Interview with Collin Croal, Minister Susan Rodrigues, Minister in the Ministry Ministry of Housing and Water, Guyana

30 Jun Interview with Collin Croal, Minister Susan Rodrigues, Minister in the Ministry Ministry of Housing and Water, Guyana

What milestones has the Ministry of Housing and Water achieved so far in tackling Guyana’s housing challenges? What further actions are needed to meet its national targets?

We are aiming to allocate 20,000 house lots this year — part of our broader goal of 50,000 over our five-year term. That figure stems from our commitment to provide 10,000 house lots annually. When we took office in 2020, the previous administration had only allocated just over 7,000 lots in five years. We surpassed that within our first year. We also inherited a massive backlog of pending applications and many of the previous allocations had no supporting infrastructure. In addition to delivering on our own targets, we are also ensuring those earlier allocations become liveable by providing the necessary infrastructure. This year, we started with around 40,000 applicants and we are fast-tracking allocations to reduce the backlog. We are able to do this because we are directing more resources toward housing and infrastructure. It’s not just about home ownership, it’s about national transformation.

These projects boost employment across sectors, from construction workers to suppliers and uplift entire communities. We are allocating lots almost weekly across all 10 regions, not just in urban centers. Infrastructure, roads and highways are unlocking new land for housing and agriculture, reflecting our development priorities. You will rarely hear us talk about oil and gas, even though those revenues support this progress. Our focus is using those earnings to improve lives now, while building a better future for the next generation. Where people once dreamed of visiting Guyana, now they’re saying they have to go. It’s not just for ecotourism but because of the rapid transformation happening here. Lands that were once unused or flooded are now being developed, not only for housing but also for commercial and industrial use. We use a hybrid model with cross-subsidization: revenue from land sales helps fund the infrastructure needed to support business development, job creation and overall competitiveness.

Many call our housing program ambitious and it is. Historically, this scale has never been achieved before, but it’s not just about allocating land; that’s the easy part. Real transformation comes from developing full infrastructure: roads, drainage, utilities and more, especially in virgin areas where nothing existed before. In the past, infrastructure came a year after allocation. We have changed that. Now, allocations made this year will be ready for access by the end of 2025.

We have done all this with nearly the same ministry staff, scaling up only our project team, without hiring external consultants. The Central Housing and Planning Authority handles everything from tendering to supervision, saving the government hundreds of millions of dollars. It’s a testament to building in-house capacity. This work is changing lives. More people are applying, many for the first time, because they now believe the system works.

What are some of the main challenges in the sector that come with the fast pace of new construction and development?

CC: We face many internal challenges, especially with the growing volume of work. That is why we hold weekly management meetings: to align departments, resolve issues and stay on track. Despite having nearly the same number of staff, the workload has significantly increased. Many teams are working beyond regular hours, even on weekends. This makes it crucial to support our staff’s mental health and well-being. Balancing personal life with such a demanding pace is not easy and we are mindful of that. Another major challenge is contractor and labor capacity. The workload across all sectors has grown and many contractors are stretched thin, working on multiple projects at once. We also face a labor shortage especially for skilled trades like carpenters, masons and general laborers. Despite claims of high unemployment, what we are seeing is voluntary unemployment. There are plenty of job opportunities, especially in construction, but not enough people to fill them. In fact, many returning workers from neighboring countries are helping to meet demand. Still, the scale and speed of development make this a persistent issue.

Susan Rodrigues: Guyana’s housing program is very different from the typical social housing models in North America or Europe. We are not offering subsidized rentals, we are allocating land or homes and transferring ownership. The cost to develop these house lots is about 85 percent subsidized by the government and beneficiaries pay only 10–15 percent based on their income level. We have made land available for all income groups, with around 90 percent of allocations in the past five years going to low-income earners. This is a strategic effort to empower vulnerable populations.

When someone receives a subsidized house lot, their net worth increases immediately. We see housing as a powerful equalizer and a tool to build generational wealth. Our goal is homeownership, not tenancy. We want Guyanese to own property, become landlords and gain financial freedom, especially women. In fact, 43 percent of allocations have gone to single women, totalling over 18,000 recipients. Young people have also benefited, with more than 50 percent of allocations going to those aged 21–35. These outcomes reflect our belief in housing as a transformative force and why we continue to invest in it. From 1992 to 2015, the PPP-C government allocated over 100,000 house lots. In just the last five years, we have added over 50,000 more. Thanks to oil and gas revenues, we have accelerated the pace, but our philosophy remains the same. We believe in using national resources to improve lives through quality infrastructure, healthcare, education and housing access. That is how we ensure real development reaches our people.

What initiatives has the government launched to make homeownership more accessible, such as the Steel and Cement Subsidy and regional housing support grants?

CC: Our housing program goes beyond just allocating land; we are building various types of homes to meet different needs. These homes are built on a cost basis, with no profit, and the construction cost is passed to the beneficiaries. We target eligible individuals through a prequalification process, especially young professionals who don’t have the time to manage contractors. We work closely with banks to align on our vision and thanks to lower interest rates, people can borrow more. This has led to fewer defaults and more young people successfully owning homes.

We increased the low-interest mortgage ceiling from about $30,000 to $100,000. This allows people to borrow more and build larger, more comfortable homes at the same low interest rate. For example, someone previously limited to a $30,000 loan may now think bigger, moving up to $43,000for a better home. This shift allows people to aspire higher and feel part of the country’s transformation, reflected not just in new communities and roads, but in their own improved living conditions.

SR: When we took office, one of our first actions was to remove VAT on building materials, making construction more affordable. We also reduced taxes on items like cement and cement boards. Over the past four years, we introduced several initiatives to lower costs. Importantly, we worked with commercial banks to reduce mortgage interest rates from over 6 percent to as low as 3.75 percent. Despite global challenges during COVID, we made financing more accessible through deliberate government action.

What final hurdles must be cleared to achieve universal coverage in Guyana?

CC: Since August 2020, we have made significant progress in the water sector. When we assessed the situation, we committed to the 2030 Millennium Goals but focused on a five-year mission to achieve 100 percent access nationwide. In the hinterland, where access was only 45 percent, we have reached about 90 percent, with 64 wells helping to reach acceptable levels. On the coast, the main issue was water quality. Previously, only 52 percent of households had access, mainly along the sea wall. Now, we have achieved 85 percent  coverage for treated water in less than four years, including the time needed for tenders. This progress highlights what we have accomplished in just over four years in government. We are expanding services to support new housing areas, having developed 84 new housing areas with 3,000 allocations.

Along with improving service quality, we are responding to the demand for expansion. While we are proud of our progress, social media sometimes highlights negative posts about water quality. These issues can often be linked to individual storage tanks, which need cleaning or system breakages due to ongoing construction. We are addressing this by replacing outdated pipes, especially in Georgetown, where we are upgrading over-century-old pipes to improve service. Our goal is 100 percent water access and we have made significant strides, especially in the hinterland, where we have replaced creek and river water sources with fresh water.

Despite challenges like changing climate conditions, we are committed to drilling new wells and expanding our infrastructure. We are planning phase two of the housing program, which includes expanding access to treated water for new areas. To support this, we are increasing fresh water sources and improving drainage and irrigation through main canals.

How has the country’s decarbonization agenda impacted the housing and water sectors specifically and what policies or upgrades are being implemented to promote greener building materials and operations?

CCl: To address water supply challenges, we have been updating our systems and tapping into fresh water sources, as many wells are drying up due to changes in the earth. We have also been replacing wells that are too low to avoid contamination from flooding. In the hinterland, we have encouraged rainwater harvesting to help communities store water for reuse. We are also working with indigenous communities to adapt their roofs for better water collection. Additionally, we have started installing meters in households, not for revenue, but to monitor and encourage responsible water usage through educational programs. We are focusing on green space through tree planting and community development.

In every new area, we include designated green spaces and recreational parks for socializing and relaxation. Moving forward, the government is committed to encouraging tree planting in communities, especially as we clear land for construction. This initiative helps balance development with environmental responsibility.

SR: We established the National Water Council to develop a national water policy, focusing on integrated water resource management across agencies like the Ministry of Housing and Water, Ministry of Agriculture and Hydromet department. This coordination, which was missing in the past, will improve water management for both potable and irrigation needs and is part of our low-carbon development strategy.

Silica City, launched by the president in 2013, will be Guyana’s first smart, climate-resilient city. Built on higher ground, it’s designed to address the threat of rising sea levels in Georgetown. The city will promote an environmentally friendly lifestyle, emphasizing health and well-being. Everything will be within a 15-minute walk and it will feature an Innovation Village to attract tech companies and promote research and development. Silica City is a key focus for the future.

How significant has U.S. investment been in the development of Guyana’s housing and water sectors and how open is the ministry to further collaboration with international partners to expand capacity?

CCl: Our projects are open for tender, providing opportunities for everyone to participate. The latest opportunity is for treatment plants, with more infrastructure work to be tendered soon, including a foreign-funded project. In the housing sector, we have introduced an electronic single-window approval system to streamline the approval process. Previously, applicants had to navigate multiple agencies, which was time-consuming. Now, they submit one application which is then shared with the relevant agencies. This change simplifies the process, improves predictability and makes doing business easier. While local authorities have shown some resistance, fees are still remitted as usual. International companies, including American firms in oil and gas, are now benefiting from this streamlined system.

SR: A major challenge for both American and foreign companies is the low profit margin in housing construction. The government has intentionally kept housing unit costs low by setting income-based thresholds. Despite numerous meetings with international companies, many found the project financially unfeasible due to limited profits in the housing sector. While companies are welcome to participate in infrastructure work through open tenders, housing construction under the government program offers little profit. However, Silica City presents a better opportunity for international companies, as it won’t have these limitations. Special legislation will be passed to govern Silica City, where they can play a significant role.

What message would you most like to send to Florida-based investors and business leaders about the opportunities available in Guyana’s today?

CCl: Now is the time to invest in Guyana. There is rapid growth happening across all sectors, not just oil and gas. Our non-oil economy grew by 13 percent, reflecting progress at every level. We are focused on building a modern Guyana, and the president is committed to using the best technology to ensure we get it right, learning from existing successful examples. Come and explore the opportunities.

SR: We are determined not to fall victim to the Dutch disease, like other countries with oil and gas resources. Our government has been using these resources to improve basic services and utilities while planning for a post-oil future. We are focused on diversifying the economy through ecotourism, health tourism and other sectors. Our policies show a strong commitment to ensuring the economy thrives even after oil and gas.