By Al Edwards, Business Co-ordinator 
A model house at White Water Meadows, Sydenham, St. Catherine. - Contributed
THE White Water Meadows housing development project in St. Catherine spells a new dynamic both in how housing projects will be conducted in the future and in modern suburban life.
The 764 housing units project valued at approximately $1.2 billion came into being as a result of "a tripartite" agreement formed between the Ministry of Water and Housing, local developer Can-Cara and Canadian construction giant Magil, which sees the private sector joining forces with the Government in a development project.
The two bedroom houses come in two sizes, 650 and 720 square feet. They can be purchased for $2.25 and $2.45 million respectively. So far, 300 houses have been completed with the project deadline set for Christmas of this year.
Speaking to the Financial Gleaner, director of technical services, Andrea Dempster, said: "This joint venture was established by Junior Lincoln of Can-Cara, who pitched the concept to the Ministry of Water and Housing. The Ministry had the land on which this development sits and we developed a partnership with him. He in turn formed a co-partnership with Magil and so we pursued this tripartite arrangement.
"The way the partnership works is that our developer private partner takes care of the construction activities. They manage the site and submit to us a development budget. We collaborate with them on setting the prices establishing what kind of product goes out, so the Government has to be satisfied with what is being built and at what prices are the houses being sold to the purchasers. Our role is to facilitate housing development."
The joint venture programme was initiated in 1995 and it has evolved and been refined over the last few years. The Ministry of Water and Housing has now completed 13 of these joint venture exercises. To get approval for the project, the developer has to go through the National Water Commission (NWC), Ministry of Health, Environmental Control Division, Transport and Works and all the relevant regulatory bodies. Because one partners with Government does not mean a developer can circumvent the approval process. Once that is obtained, then the project is declared under the Housing Act, which means it is granted certain benefits in terms of exemptions from stamp duty and various taxes which the Ministry ensures is passed on to the purchaser in the price, therefore facilitating a lower price for the purchaser.
Once it passes the approval stage and has been signed off by the Minister, they now have 'Notice to Proceed' and so they then enter the construction phase. The role of the Ministry, then, is in monitoring the administration of the project with monthly meetings with the developer and progress reports on the infrastructure and marketing and sales.
In a private development, the developer can escalate the price if there is, for instance, a delay in construction. However, in a joint venture with the Government, a developer can only escalate the price of materials and labour. There has to be a labour award which the Ministry can verify or the cost of concrete has gone up," Dempster said.
The Ministry has the most joint venture housing projects in the Old Harbour, St. Catherine locale and this addresses the population over spill from Kingston. The Ministry has developments in every parish except Manchester. In its most recent corporate planning exercise, the Ministry indicated it would like to see steady growth and a 15 per cent increase in housing units on last year.
Can-Cara was founded by Julian Lincoln in 1989. He acquired housing development experience in the United Kingdom. On returning to Jamaica, he was not pleased with the housing situation that he encountered. He searched internationally for a building system that would best suit the tropics.
Can-Cara's marketing manager, Michael Young, explained the role of his company in this project.
"The company is the joint venture partner with the Ministry of Water and Housing in the White Water Meadows project in Sydenham, St. Catherine. We subsequently entered into a separate agreement with Magil to develop the first 600 lots on which a house sits on each lot. The houses are bungalows. We are responsible for the marketing component based on the agreement we have with Magil. It does what it does best which is construction; we do what we feel we do best which is marketing and sales. Indications we are doing a good job of it. This project is marketed as a residential area with a distinct suburban setting away from the city when you come home."
Magil is putting up all the financing for this deal which is in the region of $1.2 billion. Magil Construction (Ja) chief operating officer, Claude Dupre, said: "Normally you build a house and then you put a price on it. However, in Jamaica you have a price people can afford and then you build the house to accommodate that price. People are now demanding a lot more when they purchase a house, which makes the process more challenging for a contractor.
