Ashtrom wins $1.2-b housing contract

Wednesday, December 29, 2010

ASHTROM Building Systems won a $1.2-billion contract recommendation to build nearly 230 units in Hellshire, St Catherine starting next month, subject to parliamentary approval.

The company was recommended by the National Contracts Committee to design and construct infrastructure and housing units for the Hellshire Housing Development, Phase 4, the largest phase of the Hellshire schemes set for construction in 2011, according to November contracts released yesterday by the Office of the Contractor General (OCG).

Hellshire Phase 4 entails building two- and three-bedroom detached units, townhouses and service lots, according to details on upcoming projects listed on the NHT's website. The NHT also states that construction should begin January 2011.

Ashtrom's phone number rang without answer up to print time yesterday. The company, which set up operations in Jamaica in 1969, is a major employer and contractor winning lucrative government projects, including the inner-city housing project and Sandals Whitehouse.

Hellshire Phase 2 includes 126 units and is slated to begin in September 2011. Hellshire Phase 3 includes 123 units and is slated to begin in April 2011.

The NHT is projecting to spend over $7 billion on scheme developments for its contributors across all income groups, in fiscal year 2010-2011.

The NHT is projecting that 7,304 benefits (housing solutions) will be granted to beneficiaries during the financial year, according to the Jamaica Public Bodies publication by the Ministry of Finance. It also projects the NHT surplus to decline from $1.5 billion in the 2009/10 fiscal year to $690 million in the 2010/11 fiscal year.

The NHT in August reported a 53.6 per cent increase in open market loans granted for the previous three months, compared to the same period in 2009. Effective May 1, mortgage rates were reduced by one per cent across all four income bands and maximum mortgage loans allowable would also be increased.

This increase in the loan ceiling saw open market purchases and build-on-own land moving from $3.5 million to $4.5 million; serviced lots moving from $1.2 million to $1.5 million; construction loans from $2.3 million to $3 million; and home improvement loans from $1.2 million to $1.5 million.