AFFORDABLE

HOUSING
DEVELOPMENT
PROPOSAL

Desi
Merchant Ltd.
 BUSINESS
PROPOSAL

Prepared by:

Desi
Merchant
Limited

This propsal and supporting materials contain confidential and

proprietary business information of Desi Merchant Limited. These
materials may be printed or photocopied for use in evaluating the
proposed project, but are not to e shared with other parties.
 2

EXECUTIVE SUMMARY

A country housing stock is a primary element fundamental to defining its communities; it is where the citizens
that make-up the heart of each neighborhood reside. The quality and affordability of, as well as the
accessibility to housing in a any community are often factors that will determine where a person chooses to
live. Analyzing historic housing data in Trinidad and Tobago, current housing trends and projecting future
housing needs is a way for state and private sector to plan for the housing needs of its residents. Proactively
planning through the development of an affordable housing strategy and a development action plan, will
alleviate the pressure residents experience in accessing homes that are in alignment with income and ability
levels.

The collection and analysis of housing data and statistics revealed the need to improve housing affordability in
Trinidad and Tobago, in particular for low, moderate, and middle-income households (both seniors and
families). Analysis also revealed, Trinidad and Tobago is in need of a mix of housing types, such as senior and
family rental and condominium units, and special needs housing (both physically and mentally challenged
individuals). The information collected for this study shows that there are several issues that need to be
considered:

• The demand for housing has remained consistent due to low population growth and high outmigration
rates.
• The lack of affordable housing is apparent in the number of squatter settlements allowing for a proactive
approach to planning for the future housing related needs and the residentially zoned areas still available
for development;
• Growth of single-family homes has slowed; There is also growth noted in larger developments of apartment
rental units.
• Housing is dependent on the types of services a community provides. A quality public school system or
private school choices are important. Public transportation is an important factor to potential future
residents. Food supplies, shopping facilities and recreation opportunities are also important. The best
locations for low- and moderate-income households as well as for the elderly are dependent on where and
how these services can be delivered.

When examining other urban development models in nations such as the United States, Malaysia, and the
United Kingdom, we see more comprehensive levels of responsibilities and accountability measures such as
are public works and services, the establishment of real estate, the development of commerce, and live and
work areas. A few of the accountability measures used are acreage of land reclaimed, area of land developed,
infrastructural development, non-housing floor space, private sectors investment and jobs created. Research
indicates that Development corporations in the Caribbean have scarcely been held accountable to
international standards.
3

ORGANIZATION OF PROPOSAL
The Housing Development Proposal was created and assesses housing in Trinidad and
Tobago and includes the collection and analysis of housing data and statistics. Surveys
were also conducted to determine the goals and objectives of residents. This, along
with other data was used to develop the housing proposal presented in this document.

Section I. Housing Profile is a review of the country’s existing conditions, including the
regional and historical context, demographics, land use characteristics, Town
infrastructure and school capacity statistics, as well as an assessment of the country’s
current housing stock.

Section II. Housing Affordability summarizes the Government’s program goal. Section
II also discusses home ownership and affordability, including analysis of the gap
between housing availability and the market (including low, moderate, and middle
income households).

The Proposal then concludes with Section III. Housing Program Recommendations,
including key findings, goals and recommendations and proposal for the financing
and construction of a minimum of 2,500 houses and anciliary facilities throughout
Trinidad and Tobago using a design build and transfer model.
 4

Section I

Housing Profile
 5
The State of Housing in Trinidad and Tobago
To gain a better understanding of
housing in Trinidad and Tobago, one
must have a partial knowledge of the
rise of urban development
corporations. Trinidad and Tobago
won its independence in 1962
(Dodman, 2007). Since its
independence, the nation has faced
significant infrastructural challenges
in metropolitan areas (Ministry of
Planning and Development, 1973).
So pervasive were the decay and
obsolescence that residents
characteri zed the capital city as
“unwell.” Residents stated that it was
impossible to travel in any direction
from the capital without being
confronted by a pungent smell
(Raymond, 2005). Bearing the ideal
of modernity which stemmed from
capitals such as Johannesburg, Manila
and Mumbai, the Government of the
Republic of Trinidad and Tobago’s
(GORTT)
developed a solution to the
problem, the Urban Development
Corporation (Dodman, 2007). In
1994 GORTT created the Urban
Development Corporation of
Trinidad and Tobago
(UDECoTT). The organization
was tasked with the regeneration
of urban areas in Trinidad and
Tobago with the primary focus on
Port of Spain (UDECoTT, n.d.).
Urban development organizations
are highly autonomous units which
have a high level of flexibility in
both the planning and
development. This degree of
flexibility has allowed the
institutions to bypass government
bureaucracies and push forward
toward rapid implementation of
projects (Dodman, 2007). Some of
UDECoTT’s early projects were the
Port of Spain Waterfront, the
National Academy of Performing
Arts and the Brian Lara
Promenade (UDECoTT, 2004;
Newsday, 2005). The increased
infrastructural development is not
without its problems. Residents
have accused local development
corporations of neglecting the
social conditions which plague the
areas as well as operating without
consultation with the relevant
stakeholders (Dodman, 2007).
 6

The State of Housing in

Trinidad and Tobago

When examining other urban development models in nations such as the United States, Malaysia, and the United
Kingdom, we see more comprehensive levels of responsibilities and accountability measures. Examples of the
additional duties of the international development organizations are public works and services, the establishment of
real estate, the development of commerce, and live and work areas (Buffalo Urban Development Corporation, 2006;
Subah Urban Development Corporation, 2007; English Partnerships, 2007). A few of the accountability measures
used are acreage of land reclaimed, area of land developed, infrastructural development, non-housing floor space,
private sectors investment and jobs created. Development corporations in the Caribbean have scarcely been held
accountable to international standards (Dodman, 2007).
 7

THE HOUSING ECONOMY

The demand for housing in the early 21st century was 6,000 units per annum (Angel, 2000). A number which has
remained steady due to low population growth and high outmigration rates. Despite the availability of more
houses each year, the skewed income distribution has provided challenges for low to middle-income citizens. At
the year 2000, the median household income was $20,000. The median price of housing in the Port of Spain
metropolitan area was $125,000. The resulting house cost to income ratio is 6.3 , a number which implies

Housing Demand Median income year 2000 Median income year 2017
6,000 per Year 20,000 39,921

Median House Median House House cost

Price 2000 Price 2017 to income ratio 2000
125,000 339,500 6.3

House cost Squatter settlements Squatter settlements

to income ratio 2017 2000 2017
8.5 19,526 60,000

expensive housing when compared to Latin American countries. Angel (2000) noted that when undeclared
income is factored in at $46,000 the house price to income ratio could be said to be on par with other nations
in the region. The lack of affordable housing is also apparent in the number of squatter settlements. In 1990
squatter settlements totalled 19,526 which increased by approximately 300% to 60,000 in January 2015
(GORTT, 2016). There are enough capacity and labour available within the construction industry and land
open to meet the available housing demand (Angel, 2000). The scarcity of available houses results from a
dearth of developers who a committed to building housing estates for low/middle-income families (Angel,
2000).
 8

Government Initiatives

Underneath are a few of the housing initiatives and white papers put forward by the national
government.

NSP SWH NSDS V2030

The National Showing  The National Spatial  Vision 2030

 Settlements  the Way  Development 
Program:  Home: Strategy 
The housing component has
The proposed National The proposal was put The NSDS is a planning remained the same from the
Settlements Program was forward by the Ministry of initiative in which the vision 2020 initiative. One of
developed to eliminate Housing in the year 2002. Government intends to the objectives of the drive is
squatting. To achieve the The purpose was to build utilize Geographic too close the gap between the
mandate the government 100,000 shelter solutions Information Systems to demand and supply of
intended to increase the within ten years. The facilitate the development housing. One of the tools that
number of available program was developed to of land, and water would be used to achieve the
serviced sites by 3,000 deal with the low number reserves for the period vision is the Green
units (Angel, 2000). of housing units available 2013 to 2033. Infrastructure Fund (GIF).
to mid/low-income The GIF is intended to support
citizens. public transportation, green
infrastructure, water facilities,
wastewater facilities and
affordable housing. Public and
private partnerships would
facilitate the implementation
of the GIF.
 9

Current Initiatives

Neighbourhood Upgrading Accelerated Housing

Programme (NUP) Programme

Designed to improve living and shelter conditions for The Accelerated Housing Programme involves the
lower-income citizens as well as the regularization of development of infrastructure primarily housing units
families currently living in squatter settlements. under the HDC. The program also consists of the
rehabilitation of rental apartments and housing units.
 10

Government Spending

The diagrams below, shows the funds allocated and the number of housed planned for
development through the Public Sector Investment Programme.

Allocated Funds in Allocated Number

847 Millions 9,102
of Houses

718

516
471
4,500

312 293

2,300
1,947

2012 2013 2014 2015 2016 2017 2012 2014 2016 2017
11
Infrastructure
Water Supply and Demand
Trinidad and Tobago has two main seasons - the dry
season, from January to May and the wet or rainy
season from June to December. On average 80 % of the
country’s annual rainfall total occurs during the Wet
Season. As such, any reduction in rainfall will
therefore negatively affect the availability of water. The
Water and Sewerage Authority of Trinidad and Tobago
(WASA) is the sole water and sewerage provider in
Trinidad and Tobago. It was formed in 1965 by an Act
of Parliament to manage the areas of Hollis, Arena and
the Navet Dams in Trinidad. In Tobago, WASA
maintains the Hillsborough reservoir along with other
freshwater wells in the aid of providing municipal
drinking water for the country. The purview of the
Authority extends to the country's sewage treatment
plants.
The Water and Sewerage Authority Act brought together
several agencies that were formerly charged with the
responsibility of providing water and sewerage facilities to
the nation:
• The Central Water Distribution Authority
• The Port of Spain City Council
• The San Fernando Borough Council
• The Arima Borough Council
• The County Councils
• The Water Division of the Ministry of Public
Utilities
• The Sanitation Division of the Ministry of Public
Utilities

WASA is major abstractor of the natural water
resources. Other users include industrial and
agricultural facilities. Approximately 94.7% of the
population in Trinidad and 84.8% in Tobago are
provided with a pipe-borne water supply. 24 hour
supply only provided to 16.6% and 39.6% of
population in Trinidad and Tobago, respectively
(Geneva, 2008)
Sources:
• Surface; rural intakes, springs and
impoundment reservoirs (60%)
• Groundwater; aquifers (28%)
• Desalinated water (12%)
Surface water availability is estimated at 2,800
MCM/year for Trinidad and 103 MCM/year for
Tobago (DHV Consultants, 1999). Primary surface
water sources – Caroni, North Oropouche, Navet,
Ortoire and Hillsborough Rivers. Groundwater safe
yields were estimated at 174 MCM/year in 1999 and
549 MCM/year in 2002 based on calculations using
the Megawatershed Concept. Major aquifers that
supply groundwater include; Northern Valley (alluvial
deposits), alluvial fan deposits, artesian aquifers, reef
limestone and sands. The Trinidad and Tobago
Meteorological Service has advised that a strong and
mature El Nino system has been affecting Trinidad
and Tobago’s weather. The current El Nino has
matched the strength of the strongest event
(1997/1998) in the last 50 years. The event is expected
to produce much reduced rainfall during the wet
season, and drier than average conditions and
exceptionally higher than usual temperatures during
the months of February, March and April 2016.
12
The Meteorological Service has forecasted that the first
half of the 2016 dry season (January to March) will be
particularly harsh (hot and dry) with below average
rainfall totals and hotter than average day and night
temperatures across all areas of the country. Along
with this are very high chances for a large number of
hot days (temperature greater than 33.0°C) and longer
periods of consecutive dry days than usual, especially
during February and March 2016. The impacts of this
abnormal weather pattern include:
• A reduction in ground water recharge and surface
water flow
• Reduction in water availability for production at
WASA’s surface water treatment plants
• Increase in surface dryness and dusty conditions
• Increase in bush and forest fires
The Authority has normal daily production of 242.3
million gallons of water, of which approximately 60%
(or 145.4 million gallons) comes from surface water
sources such as impounding reservoirs, springs and
rivers. Due to reduced water availability, a number of
water treatment facilities throughout Trinidad and
Tobago are producing below capacity, resulting in a
current total daily supply deficit of 27.1 million gallons
daily (mgd). WASA has developed a Water Supply and
Conservation Plan 2016 for the dry season and
beyond. The objective of the Plan is to provide potable
water to customers consistent with amended water
supply schedules. This will be achieved through supply
and demand initiatives.
13

Water Supply Initiatives

Redistribution of Water
from unaffected areas with high pressures to more water stressed areas
located on the periphery with a view to a more equitable distribution of water
resources. Water Supply Schedules will be amended based on existing
demand where these shortfalls exist.

Careful and Continuous Monitoring of Water Supply

Close monitoring of the levels at impounding reservoirs and rivers including
physical inspection by River Wardens to monitor unauthorized activity at
reservoirs and main rivers.

Water Trucking/ Communal Tanks

the volumes of water being delivered by trucking (at no cost to unmetered
customers) have been increased through the mobilization of additional
trucks and extension of the hours of service.

Completion of Critical Projects

To install infrastructure to improve water delivery
 14

To improve operational efficiency

and minimize downtime,
maintenance works on wells and
plant processes will be undertaken
to ensure continuity of operation.

Asset Maintenance
To improve operational efficiency and minimize downtime, maintenance
works continue to be undertaken at production facilities.

Plant Production Management

The plant supply and respective schedules would be adjusted in order to
optimally treat and distribute available water during the dry season.

Maintenance of Ground Water Production

To improve operational efficiency and minimize downtime, maintenance
works on wells and plant processes will be undertaken to ensure continuity of
operation. In Tobago, additional wells will be activated to mitigate against the
marked decrease in production on the island.
15

Trinidad and Tobago has adopted

measures to increase the efficiency of the
water system as part of its overall strategy
to meet demand. In particular, the
Authority is addressing the amount of
water loss to the system, which is around
10%, by using various methods, such as
infiltration and inflow tests, to reduce loss.
With these plans to address the supply and
demand and current projections, Trinidad
and Tobago appears to be able to support
the projected population increase over the
next 20 years.

Sewer Service
Sanitation in Latin America and the Caribbean is
characterized by insufficient access, particularly in
rural areas, and in many cases by poor service quality,
with possible impacts on public health. According to
the Joint Monitoring Program of UNICEF and the
World Health Organization (2008) the percentage of
people in the region who have access to improved
sanitation facilities has risen from 68% in 1990, 77% in
2004 to 79% in 2006. According to the year 2004
calculations, of those 77%, 51% of the houses were
connected to a sewer and 26% of the population had
access to septic tanks and various types of latrines. In
total 125 million or 23% of the people in the region
did not have access to improved sanitation. In Haiti
only 25% of the population in 1995 and 30% of the
population in 2004 had access to improved sanitation
(See figure 1). Honduras, Dominican Republic,
Mexico and Guatemala are the countries with the
largest increase in the access to improved Sanitation
between 1995 and 2004.
The report published by UNICEF and the World
Health Organization (2008) show that the Latin
American and Caribbean progress towards the MDG
sanitation target is on track and by 2015 84% of the
region’s population should have access to improved
sanitation.According to the 2004 study “GIWA
Regional Assessment 3a for the Caribbean Small
Island subsystem”, wastewater treatment facilities are
often absent or insufficient in many countries of the
region.
16
Wastewater Sector Development
WASA is responsible for the collection, transmission,
treatment and disposal of wastewater in Trinidad &
Tobago and achieves this mainly through its Public
Sewerage Systems in Port of Spain, San Fernando,
Arima, Point Fortin and Scarborough Tobago.
In Trinidad and Tobago the development of the
wastewater sector was influenced by several
interventions over its history. With the construction of
the first wastewater system in Port of Spain in 1861,
Trinidad and Tobago had embarked on the
development path for this sector, particularly in its
urban centers. In Tobago, planned integrated
wastewater initiatives are of very recent vintage and
date back to the recent 1990’s with the completion of
works on the Scarborough wastewater treatment plant
in 1994. Projects undertaken through this
development path included: San Fernando, Arima and
Port of Spain wastewater systems The New Beetham
Wastewater Treatment Plant The New Scarborough
Wastewater Treatment Plant From the late 1990’s to
the present time several studies were conducted and
recommendations made as it related to private
wastewater treatment plants. All studies point to the
fact that private developers do not operate the
wastewater treatment plant and associated
infrastructure in a manner which will result in the
wastewater being properly treated and safely
discharged into the environment.
17
Governmental intervention has taken place mandating
WASA to take over, upgrade and operate these
facilities. The process of adoption includes the transfer
of ownership, the upgrade of the facility and the
implementation of an operations and maintenance
programme. Challenges faced in the implementation
of the adoption process mainly surround the issue of
ownership and its transfer to WASA. In Trinidad and
Tobago approximately 30% of the population is
sewered and serviced directly by WASA. The
remaining 70% of the population is serviced by septic
tanks, soakaways and pit latrines. WASA has
constructed twelve (12) wastewater systems
nationwide. Additionally, there are a significant
number of small wastewater treatment facilities that
are poorly maintained or abandoned, resulting in
improperly treated sewerage being discharged into the
environment.
WASA is currently adopting and refurbishing a
number of wastewater facilities from various
government authorities which include the former
National Housing Authority (NHA), now the Housing
Development Corporation (HDC) and the Urban
Development Company of Trinidad and Tobago
(UDeCOTT). WASA plans to adopt and refurbish over
one hundred and fifty (150) sewerage treatment plants
within private land developments with the intention to
integrate these smaller systems into larger regional
sewerage treatment facilities.
With the exception of the Beetham and the
Scarborough Wastewater Treatment Plants, the
wastewater infrastructure in the urban centers is over
twenty five (25) years old. The Arima and San
Fernando Wastewater Treatment Plants and collection
systems, as well as the collection systems in Port of
Spain and environs, are over forty five (45) years old.
As such, most of the infrastructure has come to the
end of their useful life and are in need of replacement.
the main wastewater treatment plants spread across
the North, South and East of the island. The Beetham
Wastewater Treatment Facility serves the Greater Port
of Spain region. In addition to the Beetham WWTP,
there are several other sewage treatment installations
existing in Port of Spain namely Dundonald Hill,
Valley View Hotel, Diego Martin etc. Wastewater from
the Diego Martin and Carenage areas is transferred to
the Beetham WWTP via the Diego Martin Pumping
Station. In the Chaguaramas area there are
approximately five (5) sewage lift stations. There are
also some wastewater treatment plants, namely the
Point Gourde Treatment Plant, the Granwood WWTP,
the Power Boat WWTP, Coast Guard WWTP and the
Teteron WWTP.
The Eastern Main Road area (between Curepe and
Sangre Grande along the East-West corridor) is served
mainly by activated sludge package treatment plants,
which serve small and medium size housing
developments. Most of them are owned by private
housing developers while some of the others are
owned by HDC. The Borough of Arima is mainly
served by the Arima WWTP which has a trickling
filter design; a WASA owned and operated treatment
plant. The effluent from this plant is discharged to the
Mausica River, a tributary of the Caroni River.
Discharge from this plant can affect raw water quality
of Caroni water treatment plant, the largest water
treatment plant in Trinidad, as the intake is located
downstream of the Wastewater Treatment Plant.
The City of San Fernando is served mainly by a
WWTP owned and operated by WASA. The San
Fernando WWTP has a trickling filter design and
discharges into the Cipero River.
 18

The plant provides co-treatment of septage and Private Wastewater Systems:

wastewater. There are several wastewater treatment
Private wastewater treatment plants, as the name
plants in the Borough of Chaguanas. Two of them
suggests, are considered to be all wastewater plants
serve housing estates and another three of them serve
that are not owned and operated by WASA, and
shopping centers in the area. The rest of the
include plants owned by governmental ministries and
population use septic tanks and pit latrines. A lift
departments, state and private residential
station located in Strikers Village pumps waste from
developments and those within the industrial and
Striker’s Village in Point Fortin to the nearby Southern
commercial sectors. In 2009 an assessment of the
Gardens Wastewater Treatment plant which is owned
wastewater sector was conducted. The data derived
and operated by the Housing Development
indicated the existence of more than one hundred of
Cooperation (HDC). In addition, there are other
fifty (150) private wastewater systems in Trinidad and
treatment installations located in the Point Fortin
Tobago. Private wastewater plants in Trinidad and
region. The majority of the area depends on on-site
Tobago are generally in a poor working condition and
treatment systems like septic tanks and pit latrines.
pose a risk to public health and the environment. The
sector distribution of private wastewater treatment
There are several wastewater package treatment plants
plants is generally as follows:
located within Sangre Grande, Couva, Fyzabad,
Siparia and Princes Town. The majorities of these
Private residential developments:
communities depend on septic tanks and pit latrines.
Mayaro is a rural community consisting mainly of a State residential developments (HDC, UDeCOTT),
fishing village with slow commercial developmental etc) State agencies (SWMCOL,TDC, etc)
growth. Wastewater treatment is generally achieved by Government Ministries (Health, Education, THA, etc)
the use of on-lot systems (pit latrines and septic
tanks). In Tobago, the Scarborough WWTP, serving Industrial:
the Scarborough town area is an extended aeration Commercial (Malls, Shopping Centers, etc)
plant. With few exceptions, wastewater treatment In a bid to meet the demands of the national
plants in Tobago fall into five broad categories: community for sewage services, WASA, has provided
Septic tank and tile drain or soak away systems Septic permission to private developers, to construct and
tanks followed by secondary treatment systems operate their own wastewater treatment plants and
Lagoons Trickling filters Activated sludge package associated collection systems. This practice still
plants. The majority of the private properties in continues today with much closer scrutiny being
Tobago are currently served by onsite systems such as placed on the developers to ensure compliance with
pit latrines, septic tanks and soakaway systems and designs and operations guidelines.
package plants. There are two housing developments,
Milford Court at Bon Accord and Coral Gardens at
Buccoo that have their own sewer collection system
and package sewage treatment plants.
 19

Wastewater Management Goals include:

• To provide suitable wastewater treatment facilities using appropriate technologies and methodologies

• To ensure wastewater does not harm the marine /soil environment and public health

• To have treatment and disposal systems that supports the economic success of the industry

• To achieve compliance with appropriate Acts, Plans and Standards

The Integrated Wastewater Management Forum focuses on:

• Actions at the local level, which target improved Wastewater Services Delivery, meeting Sanitation requirements
and Environmental Enhancements,

• An integrated approach which targets the development of a level of greater understanding of the significance of
wastewater management to health, sanitation and the environment in Trinidad and Tobago.
 20

The transportation System is characterized by a well

developed highway system linking East-West and North-
South communities.

Ground Transportation:

The Transportation system in Trinidad and Tobago consists of a network of roads across both major islands,
ferries connecting Port of Spain with Scarborough and San Fernando, and commercial airports on both
islands. The transportation System is characterized by a well developed highway system linking East-West
and North-South communities with High Per Capita Auto Ownership - 2.5. There is also a major Highway
Interchange Public transportation options on land are public buses, private taxis and minibuses. By sea, the
options are inter-island ferries and inter-city water taxis. Its extensive road network connects all regions of
the country. A four-lane highway as well as the two-lane Eastern Main Road connect the city of Port of Spain
with the international airport. A similar network of roads exists between the Crown Point Airport and the
town of Scarborough in Tobago. A similar network of roads exists between the Crown Point Airport and the
town of Scarborough in Tobago. There are approximately 5,600 km of main roads and 2,000 km of
agricultural access roads that are maintained by the relevant Government agencies in Trinidad and Tobago.
There is also an efficient road network connecting all Industrial Estates.
 21

In 2002, there were 8,320

km (5,170 mi) of roads, of
which 4,252 km (2,642 mi)
were paved.

Statistics

The more densely settled sections of both islands are

served by reasonably adequate roads, but large sections of
Tobago either have no motorable roads or are connected 54,000 registered 14,560 registered
by narrow, tortuous, and poorly surfaced ones. In 2000, passenger cars passenger cars
registered motor vehicles included 54,050 passenger cars
and 14,560 commercial vehicles. The Public Service
Transport Corp. is responsible for road transport.
Trinidad's lone remaining railway, from Port-of-Spain to
San Juan, was closed down in 1968. The streets of major
urban centers are not pedestrian friendly. There has been
no planning or infrastructure development to facilitate
walking and non motorized transport in urban centers.
Pedestrian fatalities Driver& passenger
Bicycles , scooters and motorcycles are underrepresented 46% fatalities
as a transport mode. Pedestrians account for a whopping 46%
46 % of our road fatalities whereas vehicle occupants
(drivers & passengers) account for another 46%
 22

Public Transport Service Corporation (PTSC)

Bus Service. 90% of public transportation
comprises 25,000 privately –owned 4-5
passenger sedans and 4,500 privately-owned
9-25 seater para-transit vehicles. Informal
taxis operate on rural routes and unsociable
hours.
P.T.S.C. provide a safe, clean and inexpensive transport service for the people of Trinidad and Tobago. PTSC
Services include Bus Tours and Charters, Bus Service for the Disabled, Travel Card, San Fernando/Port of
Spain City Service, Deluxe Coach Service (DCS) to and from San Fernando/Port of Spain, Bus Rental
Services etc. The state owned bus company operates approximately 300 medium, full-sized and articulated
buses per day. Both bus and taxi services operate without published schedules. The Priority Bus Route
(PBR) from Arima to Port of Spain utilized by both public and private bus operators. There is a Heavily
Subsidized low volume luxury Water Taxi System linking North to South. Transportation networks and the
circulatory systems are the backbone of an economy, ensuring that people, goods and services reach where
they need to go. In this context, particular emphasis is being placed by GORTT on the quality of road
infrastructure as well as improving the interconnectivity of roads between and among rural and urban
communities. This will facilitate the development of rural communities and contribute to the ease of traffic
congestion on main road arteries as drivers can use alternative routes to get to and from work and school
and be able to better engage in other day to day activities.
23

School Capacity

"Therefore, access to Trinidad and Tobago’s education system has had to cater to the
needs of a multi- cultural, multi-religious, and multi-ethnic society.
quality education was a Further, the influence of socio- economic factors on the education
central issue and system, particularly the way in which these factors marginalized
continues to challenge some members of the society and in some cases inhibited some
the education system in from attaining an education, historically has made education in
T&T." T&T ‘elitist’ on the one hand and a source of social mobility on the
other, (Campbell, 1992). Therefore, access to quality education was
a central issue and continues to challenge the education system in
T&T.
 24

Jules (1999, p. 9) highlighted how socio-economic
factors affect how education is perceived and valued:
The perception of education as a basic need may not
be shared by everyone, especially when priorities must
be ranked in a daily battle for survival. So, while up to
41.8% of the education budget is annually allocated to
this sector of the education system to meet that need,
the question remains as to how many of those who
access secondary schooling see it as relevant or are
able to make use of it. In the wider research domain,
Chubb and Moe (1992) speak about family
background influencing the educational values and
scholastic work habits of its members, and how these
in turn impact on the family’s perception of the
relevance of education in their lives.
Currently, there are 141 secondary schools approved
by the Government of Trinidad and Tobago,
The education sector is high up on the national
agenda. The education sector plays a key role in social
transformation, since it provides children and young
people with the necessary training and skills to be able
to confidently enter the work force. It therefore has the
major task of providing the country with its human
resources for effective participation in socioeconomic
activities at local, regional and international levels. To
this end heavy investment of the government in the
education system is critical if Trinidad and Tobago is
to reach developed country status by the year 2020.

A central aspect of the history of education in T&T

therefore has been equality and opportunity for all to
have access to quality education. In an effort to
address this issue, the government sought to increase
the number and varieties of schools available in the
country, especially at the secondary level. Their plan
included construction of co-educational schools,
(which formerly was a rarity) in T&T and also
expanding public sector secondary schools. Campbell
(1992, p. 105) noted that, “The expansion of education
of all types was essential to the government’s goal of
equal opportunity for all in education.” Campbell
(1992) also noted that the government’s ability to
increase the number of schools in rural areas was
perhaps the most successful aspect of its policy of
equalizing educational opportunity.
 25
The Ministry of Education is responsible for that segment of the
929 public and private Early
Childhood Care and Education
Centres serving 27,462
preschoolers;
133 public secondary schools
with an overall enrollment of
106,637 students, 62 of these
schools have sixth forms which
serve a student population of
8,131;
Statistics
education sector consisting of:
481 public primary schools with a 64 private primary schools
student enrollment of 136,374; with 4,662 students enrolled at
31 of these schools, for which
data were received;
63 private secondary schools There are also 46 Life Long
with a total number of 7,846 Learning Centres at which
students enrolled at 31 of there are 9,600 students.
these schools for which data
were available;
Two teachers’ colleges with a
combined enrollment of 567
teachers in training
 26

A Seamless System: Mindful of the changing global environment with its

new demands not only in traditional areas but in the
One of the major goals of the education system is the area of technology and the establishment of a
establishment of a ‘seamless’ education system, knowledge based workforce, quality education must
whereby students transit smoothly from one level to focus on meeting these needs and on sustainability, so
another, i.e. from early childhood through primary that our citizens can fully achieve their potential and
and secondary levels to tertiary level. This system is enjoy an enhanced quality of life. Therefore, providing
premised on the notion of the student’s readiness to quality education means focusing not only on the
advance to the next level at each stage of the process so traditional, academic areas but also on non traditional
that by the end of the secondary cycle students should technical/vocational areas which are now being
be prepared and fully equipped either to enter the infused with technology education as a response to the
world of work or to continue tertiary education, changing global needs for human resource
having acquired the requisite qualities, attitudes and development. In order to ensure social inclusion, the
aptitudes required for success in their chosen options. education system seeks to provide the proper
Therefore, in such a system, it is critical that a solid environment for learning in the classroom through the
foundation is laid for the student at the preprimary provision of the necessary equipment and facilities for
level. all students. This includes providing the necessary
support services to ensure student learning and
This national report 2004 highlights the development achievement.
and transformation of the education sector as the
gateway to achieving developed country status by
2020. Also critical is the achievement of the EFA goals
and the commitment to the millennium goals. Indeed,
the fact that this country has been a signatory to those
alliances indicates the level of commitment to the
development and investment in the education sector.
which has influenced the central Government to
allocate the fairly sizeable budgetary amounts to the
education sector for the fiscal year 2017/2018. This is
evidence that the political will exists to reform and
modernize the education system into a pacesetter, and
allow it to lead in the transformation process of not
only the education system, but also in charting the
course for this country’s human resource development
and global competitiveness.
27

Section II
Housing Affordability
 28

Expediting Delivery: In a move to address this problem, GORTT

announced in mid-February that it would be moving
Convoluted bureaucratic procedures that extend
the building application process online. The
project delivery times are also seen as an obstacle to
digitalisation of the process would lead to
sector growth. In its “Doing Business 2017” report, the
improvements in efficiency, ease the logistical burden
World Bank found it takes 253 working days to
for applicants and strengthen management oversight,
complete the 16 procedures required to build a
transparency and customer service delivery.
standardised warehouse in T&T, ranking it 149th of
Among the features of the automated system will be
190 countries under the “dealing with construction
online registration and submission of applications, e-
permits” metric. By comparison, the average time
mail notifications, web monitoring of the progress of
needed in the Caribbean and Latin America region
applications and electronic payment methods.
was 181.1 days, with the gap between T&T and high-
While the planned reforms should help address a key
income OECD countries even wider at 152.1 days.
weakness in T&T’s construction development chain, a
Such a disparity, especially at the regional level, could
timeline for their implementation has not yet been
put T&T at a disadvantage in the eyes of investors, for
made clear.
whom time is a critical factor when considering
launching or expanding operations.
29

Housing Affordability

Increased investment in low-cost housing, improved access to home loans and

streamlined procedures for building applications should feed into a stronger
performance from Trinidad and Tobago’s construction sector in the near term.
However, delays in payments for work completed, plus lengthy bureaucratic
procedures, continue to pose challenges to expediting construction works to
improve the current delivery of houses to middle and lower income families.

With the economy in recession since 2015 and capital expenditure falling TT$2bn
($296.4m) short of the TT$7bn ($1bn) allocated in last year’s budget, the construction
industry had a difficult year in 2016, posting a 7.6% reduction in activity, according to
Ministry of Finance data.The Housing Development Corporation (HDC) is responsible
for providing affordable housing for low- and middle-income first-time buyers. Of the
houses built by the HDC, 75% are for public sale, 15% are reserved for special cases
such as senior citizens and individuals with physical disabilities, and 10% are for
members of the police, fire and prison services.

September 2014 it was announced that there were 160,000 applications for
housing outstanding with the HDC.
In recent years the unit cost of affordable housing has increased markedly.
between 2002 and 2010 the government built 26,000 homes at a cost of
TT$6bn ($924m) for an average unit cost of TT$230,000 ($35,400). In 2010-
15, 4178 homes were built for TT$5.3bn ($816.2m), with unit prices in the
range of TT$700,000-1.2m ($108,000-185,000).
Government reiterated the commitment to finish affordable housing projects.

These include Vieux Fort, in south Port of Spain, Real
Spring on the east-west corridor and the Towers in
Chaguanas. In total 2200 units are set to be completed
in 2016, with another 2184 to be distributed in 2017 at
a lower cost. However, with a TT$2.6bn ($400.4m)
liability to be paid off in the HDC, the organisation
has been forced to move over to a public-private
partnership (PPP) model. In March 2016 Government
announced in the coming months will see a new boom
in construction. 6000 new homes would be delivered
by 2018.
The residential component of the sector, however,
could rebound from the lows of last year under
government plans to accelerate the development of
low-cost housing programmes. In early February of
2017, government announced that work would begin
this year on 2500 residential units – a project that the
ministry expects will provide opportunities for local
housing contractors, as well as infrastructure providers
and suppliers. While the new residential units will help
ease the housing shortfall somewhat, some estimates
put the number of applicants on the waiting list for
affordable housing at 120,000, leaving a sizeable
deficit. To further narrow this gap, the government
also announced reforms to the state mortgage
financing scheme, measures that should allow more
citizens to obtain loans for housing and stimulate
growth in the construction sector.
30
Under the changes, the monthly income ceiling to
qualify for a loan from State Agency Mortgage Finance
Company at the lowest 2% rate has been lifted from
TT$10,000 ($1475) to TT$14,000 ($2066), while the
maximum value of a property for a loan at this rate
was raised from TT$850,000 ($126,000) to $1.2m
($178,000). To obtain financing at the higher 5% rate,
the income bar has been moved from TT$14,001
($2066) to TT$30,000 ($4430) a month, with the limit
on property value raised from TT$1.2m ($177,150) to
TT$1.5m ($221,440).These changes should give far
more people access to the housing market, and in turn
boost demand for the construction of new units.
Payment Flow Concern
While the sector will welcome new projects to the
housing development pipeline, some state agencies
might experience strain on capacity amid extended
delays in payments for completed construction work.
In the fourth quarter of last year, the government paid
out TT$530m ($78.2m) to cover some of its
outstanding debt to contractors. Despite this outlay,
the total remains at TT$1.9bn ($280.4m), according to
a recent statement from the Trinidad and Tobago
Contractors’ Association, a body that represents a
number of firms in the building industry.
This may make some constructors wary about
committing to new projects until further progress is
made in clearing the backlog.
31

Section III
Recommendation &
Proposal
 32

Recommendation

Although overall population growth has continued, the most significant population growth has been in
middle-age cohorts. These are typically the age groups that have the largest family sizes and live in single-
family homes. The gap between the median costs of home ownership and the median, moderate, and low-
income levels is very significant. For middle-income buyers, the cost differential is not considered highly
significant at this time, so long as the higher income jobs remain available for residents. The amount of
buildable land is decreasing while the housing stock is aging. As the country approaches build-out, the
ability to control housing costs by new production will be very limited. Moreover, the potential for future
reconstruction and redevelopment pressures suggests that renovation, updating, and infill development
policies will be important to the future character of the residential areas, in particular the areas with older
housing stock such as the downtown and surrounding neighborhoods.

The current economic scenarion is a significant constraints to government addressing the housing gaps
for middle and low income families. This is a tremendous opportunity for private sector involvement in
driving the housing initiative as well as other social issues such as employment, education, affordable
housing with environmental conditions such as clean water, clean streets and a proper waste disposal
system. The government need to create a feasible platform through which residents could freely engage
with the developers to make known the community needs and concerns. Measurable short and long-term
metrics. The government needs to show at an empirical level that it is efficiently developing houses and
that the development initiative is significantly impacting the environment.
33

Proposal

The organization is formally submitting a proposal for financing in the sum of $3.5 billion USD from your
company for the: Construction of quality, environmentally friendly housing development in four zones
(more or less) throughout Trinidad and Tobago for 2,500 middle and low-income families. The build out
of roads to facilitate modern transportation modes, waste management system and other supporting
infrastructure throughout the above housing development. The construction of schools, health centres ,
sporting complex, parks and open spaces in the above housing development. The build out of agricultural
and commercial facilities for rental purposes to community groups, entrepreneurs and other entities
within the housing development. This will create sustainable employment and improve the social,
economic, environmental and health outcomes of medium and low-income families and individuals
living in these communities.

The organization intends to take a systems approach to the living environment of each resident with the
goal of reducing their monthly costs- food, electricity, and transportation; this will reduce their
dependencies on subsidies from the Government of Trinidad and Tobago. The project is expected to be
completed in five years from date of release of the investment sum. The build out and completion of the
entire project will create independent communities, reduce out bound traffic and improve the quality and
well being of family life. The size of each plot within each housing development will range from 3,500 to
5,000 square feet. The size/allocation will be dependent on the zone in which the houses will be
constructed and whether the resident is self employed and require additional land space to conduct
business to sustain themselves and family. In rural areas it is proposed that housing will cater for
agricultural proposes. In such cases build out will provide for infrastructure for residential and
agricultural purposes.
 34

Lay out and Designs will generally comprise of:

• Compact 3 bedroom, 2 bath single unit
• Duplex comprising 3 bedrooms 2 bathrooms and 2 bedrooms
and 1 bathroom
• Apartment complex comprising 2 bedrooms 1 bath
35

Project Cost (est) TTD

Housing Development 3.50Bn
Roads/Infrastructure 2.5Bn
Education Facility (pre, primary,secondary) 3.5Bn

Health Care 0.09Bn

Waste water 1.0Bn
Sporting Complex/Green Spaces 1.1Bn

Shopping Plaza 2.0Bn

Consultancy Fees (architect, engineer, etc) 1.5Bn
Administration/Operating Cost 1.5Bn

TOTAL 16.69TTD

Minimum land to be acquired : 500 Acres

Number of Houses : 2,500

The HDC costing model per unit were used as a guideline for the computation of cost of construction.. Figures
are based on a 5,000 square feet and 1 acre lot with a 3-story building where each floor is 10,000 sq. ft. This is
subject to variation in size of lots and size and type of housing unit. Build Costs uses traditional steel frame,
hollow bricks, concrete bricks, as well as other alternative building systems where feasible for apartment
buildings. The build costs are completely scaleable depending on our available financing. For example, we may
chose to build two floors in the beginning with 15 units of housing.
 36

Food

We also plan to add an urban agriculture component that
will be supported by our clients and community
volunteers. There will be a space for a local food market to
service the community, with a large community kitchen to
create value- added products. There is a potential for job
creation here.
37

Business Model

Setup &
execution cont'd
sum of $2.5 biillion USD for the
Upon acceptance of this Proposal,
project through foreign direct
the organization will receive
investment. Join Venture Agreements
notification of same along with the
will be signed between the relevant
required evidential and other
Ministry of Government and the
supporting documents for
Organization repayment of the
submission to the government of
project cost for the houses and
Trinidad and Tobago in order to
supporting infrastructure within a
obtain a sovereign guarantee from
stipulated period of time
the government of Trinidad and
Arrangement for the build out cost of
Tobago to cover the investment
$......with split of 51% and 49% with
sum of $2.5Billion USD and which
51% being held by the consultant.
will indicate approval for foreign
49% shares can be represented by
exchange release for repayment of
Government Guarantee and supply of
the loan on completion of the
Land Space for the development
project Upon receipt of of the
The organization will manage the
sovereign guarantee, The
entire operation to meet the
Organization will forward
estimated profitability of the venture
guarantee certificate and other
envisaged in order for recovery the
necessary documents to allow for
FDI and pay back the loan on
the transfer of the investment
schedule.
 38

Conclusion

Trinidad and Tobago has a unique history of development that has shaped, molded, and influenced its growth.
From this synopsis of information, several issues are recognized which will be important in the proposed
housing development programs and overall planning.

Cost Burden as a Measure of Housing Affordability:

Housing affordability can be measured by the ability of households to pay a mortgage or rent as a certain
percentage of income. A need for affordable housing exists when the median household pays more than 30% of
its income for housing. Specifically, if the monthly housing costs – mortgage payment, property taxes, and
home insurance – are higher than 30% of monthly gross incomes or where tenants pay more than 30% of their
gross monthly income for rent and utilities, then a need for more affordable units is indicated. This measure of
affordability is typically known as “housing cost burden.”

Home Ownership Affordability: Gap Analysis

A way to measure home ownership affordability is to determine the difference between two economic figures:
1) ‘buying power’ based on the income of a buyer in the same community or region as the home being sold, and
2) the sales price of the home. This information can be used to determine the disparity or “gap” between those
sales and the buying power of the potential owner. The gap analysis is a method used to determine the relative
opportunities to afford housing. By looking at what people can afford, based on available demographic
information, a picture emerges of how difficult it would be for a family with a certain income to settle into a
community.

Homeowners typically have to pay monthly housing costs, which usually consist of a monthly mortgage
payment, taxes, and insurance. However, equity or cash that must be used in most cases as a down payment for
a new house is also necessary to enter the housing market. Conventional underwriting standards usually offer
mortgages with a 30-year payment period and require a 10% down payment. Recent home sales in this area
were used to calculate the demands on homebuyers for both savings to create the down payment and the cost of
the mortgage.
 39

Cont'd

Implementation Strategy

The housing strategy was designed to increase affordable housing opportunities with increases in production,
retention of existing units, and programs and policies that support these goals. These recommendations were
developed through an analysis of available housing data and statistics, current housing issues facing the
community and from the applicable goals of the Housing Element of Governments Development Plan.

Availability of Developable Land and Using Zoning “By Right” as a Tool

Given that the availability of developable land area for residential housing is decreasing, there exists a need to
discourage spall and to encourage developments that include a mixture of uses within an area. There must be
systematic rezoning and adding zoning by right categories that will decrease the impact on the environment by
utilizing existing high traffic areas in more economic and environmentally friendly ways and that will at the
same time encourage a new variety of affordable housing and economic opportunities.

Additionally, in order to encourage housing affordability, the availability of water and sewer connections to a
municipal source is key. In order to successfully implement actions, the client will need to identify all
stakeholders and coordinate goals and objectives as well as focus on the implementation strategies. The focus
area for potential housing development will be centered around locations identified by the government of
Trinidad and Tobago with a focus on providing multi-bedroom housing units.

• land that is owned by the State should be evaluated for residential uses. Renting or leasing may require
specific eligibility conditions such as income limits and residency terms.
• Retain, support, and expand existing affordable housing sites that are scattered throughout Trinidad and
Tobago.

The Government of Trinidad and Tobago has postured itself as a key player and stakeholder in the creation of
housing consistent with the above stated policy, goals and objectives. The consultant is commited to ensure
that a variety of housing opportunities exist to meet the diverse needs of its existing and future citizens. The
consultant looks forward to working with a broad coalition of public entities to achieve the states affordable
housing goals.
 39

References

Chadee, A. (2010). Maintenance Management Planning for Disaster Preparedness in WASA.

The Journal of the Association of Professional Engineers of Trinidad and Tobago. (39)1

WHO (2008). World Health Statistics Report 2008

News.gov.tt (2016).WASA outlines current situation and supply plans

Unicef (2008). Wastewater and Re-use – Summary Study Guide 2012.

Unicef Water Sanitation and Hygiene Annual Report 2008

GIWA (2004). GIWA Regional Assessment for Caribbean Small Island Subsystem

Discover tt.net (2010). Roads and Transports in Trinidad and Tobago

Townsend, T. (2011). Sustainable Transportation Development – A Trinidad and Tobago Perspective

The School Improvement Policy Context in Trinidad and Tobago.

Freddy J. F., (n.a). School of Education. University of the West Indies St Augustine Trinidad

World Bank (2016). The Report: Trinidad and Tobago 2016. Real Estate and Construction
Oxford Business Group
 Desi
Merchant Ltd.

Thank You