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Government has committed to paying debt owed for years to contractors of finished and unfinished state-sanctioned projects, by disbursing a $1.5 billion government-guaranteed loan.
Minister of Finance Colm Imbert, during the budget presentation on Monday, said the loan was raised in tranches last year to “reduce the outstanding debt to housing contractors and assist with new and stalled construction projects.”
He also announced the allocation of $100 million for ongoing and new projects under the Housing and Village Improvement Programme (HVIP), targeting 26 areas around the country.
The Ministry of Housing’s HVIP provides subsidies to private households for the purchase of construction materials, labour costs and other construction expenses.
“This ($100 million) allocation will allow for the completion of the construction of over 600 (HVIP units) in 2024, improving the accommodation of thousands of persons at the lowest end of the income scale.”