http://www.trinidadexpress.com/news/Value-for-227b-275958631.htmlValue for $227b?
Govt’s housing programme
By Anika Gumbs CCN Senior Multimedia Investigative Journalist
Story Created: Sep 21, 2014 at 11:08 PM ECT
Story Updated: Sep 22, 2014 at 9:38 AM ECT
The waiting list for houses at the Housing Development Corporation (HDC) has jumped from 129,000 in 2010 to 220,000 in 2014.
And so far the HDC has spent a whopping $2.3 billion from its Infrastructure Development Fund (IDF) for the period 2010 to 2014 to finance ongoing construction projects to aggressively support the Government housing thrust and in keeping with its mandate to provide affordable housing to low- and middle-income citizens of T&T.
In Part II of this special series titled “Where The Money Gone?”, the Express is seeking answers as to whether citizens are getting value for their money, given that $227 billion would have been spent nationally at the end of the term of this Government in 2015.
In 2009, former prime minister Patrick Manning had set a target to build 8,000 houses per year.
Data provided by the HDC show that from 2010 to present, the HDC has allocated 4,902 houses to new homeowners.
Under the construction programme and delivery the HDC has completed and distributed a total of 6,806 housing units, falling far short of Manning’s target.
The houses under this Government were distributed as follows: 2011/2012: 2,688; 2012/2013: 1,977; 2013/2014: 2,141.
Additionally, seven existing housing projects that were started prior to 2010 are almost completed and expected to yield a total of 2,030 units. The projects are located in Chaguanas, La Horquetta, Point Fortin, Rio Claro and Diego Martin.
The HDC has also embarked on 12 new projects in south, central and east Trinidad.
Some 6,178 homeowners are expected to benefit from these new projects together with another 519 who will be placed on the completion of the infill-starter units.
$3.6 billion in receivables
Further data show in 2011 the HDC had vested 34 housing sites, clearing the way for 5,585 tenants to become homeowners. Similar action is expected to be taken with regard to 19 other housing sites.
The people who are currently occupying these units have various arrangements with the HDC—licence to occupy (LTO), rent to own (RTO) and rental.
The 53 sites represent $3.623 billion in receivables owed to the HDC.
$400 million in remedial works and counting
To date, the HDC has spent close to $400 million on remedial and refurbishment works.
Why? Minister of Housing and Urban Development Dr Roodal Moonilal has repeatedly blamed the shoddy works done by contractors for the ministry’s expensive predicament.
The remedial works, however, do not include the six incomplete and suspended housing projects that commenced under the former administration.
The most evident is the Edinburgh Towers in Edinburgh, Chaguanas. The HDC had taken a decision in 2008 to terminate the contract awarded to H Lewis Construction due to the slow progress of works.
The two incomplete towers remained an eyesore with 118 residential apartments and 16 commercial units. Four years later, the towers remain abandoned.
Asked about the status of the towers on Friday, HDC managing director Jearlean John said:
“In 2008 the corporation adopted a construction management approach whereby multiple contracts were awarded for different construction elements, which included block and concrete work, electrical, plumbing, steel and finishes.”
John said the approach proved unsuccessful due to coordination and other project management issues, which resulted in delays in progress and cost increases, and in 2011 a decision was taken by the HDC to suspend the project.
The sum of $114,911,263.14 (VAT-inclusive) has been spent on the project to date.
An assessment of the design of the incomplete buildings, John said, revealed a number of design deficiencies which include:
• Internal works;
• Lack of garbage chutes;
• Improper space planning (columns were placed at the centre of room, etc);
• Incorrect placement of bathroom windows, which were placed opening into corridors;
• Lack of an automatic fire sprinkler (NFPA, TTFS);
• Lack of communications systems;
• Lack of stand-by generators;
• Improper placement of stairwells.
John said tenders for the completion of the towers were issued and evaluation is currently ongoing.
An award of contract, John said, is expected to be made next month and works completed within 18 months.
The other suspended projects expected to be completed by 2016 are: Vieux Fort, St James; Four Roads Terrace/Chaconia Crescent; Almond Court, Morvant; Malick; Barataria and Malabar Phase III.
According to John, the HDC applies a combination of local and international codes and standards in the design and construction of houses and other building types.
“For simple one- or two-storey houses HDC has begun to utilise the TTS 599: Guidelines for the Design and Construction of Small Buildings. This guideline is currently under review by the Cabinet Appointed National Building Code Committee for conversion into an official Small Building Code. It is expected that 75 per cent of all houses to be constructed would meet the requirements and qualify for review under this code, when enacted.
“Most of the regional corporations currently reviewing applications for building permits use the current guideline document and will utilise the document when it is converted into an official National Small Building Code,” John said.
She added the corporation also uses technical specifications based on the master-specifications developed by the Construction Specification Institute (CSI) of the United States.
Contractors head:
small contractors sidelined
However, head of the Contractors Association Mikey Joseph is not pleased with how business is being done at the HDC.
Joseph is of the view the “pie” is not being distributed fairly and small contractors are being sidelined from being awarded contracts.
“I am aware units are being built. I am of the view the HDC could be used to develop the construction sector. However, the HDC is missing this.
“They (HDC) have mass projects and only a selected few are being hand-picked. The HDC should be awarding contracts to small contractors and allowing a consultant to supervise the job,” Joseph said.
Joseph said the Fair Share Programme implemented under the Basdeo Panday administration is not being adhered to.
“It’s only one set of contractors who are getting jobs. We are not satisfied with what is taking place at all. There needs to be more transparency surrounding the selection of contractors,” Joseph said.
$73 million on Colour Me
Orange programme
With regard to the Colour Me Orange Programme, violence marred the re-launch in 2011 but it continued until each cycle was complete.
The concept of the programme was primarily to utilise labour from the HDC rental communities to execute refurbishment works.
The programme was conceptualised under the former People’s National Movement administration and continued by the Prime Minister Kamla Persad-Bissesar-led Government.
In spite of the negative feedback surrounding the programme, John said it was aimed at making residents aware of the importance of keeping their surroundings orderly and clean.
John said: “The programme provided employment and developmental opportunities for residents of the HDC’s communities of Port of Spain East, Port of Spain West, Port of Spain Central, Morvant, Maloney, Couva and San Fernando to assist in the upkeep and maintenance of buildings and properties in a meaningful and practical way. These initiatives boosted the corporation’s work force for the provision of maintenance works and community enhancement projects.”
The budget was financed from the Public Sector Investment Programme (PSIP), HDC receivables and rental income. Official HDC documents list the breakdown of expenditure for the programme as follows:
Phase I
March 8, 2010 - June 30, 2010
• Materials—$3,695,408.80
• Equipment—$1,424,278.65
• Salaries—$5,434,869.78
• Employees—438
Phase 2
November 3, 2010 - December 29, 2010
• Materials—$2,479,488.53
• Equipment—$523,495.37
• Salaries—$12,298,714.37
• Employees—635
Phase 3
November 23, 2011 - February 15, 2012
• Materials—$1,967,971.89
• Equipment—$72,914.59
• Salaries—$45,671,495.52
• Employees—1,980
Lift stations and waste water plants
A further $112 million has been spent by the HDC for the construction of 16 waste water treatment plants (WWTP) and 15 lift stations (LS).
The lift stations and treatment plants were constructed in the following areas:
• Edinburgh South, Chaguanas (LS) - $1,479,515.25
• Carlsen Field, Chaguanas (WWTP and LS) - $12,869,924.49
• Pier Road, La Brea (WWTP and LS) - $5,058,000
• La Fortune, Point Fortin (WWTP and LS) - $10,266,156.91
• Maracas, St Joseph (WWTP and LS) - $4,758,000
• Oropune, Piarco (WWTP) - $10,159,566
• East Grove, Curepe (WWTP) - $7,768,970.88
• Greenvale, La Horquetta South (WWTP) - $8,451,000
• Mountain View Terrace, Champs Fleurs (WWTP) - $2,895,826.35
• Glenrory, Princes Town and Buen Intento (WWTP and 2xLS) - $6,542,781.25
• Mora Heights, Rio Claro (WWTP and LS) - $8,591,715.55
• Gomez Trace, Moruga (WWTP and LS) - $5,308,055
• Lions Gate, Chaguanas (WWTP) - $4,692,655.50
• Jacob Hill, Wallerfield (WWTP and LS) - $4,681,650
• Golconda, San Fernando (WWTP and LS) - $5,754,600
• Ibis Gardens, Caroni (WWTP) - $4,828, 396.96
• Corinth, San Fernando (WWTP and LS) - $7,965,000
The HDC budgetary allocation
2010/2011
• IDF—$720 million
• Recurrent expenditure—$579 million
• PSIP—$33 million
n 2011/2012
• IDF—$742 million
• Recurrent expenditure—$555 million
• PSIP—$24.5 million
n 2012/2013
• IDF—$574 million
• Recurrent expenditure—$534 million
• PSIP—$11 million
n 2013/2014
• IDF—$350 million
• Recurrent expenditure—$427 million
• PSIP—$10 million