Africa-Press – Seychelles. The first of a two-day symposium aimed at addressing the elevated cost of construction and subsequently high cost of housing solutions kicked off yesterday morning.
Grouping together both public and private stakeholders from the industry including the Seychelles Infrastructure Agency (SIA), Planning Authority, contractors, importers and suppliers of building materials and others involved in the value chain, the Ministry of Lands and Housing (MLH) expects that the dialogue will provide them with relevant information relating to the factors and constraints contributing towards construction costs, that will inform a strategy and intervention packages towards more affordable housing solutions.
Discussions were centered on three main issues, namely, how to address the cost of construction, the use of alternative technologies and materials and encouraging the move away from traditional modalities, as well as the exploration of different financing models, including public-private partnerships (PPPs).
It is hoped that this will lead to tangible solutions towards reducing unit costs of all the products the MLH and SIA offer, and indirectly reduce the pressure on the capital budget and government subsidies.
As explained by principal secretary for Housing, Dennis Barbe, the ministry’s vision is for those in need of housing to be able to afford either land or housing, “to turn it into a home”, both of which boil down to the cost of construction and cost of borrowing.
“The discussions today will help us as government to engage and hold internal discussions to see what interventions we can come up with. These interventions may relate to the constraints which contractors are facing, but, what we want to see as the ministry is that when contractors are bidding for projects, there is a reduction in price,” PS Barbe said.
“If prices continue to rise as they are now, people will not be able to afford it and government will have to step in with subsidies. We want to have some form of control on the price increase, which is not to say that we will dictate how these contractors cost their projects, but to understand the components. If it is down to the design, we will fix it, if it is down to employment or other norms imposed by the Ministry of Health, Customs or the Seychelles Revenue Commission (SRC), all those factors which contribute directly or indirectly towards the cost of construction, so we can devise intervention packages to help reduce the cost,” PS Barbe noted.
There are presently around 3500 housing applicants, and 1500 land applicants. While the biggest chunk of its portfolio is for affordable or social housing, the ministry also provides solutions for middle-class individuals, whose salary bracket is between R13,000 and R19,000 and who have in the past been left behind, considering the focus on social housing.
The second day of the symposium is scheduled for December 19, and will see a dialogue of a similar nature with key players in the financial sector, namely, banking institutions, insurance companies, towards exploring avenues to make the cost and borrowing more affordable.
The symposium is the second being held thus far.
Article 34 of the Constitution makes provisions for the right to shelter. The housing sector has a direct impact on the quality of life of most families, and it is widely recognised that having access to suitable housing solutions are a key component of individual and motivational needs.
For More News And Analysis About Seychelles Follow Africa-Press
