CABEI supports innovative housing program in Nicaragua

During a Workshop to Launch the PROHABITAT Program, experts from the Central American Bank for Economic Integration (CABEI) discussed the Bank's experiences in the housing sector and the financial support it provides to the sector through its Program for Housing and Integral Habitat Improvement - ProHabitat, jointly funded by CABEI, the Inter-American Development Bank (IADB) and the Holland Nicaragua National Council for City-Twinning (CNHHN1).

In her presentation, CABEI specialist Verónica Ruiz explained that the distinguishing feature of the program is the integral personalized support to each family, which bolsters its impact by actively involving the beneficiaries and other players in the public and private sectors. It also provides complementary support, such as finding quotes on material prices, local material development and support to material distributors, among others.)

According to Ms. Ruiz, Nicaragua has a Human Development Index of 0.565, making it number 115 out of 169 countries in the world and below the mean in Latin America.

In 2010, extreme poverty was 15.81% and approximately 80% of the population was living on daily incomes of less than US$2.00. 90% of households have some home improvement needs and the housing deficit is expected to increase by 20,000 units annually. Breaking down the deficit, 36% of the total deficit is quantitative while 64% is qualitative.

With the launch of PROHABITAT in Nicaragua, CABEI expects to increase the percentage of families with improved and/or new housing with potable water in communities with sanitary sewer systems and streets with storm drainage, pavement and electricity. Additionally, it expects to improve the quality of at least 4,133 households through the progressive building of 4,133 houses and providing 5,000 families with land titles.

Ms. Ruiz added that the program is consistent with CABEI's Institutional Strategy and its regional strategy for social housing; it is also in accordance with the Nicaraguan Government's Human Development Strategy.

In order to help low income families improve their housing condition, in 2011 CABEI disbursed US$38.7 million as part of its Financial Intermediation Program for Social Housing.

The resources were channeled through the region's Intermediary Financial Institutions (IFIs), benefiting 2,459 households.

Since 2006, CABEI has made 137 disbursements through 27 IFIs under this program, channeling more than US$122.6 million and benefiting a total of 16,701 low income households with adequate housing.