NHC set to build 900 low-cost houses

By Bernard Lugongo The Citizen Reporter Dar es Salaam. At least 900 low-cost houses to be allocated to wananchi on a loan basis are under construction in a programme run by the National Housing Corporation (NHC).The houses would be sold for between Sh25 million and Sh200 million, targeting both low-income and high-income earners. NHC has already surveyed 20 regions for the massive project which will be completed by 2015. With the ultimate aim of building 15,000 houses in the next three years, the NHC plans to begin with 3,000 houses each year, 1,500 of them specifically targeting low-income earners. The regions where construction is in progress include Dar es Salaam, Arusha, Dodoma and Mwanza where the major projects are based. Smaller projects are being run in Iringa, Mbeya and Mara regions. According to the NHC head of Corporate and Public Affairs, Ms Susan Omari, the survey in those regions was completed recently and was aimed at identifying sites for constructing houses and market premises.Ms Omari was addressing journalists yesterday in Dar es Salaam during an event to mark World Habitat Day, where NHC participated as one of the stakeholders in the housing sector. She said the survey was carried out by a special team which came up with a report that would give a path for starting the project in the regions. “The report has identified lands for construction work; soon we are going to make public where to find the houses,” she said. The project was sealed recently when the NHC signed a Memorandum of Understanding (MoU) with seven banks and two financial institutions to avail Sh165billion in loans for the construction of the houses. Banks that have signed the MoU with NHC are CRDB Bank (Sh35 billion), ECOBank (Sh2 billion), Banc ABC (Sh4.2 billion), NMB PLC (Sh26 billion), Commercial Bank of Africa (T) Ltd (Sh24 billion), Tanzania Investment Bank (Sh22 billion) and Azania Bank (Sh7 billion). Other financial institutions are Local Authority Pension Fund (Sh15 billion) and Shelter Afrique (Sh23 billion). To further enhance mortgage lending in 2010, the government with the World Bank’s support facilitated the establishment of a mortgage liquidity facility under a private company known as the Tanzania Mortgage Refinancing Company (TMRC). The TMRC, which will have the role of refinancing primary mortgage lenders, will start work before the end of this year, the minister revealed. During yesterday’s event to mark World Habitat Day, the government acknowledged that there was poor supervision of laws governing city plans, which was among major factors leading to unplanned settlements. Deputy minister for Works, Mr Greyson Lwenge, said district and city councils have not been putting enough enforcement into such laws.“I direct all councils to ensure that they follow firmly on laws on city plans to avoid unplanned settlements,” Eng Lwenge said. Unplanned settlements in the cities have been causing the areas to face severe challenges in provision of social and economic services due to poor infrastructure. “In order to bring development, the residents should have better settlements,” he said. Currently, Tanzania has a population of 12 million people, equivalent to 30 per cent, who live in cities. It is estimated that by the year 2030, about 50 per cent of the country’s population will be living in cities. For his part, Representative of the United Nations human settlement programme (UN-Habitat), Mr Philemon Mutashibirwa, called for an increase of opportunities in line with an increase of population in the cities.Mr Mutashubirwa was presenting a message from the UN Secretary General Ban Ki-moon on the marking of the Day.