The plan, which was approved during a meeting of the Council of Ministers (Cabinet), includes the immediate sale of some flats, with others being sold with 25 year loans at low interest rates. A few flats will be reserved for the Sports Promotion Fund, which is part of the Ministry of Youth and Sport.
According to the government spokesperson, Deputy Justice Minister Alberto Nkutumula, the cost of constructing each of the 848 apartments was 3.3 million meticais. However, including the cost of infrastructure such as road and drainage, the cost rises to 4.2 million meticais. In addition, taxes push up the cost of each flat to 5.62 million meticais.
Nkutumula said that the government wants to use the revenue from the sale of these flats to create an immediate financial boost to housing development programmes as well as to make use of its housing stock.
Under the plan, 768 flats in the Olympic Village will be sold, of which 250 will be sold outright. The remaining 518 will be sold along with 25 year subsidised loans.
The government will hand over the remaining 80 apartments to the Sports Promotion Fund, who will use them for accommodating sports delegations.
With the outright sale of 250 apartments the government hopes to receive 1.4 billion meticais (about 53 million US dollars), which will be dedicated to housing projects.
The funds from this sale will help with the construction of houses around the country. In the first phase it is planned to build a thousand houses in Sofala province and another thousand in Nampula province.
The 518 apartments that will be sold on long term credit will be subsidised by the government. The loans will be repaid over a 25 year period with an annual interest rate of just five per cent (the commercial rate for house loans is between 20 and 25 per cent).
The price of each apartment under this subsidised scheme will be only 2.25 million meticais, with monthly instalments of 7,875 meticais.
According to Nkutumula, the loan scheme is open to youths and state workers aged between 21 and 45 years old, and who have not already benefited from the sale of state property.
The apartments will be allocated proportionally to all ministries according to their number of employees. Candidates that meet the requirements will be randomly selected in a public event.Post published in: Africa News