Ondangwa addresses housing backlog through PPPs
26 April 2017 | Infrastructure
Ondangwa has a housing backlog of over 5 000 units, which is said to be on the rise.
The council has expressed confidence in its five-year strategic plan, which includes venturing into partnerships with private companies to service land and build houses.
The council needs about N$275 million to implement development projects under the 2016-2021 strategic plan, which is why the emphasis is on PPPs due to the limited budget it receives from the central government.
So far, the council has entered into PPPs with two companies, namely Conselect Engineering and Sun Group International.
The agreements were signed this month. Conselect Engineering agreed to service 317 plots - 304 for residential and 36 for business purposes - in Ondangwa’s Extension 22 and 23 to the tune of N$70 million.
Sun Group International will service 516 plots in Ondangwa’s Extension 32 and 33, where 448 will be for single residential, 21 for general residential and 16 for business purposes. The cost of this exercise is said to be close to N$200 million.
At the signing of the agreements, Ondangwa chief executive officer Ismael Namugongo said the two companies should focus on quality and affordability.
He said they should consider the housing market in the area, the living standards of the people and their income limitations when determining what type of houses to build.
“The council cannot address its challenges alone and it’s on this basis that we called upon the private sector to join hands with us for the development of our town and country,” he said.
“We have a housing backlog of 5 000 plus and if we were to do this alone, it would take us years.”
He said the main objective of the agreements should be the provision of affordable housing and that profit should come second.
“Our market is not like that of Windhoek and we don’t want to see a situation where you will construct houses which the people in the town or region cannot afford, as that would defeat the purpose of these agreements,” Namugongo said.
“We know that in the private sector profit is the main objective but we want you to be service driven and profits should be your secondary priority,” Namugongo added.
Conselect Engineering’s executive chairman, Wiseman Molatzi, and Sun Group International general manager Zijie Ni told Ewi lyaNooli that they would ensure that affordable houses were built for the people.