Government told Private land developers they were giving them until February 2016 to come up to standard and complete infrastructural works on their East Bank Demerara housing developments
… economic slowdown makes “bearish market” – private housing developers
Private land developers have taken to task the timeline given by Government for them to complete work on their East Bank Demerara housing developments, noting that there is a dearth of information on the challenges housing development pose on the reclaimed cane fields of the area.
Minister within the Ministry of Communities Keith Scott earlier this week, told a group of land developers that Government was giving them until February 2016 to come up to standard and complete infrastructural works on their East Bank Demerara housing developments. He had met with them after visiting several sites that he said were mostly under developed.
According to Minister Scott, amicable agreements were reached with several of the housing developers who explained the reasons for delays in their construction of homes or preliminary infrastructure works. Commitments were given to ensure that new deadlines to begin works would be met, as apologies by delinquent representatives were given. Owner of BK International Brian Tiwari was one of the investors but was taken to task specifically by the Minister because he failed to show up at the meeting and tour of the development projects.
He explained that Government was “not about putting people out of business but to help them along the way, ultimately to the benefit of all Guyanese”.
All of those engaged, have given commitments to complete long overdue works.
Unfair deadlines
But a local investor speaking to Guyana Times on Friday sought to explain the intricacies involved in the process, which generally affect the delivery of services.
The source said he was given a mere two years to have 100 per cent construction, sale and occupancy of all the houses. According to him, that was unrealistic, since when the agreements were inked, the economy and its prospects were “bullish” as the People’s Progressive Party (PPP) was pushing hard to drive housing development, there was a construction boom and everyone was optimistic.
“The transport took nearly a year (nine months) to pass which meant if an investor needed financing, he had to wait on the transport to secure it. All monies for the land had to be paid before transport was passed so at that point I was already in a cash deficit”, the source told this publication.
According to him, lands were previously abandoned with cane beds and in some cases just swamp. He said it took a long time and was expensive to clear, drain, fill and settle the land.
“I am not sure if the [Neighbourhood Democratic Council] NDC is yet in the picture. They will have to “rate” the land for taxes and only then it can consider granting house construction approvals. This is after the transport is passed, secondary plans and mutations approved. The Ministry of Housing, NDC, Land and Survey and [Central Housing and Planning Authority] CHPA are all involved.
Electricity poles are only now being installed, two years later. No idea when water will be there,” the investor said. According to him, with the recession taking hold, there is an absence of buyers so investors are caught in a bind – having no basis to raise financing, whether it is from potential buyers or through financial institutions and facing an arbitrary deadline from Government to construct and sell. This is called a “bearish” market and developers may be stuck with properties for long periods even as they have to repay their loans.
“Under the agreement of sale, Government has the right to levy draconian penalties and even seize the land if not developed so there is just too much uncertainty on top an already fragile situation”, he said.
Meanwhile, Scott told the group of investors that he will not be “satisfied until I can see deliverables”. Those engaged in the meeting included representatives from Bai Shan Lin, Courtney Benn Construction, Bradford Enterprises, Dax Construction, Sun Set Lakes and Odinga Lumumba.
Their responsibilities include the building of drains, electricity supplies and roads. Minister Scott said that it is important that revised construction schedules be set and progress maintained, in keeping with the new agreements, “I can safely say that movement has now began”.