Smart partnership to deliver more houses

Thirty nine small contractors have been identified to build 40 houses each in Swakopmund.

25 May 2019 | Local News

Paulina Nashilundo; Swakopmund Mayor; “Council went through a lengthy process to ensure all legislation is in place."

The municipality of Swakopmund entered into a mutual benefiting agreement with developers in pursuit of fast tracking the provision of affordable housing to low and middle income residents.

The move is in line with a land and housing action plan adopted by council on 31 May 2018 and will result in the construction of 1593 houses.

Mayor Paulina Nashilundo recently announced the municipality and the developer had reached consensus as to the terms and conditions which will govern the agreement.

Such terms include the provision of unserviced land for the establishment of a township and subdivision of land for development.

Developers will develop and service infrastructure at the envisioned township. They will also construct houses on some of the erven provided, without any financial contribution from the side of the municipality.

The municipality will pass ownership of a certain number of designated erven in the township to the developer for its free disposal, subject to certain terms and conditions in consideration of the capital expended by the developer in the construction of services infrastructure.

Nashilundo added that council went through a lengthy process to ensure that all legislation is in place.

According to Nashilundo the erven are earmarked for the construction credit link and social houses.

“The type of houses to be constructed are split 40% credit link and 60% social houses. This means that each contractor will build 16 credit link houses and 34 social houses. The credit link houses will range from N$200 000 to N$500 000. Applicants will be able to obtain financing from any financial institution for the credit link houses.”

His means that each contractor will construct 16 credit linked and and 24 social houses.

The mayor said the construction of the credit link houses will start immediately and issued commencement letters to 26 contractors.

“These contractors’ submitted designs and the 13 others are encouraged to submit their designs as soon as possible. The building of social houses will follow in due course after the signing of the agreement.”

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