Urban shelter improvement

An analogous situation regarding the tendering and contracting process delayed the start of construction on the Nimajuyu low-cost apartment project 2 years. The resulting failure to meet CABEI"s conditions precedent held up all disbursements to BANVI, including those that would have provided interim financing for the Cooperative Housing Federation"s (FENACOVI) housing project. As a result of these problems, the project is 42 months behind schedule, a delay which, due to inflation, has made both apartments and coop housing less affordable to low income buyers. The project should proceed expeditiously from now on. CABEI and BANVI have reached firm agreements on approval of plans, technical documentation, and the contract for Nimajuyu; and on procedures for CABEI"s disbursements and on project management. To date, construction has begun on 600 apartments at Nimajuyu; all units will be delivered by 4/84--a 3-year delay. Also underway is construction of 951 coop housing units. The first units will be delivered in 11/81 and all units should be completed by 12/82--a one and one half year delay. Because of BANVI"s inaction, no small loans have been made. BANVI will carry out the program, however, and has drafted a procedures manual. A key lesson learned is the need for central accounting control in institutions like BANVI; without this, there is lack of coordination among planning offices, use of different wage scales, and disregard for standard procedures. Action decisions are to: complete the contracts for construction of Nimajuyu and begin independent construction supervision; approve the small loan procedures manual and initiate the small loan program; and formalize monthly project review meetings of all participants until progress is satisfactory.