Plan to develop affordable housing for low and middle- income Fijian families

IFC, a member of the World Bank Group, has signed a landmark agreement with the Fijian Government to bring in the private sector to help provide affordable and climate-resilient homes for low and middle-income families.

The move, which is in line with the government’s vision to provide affordable and decent housing for all communities by 2020, is aimed at supporting families who struggle to find housing due to rising land and home prices. Coupled with the government’s drive to harness the expertise of the private sector to deliver high-quality public services, Fijian citizens can look at improved services in the near future.

The Fijian Government recently set up a new ministry – the Ministry of Housing and Community Development – to tackle the housing affordability issue and asked for IFC’s support. As an adviser, IFC, with the support of the Australian Government, will work to design the right public-private partnership model to deliver affordable housing that’s also environmentally friendly and resilient to climate change. Homes under the project will use EDGE, a green building certification system created by IFC that helps cut energy and water usage, as well as building material costs.

“We know Fiji is vulnerable to natural disasters and the damage caused by cyclones in the past highlights the need for affordable housing which is both climate resilient and energy efficient,” said IFC’s Director for East Asia and the Pacific, Vivek Pathak. “A key reason for lack of affordable housing is access to land for development and the high cost of construction, so we will work to help the Fijian Government develop an affordable housing demonstration project, so Fiji can take a major step in ensuring people have quality housing they can afford.”

IFC will also assist in developing a housing finance product to help increase access to finance for low and middle-income families so people can look into homeownership, regardless of their income level.

Original source: IFC
Published on 18 March 2019