Construction of a satellite town in Mirpur under public-private partnership (PPP) is likely to take off this year after the maiden initiative of National Housing Authority (NHA) was held up for years, most recently for objections, primarily from people illegally occupying the government-owned land in Section 9.
The cabinet committee of economic affairs had first given the approval in November 2012 to the project.
Land developer Tropical Homes and the NHA had signed an agreement on October 30, 2018 to construct the town to provide affordable housing for middle-income families.
The NHA now expects to hand over the flats to buyers within five years.
At least 400 units will be built of three sizes: 1,000, 1,500 and 2,200 square feet. Prices per square feet will be kept between Tk 4,500 to Tk 5,000 to make it affordable.
A total of 11 multi-storey buildings will be constructed across five acres of land, according to a senior NHA official. There will also be a 12-storey commercial building, to serve as a shopping mall.
Owners will have to pay 50 per cent of the apartment’s total value within four years of purchase in order to register flat ownership.
The remaining amount can be paid through equated instalments with a maximum tenure of 16 years. There will be no need to make a down payment but there will be an application charge.
The project has an estimated cost of Tk 650 core, which includes land value. Of that amount, Tropical Homes will invest Tk 350 crore.
There is no major roadblock to the project’s implementation aside from design approval, says the NHA.
Only the go-ahead from the legal compliance department is required to start construction, said Abul Fazal Md Tofazzal, general manager and head of marketing of Tropical Homes.
“We will encourage the NHA and RAJUK (Rajdhani Unnayan Kartripakkha) to undertake these types of projects to solve our housing needs,” said Muhammad Alkama Siddiqui, chief executive officer of Public-Private Partnership Authority.
The PPPA is ready to cooperate with efficient developers for housing projects in and outside Dhaka city to help reduce apartment prices, he added.
On benefits of using the PPP model, he said the developer would be responsible for the design, construction, operation and maintenance of the complex while the NHA would just provide the land.