Muscat, NOV 17 - Oman’s maiden Integrated Housing Development Project — the cornerstone for which was laid at a site in Barka last month — is underpinned by a unique Public-Private-Partnership (PPP) model that offers ‘win-win’ opportunities for all three principal stakeholders: government, Omani homebuyers and the private developer, according to key official associated with the landmark venture. Yarub al Hadhrami (pictured), Integrated Housing Development Project Director — Supreme Council for Planning, said the PPP model will ensure a subsidy for eligible Omanis interested in buying residential units in this ‘pilot’ endeavour.
The financial model employed here is based on the concept of leveraging state assets, said Al Hadhrami. The government owns the land, which will be financed and developed by the private sector. A key feature is that the commercial area will go to the developer, but this is conditional upon the construction of a certain minimum number of residential units, as well as adherence to certain design standards as well.
The official made the comments in a presentation at the 2018 Dossier Construction Infrastructure Awards & Summit held in the city last week. The Integrated Housing Development Project, he said, was conceived to offer sustainable housing alternatives to Omanis on an ever-expanding waiting list of nationals entitled to a grant of a plot of land upon which to build their family home. That waiting list has burgeoned to an alarming 400,000 applicants over the years, he said.
“The Integrated Housing Development Project is a critical national initiative blessed by His Majesty the Sultan aimed at supporting efficient housing policies, while at the same time, reducing the huge number of applicants who are entitled to land grants,” said Al Hadhrami.
It offers a model for integrated development with optimal population density that is affordable to Omanis. This model champions the establishment of sustainable communities within integrated neighbourhoods with all of the requisite utilities and services set in place, he stated.
“It also creates a partnership between the government and the private sector — a partnership that enhances development in housing projects in the Sultanate, in order to reduce the burden on the government and aggregate expertise in real estate development,” he noted.
Oman’s first Integrated Housing Development Project has been launched on a 350,000 sq metres site in Barka — a fit-for-purpose venture that optimizes land for development, said Al Hadhrami.
As a mixed-use development, the project will offer a wide array of residential units surrounded by integrated facilities, while also incorporating commercial facilities, recreational services, public parks and community amenities. Residential options on offer include 132 semi-detached villas (3-5 BHK), 320 apartments (3-4 BHK), 120 detached villas (3-5 BHK), and 479 townhouses (3-4 BHK).
“For citizens and end-users, this project offers guarantee of ownership of ready-for-occupancy residences from the first day of entry into the project at a reasonable cost, while ensuring a high standard of living in a developed community environment,” he said.
“For the government, the project reduces the number of clients eligible for land plot on the waiting list of the Ministry of Housing, reduces the financial obligations to the government, and improves urban planning,” he said. “For the developer, the project offers a freehold commercial area, as well as a big list of potential customers.” A ‘Development Agreement’ between the government and the developer is currently under negotiation. Applications for the sale of residential units in the project will kick off shortly, he added.
Conrad Prabhu
Oman Observer is now on the WhatsApp channel. Click here
