Housing : An Engine for Inclusive Growth

1. Republic of Yemen MINISTRY OF PUBLIC WORKS & HIGHWAYS International Conference on April 10-13, 2013 New Delhi, India Housing : An Engine for Inclusive Growth

2. Assess current housing & Urban Dev. situation • Map of the Republic of Yemen • Administrative divisions

4. Total needs of Yemeni Republic governorates

5. Increase of Population and Houses Gap

6. Urban housing needs projection 1.5 million new units until 2025

7. Public Employees grades and salary –for year 2009(military and teachers are not included)

9. Formulate policies and programs, prioritize objectives and set targetsHousing policy goals 1. General Goals • Identify the status of Yemeni cities, their problems, causes and assess the housing situation. • Encourage housing investment according to suitable planning . 2. Key Goals • Achieve lowest possible costs, to establish housing projects for those with limited income, solve the problem of housing needs on the republican levels and mitigate the random housing problem • Solve the problem of deteriorating areas belonging to lowest income segments (This segment represents a vial part in the urban problems in Yemen, as a multi-faceted problem, since low income citizens represent patterns and various segments, harboring such problems as: economic weakness and lack of purchasing power which resulted in a large gap between income and offered housing prices. In this case, the housing policy is considered a vital necessity to meet demand for suitable housing to lower income segments, as a developmental priority)

10. . Housing Policy Aims at ensuring suitable housing to all About to Fall (old units) Houses for Housing Associations New needs as per population growth Housing is: Below Standard 1. Strategic Plan for Housing Help housing associations build their houses Limited and medium income Rented Housing for the destitute Housing Investment 2. Support Institutional Development Technology and equipment Develop database and statistics Operative budget Qualify staff

11. . 3. Finance system Citizens contributions via pre-payment + monthly installments Local & foreign loans Government & partnership system Grants from merchants & donor countries 4. Laws and Legislations Declare list of housing sector roles Establish housing fund with set sources Initiate Prime Ministerial approval on strategy 5. Coordinate with Services Entities Public services (schools, clinics..etc Electricity Roads Communications Water & Sanitary System

12. Execution Methodology Results of estimating housing needs in urban areas of the Yemeni Republic, showed that the number of housing units to be built annually is 36,000, distributed over governorates proportionally to the gaps in each governorate. Since it was hard to avail the appropriate funding during one year, the follow has to be done: • Start with identifying needed land as per set allocations in each governorate in coordination with the General Entity for Land, Areas and Urban Planning, and local authorities in the concerned governorate. • Survey the lands and prepare them in coordination with concerned service ministries to start serving those areas • Start to register limited income beneficiaries who meet selection criteria and conditions to benefit from this project, start collecting set amounts whether pre-payments or monthly installments. • Start to register youth of new families and collect set housing instalments for this segment on the basis of saving methodologies over 7 years, until enrolled in the project and houses are delivered, after which the remaining amount is divided over 15 years. • Start to build housing complexes with integrated services to absorb citizens of different limited and low income levels. (It is possible to execute this segment via partnerships between public and private sectors, since serviced land encourages private sector partnership) • The participating private sector in funding and building, will assign a number of housing units for limited income segments with low cost in return for serviced land and power per agreement and size of work • Start to service housing associations lands, offer suitable loans for housing associations members • Redo land surveys for random areas and coordinate with the services ministries to execute the infrastructure and support the re-building of inappropriate houses • Support and develop a housing fund as per a decision from the ministerial council to become the financial pool to fund housing projects and retrieve cost, and defer it for future projects • Submit a loan request to local or foreign banks with simple and (Islamic) legitimate interest.

13. Preparation of suitable land (Aden )

14. Economic Housing Design for Mid. & Low income people

15. Type A75M2

16. Type(B)88M2

17. Funding Sources The existing fund for the first stage of recent housing projects is from the following sources: Government contribution: 10 billion Riyals General Guarantees Agency and Wages and Social Security Insurances: 10 billion Riyals Cooperative Agricultural Loan Bank: 2 billion Riyals Fisheries and Agricultural Incentives Fund: 2 billion Riyals Ministry of (Islamic) Awqaf: 1 billion Riyals

18. Implementation of the Projects • Hajja city Aden city Taiz city • Dalea’ city

19. Cost recovery system