20-year Chinese loan to build low-cost houses
Published:Friday | May 21, 2010 | 12:00 AM
Dionne Rose, Business Reporter
The Chinese have emerged as major backers of low-cost housing for Jamaicans, pumping financing of up to J$6.3 billion into new projects to be rolled out this year.
The Housing Agency of Jamaica (HAJ) plans to put some 9,800 homes and land lots on the market to be developed over the fiscal period ending March 2011.
The investment ranges between J$12 billion and J$15 billion, Minister of Water and Housing Dr Horace Chang said Tuesday in his contribution to the Sectoral Debate in Parliament.
Chang said the Chinese were financing some 3,300 of the housing units with an injection of US$71.2 million (J$6.3 billion) in loans.
The developments will occur on properties across Jamaica, with 7,639 solutions to be built on greenfield sites, while 2,202 are designated brownfield developments, a reference to lands currently squatted on.
Joseph Shoucair, managing director of the HAJ, told the Financial Gleaner that 850 of these new solutions would be built in St Elizabeth; 900 at Whitehall, Westmoreland; 2,000 at Shooters Hill in Hellshire, Portmore; 1,000 units at Grange Pen in St James; 908 at Belle Air in St Ann; 118 at Mineral Heights in Clarendon; 124 at Westmeade and 108 at Country Club in Portmore; 56 at Stadium Gardens in Kingston and 270 houses at Boscobel in St Mary.
The first of the projects will begin mid-year, lasting 12-18 months.
"Between the period of June to December, most of them will start at various points in time. They won't all start at the same time," he said. "But at the end of the year they will all be in construction."
Shoucair said most of the homes would be starter units - one-bedroom and studio units of about 250 to 270 square feet, built on 3,000 square feet of land, with expandable options. Those would be priced at J$3.5 million.
Lots will sell for under J$1.2 million.
At the upper end of the market serviced by HAJ, houses at Westmeade and Stadium Gardens will sell at $8 million and Country Club will be sold for $10 million.
Shoucair said Prime Minister Bruce Golding signed the Chinese loan two months ago during his visit to China after two years of negotiations with the Asian economic powerhouse.
The loans will be repaid over 20 years at two per cent interest, with a five-year moratorium on principal.
Chinese company COMPLANT, which built the greenfield stadium in Trelawny, will be the main contractor on the project - a conditionality of the loan, Shoucair said.
"What happens with these projects is that while the Chinese company is the main contractor, they use local subcontractors and local workers. There will also be Chinese workers," said the Housing Agency boss.
"Let's face facts: why are the Chinese making concessionary loans? One of the reasons is to stimulate their own economy," Shoucair said.