charges.”
Eng Mlilo said building material suppliers should stop profiteering.
Property developer Dr Sasha Jogi said the project was a bold move by Government, which called for participation of all stakeholders.