More stands to be developed in Bulawayo

MORE than 1 600 housing stands are set to be developed in Bulawayo as the city ups its housing development strategy in a bid to reduce the housing backlog.

The housing backlog in the city, which stands at just over 150 000 has been a cause of concern over the past few years and this has further been exacerbated by a number of private developers that have  abandoned their projects leaving the local authority with the task of completing the projects. This has left beneficiaries and the Bulawayo city council at loggerheads after the latter demanded that the former pays for the completion of the projects using hard cash.

In the latest development, council at the beginning of the month awarded a number of stands in the city to private developers following the success of a housing development strategy where the developers submit an expression of interest then use their own funds to develop the area.

Ironically one of the companies that had submitted their papers for consideration was Stelix Civils Private Limited that failed in the development of 502 stands in Emhlangeni phase 2 with the beneficiaries part of those currently at loggerheads with the local authority.

The stands that were awarded were 118 high density residential stands in Emganwini, that were given to TCI International, 460 high density residential in Emganwini that will be developed by Heavenview Properties, 650 medium-density residential stands in Mahatshula East that were awarded to Enock Construction while Natwecraft Private Limited will service 453 high-density residential stands in Luveve. TCI International and Natwecraft recently commissioned stands that were developed under a similar scheme in Emganwini.

"Due to the increasing housing backlog in the city, the City of Bulawayo invited companies to submit proposals for the development of residential stands. In terms of the Expressions of Interest the developers are to fully service the stands that would be made available to them with own funds and recoup their monies from the proceeds of the sale of the stands. The stands are to be sold to beneficiaries on the council waiting list after completion of servicing, after which the developer would recoup his monies with Council getting the intrinsic value of the land from the proceeds of the stand sales," reads part of a council report.

According to the report, the local authority will now enter into a service agreement with the prospective developers.

"The developers shall not collect or receive any payments from the purchasers before the stands had been serviced and any violation of this clause shall lead to the cancellation of the agreement. The developer shall deduct and remit to council the cost of the intrinsic land value and town planning charges per stand. The developer submits a performance bond acceptable to council before signing the agreement," reads the report.

Further, the developer is expected to title survey and fully service the stands with roads, sewer and water, with an Environmental Impact assessment expected to be carried out and submitted to the Environmental Management Agency for approval before any works were carried out.