Set a vision for green affordable housing: IFC

The International Finance Corporation (IFC) has recommended that Bangladesh formulate a vision for providing green affordable housing.

It also recommended forming regulations and incentives for banks, financial institutions, house builders and developers, and home-buyers with additional incentives for green affordable housing.

These suggestions came at a roundtable on "Affordable Housing – Roadmap Development", organised by IFC with the support of Policy Research Institute (PRI) at Renaissance Dhaka Gulshan Hotel.

The recommendations were included in the IFC's "Affordable Housing Sector Development Roadmap", based on the main takeaways from five roundtables organised by the international financial institution.

The roadmap suggested setting up the Bangladesh Mortgage Refinance Company.

It also stressed on the importance of designing and implementing a "PPP Demonstration Affordable Housing Project" on land parcels identified by RAJUK.

Setting up of a "Shelter Fund" to support private sector developers, and improving public land management to improve access to land for affordable housing are necessary for affordable housing, the roadmap says.

Ahsan H Mansur, executive director of the PRI, said the housing sector in Bangladesh has enormous potential to become the country's number one sector as this trend exists in most developed countries.

"To tap this potential, there should be a combined effort from stakeholders, including banks, developers, land owners and customers," he added.

Besides, many other related industries, such as cement, rod and ceramics manufacturing, would be created if the sector takes off.

"Most importantly, a large number of jobs would be created and boost the country's economy."

Earlier, IFC organised five roundtables on the key challenges and opportunities in the urban affordable housing sector of Bangladesh to identify crucial interventions or initiatives where the World Bank Group can jointly work with relevant public and private stakeholders to put together the building blocks for developing the industry.

Mansur said if the government and regularity authorities provide adequate policy support for the sector, then millions of limited income people can get their dream home with the assistance of IFC and World Bank.

Planning Minister MA Mannan said the government is ready to facilitate the policy support for ensuring affordable homes for lower-income and lower-middle income people.

In its roadmap, IFC suggested forming a working committee with members from different stakeholder departments and organisations of the government and private sector so that the next steps as per the roadmap concurred during the sixth roundtable can be followed for actionable projects.

As a part of this support for the sector, IFC has also subscribed to Bangladesh's first-ever privately placed housing bond by BRAC Bank Limited, investing up to $50 million equivalent in Bangladeshi taka to help the lender expand its affordable housing programme.