Financial row between a Ministry and a Bank jeopardizes 65 thousand housing unit project

65 thousand Algerian families who have been eagerly waiting since 2002 to acquire a new flat will not fulfil their dreams due to a bitter financial conflict involving the finance ministry and the Savings and Loans Bank.

• The follow up Committee set on September 9, 2008 under the ministry’s treasury has held only one working session since September 14, 2008. This situation led to a complete paralysis of the 65 thousand housing unit project, though possibilities to built immediately 23 thousand housing units are available, Echorouk has learnt.
• Sources revealed that 11.400 houses have been built so far which remains well under expectations because of the flat refusal by the finance ministry to increase the building cost of the housing from 28 thousand Algerian Dinars to 34 thousand per square meter.
• The bank’s request was driven by the soaring prices of the building and raw materials on the market since 2002, pushing up the costs from 20 thousand AD in 2002 to 28 thousand AD pert  square meter which remains unsatisfactory for foreign building companies that fixed the price at 34 thousand AD per square meter.
• The ministry has refused another proposal forwarded by the bank which consists in fixing the total price of the end product instead of the cost per meter square in a move to reach a consensus.
•  The coast of a housing unit was fixed at 2.8 million Algerian Dinars with an aid provided by the authorities estimated at 700 hundred Algerian Dinars.