|Prepared By: CHPA Management Team
MINISTRY OF COMMUNITIES Central Housing and Planning Authority
OVERVIEW OF CHPA’S MEDIUM TERM STRATEGY
The 2017 budget proposals were prepared within the framework of CHPA’s medium term strategy, which is embodied in its Housing Plan of Action (2016- 2020). The main thrust of the Agency’s strategy within its Plan of Action is to:
- Place emphasis on CHPA’s planning function with respect to settlement development and land use control and management;
- Re-focus in accordance with its legislative mandate on low income earners and state employees for housing;
- Enhance collaboration with LDOs in the land development and upgrading process;
- Enhance public participation in the housing and community development process.
Given this strategic direction, the vision for the sector was articulated and the goal and objectives identified to achieve the vision in accordance with Government’s vision of ‘the good life’ for all Guyanese. Within this strategic framework, the priority action areas were identified for which the 2017 budget proposals were elaborated.
In keeping with the vision of a good life, the vision articulated for the sector is to create cohesive and sustainable communities. The goal to achieve this vision is to ensure that every Guyanese has the opportunity of living in a decent home, which they can afford, in a community that is safe and secure, offers a sense of belonging, and benefits of a quality neighbourhood in terms basic services and facilities. In this regard the CH&PA would seek to improve the housing delivery system by pursuing a range of settlement development initiatives, which include:
- Construction of various housing solutions for low income households through partnership with the private sector and Civil Society Organizations;
- Implementation of an integrated and comprehensive approach in the planning and design of settlements and the regularization of squatting areas;
- Enhancement of the beneficiary selection process through policy review to ensure proper targeting of low income earners;
- Collaboration with Local Democratic Organs to provide adequate community facilities and basic services;
- Consolidation of selected existing housing and regularized squatting areas that are deemed critical for intervention through the application of appropriate criteria, supported by comprehensive data compilation and analysis;
- Enhancement of the community participation process;
In pursuing these initiatives, the following priority areas for action provide the guidance for the preparation of the 2017 budget and the annual work plan:
- Housing initiatives for low income households;
- Strengthening of CHPA’s planning function;
- Consolidation of existing housing areas and regularized squatting areas;
- Policy review.
The pursuing of these initiatives will ultimately result in the following outcomes and impacts that will be provide the basis for evaluation to determine whether the programme has achieved its goal and objectives:
Outcome: Livable communities, which are:
- Well planned with appropriate circulation pattern and provision for facilities, in keeping with planning standards;
- At least 50% occupied; (it is recommended that new areas are developed in smaller phases than currently obtains);
- Provided with physical infrastructure inclusive of paved roads, access to potable water, adequate drainage and access to electricity;
- Facilitated with access to amenities such as day care centres, recreational facilities, neighborhood centers, schools, etc.;
- Organized and have in place Community Groups, elected and functioning, with at least 1 community-based project implemented.
- Working in collaboration with Local Democratic Organs and other stakeholders.
Impact: Improved Quality of Life through:
- Increase in security of tenure
- Increase in home Ownership
- Improved housing conditions
- Quality neighbourhoods through the reduction of land use infractions.
In the preparation of the 2017 budget proposals, identification of projects to facilitate public sector investments was constrained due the following scenarios:
- Lack of an overall national spatial development strategy to guide allocation of resources with respect to the regional spread of programme implementation. However, in the absence of such strategy, the recent census data was used to guide the process. As a consequence, Region#4 may tend to be selected for more interventions.
- The need for comprehensive data and financial information on each housing area. The unavailability of this information to support decision making resulted in a delay in approvals of expenditures for this year. To address this gap, a field audit exercise will be completed this year, along with the compilation of the necessary financial information.
BUDGET REVIEW (JANUARY – SEPTEMBER 2016)
2.1 Budget 2016 Performance
The approved budget for the year 2016 for CH & PA is made up of G$ 5.8B. This amount budgeted was to be spent from the CHPA’s housing fund, since no subvention for capital and current expenditure was not released from the Consolidated Fund. Total capital expenditure as September 30th 2016, is G$503.4M, which represents 8.6% of the approved budget, while current expenditure stands at G$354.8M and current revenues at G$51.5M. The projected revenue and expenditure for the remainder of the year is G$190.0M and G$1.124B respectively. The CH&PA is NOT expected to meet its capital expenditure budget of G$ 5.2B for 2016.
- Infrastructural investments and housing construction programme component – the sum of G$ 5.2B was reflected in the National Budget under this component, which includes; roll over contracts; installation of electrical distribution network; offsite investments for private developers; construction of turnkey houses; infrastructure development works in new areas and upgrading works in existing areas. Based on latest estimate for 2016, the entire sum of G$5.2BM is not expected to be spent by the end of the year.
- Agency Operations – the sum of G$ 556.0M was reflected as current expenditure in the 2016 National Budget and will be expended by the end of December 2016.
2.2 Current Revenue
Based on latest estimates, current revenues have been expected to be G$242.0M by the end of December 2016.
REVIEW OF WORK PROGRAMME (JANUARY – SEPTEMBER 2016)
|Targets for 2016||Achievements||Remarks|
|1000 new allocations||1899|
|100 turnkey homes constructed||No new houses constructed.||Completion of 30 existing houses|
|400 regularized squatters||214|
|2000 titles||3755 titles distributed||This target was exceeded due to the recent change in top management at the Land Registry.|
|6 new areas commenced
||No new areas commenced.||It is proposed that Stewartville and Cummings Lodge commence in the last quarter of 2016 since allocations were done. Stewartville (66 allocations) and Cummings lodge (204 allocations)|
|2 existing areas upgraded:
||No works started||Approval granted June, 2016, preparation of tender docs in progress.|
|Electrical infrastructure installed in 16 areas:
Commercial/ Industrial areas
|No works started||Approval granted in June 2016 for procurement of Electrical Line Hardware Materials|
|Offsite investments – Eccles-Diamond (access road & transmission mains)||Nil|
|Housing Profile Study||In progress||Field survey completed. Final report to be submitted by consultant.|
|Construction of new housing solutions||Nil|
|Continue work on 77 Roll over contracts||Completion of 35 contracts|
|GOG/IDB Sustainable Housing in the Hinterland:
||Interviews of potential beneficiaries in progress||Roof replacement and house construction to commence in the last quarter of 2016|
January to September 2016 financial expenditure vs. December 31st projections (CAPITAL)
|#||Project Activity||Budget GYD||Description of Works/Activities||Actual Expenditure Jan-September (GYD)||Targets achieved||Projections October-December (GYD)||Projected targets||Constraints that impact expenditure|
|1||2015 Roll Over||1,599,000,000||Completion of 77 existing contracts||487,377,297||35 contracts completed and retention paid||338,577,486||Comp of 33 contracts||Termination of seven contracts|
|2||Electrical Programme||1,400,000,000||Procurement of Electrical Line Hardware materials for 16 housing areas||0||0||277,000,000||Mobilization Advance for 6 No. ELH Contracts||Unavailability of comprehensive data and analysis to support decision making resulting in a delay in approvals of expenditures|
|3||New Hinterland Project||40,000,000||Hinterland housing subsidy and construction of houses||0||0||40,000,000||Const. of 17No. Houses, 15No. Roof Replace, Administrative / Logistical Costs|
|4||1000 Homes Project||53,000,000||Completion of 141 houses||4,000,000||30||49,000,000||Completion of 111 houses||Recruitment of a Project Manager and other technical staff|
|5||Turnkey houses at Providence||16,727,623||Corrective works to 11 houses||8,363,812||8||8,363,812||Completion of 3 houses||Emergency works|
|6||Emergency Drainage Works at LER||13,374,000||Drains and canal excavation||0||0||13,374,000||Completion of 17.5km of internal and external drainage||Emergency works|
|7||Home Improvement Subsidy||15,000,000||Distribute 300||0||0||15,000,000||Distribute 300|
|8||National Housing Profile Survey||5,000,000||Completion of field surveys in existing towns||3,700,000||1112 interviews||1,500,000||Final report|
|9||Field Audit Exercise||23,000,000||Field data collection and compilation of in-house financial data||0||0||23,000,000||All existing CHPA planned housing areas|
|10||Installation of Water Distribution Network at Perseverance Ph2||18,000,000||Installation of PWDN||0||0||16,200,000||1.1km of distribution mains||Approval granted in June, 2016|
|11||Infrastructure Works at Stewartville||0||1st phase infrastructure development||0||0||70,000,000||Access & pure water supply to 115 lots. Estimate for 1st Phase, GYD$173Mil||Unavailability of comprehensive data and analysis to support decision making resulting in a delay in approvals of expenditures|
|12||Infrastructure Works at Cummings lodge||0||1st phase infrastructure development||0||0||70,000,000||Access & pure water supply to 300 lots. Estimate for 1st Phase, GYD$450Mil|
Jan to Sept2016 financial expenditure vs. December 31st projections (RE-CURRENT)
|Description||Actual 2016 Jan-Sept||Projected 2016 Oct-Dec||Remarks|
|Sale of Goods & Services||14,864||7,169||Sale of application forms and Processing of Building application|
|Fees and Fines||16,429||8,566||Cancellation fees, penalty on disposal and survey fees|
|Rent||470||264||Canteen & Apartments rental|
|Bank Interest||16,689||170,000||Fixed deposit, Saving and checking accounts|
|Miscellaneous Receipts||3,106||5,000||Tender documents, Admin etc|
|Wages & Salaries||187,148||118,942||Continued payment of wages and salaries to 156 employees|
|Employment Overhead Expenditure||57,077||18,059||Continued payment on Gratuity, Allowances, overtime & Stipend to staff members|
|Material Equipment & Supplies||6,214||6,014||Printing, Stationery, Print & Non print materials, ledger books|
|Fuel & Lubricants||5,198||3,689||12 Vehicles controlled by CHPA|
|Rental & Maintenance of Building||1,963||90||Electrical, Plumbing, Office doors/Locks etc|
|Transport, Travel & Postage||30,680||5,271||Overseas visit by Minster, to Clerk of works, Community meetings, survey, field in- spection, overseas visit, services on 10 Vehicles, hinterland area for IDB Project|
|Utility charges||14,570||14,890||Electricity for head office and regional housing office38 GTT Phone lines, Cell charges for Minister, Chairman and Management|
|Other goods and Services Purchased||34,775||31,045||Toner/ink/cartridge, repairs to office equipment, Security services, Janitorial supplies, waste disposal, training, switch board system etc.|
|Other Operating Expenses||17,232||4,000||Internet fees, website hosting, License, insurance and other MISC expenses|
2017 BUDGET PROPOSALS
In the thrust to give prominence to planning, awareness and renew interest at national, regional and local levels is critical to the work of the CHPA. In this regard, a National Planning Forum will be held this year with major stakeholders to initiate dialogue and action to enhance the current fragmented planning framework. Also, as mandated under the Town and Country Planning Act, the CHPA will initiate and support the preparation of development schemes in collaboration with the LDOs and other key stakeholders to set out objectives and policies to guide the growth and development of communities, whether urban, rural, regional, or other areas. This process will give clout to the enforcement aspect as the planning control activities. In this regard the enforcement arm of the CHPA will have to be strengthened with the recruitment of additional enforcement officers to boost CHPA’s Planning function.
Another key area of the budget proposal will be the consolidation of selected existing housing areas and regularized squatting areas and focusing primarily on the development of low income settlements.
The consolidation of areas will not only focus on investment in physical infrastructure, but revitalization programmes that include social services and community development projects in keeping with the commitment to create wholesome and cohesive communities. In view of the limited resources and the need to make informed decisions, the continued investment in the existing housing areas will be informed through current, comprehensive, accurate data and financial information for each housing area.
These proposals are part of the Government’s broader Medium Term Strategy that was presented to the Delegation of the Islamic Development Bank. This Strategy articulated a multi-pronged approach to ensure inclusivity, proposes the following components:
- The supply of 10,000 housing units to eligible Guyanese;
- Expansion of the current Hinterland Housing Programme to other Indigenous communities and households.
- Implementation of an Urban Renewal programme in the Capital City in the form of relocation and resettlement of squatters to facilitate the restoration of previously occupied sites.
With respect to new communities, these will offer a range of housing solutions: rent-to-own apartments, two-bedroom and three-bedroom wooden houses to cater for the needs of low/moderate income persons. The construction of wooden houses is part of the strategy in keeping with the Government’s plan of pursing the path of a ‘green economy’ and boosting the local materials industry. It is envisaged that the implementation of the various housing solutions will be achieved through partnerships with the private sector.
In the establishment of any new community, not only quality physical infrastructure will be provided, but social infrastructure and other amenities that are consistent with improved quality of life for Guyanese. However, to ensure that some amenities are ready to be used during occupancy, all playgrounds will be cleared and leveled as part of the infrastructure development process. Community groups and LDOs will be encouraged to source funding opportunities for the continued development and maintenance of the playgrounds. Further, the CH&PA will facilitate through community participation, the formation of community groups or specific management teams to manage these facilities once they are completed and the schemes are handed over to the Local Authorities. This is to ensure maintenance of the facilities, as well as maintenance of physical infrastructure and general management of the communities.
In regard to the area of policy, the current land allocation policy in its current form can lead to land speculation and therefore needs urgent review. Important issues to be addressed in the revised policy include, but not limited to the following are:
- Applicants’ preferences with respect to location and type of housing solutions;
- Rigor and stringency in the eligibility criteria to determine housing need instead of desire.
Priority action area#1 – Housing initiatives for low income
Earners and state employees
|Feasibility assessment of existing housing areas, squatting areas and land for future developments||All areas||GYD$50M||Feasibility report will guide the intervention measures|
|Consolidation of planned housing areas||Upgrading of 12km of un-surfaced roads to AC Surface along with drainage and structures||GYD$600M||Tuschen Ph2, Section EE Non Pariel, Bath, Ordnance Fortlands Ph2, Amelia’s Ward Ph1B, Lust-En-Rust|
|Upgrading of regularized squatting areas||Construction and Upgrading of 8km of new and un-surfaced roads to Surface Roads along with drainage and structures||GYD$400M||Stewartville, Patentia, Kaneville, Angoy’s Avenue, Block 22 Wismar, Blueberry Hill|
|Housing exhibition||To be held in one of the pilot project areas||GYD13M||Exhibition to be used as a public participation tool to enhance building design options.|
|Hinterland Housing Program (IDB funded)
(Sustainable Housing for the Hinterland)
|115 Full house subsidies and 45 Roof and Water catchment system subsidies in regions 1 and 9.||GYD225.9M||Region 1: Kamwatta, Whitewater, Sebai, Haimakabra
Region 9: Kwatamang, Massara, Katoka, Haiawa, Karasabai, Sand Creek, Potarinau, Karadauanau
|Construction of Duplexes and expansion of the hinterland housing programme (IsDB)||405 duplexes (810 units)||GYD4.3B||Onderneeming, Phase 3, Essequibo, Region#2
Tuschen Phase 1(Portion of Industrial block), EBE and Onderneeming, Phase 1 (commercial block), WBD, Region#3
Perseverance, EBD, Region#4,
Experiment, WCB, Region#5,
Grant No. 2596, New Amsterdam and Ordnance/ Fortlands, Canje Berbice, Region#6;
Wisroc and Amelia’s Ward, Linden, Region#10
|20 full houses||GYD100M||Region 7: Kamarang / Warawata (5#), Waramadong (5#) Kako (5#) and Quebenang (5#)|
4.1.1 Construction Timeline
||Commence during the 1st quarter of 2017||Partnership with private developers.
CHPA’s Projects Department will be responsible for preparing tender documents.
||1st quarter in 2017||Land Allocation Committee with support from the CHPA’s Land Administration Department|
||Commence during the 2nd quarter of 2017||CHPA’s Community Development Department|
||Finalize in Last quarter of 2016.||CHPA’s Planning and Projects Departments|
||1st quarter of 2017||CHPA’s Planning and Projects Departments|
||1st quarter of 2017||PS, CEO and CHPA’s Finance Department|
||Commence during the 2nd quarter of 2017.||Partnership with private developers.|
||Last quarter of 2016.||CHPA’s Community Development Department in collaboration with Consultant|
||1st quarter of 2017||CHPA’s Community Development, Planning and Projects Departments|
||2nd quarter of 2017||CHPA’s Community Development, MOIPA and Village Council.|
||2nd quarter of 2017||Village Council, MOIPA, CHPA’s Community Development and Projects Departments.|
||3rd quarter of 2017||CHPA’s Projects Department, Village Council, MOIPA|
||4th quarter of 2017||CHPA’s Projects and Community Development Departments, Village Council, MOIPA|
Priority action area#2 – Strengthening of CHPA’s Planning
|National Planning Forum||Workshop exercise||GYD3M||Schedule for the last quarter of 2016|
|Development Plans||3 development plans
||GYD10M||To hire a consultant for the preparation of East Bank and Magre-Tout-Meer Zorgen plans
Sophia planning area development plan to be done in conjunction with the proposed National Planning Commission for GT.
|Community Development Projects||At least 3 projects||GYD12M||Collaborate with community groups and LDOs|
|Awareness of Building Codes and Standards and capacity building of local smaller contractors||2 workshop sessions||GYD6M||Collaborate with Bureau of Standards, MOPI, GAPE, Gen. Contractors Association, UG, GTI|
Priority action area#3 – Consolidation of selected existing
|Roll Over 2016
Completion of Infrastructure Development Works (Roads, Drains, Structures, Water and Electrical Network)
|Completion of 18 contracts in Region 3,4,5,6, and 10||GYD2.33B||Completion of terminated projects.
Progress and retention payments for Roll over 2015 and 2016
||16 Areas||GYD286MGYD185M||Region 2,3,4,5,6 and 7|
|Upgrading of CHPA Housing Areas||Upgrading of 22km of un-surfaced roads to AC Surface along with drainage and structures||GYD1.4B||13 Areas in Region 1,3,4,5,6 ,7 and 10|
|Installation/Construction of Social Facilities in Housing Areas||12 Areas in Region 3,4,5,6 ,7 and 10||GYD120M||Facilities to be installed/upgraded to be identified in collaboration with community groups and LDOs|
Priority action area#4 – Policy review
|Housing Policy||National Housing policy document||GYD10M||Housing profile study will form the basis for the preparation of the National Housing Policy
Policy to be done by Consultancy
|Beneficiary selection criteria review||Computerized beneficiary selection model||GYD10M||Services of an Economist and Computer Programmer to be contracted.
Criteria for Land Allocation, Home Improvement, Single Flat Houses, Apartments etc.
|Comprehensive squatter regularization and re-location action plan||Plan of action document||GYD10M||Plan to be done by Consultancy|
Institutional Strengthening and Operations:
|Professional Development Training||GYD50 M||Training (On-line, local and overseas). Use of Engineering Software, Project Management Professional, Advance GIS Techniques, Sustainable Planning and Design, Auditing and Accounting, 3D Modeling and Animation, Information Technology.|
|In-house training||GYD15M||Training in planning law, contract law, customer relations, technical report writing, open source GIS, Programming Training.|
|Professional Exchange Missions||GYD20M||Hands on experience and knowledge acquisition in areas of green economies, new building technologies, planning and engineering approaches etc.|
Institutional Strengthening and Operations:
|Sale of Goods & Services||10,200,000||Sale of application forms & Processing of Building application|
|Fees & Fines||10,000,000||Cancellation fees, Penalty on disposal & Survey Fee|
|Rent||5,000,000||Canteen & Apartment rentals|
|Bank Interest||182,000,000||Fixed deposit, savings and checking accounts|
|Miscellaneous Receipts||9,000,000||Tender documents, Admin fees etc.|
|Wages & Salaries||361,499,000||CPHA currently employed 156 employees with additional persons expected to be employed by 2017.|
|Employment Overhead Expenditure||82,649,000||Gratuity, Allowances, overtime & Stipend|
|Material Equipment & Supplies||13,450,000||Printing, Stationery, Print & Non print materials, ledger books.|
|Fuel & Lubricants||9,776,000||12 Vehicles being controlled by CHPA|
|Rental & Maintenance of Building||2,258,000||Electrical, Plumbing, Office doors/Locks etc|
|Transport, Travel & Postage||39,546,000||Clerk of works, Community meetings, survey, field in- spection, overseas visit, services on 10 Vehicles, hinterland area for IDB Project|
|Utility charges||32,406,000||Electricity for head office and regional housing office38 GTT Phone lines, Cell charges for Minister, Chairman and Management|
|Other goods and Services Purchased||79,596,000||Toner/ink/cartridge, repairs to office equipment, Security services, Janitorial supplies, waste disposal, training, switch board system etc.|
|Other Operating Expenses||15,224,000||Internet fees, website hosting, License, insurance and other MISC expenses|
|Upgrading of Computer Hardware and Software||33,100,000||Procurement of 28 computers and other hardware and accounting system software|
2017 BUDGET SUMMARY
In conclusion, the Government’s commitment to improve the current housing delivery system through good planning to create wholesome and cohesive communities, will strengthen the linkages between housing and other parts of the economy, by contributing to employment creation, the generation of skills and enhanced performance in the financial and commercial sectors, since housing is an economic undertaking with benefits accruing to several other sectors.
|#||Action/Activity Description||Regions #||Description of Works/Activities||Budget Estimate|
|1||2016 Roll-Over Projects (Ongoing Infrastructure Works)||3,4,5,6||Infrastructure Works, Procurement and Installation of Electrical Network.||2,332,482,440|
|2||Electrical Programme (Existing Schemes requiring electricity)||2,3,4,5,6,7||Procurement and Installation of Electrical Network||471,320,530|
|3||Hinterland Project (Housing and Housing Improvement in the Hinterland)||1,9||Procurement of Materials, Construction of houses and disbursement of subsidies.||225,985,200|
|4||Consolidating of Existing Housing Schemes||1,3,4,5,6,7,10||To conduct feasibility study of existing housing scheme as requested by CHPA Board prior to intervention, and the upgrading of Roads, drains and structures in Low income, regularized squatting areas and other planned housing areas.||2,450,000,000|
|6||Housing Exhibition||4||Public participation in the building process||13,000,000|
|7||Strengthening of CHPA Planning Function||Public awareness session of Planning and Stakeholder coordination through National Planning Forum, Formulation of Development Plans, Community Development Projects, and Contractors Training Forum.||31,000,000|
|8||Installation/Construction of Social Facilities in Planned Housing Areas.||TBD||Community/Recreational Facilities to be installed/upgraded||120,000,000|
|9||Policy Review and Action||All||Develop a computerized beneficiary selection criteria/model, Housing Policy Document, Squatter Regularization and Relocation Plan.||30,000,000|
|10||Institutional Strengthening and operations (Capacity building)||NA||Professional Development, In-House training, Professional Exchange||85,000,000|
|11||Re-current Expenditure||Administrative, Salaries, Fuel, MIS Upgrade, Etc.||669,504,000|
|12||Duplexes and Expansion of Hinterland Housing||2,3,4,5,6,7 and 10||405 duplexes and 20 full houses||2,463,050,000|
| Grand Total
PROPOSED SOURCE OF FUNDING
|Source of Funding||Description||Amount|
|GCRG||2016 Roll-Over Projects (Ongoing Infrastructure Works)||2,332,482,440|
|Electrical Programme (Existing Schemes requiring electricity)||471,320,530|
|Consolidating of Existing Housing Schemes||2,450,000,000|
|Strengthening of CHPA Planning Function||31,000,000|
|Installation/Construction of Social Facilities in Planned Housing Areas.||120,000,000|
|Policy Review and Action||30,000,000|
|Institutional Strengthening and operations (Capacity building)||85,000,000|
|IDB||Hinterland Project (Housing and Housing Improvement in the Hinterland)||225,985,200|
|IsDB||Duplexes and Expansion of Hinterland Housing||2,463,050,000|