By NYAN HLAING LYNN | FRONTIER
NAY PYI TAW — The Ministry of Construction has submitted a proposal to borrow 15 billion yen (K188 billion) from the Japan International Cooperation Agency for the construction of low- and medium-cost housing in Yangon, Ayeyarwady, Magway and Sagaing regions.
Speaking in parliament on February 22, deputy minister U Kyaw Lin said that providing housing at affordable prices would provide people with one of the “three essential needs – food, clothing and shelter”.
“People will live in homes that they will own in the future, paying a low interest rate,” Kyaw Lin said.
The deputy minister said the ministry would build 405 buildings that would contain a total of 11,914 homes in the four regions, with work expected to be completed by 2022. The government has proposed paying back the loan within 40 years at an interest rate of 0.001 percent.
Lawmakers who wish to discuss the matter should submit their names to parliament before February 28, said Upper House Speaker Saw Mahn Win Khaing Than.
The price for the houses will range from K10 million to K50 million, and the size will be between 300 and 1200 square feet, said Kyaw Lin. Families with a monthly income of K300,000 or more would be eligible to buy the low-cost homes, while those earning K500,000 and above could buy medium-cost homes, he said.
Home purchasers will be able to borrow money from the Construction and Housing Development Bank at an interest rate of 8.5 percent, said Kyaw Lin, adding that they will later be able to borrow from private banks.
As part of the plans, purchasers will be expected to pay 20 percent of the value of the property upfront, with the remaining 80 percent to be paid back between 10 and 15 years.
The project will be overseen by a steering committee that will be established to oversee the construction, Kyaw Lin said in parliament.
Frontier could not reach Kyaw Lin for comment after the parliamentary session.