The director of the National Housing Institute (INVI) rejected a US$115-million housing loan back in 2002 on grounds of it being excessively onerous to the country. Now, it appears the loan has been resuscitated by the new head
of the National Institute for Assistance and Housing (INAVI). According to the story in El Caribe, the chain of events is somewhat convoluted but very interesting.
Finance Minister Rafael Calder?n told reporters and critics: ?All you have to look for is 5,500 houses!?
The project was initially outlined in Official Gazette No. 10120 of 21 January 2002 and signed by then-Technical Secretary of the Presidency Rafael Calder?n and Juan Vargas, the head of INVI. The project, as described, set aside US$21 million for the
purchase of equipment from two US companies that were to build the houses. An individual named Daniel Mej?a represented both companies and served as the go-between with the bank that was offering the loan.
As part of the deal, US$27 million was set aside for ?services and training of personnel? and US$9 million for ?honorariums for presenting proposals.?
In June of 2002, however, Juan Vargas of INVI notified President Mej?a that he was rejecting the project and recommended that the President discontinue the execution of the proposal. Among the reasons that Vargas, a civil engineer, cited for his
negative opinion of the project was the fact that ?no one contracts a construction project that purchases the equipment.? He also pointed out several articles of the contract that were counter-productive, as they would oblige the INVI to incur many
expenses that should have been assigned to the contractor. Despite these negatives, two months later Julio Mar??ez was appointed head of INAVI and the project was reborn. The threads that carried the loan package wound from INVI to INAVI, as the name
of the project was changed from ?Houses for Teachers? to ?National Housing Project for Public Servants? and/or ?National Housing Project for Teachers and other Public Servants?.
According to the article in El Caribe, the new concept of the housing project differs from that approved by the legislature. Nonetheless, last 30 April President Mej?a dug in the first shovel and tacitly approved the plan. Members of the Dominican
Association of Teachers have reservations about the new project, or, rather, the new direction the project is taking. Vice President Milagros Ort?z Bosch has stated that she had ?nothing to do with this plan.?
Reporters from El Caribe had scheduled a meeting with Julio Mar??ez, who was a no-show.