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Construction of affordable housing needed in Kyrgyzstan
Dec 05, 2008 (Asia Pulse Data Source via COMTEX) --
TCA correspondent
BISHKEK, Dec. 5, (TCA Editions) ? The construction of upscale accommodations is dwindling in Kyrgyzstan. In view of the high prices in the housing market, many Kyrgyz citizens cannot afford to buy an apartment. That is why it has now become an urgent priority to construct affordable housing.
We are searching for ways to stimulate the construction of affordable housing for the countrys less affluent population, Askarbek Moldobayev, chairman of the Kyrgyz Builders Union, said at the press conference in Bishkek.
States help needed
Accommodations would be cheaper if the state would enact some needed measures. In particular, the state could provide land for the construction of affordable housing for free, and make local authorities pay for connecting houses to engineering networks, like in Kazakhstan and Russia. The government could also cancel or reduce certain taxes, including VAT applied to building materials, said Moldobayev.
The use of local construction materials would also reduce construction expenses. According to the heads of construction companies, the antimonopoly committee is the only organization that can solve this task.
The National Program of Housing Construction, which has been approved by the Kyrgyz government, could stimulate the mass construction of affordable housing. This program provides for an annual allocation of about 1.2 billion som (US $30.77m) for the construction of affordable housing on an equal footing (50 percent from the national budget and the other 50 percent from regional authorities).
From the beginning of this year, housing construction rates in Bishkek were reduced by about 40 percent, Moldobayev said. Many entrepreneurs have the funds to channel into construction, but they prefer to hold them back.
Prohibitions are slowing construction
If the situation doesnt change, the construction rates in 2009 could be reduced by an additional 20-30 percent, Moldobayev said. He sees several reasons for the reduction of construction rates, and one of them is the world financial crisis. Moreover, local conditions, having no correlation with the financial crisis, are influencing the situation as well.
According to the heads of construction companies, mass construction of affordable housing in Bishkek is impossible without revoking the ban on connecting new buildings to engineering networks. The ban was introduced in 2007, but, according to the builders, it was possible to avoid such radical measures.
According to utilities and power engineering specialists, the citys utilities network is not able to maintain additional consumers, but they cant name the exact place or district where the problem exists, said Moldobayev. Thats why the constructors suggest making an independent investigation to reveal the condition of communication networks. This will help reveal bottlenecks in the system, which need reconstruction. However, the initiative hasnt got any support from the utilities administration because there are no funds available in the budget.
City administrations program
The Bishkek city administration is working on the problem and suggests building apartment houses with the participation of citizens in the funding.
The first fee for membership in a building share would be 30 percent of the apartments cost prior to building, then another 30 percent after the apartment is completed and is operational. The remaining 40 percent will be paid by stages during a five year period. According to the city administration, such a construction project would provide an opportunity for many citizens to buy apartments.
Building standards a concern
The seismological stability, with regard to the quality of construction, is of great importance in the mountainous region. Thats why the heads of construction companies offer to toughen requirements for seismological firmness, especially with regard to private houses, which are usually built without any construction norms or rules.
We can take as an example the tragic story of the Nura village in the Osh region, which was almost completely destroyed during the recent earthquake. All houses built by the local population were destroyed, whereas the school, built by a professional construction firm, remained intact.
According to the Kyrgyz Union of Builders, all houses in the country should be placed under expert control with regard to seismological firmness and with regard to implementation of energy efficiency standards. If a building doesnt meet the requirements of seismological firmness, it is necessary to demolish it. If a building does meet energy efficiency requirements, it is necessary to upgrade the building to comply with those standards, which will help the country save up to 30-40 percent in energy costs. The financing of energy saving projects could be divided equally between dwellers and local authorities.
If a builder is not able to construct a seismologically firm building on his own, he should seek the assistance of a licensed construction company. According to Moldobayev, it is possible to construct a seismologically solid building using cheap local materials.
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