Housing finance in Bangladesh
FINANCING OF URBAN HOUSING IN Bangladesh
Problems and Prospects of Public Private Partnership (PPP)
Abul Baker Md. Touhid
Senior Assistant Chief, Physical Infrastructure Division
Planning Commission
Sher-e-Bangla Nagar, Dhaka, Bangladesh.
1. Introduction
1.1 Background
Bangladesh is one of the populous countries in the world. It has a population of around 144.50 million on only 147,570 sq km land. Per capita income estimated at current price in the country is only US$ 848 (Bangladesh Economic Review-2012), which is one of the lowest in the world. Despite of its poor economic condition, it earned significant improvement in some socio-economic indicators i.e. infant mortality rate, maternal care and nutritional status during last decades. But the country faces infrastructural deficiencies i.e. transport, electricity etc. Housing is also an unfulfilled sector against demand. Though, housing is one of the fundamental rights mentioned in the Constitution of Bangladesh, still thousands of people are floating, who do not have any houses. Present statistics show that, 30-50% of the urban poor do not have any access to housing (Nayeema, 2004). In rural areas, about 30% people do not have houses (Nayeema, 2004). Each year the country has a demand of 0.5 million housing units in urban areas (Nayeema, 2004). The National Housing Policy, 2008 (NHP-2008) has reported that only 5% of the total houses in Bangladesh are built by formal institutions and mostly in urban areas. The rest are the efforts of people by their own savings, loan and informal sources. From the government side, National Housing Authority (NHA), House Building and Finance Corporation (HBFC), Municipal Authorities, City Corporations and City Development Authorities are constructing shelters (apartments/plots) for different income groups mostly in urban areas. Several other rural housing programs are also in place under Local Government and Engineering Department and Ministry of Food and Disaster
Problems and Prospects of Public Private Partnership (PPP)
Abul Baker Md. Touhid
Senior Assistant Chief, Physical Infrastructure Division
Planning Commission
Sher-e-Bangla Nagar, Dhaka, Bangladesh.
1. Introduction
1.1 Background
Bangladesh is one of the populous countries in the world. It has a population of around 144.50 million on only 147,570 sq km land. Per capita income estimated at current price in the country is only US$ 848 (Bangladesh Economic Review-2012), which is one of the lowest in the world. Despite of its poor economic condition, it earned significant improvement in some socio-economic indicators i.e. infant mortality rate, maternal care and nutritional status during last decades. But the country faces infrastructural deficiencies i.e. transport, electricity etc. Housing is also an unfulfilled sector against demand. Though, housing is one of the fundamental rights mentioned in the Constitution of Bangladesh, still thousands of people are floating, who do not have any houses. Present statistics show that, 30-50% of the urban poor do not have any access to housing (Nayeema, 2004). In rural areas, about 30% people do not have houses (Nayeema, 2004). Each year the country has a demand of 0.5 million housing units in urban areas (Nayeema, 2004). The National Housing Policy, 2008 (NHP-2008) has reported that only 5% of the total houses in Bangladesh are built by formal institutions and mostly in urban areas. The rest are the efforts of people by their own savings, loan and informal sources. From the government side, National Housing Authority (NHA), House Building and Finance Corporation (HBFC), Municipal Authorities, City Corporations and City Development Authorities are constructing shelters (apartments/plots) for different income groups mostly in urban areas. Several other rural housing programs are also in place under Local Government and Engineering Department and Ministry of Food and Disaster
References: Annual Development Plan (2010-2011), Planning Commission, Bangladesh. AZIZ, W Bangladesh Economic Review-2012, Ministry of Finance, Bangladesh. [US$1 = 78 BDT, June, 2012] http://bdpc.org.bd/dloads/earthquake%20zone.GIF (viewed on 18.06.2010) http://l2nsoft.com/rehab/rehab_profile.php (viewed on 19.06.2010) http://myrealestatebd.blogspot.com/2007/07/bangladesh-bank-announces-new-house.html K. Nayeema (2004), Public housing and women’s participation, Paper presented in International Research Conference, Adequate and Affordable Housing for All, Toronto, June 2004. Kamruzzaman, Md. and Ogura, N. Housing for the Middle Income Group in Dhaka, Bangladesh: With a focus on affordability and option, J. Archit. Plann., AIJ Vol. 73, No. 627, 947-954, May, 2008 Marja C National Housing Policy, 2008 (Draft), Bangladesh. The Daily Ittefaq, 16 November, 2009 (http://ittefaq.com.bd) Urban Area Report-2008, Bangladesh Bureau of Statistics, Dhaka.