Maravi

Ndalamei bemoans reduced funding

Ndalamei bemoans reduced funding
By Joseph Mwenda
Thu 11 Nov. 2010, 04:01 CAT

REDUCED donor funding to the national budget has negatively impacted the housing infrastructure development, Secretary to the Treasury Likolo Ndalamei has observed.

Speaking when he launched the affordable housing and development conference at Lusaka’s Southern Sun Hotel yesterday, Ndalamei said the national budget was overstretched, making it difficult to adequately cover the development of housing infrastructure.

“The budget is overstretched because of the reduction in the external support from cooperating partners, owing to the economic downturn as well as non adherence to some donor conditions by the government,” he said.

Ndalamei said in order to bridge the financing gap, government tried to rationalise
its operational expenditures to free resources for development projects.
“Some of the measures included cutting down on purchase of consumables, limiting capacity building to essential staff and rationalising the use of transport,” Ndalamei said.

He urged financial institutions to pursue the financing of housing infrastructure through the Public Private Partnership (PPP) projects.

“There has been a huge housing deficit in Zambia. Effectively no new formal accommodation has been built for over a decade, and the rapidly urbanising population further adds to the housing need in the country,” he said.

Ndalamei further observed that poor land administration at the Ministry of Lands was also affecting the housing infrastructure development.

“The constraints include, inadequate funding, poor land management and very poor engineering service reticulation. It is hoped that through this conference, government can find a solution to the housing and associated infrastructure deficit,” said Ndalamei.

And finance deputy minister Chileshe Kapwepwe urged financial institutions to reduce lending rates and provide innovative funding products that could be accessed by people of all incomes.

Labels: 2011 BUDGET, CHILESHE KAW, LIKOLO NDALAMEI

posted by MrK @ 6:38 PM