The Ministry of Urban Development and Housing signed a contract wth the private firms for two housing projects worth up to $200 million.
The new contracts for Benayi and Sanayi townships were signed in the presence of President Mohammad Ashraf Ghani and Minister of Urban Development and Housing Syed Sadat Mansoor Naderi.
Minister Naderi said the revision of contract for the mentioned projects will pave the way for the attraction of up to $197.6 million in investment once completed.
Naderi further added that the townships will include 84 residential blocks consisting of 2,516 apartments which would be handed over to the applicants in need of residence.
He said Hakim Sanayi township was inaugurated in 2014 covering 130 acres of land belonging to housing enterprise to include 59 blocks and 1,116 apartments.
However, he said the construction work remained stalled for several months due to technical, economic and legal issues but the new leadershp of the Ministry of Ministry of Urban Development and Housing started work to ascertain the difficulties soon after assuming charge of the ministry.
According to Naderi, the main challenges included lack of attention to government’s rights as the share of Ministry of Urban Development and Housing was put at the lowest in the contracts and no strong guarantee was available to oblige the contracts to complete the work on time.
The other challenge according to Minister Naderi was the unjustified construction pricing besides having issues in tecnical design work.
He also added that necessary funds were not available with the enterprises and contractors to resume the work of the projects.
Thanking President Ghani for allocating AFN 700 million for the completion of Khwajah Rawash project, Minister Naderi said the government has allocated AFN 940 million as loan to help resume the work of the projects.
He said the contractors have agreed to bring reforms in the contracts in a bid to start the construction work and some of the key reforms and revisions include reduction of prices in the favor of government and customers, consideration of benefits for housing enterprise and Ministry of Urban Development and Housing, financial guarantees, and resumption of construction work from Thursday, 12th of October.