Govt awards housing contracts

The Nassau Guardian

Govt awards housing contracts

Acknowledging that the government’s housing program has suffered setbacks, Minister of Housing Kenred Dorsett said yesterday 23 contracts have been issued for home construction.

Dorsett said the Ministry of Housing issued the contracts for the construction of homes in Strachan's Hill Estates on Fire Trail Road.

“These contracts not only demonstrate the government's commitment to helping Bahamians achieve home ownership, but also provide employment predominately to Bahamian men,” Dorsett said in a statement.

“Though we experienced delays, my ministry received the first tranche in the amount of $2.5 million and construction has begun, as I have previously announced.”

Dorsett said the program is now “off and running”.

This is the first major move on the project since June 2013, when the Ministry of Finance signed a $160 million memorandum of understanding (MOU) with the National Insurance Board (NIB) and the Bahamas Mortgage Corporation (BMC) for the national housing program.

At the time, Dorsett said the project would begin in 30 days. However, work was delayed as a result of the BMC and the government working to fulfill the stipulations in the MOU, including the hiring of a financial advisor and project manager, officials said.

The first phase of the construction will cost $10 million, which will be disbursed to the ministry in quarterly installments of $2.5 million.

Dorsett previously said the $10 million would fund the construction of at least 120 homes.

In yesterday’s statement, he said the government has adopted a new housing model in a bid to drive down construction costs. Dorsett said three homes that are nearing completion in Strachan’s Hill are the first to be built under the new plan.

“They have been outfitted with modern windows and will have solar-powered water heaters and photovoltaic systems,” Dorsett said.

“These homes were constructed using modern building methods with a view to lowering the cost of construction without losing square footage or quality. This is an attempt to offer dwelling homes for sale which more of our citizens can afford.”

Dorsett said he expects work to be up to acceptable standards.

“Bahamians should note that the construction process will be different than in previous years as private inspectors have been retained,” he said.

“There is also a fund administrator for the monies that would have been advanced from the National Insurance Board as mandated in our agreement.

“My intention is to provide value for money as much as possible, being mindful that purchasing a home is a lifelong investment for most of our citizens.

“It is imperative, however, that those who want to avail themselves of home ownership now and in the future prepare by saving and ensuring that they are not burdened with debt.”

Dorsett said construction will begin in Grand Bahama “shortly”.

He also said new homes will be constructed in Fire Trail Subdivision and Romer Street in Fox Hill when the second tranche of funding is received from NIB.

 

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