OWNER’S PROJECT DEVELOPMENT FOR HOUSING PROJECT IN MYANMAR

A CASE STUDY OF SHWE LIN PAN LOW COST PROJECT

by

NAY HTUN OO

A project submitted in partial fulfillment of the requirements for the

degree of Master of Engineering (Professional) in

Construction, Engineering and Infrastructure Management

Examination Committee: Dr. Chotchai Charoenngam (Chairperson)

Dr. Bonaventura H.W. Hadikusumo

Dr. Djoen San Santoso

Nationality: Myanmar

Previous Degree: Bachelor of Engineering in Civil Engineering

Yangon Technological University

Yangon, Myanmar

Asian Institute of Technology

School of Engineering and Technology

Thailand

May 2017

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 ACKNOWLEDGEMENTS

Firstly I am thankful to all the teachers who came and taught us from AIT for the lectures
regarding with project management in construction. Specially thank to Dr. Hardikusumo &
Dr. Chotchai Charoenngam for guiding and supervision on this paper, giving reference books
and helping us along the training period.

Secondly I would like to be grateful to Director Daw San San Aye (DUHD) who allocated me
as a project representative official in "Shwe Lin Pin low cost housing project", Director Daw
Mie Mie Tin (DUHD) who advised me to attend this class, and gave me the chance to attend
this class and Director General U Min Htein (DUHD) for the encouragement of attending the
class.

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 ABSTRACT

The development of Low cost housing has become an urgent and important topic of
discussion in Myanmar. Affordable housing should meet the needs of those eligible
households with a cost low enough for them to afford. The affordable and low cost housing
aims to solve the problems of those who do have the ability to pay for their houses. Although
several public housing programs as a welfare system were undertaken in Myanmar, in order to
address the increasing housing needs of low income people, they are still in need of affordable
housing due to poor housing policy, lack of proper housing finance mechanism and low
affordability for home ownership.
Low cost housing development in Yangon is currently at the initial stage. This study
provides an overview of existing housing situation and affordable housing development
process of Yangon city, technology, material, contractors, land acquisition, permit approval,
Funding, loan and marketing for low cost housing sector in Myanmar, as well as experience of
housing development to find out suggestions for Yangon low cost housing development.
From the analysis of low housing development and lessons from the affordable
housing, it is clear that policy and financial support including long term mortgage loan and
housing provident fund is essential for low income group to be available and accessible to
affordable housing.
Key word , Low cost housing, Yangon, Technology

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 TABLE OF CONTENTS

CHAPTER TITLE Page No.

Title Page i
Acknowledgements ii
Abstract iii
Table of Contents v- vi
List of Tables vi
List of Figures vii
List of Abbreviations viii
1.0 Introduction
1.1 General Background 1-2
1.2 Problem Statement 3
1.3 Objectives of Study 4
2.0 Literature Review for Housing Project
2.1 Inception Stage 4
2.2 Feasibility Stage
2.2.1 Feasibility Study 5-6
2.2.2 Design 6
2.2.3 Aerial Restriction Site Selecting 6
2.2.4 Land Acquisition 6
2.2.5 Project Execution Plan 6
2.3 Strategy for Low Cost Housing 7
2.3.1 Housing Development Activities 7
2.3.2 Selecting the members of Project Team 8
2.3.3 Cost Planning and Control 8-9
2.3.4 Relationship Between Cost and Quality 9-10
2.3.5 Project Scheduling 10
2.4 Preconstruction Stage
2.4.1 Interlinking with Strategy 10
2.4.2 Design Delivery 10
2.4.3 Project Meeting 10
2.4.4 Risk Mitigation Planning 11
2.5 Construction 11
2.6 Handover 11-12

2.7 Project Review After Completion 12

Chapter (3)
3.0 Case Study for Shwe Lin Pin Low Cost Housing Project

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 3.1 Case Description 13-18

3.2 Housing Development Process 18

3.2.1 Historical Background 18

3.2.2 Housing policy and program 19
3.2.3 Housing Development Activities 19-20
3.2.4 Housing Finance System 20-22
3.2.5 Housing provision by government budget 23
3.2.6 Housing provision by revolving fund 23-24

3.3 Analyzing of Development For Low cost Housing

3.3.1 Construction 25-27

(a) Technology 25-27
3.3.2 Material 28-29
3.3.3 Contractor 30-32
3.4 Land Acquisition 34-36
3.5 Permit / Approval 37
3.6. Funding 38
3.6.1 Government Funding 38
3.6.2 Loan for Low Cost housing 40-41
3.7 Marketing / Customer 45-46

Chapter (4) Conculsion

4.1 Findings 49-50
4.2 Recommendation For Improvement 50
(a) Related to Funding 50
(b) Related to Design 51
(c) Related to Market 51
(d) Related to Customers 52
(e) Related to Material 52-53
(f) Related to Loans 53

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 (g) Related to contractor 53-54
4.3 Final Recommendation 54-56

Appendix
Appendix 1 Shwe Lin Pan Low Cost Housing Master Plan
Appendix 2 8 Unit 4Soreyed Low Cost Building
Appendix 3 8 Unit 4Soreyed Low Cost Building’s Floor Plan
Appendix 4 6 Unit 4Soreyed Low Cost Building
Appendix 5 6 Unit 4Soreyed Low Cost Building’s Floor Plan
Appendix 6 6 Unit 4Soreyed Low Cost Building’s View
Appendix 7 8 Unit 4Soreyed Low Cost Building’s View
Appendix ( 8 ) 6 Units 4 Storeyed Building’s Foundation

LIST OF TABLES
TABLE TITLE Page No.

Table (3.1.1) Phase (1) Project Description 15

Table (3.1.2) Phase (2) Project Description 16

Table (3.1.3) Phase (3) Project Description 17

Table (3.2.1) Dwelling Quantity by Fiscal Year 22

Table (3.2.2) Incensement of Revolving Fund 23
Table (3.3.1) Strength and Weakness of Technology 27

Table (3.3.2) Strength and Weakness of Material 32

Table (3.3.3) Strength and Weakness of Material 33

Table (3.3.4) Strength and Weakness of Contractor 37-38
Table (3.3.5) Strength and Weakness of Land Acquisition 41
Table (3.3.6) Strength and Weakness of Permit / Approval 42
Table (3.3.7) Strength and Weakness of Government Funding 44
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Table (3.3.8) Loan Payment Schedule for Steel Structure Building 47
Table (3.3.9) Loan Payment Schedule for RCC Building 48
Table (3.3.10) Strength and Weakness of Loan 49
Table (3.3.11) Strength and Weakness of Market/ Customer 51
Table (3.3.12) 6 units 4 Storeyed RCC Building cost 52

LIST OF FIGURES
FIGURE TITLE Page No.

Figure (1) Sequences of Activities for Housing Development Project 7

Figure (2) Overall Shelter Delivery Framework 46

LIST OF ABBREVIATIONS

DUHD Department of Urban and Housing Development

DHSHD Department of Human Settlement and Housing Development

MOC Ministry of Construction

SLRC State Law and Order Restoration Council

YCDC Yangon City Development Committee

BCP Building Construction Permit

BCC Building Completion Certificate

CQHP Committee for Quality Control of High-rise building construction Projects

CHDB Construction and Housing Development Bank

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PPE Personal Protective Equipment

BOD Biological Oxygen Demand

YESC Yangon City Electricity Supply Corporation

M&E Mechanical and Electrical

EWC European style Water Closet

PEP Project Executing Plan

AIA American Institute of Architects

QCBS Quality and Cost Based System

QA/QC Quality Assurance and Quality Control

JV Joint Venture

ITP Inspection and Testing Plan

PQP Project Quality Plan

NCR Non Conformance Report

CAR Corrective Action Report

RC Reinforced Concrete

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 Chapter (1)
Introduction

1.1 General Backgrounds

. Housing is a basic human need and an important component of the urban economy.
According to the historical evidence, housing problem can never be absolutely solved, but can
only be eased. The provision of affordable housing remains a challenge to most countries,
particularly those in the developing world and in transition. Currently, more than 1 billion
people are living in slums. Over the next 25 years, more than 2 billion people will add to this
growing demand for housing and basic infrastructure services. The situation is particularly
serious in developing countries where governments at central, regional and local levels often
lack the resources to adequately address this challenge.
Myanmar is expected to growth of population from around 60 million into around 90
million at the year 2040 because of the population growth process of it. Urban housing market
is expected to grow continuously in the near future. According to the national development
programs and the changing reform to political practices, economic opportunities open up and
more supplying on infrastructure. There will be an increase in foreign investment in industrial
and services sectors as well as agricultural mechanism revolutions that may efficient to more
urbanization process.
The key challenge Myanmar housing development face is its calculated household size
of 4.7 in 12 million and then the process will bring about annually demand for housing around
30000 units. With this concept, it is need to appear a development of sustainable housing
financing system and resources development in modern building materials, construction
technologies, machineries, equipment and private construction industry participation in mass
production of housing.
In 2013, the Ministry of Construction announced a target to build more than one
million houses across the country. This is slated to take a period of 20 years to produce
(50,000 units annually) to meet the demand for residential real estate. The government has
indicated its willingness to co-operate with private sector construction companies in major

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cities such as Yangon and Mandalay while wholly carrying out construction in other areas of
the country using government loans.
Housing Provision system is to set up to appropriate level of income households. There
were upper-middle and high income households who live in housing built by themselves or
built by the private sector, middle income households often occupy formal housing types that
are more likely to be low quality housing and low-income households can be found in slums
and squatter settlements, or informal rental housing. DHSHD now in DUHD and YCDC are
perpetually solving in several ways to meet the housing needs of Yangon city. Since the past
decades, DHSHD has already created low-income housing and rental housing project for low
income households, government servant, and pensioners.
The 2013 Urban Development Conference held in Yangon displayed plans to
transform Yangon into a megacity with sprawling industrial complexes and middle class
housing projects. And then two massive low priced housing estate complexes have already
begun in Yangon’s suburban area. These are being built for the expected influx of people
moving to urban Yangon for better work opportunities.

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1.2 Problem Statement
Many housing projects have problems such as poor quality, delay and not having
construction permit from YCDC and squatters are living government land. The last one is very
common during these days especially in Yangon. In 2008 we faced Nargis Cyclone at
Ayeyarwaddy division. People were destroyed by natural disaster. The victims and lack of
opportunity people of other states and divisions have moved to Yangon because of jobs. The
land price in Yangon is very expensive and difficult to get flats.
With city rapid growth, more and more people moved to city and as the consequence
city turned to be crowded When large number of people living in city became more
competition, the demand for housing will increase, then the gap between housing demand and
supply will be wide if the construction speed is lower than the increasing housing demand.
Access to adequate and affordable housing is a current and growing problem in many
countries of Asia but some of the countries are good handling for housing provision.
Some of the problems of housing in Myanmar can be assumed that;
- It is not that housing is too expensive but rather that incomes are too low.
- Incomes are relatively high but housing supply and finance is limited and hence
expensive.

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1.3 Objective of Study
The objectives of this case study are as follows;

• To study the theory of and practices of low cost housing

• To investigate factors affecting development low cost housing project of shwe lin pan
in Myanmar through a case study
• To analyze strength and weakness of project development during each stage
• To propose recommendation for improvement during each stage of project development

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 Chapter (2)
Literature Review for Housing Development Project

2.1 Inception Stage

Low Cost Housing Projects require significant management skills and co-ordination of expert
people from different professionals. Moreover, it is also need to make sure to complete the
project within the parameters of time, cost and quality. Any construction projects especially
housing projects require to meet client's requirements (Government) and the intended users,
whether the housing is constructed for high-end or middle income people or low income
people, etc.

In the inception stage, it is needed to make clear that the client's requirements, what kind of
services they need and, have to plan the best ways to meet the users (buyers) satisfactions.

2.2 Feasibility Stage

2.2.1 Feasibility Study

In order to get effective feasibility study, the information used should be as sufficient and
accurate as possible. The specialists and experts join in this stage are mostly reimbursed on a
time-charge base and without commitment to take part until the completion of the feasibility
study. Feasibility study report should include the following

Items;

 Establishing scope of the project

 Determination of project's requirement
 Construction of stakeholders
 Geotechnical survey
 Environmental impact assessment
 Study for health and safety
 Legal and statutory requirements
 Risk assessment and risk mitigation plan

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  Estimated project cost including operation and maintenance cost
 Funding assessment
 Determining starting date and finished date

2.2.2 Design

Design of low cost housing is mostly very simple (not complex) and structural design should
be same for many building. There are two types in analysis on the dimension of use of space.
The first is analysis on the use of space in simple low income family who are used only the old
simple style furniture in Myanmar. The use of space is really depending upon the setting of
furniture. The use of space can be reduced because of that kind of combination of furniture.

The second analysis is that mostly of the activities are taking in living room, such as sleeping,
praying, relaxing, working and dining. Cooking and dining functions are in kitchen. Most of
the functions are mixing the functions perfectly, the more saving the cost. If dimension is
adequately small, the cost of building can be reduced and then save the unit cost.

2.2.3 Material

In technical sustainability is very important for low cost housing. It implies good quality
materials and serviceability in the environment. We should have to choose the reputation of
supplies. Diversification and innovation of design and building materials have to meet the
needs for durable and safe structure. Mass production system is reduced number of materials
and components which can reduce cost of building, depending on same design.

2.2.4 Worker

At the initial scoping phase of a project, it is important to consider whether worker’s

accommodation is needed at all. It is worth analyzing the project’s workforce requirements
including skills and likely numbers over the project cycle and to access the capacity of the
local population to meet those workforce requirements either from its current base or as a
result of training. It is preferable to source labor from the local communities as this has many
advantages; not only in terms of reducing the need for worker’s accommodation, but also as it
will increase the direct and indirect benefits to the community arising from the project. Owner
and contractor must follow rules and regulation of ILO (International Labor Organization).

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2.2.5 Project Executing Plan (PEP)

According to the book "Code of Practice for Project Management for Construction and
Development" (Fourth Edition, 2010) by author Wiley-Blackwell, Project Executing Plan
(PEP) is an important document to manage the project successfully. In which policies and
procedures concerning with the project are mostly defined by the project sponsors. The project
manager is commonly developed PEP for the approval of project sponsor. PEP must include
plans and procedures to control project implementation and, to monitor and evaluate project
progress. The roles and responsibilities of all project participants are defined in PEP and the
result is everyone can understand and carried out their responsibilities properly.

2.3 Strategy for Low Cost Housing

2.3.1 Housing Development Activities

The strategy for housing development must include the forming of project organization,
determining the strategies for procurement and delivery (cheaper, faster and better quality and
risk management), commissioning issue until completion and close out of the project. The task
and activities for feasibility study and housing strategy are interrelated to each other in order to
achieve both processes. The sequences of activities for housing development projects are
commonly as follows;

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Figure (1) Sequences of Activities for Housing Development Project

Feasibility

Study
Inception

Stage
Strategy

Development

Pre-construction

Construction

Commissionin

Hand-over

O&M

2.3.2 Selecting the Members of Project Team

For the selection of project team members, the following qualifications are necessary to be
consider;

o Relevant working experience

o Sufficient level of technical qualification
o Positive team attitude
o Good communication skills
o Appreciate to project objective
o The ability to create and innovate

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A suitable deputy for each team member should be identified to be sufficiently familiar with
the project in order to act as replacement whenever it is needed. Apart from the above stated
abilities, team members should have the following people skills in order to get smooth relation
among project team members and develop the project successfully.

 Ability to genuinely empathize with people

 Willingness to admit mistake whenever it has done.
 Appreciate to other people's feelings and respect basically to them
 Have open-minded and patiently listen to other people what they want to say
 Communicate smoothly to people with different culture and social nature
 Tolerate to people who do not fit the ideal

2.3.3 Cost Planning and Control

The objective of cost planning is to allocate budget for the major items of the project.
Although many people think that the terms budget and cost plan are nearly the same, it is
different. Budget is the limit of expenditure determined for the project, whereas cost plan is
the amount of money to be spent on and when. Therefore cost plan should include possible
estimate of the cash flow for the project and should cover the cost for all stages of the project.
Cost plan is used as a reference to manage the project. A cost plan is prepared including all
construction costs, professional fees, contingency, project insurance, surveys and agent's fees
or other specialist advisors. A budget study is undertaken by the determination of total costs
and expected return of the project.

The objective of cost control is to manage project delivery within the approved budget. Only if
all the project team members have correct attitude to control the cost, effective cost control
can be achieved. Moreover, the current budgetary, cost situation and, up-to-date and accurate
cost reports must be informed to the client regularly in order to achieve effective cost control.

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2.3.4 Relationship between Cost and Quality

If good quality materials are assumed to be used, the key to quality control is working with
skilled workers. The cost of the project is also depends on the skill level of workers. It is
important to choose the appropriate level of skill to meet the quality level of the project. If
over-skill workers are sent to quality B level job, it is a way of wasting money on over-skill,
whereas if workers are under-skill for quality A level job, money will be lost on low
production rates and poor workmanship. Although the former instance is losing money, the
latter one can compromise the reputation and safety problems as well.

It is difficult to deliver top quality in a cost-driven market while other items are competitive.
On the other hand, top quality cannot be guaranteed although top dollars are paid. Responsible
architects have a general sense of quality requirements and make approval to meet their
bailiwick. Poor quality tends to end up in tear out or rework being undertaken and if worse,
monetary concessions or even litigation. Therefore it is very important to do checks and
balances between quality and cost to make sure that work is being executed correctly.

2.3.5 Project Scheduling

Scheduling of a project is a difficult component of construction process. Only the most

efficient companies have a schedule for each project and update it every month, whereas the
laggards only have start and finish date of their projects. If a contractor is proactive to use a
schedule as an effective tool, the project can be controlled and managed effectively and also
the problems can be response faster. It is very rarely for a construction project to get enough
time to be built at a natural pace.

2.4 Pre-Construction Stage

2.4.1 Design Delivery

It is the responsibility of project manager to monitor and control for the production of design
information in line with agreed schedule. Therefore, project manager should convene attend

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regular team meetings to review the progress of design team's functions. The design team
leader will be mostly architect and his/her responsibilities include co-ordination and
integration of the works from other designers, consultants, service providers, statutory
authorities and utilities, etc.

2.4.2 Project Meetings

There are usually three kinds of meetings in pre-construction stage. They are project progress
meeting, design team meeting and pre-start meeting. As for the first one, project manager is
responsible to arrange and convene in order to review and control productivity of all aspects.
Design team meetings are chaired by design team leader. Although the project manager has
the right to attend design team meeting, it is not essential to attend all design team meetings.

The last one, pre-start meeting is held together with project team and contractors in order to
establish proper working arrangements, roles and responsibilities, communications and,
procedures. Health and safety plan for the construction stage have to be submitted by the
principal contractors in this meeting before the work starts. Distribution of meeting minutes to
all concerned person is an essential part of the follow-up action.

2.4.3 Risk Mitigation Planning

Possible potential risks throughout the project must be identified at the earliest stage of the
project. In which the project manager should give pressure to contractors to list construction
risks and determine the probable impact of each risk. And then the risks are reviewed by the
project team and prepare method of statement to mitigate the risks. Contingency plan must be
prepared and the risks are regularly reviewed and updated the list by the project team.

2.4.4 Construction

Construction business is not an individual, it is a people business and thus communication and
management and safety over all are the key to succeed a project. The project manager's
responsibilities in this stage involve heading up the professional design and construction team
and, building trust between all parties. The bonding between all parties can be developed by
holding regular meetings and workshops. During this stage, the project team must be hand on
to resolve and eliminate any issue hindering the smooth of construction process. The major

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issue of construction process is to ensure that contractors and subcontractors receive regular
payments for their works. Normally, the contractor makes a monthly claim for the payment.
The quantity surveyor values the work, contract administrator certifies it and the client pays
for it during the period written in the contract.

2.5 Handover

Completion and handover are interlinking to each other. This is the final stage of work
executed by contractors and consultants in order to accept facilities by the client. In this stage,
client commissioning is carried out by the client's personnel, assisted by the consultants as
required. It is also stated as substantial completion for which AIA (American Institute of
Architects) definition of (A 201:9.8.1) defined as follows;

Substantial Completion is the stage in the progress of the Work when the Work or
designated portion thereof is sufficiently complete in accordance with the Contract
Documents so that the Owner can occupy or utilize the Work for its intended purpose.
(A201: 9.8.1)

After substantial completion, the next step is final completion. The items which are
substantially complete and only require for minor adjustments are listed as a punch list. Final
completion and handover to client must include the following documents.

 Completion of punch list

 Release of lien waivers for 100% of the contract value
 Sign-offs for all controlled inspections
 Temporary or permanent certificate of occupancy

2.6 Project Review after Completion

The objective of project review after completion is to measure performance of project

participants and to appraise the knowledge achievement from the project in order to relate in
the future project. The project manager should review the findings from post-completion
reviews in the close-out report and, deliver to the client as a formal record of the project.

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 Chapter (3)
Case Study for Shwe Lin Pan Low Cost Housing Project
3.1 Case Description
Shwe Lin Pan Housing Project consists of the design and construction of housing, city plan,
road, park , shopping center, social building and the religious building. Objectives: Housing
focuses on the city development of Yangon and uplift the living standard of the citizens
especially low income people. Our country is now developing country. We emphasize to
construct low cost housing for low income people. This project is situated on the Yangon-
Pathein road (between Yangon and Ayeyarwaddy division ) and not far from the down town
areas. Before implementing Housing Project we make the feasibility study, such as the
environment chances and risk, what options can we get and choice the best way to implement
the project.

The environment is a little quiet and there are affordable housings Projects was
implementing near the projects. Existing the Suladan stream, we can get fresh air and good for
health. Not far from the down town areas, it is convenient for the living people in the housing.
The price of land is expensive and the construction materials will get easily because of the
source of materials not far from the projects. But soils situation is not good because of the side
of the stream. So we make soil investigation. And then prepare the soil situation. So we
choose strip footing because the soil is field land. The project was subsidized with
infrastructure cost and land cost by government because of low income people. But seeing
from the Business plan, this project will get profit because the down town area is more
complicated and crowded with people. So some people move to the surrounding. And then
constructing this project, the city plans is more escalation and develop. The citizen livings
with the high standards and reduce the congestion of living people in the down town.

To implement this project, we hire theWatijone consultants from the local and invite
construction companies, by using bidding.. To implement the project, we draw the urgent plan
for:

• Quality management
• Health, Safety and Environmental management

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 • Programmed & Project management
• Construction management
• Human Resources management
• Risk management
• Administrative management
• Design management
• Communication management

Quality management focuses to be a good quality of housing and good quality of

infrastructure. Health, safety and environmental management focus not to be accidents in
construction period and prevent from the destroy at environment and create the effective
environment for the living people. Programmed & Project management deals with the
processes ensuring when the projects requirements we need. Engineering defines the product
scope and its quality. Construction management defines the implementation of the design.
Commercial management relate to the financing and investment plan. Human Resources
management plans relate to get the qualitative engineers and architects. Risk management
defines how to mitigate the risks. Communication management is to communicate all relevant
contractors, supplier and all engineers performing in the site.

This project, “low cost housing Project” was started in Dec, 2012. Shwe Lin Pan low
cost housing project is located in Yangon on kyansitthar road, next to Shwe Lin Pan industrial
zone in Hlaing Tharyar township and the whole project area is over 27 acres. The project has
been implemented phase by phase in three different phases since August 2013, with a target to
complete the whole project by the year 2015. The whole project is provided with basic
infrastructure such as roads, drainage, electricity, water supply and other services and
facilities. When all completed, the project will provide total housing units of 1908 to low
income people needing housing.
Shwe Lin Pan housing project is the first and foremost affordable housing recently
implemented in Yangon city as a pilot project that can be available and accessible to low and
middle income people who cannot afford the housing the market supply. The people targeted

14
to sell the housing units are low and middle income group that includes government
employees, pensioners, and the people who has regular monthly income.
The project is designed and developed in order that low income people can afford
housing units offered by the department. In order to increase the buyer’s affordability, the
following factors are considered in designing the project to reduce housing cost:
(1) Project site is chosen in new town far away from city center with zero land cost.
(2) Setting housing standard with simple housing design and floor area as minimum as
possible.
(3) Mass production of housing within a short period of time using innovative
technology and quality control like precast system.
(4) Provision of financial support like housing loan with low interest rate and long-
term repayment.
As mentioned earlier, the project has been developed in three phases where the project
implementation phase by phase can be described as follows:
(a) Development phase (1)
Phase (1) is an area of 10.3 acres and targeted to complete within one year,
starting from August 2013 up to August 2014. The project includes 6 unit 4 storey
steel structure (Hall Type) buildings and 6 unit 4 storey RCC buildings (Hall
Type), which will provide total housing units of 768 with minimum per unit floor
area of 468 square feet. Basic infrastructure and services such as roads, drainage,
electricity and water supply are also provided. The project is financed by the
Housing Revolving Fund that accounts for approximately six billion kyats.

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 Table (3.1.1) Phase (I) Project Description
1 Project starting date 7.8.2013

2 Project finishing date 7.8.2014

3 Project duration 1 year

4 Estimated cost of construction (Kyats) 8495300000

5 Total rooms 768 Units

6 Room space 18’ x 26’ – 468’

7 Type of building
(a) 6 units 4 storey 22 Nos
Steel structure (Hall type)
Total rooms 528 Units
(b) 6 units 4 storey 10 Nos
RCC building (Hall type)
Total rooms 240 Units
Source: DUHD

(b) Development phase(2)

Second phase that include 8 unit 4 storey (RCC) building (Room Type) with
floor area of 484 square feet has been carried out in the land area of 9.5 acres since
February 2014 and it will take one year for the project to complete. Financed by
Revolving Fund of five billion kyats, the project will accommodate 496 apartment
units.

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 Table 3.1.2 Phase (2) Project Description

1 Project starting date 15.2.2014

2 Project ending date 15.2.2015

3 Project period 1 year

4 Total estimated cost (Kyats) 6535100000

5 Total rooms 496 units

6 (a) 8 unit 4 storey(Ground 4 Nos

floor shop house)
(22’x51’) = 1122sqft 16 Units
(22’x22’) = 484sqft 96 Units
(b) 8 unit 4 storey 12 Nos
(residential)
(22’x22’)=484sqft 384 Units

(c) Development phase (3)

On land area of 7.4 acres, phase(3) has been implemented to build residential
buildings of 8 unit 4 storey with floor area of 484 square feet and 6 unit 4 storey with
floor area of 468 square feet. Total project cost would be 5.8 billion kyats. The project
will take one year to finish, from May 2014 up to May 2015, producing 644 apartment
units.

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 Table 3.1.3 Phase (3) Project Description
1 Project starting date 1.5.2014
2 Project ending date 1.5.2015
3 Project period 1 year
4 Total estimated cost (Kyats) 6031100000
5 Total rooms 644 units
6 (a) 8 unit 4 storey 5 Nos
(Ground floor shop
house)
(22’x51’)= 1122sqft 20 Units
(22’x22’)=484sqft 120 Units
(b) 6 unit 4 storey 21 Nos
(residential)
(18’x26’)=468sqft 504 Units
Source: DHSHD
3.2 Housing Development Process
Yangon City in Myanmar has been facing housing problems, particularly for the poor
who make up the majority of the total population. In a recent seminar upon housing
development, the results of studies showed that 37.7% of houses in Yangon urban are built of
bamboo and 19.4% of urban houses are built of rudimentary wood 1. Housing studies and
analysis, as part of the policy preparation which are conducted by DHSHD demonstrated that
low and moderate income families, representing approximately 70% of the urban population,
are in most need of government intervention in the housing market. As a result, these families
constitute the target groups to which special attention is being focused. The main government
agency responsible for housing and settlement development in Myanmar is Department of
Human Settlement and Housing Development (DHSHD) under the Ministry of Construction.
The department has a wide range of well experience in tackling housing development in
Myanmar.

18
3.2.1 Historical Background
The predecessor of DHSHD responsible for the housing development was the
“Rangoon Development Trust” (RDT) formed in 1920 to take over the development functions
and the land management from the Municipal Corporation which could not cope up with both
functions of maintenance and development of the city. The RDT was quite active and effective
in taking over the development function of Yangon. In 1951 RDT was transformed into
“National Housing Board” together with the promulgation of the “National Housing” Town
and Country Development Act. It was changed into Housing Department (HD) in 1972 and
then the Department was reorganized as Department of Human Settlement and Housing
Development (DHSHD) in 1990.
Housing Development activities were restricted and limited to providing government
rental housing, public housing and site and services schemes through government subsides
during the time of 1960s to 1980s’. Myanmar housing sector has drastically changed after
1989 when the State introduced new economic policy on the basis of market oriented economy
and private sector participation.
DHSHD is acting as a facilitator for enabling private sector participation in the housing
development and coordinator with other department and agencies in the activities of housing,
industrial infrastructure and social infrastructure provision and development.

3.2.2 Housing Policy and Program

Part of Housing policy is to help low income urban families to enjoy minimum
standards of housing accommodates at rents within their means. The government’s capital
outlays on housing is recovered over 75 years by way of rents. No interest rate is chargeable.
Housing was incorporated in the provision of a welfare state as a subsidized social services
available to all.
The Department of Human Settlement and Housing Development (DHSHD), Now
(DUHD) Department of Urban and Housing Development the successor of Rangoon
Development Trust (RDT) and National Housing and Town and Country Development Board
(NHB) is the leading body responsible for housing initiatives and introduced several schemes
including arrangements for outright sale, rental purchase and rental units in walk-up apartment

19
blocks. Prior to 1989, the government has annually financed the construction of high-cost
dwellings. After 1989, it was recognized that the conventional housing solutions were no
longer applicable in response to housing problems of growing low income households.
Considerable efforts have been made to improve the housing sector. These may be
summarized as follows –
(1) Large scale planning and development of approximately 160,000 plots for round
about 490,000 persons in three new settlements.
(2) Attempts to recover part of the development costs through charges and the scale
(long-term leasing) of land (industrial and residential land).
(3) Resettlement of squatter households of approximately 51,020 from the central area
and the fabric of inner city to new towns.
(4) Development of financing mechanism for 35,000 civil servants (subsidized housing
loans).
(5) Densification of inner city area particularly along major road.
(6) Cooperation between the public and private sector for the construction of
residential housing.

3.2.3 Housing Development Activities

As a central agency for the housing sector development of the country, DHSHD has
introduced and implemented several housing programs. These programs can be summarized as
follows;
(a) Public and Rental Housing: The DHSHD presently owns around 20,000 rental units
in which 68% of rental housing are in Yangon and 32% spread in some other cities.
The public housing supply up to 1960s was around 1,000 dwelling units yearly and it
went down gradually to about 100 units per year due to limited government budget.
(b) Site and Services Schemes: Site and services schemes were occasionally practiced in
and around Yangon for new town extension squatter’s resettlement, fire victims
resettlement and upgrading projects. The state subsidized the infrastructure
development costs for squatter. The significant projects that had been introduced after
1989 were large scale developments of approximately 160,000 plots for around about
490, 000 persons. From 1989 to 1993 about 200,000 populations of squatter settlement

20
 dwellers within Yangon City were relocated to four New Dagon Townships,
Shwepyitha and Hlaingtharyar, and other new towns with the provision of leased land
with basic infrastructure. There are 247,304 plots of site and services land developed in
new satellite towns and villages from 1989 to 2010 and 237, 637 plots have been
allocated to senior government employees, squatter settlements and reassembling of
villages in corporation with new town extension.
(c) Squatter Slum Upgrading (hut to apartment scheme): This program has been
introduced after 1994 in some part of the inner city area through on site relocation by
providing apartment units for squatter families or beneficiaries. Average of minimum
600sq.ft to maximum 1000 sq.ft of floor space equipped with water and power supply
have been provided to the squatter families. There are 44 huts to apartment projects of
more than 1,777 dwellings. Those were constructed in Yangon City area within 6 years
period (1994-2000). The approach of DHSHD in housing development for slum and
squatter has changed from the role of provider into facilitator by mobilizing private
sector participation through cooperation.
(d) Urban Redevelopment Projects: This kind of project has been launched since 1989
as the urban redevelopment program to enhance the general physical appearance of the
urban area and to free important sites for public uses such as park and commercial
development. There are about 56 urban development projects developed and managed
by DHSHD in coordination with private developers through public private partnership
and sharing basic. Those are over 600 nos. of buildings such as high class and high rise
apartments, condominium, plaza, commercial, services and mixed use buildings are
cooperated in the projects.
(e) Low-cost Housing Development: Since 1997, low cost housing programs such as
housing in Dagon, Hlaingtharyar, North Okkalapa and Danyingone have been
introduced and 3,448 apartments units have been constructed for the benefits of lower
and middle-income people. Unit prices have been charged only for the construction
cost of building and basic infrastructure excluding land cost.
(f) Industrial Zone Development: The Private Industrial Enterprise Law promulgated in
November 1990 has allowed the promotion of private sector development and the
direct foreign investment and production. The government has initiated and promoted

21
 industrial zone development activities to complement with the economic objective of
the nation. The Department of Human Settlement and Housing Development
(DHSHD) has the responsibilities of establishing new satellite towns incorporating
planned industrial zones to promote the national economy through industrial sector and
create job opportunities in the new areas. There are 8 industrial zones and about 3,000
hectares of industrial land developed by the DHSHD in the satellite towns and
proximity of Yangon City. The locations are selected in an area where vast flat land is
easily accessible and where waste from the factories can be disposed of without
creating any hazard to the environment. The services zones and an area for waste water
facilities are allocated in all the industrial areas. Recreational areas and facilities are
also integrated as part of industrial zone development in Hlaingtharyar, Dagon
Seikkan, Mingalardon and Yangon Industrial park. As the provision of basic
infrastructure is essential for the development of an industrial zone, DHSHD has co-
operated and coordinated with other departmental agencies in provision of
communication, electricity, transportation and irrigation for the flood and erosion
control.
(g) Joint Venture Investment Programs: Foreign direct investment has been attracted by
coordinating joint venture investment on industrial zone development, leased land and
BOT system.
(h) Provision of Social Infrastructure: There are 43 schools facilitated and constructed
by DHSHD in YCDC area and Thanlyin-Kyauktan region during 1997 to 2000.
DHSHD is also taking initiatives for the development of old aged home and cancer
care units in Dagon new town.

3.2.4 Housing Finance System

Among three main resources – land resource, financial resource and human resource
that are very essential aspects for housing development, it was found that major weakness in
mobilizing financial resource in housing sector in Myanmar. Each Government as major
housing developer tested and tried in various kinds of funding to fulfill housing need. Any
financial market cannot be found till recent in Myanmar and that is why any financial resource
cannot be mobilized and used from the financial market.

22
3.2.5 Housing provision by government budget
It is a system of housing provision with the capital budget allocated by government
from its yearly budget for civil servants’ housing and public housing with rental status as well
as basic infrastructure. The list of dwellings constructed with the capital budget from 2006-
2007 fiscal year to 2010-2011 fiscal year is mentioned in Table ( 3.2.1).

Table 3.2.1 Dwelling Quantity by Fiscal Year

Capital expenditure allocated
Sr.No Fiscal Year Quantity of Dwelling constructed
Kyats (Million)
1 2006-2007 2017000 14
2 2007-2008 539540 -
3 2008-2009 881720 16
4 2010-2011 1815400 68
5 2011-2012 3569680 46
Source: DUHD

3.2.6 Housing provision by revolving fund

As any private developer was not allowed in housing sector, in Socialist System, the
state economic enterprises only implemented housing constructions with the capital
expenditures allocated from the budget of government and it was found that a few housing
need were fulfilled. In the regime of military government, the planned economy system was
changed into the market economy system and accordingly, the new housing finance system of
revolving fund was created. In 1995, housing construction started with the capital investment
of three hundred million Kyats as revolving fund. Revolving fund was increased by
constructing and selling housing by itself, or by cooperating with private sector as joint
venture, or by change of land use from cultivated land into industrial zones. Housing and
industrial plots were sold at subsidizes prices only with 5% profit for residential flats,10% for
industrial lands and 15% for the industries that may effect to natural environment, not current
market value. In some upgrading housing project, it was performed in loss as a Cross Subsidy.
Incensement of revolving fund every year within 1995 and 2011 is shown in Table (3.2.2).

23
Table 3.2.2 Incensement of Revolving Fund

No Fiscal Year Revolving Fund (Kyats Million) Accumulated Rate (%)

1 1995-1996 406.33
2 1996-1997 1021.12 251
3 1997-1998 562.98 (-)55
4 1998-1999 64.42 (-)11
5 1999-2000 692.50 1075
6 2000-2001 1481.41 214
7 2001-2002 7403.35 499
8 2002-2003 4147.12 (-)56
9 2003-2004 1793.44 (-)43
10 2004-2005 3345.73 187
11 2005-2006 4415.94 132
12 2006-2007 8671.08 196
13 2007-2008 3879.57 (-)45
14 2008-2009 2191.53 (-)56
15 2009-2010 14764.76 674
16 2010-2011 78793.57 534
Source: DUHD

In housing constructing system cooperated with private sector as joint venture

investing government land as in kind, value of a house (or) flat consists of land value, cost of
construction (construction material and wages), infrastructure cost and profit and it was found
that the value of land is changeable depending on location and requirement of buyers. Thus,
government that has ultimate owner for management of all lands is trying to develop housing
sector using the significance of land. Housing projects were undertaken in strategic area of
Yangon city in collaboration with private developers on a unit sharing basis where the
department contribute the land in kind and the developer capital investment for the
construction of the projects.

24
3.3 Analyzing development for low cost housing
3.3.1 Construction
(a) Technology
Shwe Lin Pan affordable housing project is not only using simple technology and but
also simple housing design which preferred low cost projects and also short-term. The
foundation types of buildings have been constructed by strip footing. The steel and RCC
structure of building include a partial of main body, beam, wall column, purlin, roof, door and
window ventilating, water supply and sanitation and electrical supply. In this project includes
two types of buildings which have 6 units 4 storey (steel structure) building, 6 units 4 storey
(RCC) buildings and also 8 units 4 storey buildings. The floor areas are not large as minimum
as possible. In this project, total buildings (64) numbers among phase (1) pilot project is
implementing (22) numbers of total steel structure buildings. Steel structural buildings are
very quick to build at low cost housing project but this kind of building lose strength at high
temperature and are not resistance to fire prevention and then other (42) numbers of building
are RCC building.
RCC buildings are very suitable for in this housing because there are durability for long
term. Concrete Frames are very strong and can resist dead loads, live loads, dynamic loads,
wind load and earthquake loads depend on structure design and its life. Although Myanmar is
now developing country but construction technology is lack. The buildings of project have
been building by conventional method (traditional method) and cannot use precast technology
(mass production) because of lack technology. And then if this technology can use, the low
cost building for people cannot be only finished during one and half year but also the units
price of building will be decreased. The project is low cost housing for low income people
(rental people) who pay rental fee is very high in Yangon.
Shwe Lin Pan low cost housing project had used the traditional construction methods. The
detail procedures are as below:

(a) Foundation: Foundation’s depth is about 7 feet depend upon the soil bearing capacity
and building height. And then soil bearing capacity is about 7.0 and has to calculate
building structure (foundation design and superstructure). Excavation is first, second is
lean concreting 6” thick, and 1:4:8 concreting is also 6” thick.
25
(b) Cement concrete: Concrete footing size is about 5 feet around. The concrete mix
proportion of 1:2:4 (cement: sand: aggregate), with column footings is used.
(c) Retaining Wall construction: Hardcore for foundation is constructed for external walls had
used burnt brick masonry of a 9” thick layer and all partition walls always used a 4 ½” thick
layer. First class bricks (quality and burnt) are used for the building.
(d) Plastering: Plastering (1:2 mortar, cement and clean sand) is used for the brick work, (such
as external walling, internal walling and below of the slab). Joints are scraped before
plastering and proper preserving is ensured.
(e) Flooring: After the soil and sand is properly filled and compacted, the ratio of 1:2:4
(cement: sand: aggregate) concrete filled on the floor by using mixer.
(f) Doors and windows: Door and window are used aluminium material because it is very
cheap and easy to work than timber. In project avoided deforestation and not get to easy
timber frames (hard wood) and teaks (good quality). Doors are used ready-made door (Iron
door) including with door lock, frame and iron hinges which is not considered strap iron
hinges and door lock .Before installing aluminium window and ready iron door, brick
walling with plastering work, lintel and window sill concrete work are finished.
(g) Roofing: Before roofing work, roofing bean concreting and rafter (3”x 2” GI-hollow)
and purlin (C-channel 4”x 2”) are finished for it. In low cost housing, roofing sheets are
always used 4 angel aluzinc (25- gauge) because of avoiding maintenance work.
(h) Plumbing: Plumber always checked that medium quality plumbing materials are used or
not passed hydraulic test before using it.
(i) Painting and finishing: After scaffolding work and Plastering work had finished, we can
start painting work such as putty, primer and ready-made paint (external and internal) for
building in this low cost housing project.

26
 Table (3.3.1) Strength and weakness of technology for low cost housing
Strength Weakness Recommendation
Strip Footing + Reduced cost of building than
isolated footing - Installation of drilled piers -if high quantities
+ Resistant to earth pressure needs a careful supervision of same materials ,
+ easy to carry out than other QA and QC is
and quality control of all the
footing essential in project
materials used in the -Owner and
+ Pier of any length and size can be
constructed at the site construction contractors are
+ Construction equipment is -The method is cumbersome. required to their
normally mobile and construction It needs sufficient storage goals
can proceed rapidly space for all the materials - Consider
+ Inspection of drilled holes is used in the construction Customers
possible because of the larger -The advantage of increased satisfaction in
diameter of the shafts depend on
bearing capacity due to
compaction in granular soil different quality
that could be obtained in
driven piles is not there in
drilled pier construction

Frame System + Reduce construction time -Cannot resistant fire

Aluminium + easy to install door and window -Training
exposure employees
+ ventilation is good
+ Can get modern design and - Flexible And supervisors
customer satisfaction -Alluminum frame
- expensive ( lintel and window
+ light weight
+ No need painting - Fragile sill) is supported
+ Repairable for shear wall
+ Durable -Follow rule and
regulation of
designers and
consultant
Core System +Very high thermal performance -Partially or totally imported
+ High resistance to dampness material - An external layers
+ Very high construction speed - Need industrialized as protection or
+ Lighter elements to erect production rises basic cost cladding such as
+ Reduce site work - Needs Environmental mortars
+ High innovative design and control during manufacturing -An outer
construction techniques - Special design and reinforcement of
connections mental sheets,
- Less access information for fibres etc
design, construct and - Tool box meeting
maintenance - every Sat and
Sunday , should go
to training
- Not disturb
environment

27
3.3.2 Material
In technical sustainability is very important for low cost housing. It implies good
quality materials and serviceability in the environment. We should have to choose the
reputation of supplies. Diversification and innovation of design and building materials have to
meet the needs for durable and safe structure. Mass production system is reduced number of
materials and components which can reduce cost of building, depending on same design.
Project engineers should access good quality cement (ISO-2015), brick, aluminium
window, ready-made iron door and reinforced steel, water supply material and electrical
material. Project avoided bad material and date out of material because of low income people.
The walls are always used good quality brick for external building and ply-wood
walling are used for light partition wall for internal room.
Although concrete block and concrete, can be used ground level of building depend on
local conditions, demand ,standards and price but superstructure cannot use it because
overweight of concrete block is not lighter than brick. And then superstructure is limited over
dead loading according to the designer. Construction could achieve efficiency from concrete
block can get not to plastering work, cracking and waterproofing and easy to painting work.
Timber is one of the most commonly used materials for formwork in the project.
Flexibility in design depends on the type of timber and almost formwork needs of the
contractor. Negative aspects with timber maintenance is needed deforestation in large scale
causes environmental problems, storage needs to be covered, sensitivity to fires and biological
agents.
Aluminium material is can be used door and window. The panels are produced with a
range of different densites, combined with additional isolating materials. Walls need special
accessories in order to provide inter-panel locking . The system has been found to be
structurally resistant, well insulate and easily mounted if handled properly. Negative aspects
with aluminium: not a standard solution, recommendations for use is needed, specially
designed range of fixing accessories, panels must be stored and handled with extra care.
Before roofing work, roofing bean concreting and rafter (3”x 2” GI-hollow) and purlin
(C-channel 4”x 2”) are finished for it. In low cost housing, roofing sheets are always used 4
angel aluzinc (25- gauge) because of avoiding maintenance work to the future.

28
Table (3.3.2) Strength and Weakness of Material

Strength Weakness Recommendation

• Rigid • Not easy to get good • If we prevent

• Low cost quality timber deforestation and
• Readily available • Cannot get timber don’t use wood.
• Simple, fast and easy to permit • Use read made
Wood fabricate formwork(fiber)
and it is easy too
fast
• Durable for long
term
• Fast to finish window Cannot resistant fire • pay attention to
• Waterproof with rubber exposure draft angle.
- Flexible • Not fragile in
• Durable
- expensive
Aluminium • Rigid - Fragile
sudden
• Repairable • Easy to see view
• Need skill labours

Table (3.3.4) Strength and Weakness of Material

Strength Weakness Recommendation

• Very durable material • Expensive cost -very expensive cost
for long-term • Weight we should avoid to
Roofing • Resistant to win load • Difficult or impossible use in this project
(Steel c- • Rigid to repair
channel) • Easy to repaired
• Available from market

• Inexpensive • Need curing • Must be skill

• Hardness • Heavy, fragile. labours
• Strong • Cracking • Carefully
• Rigid supervisors are
Concrete
and
looking in project
Plaster • Need to test
laboratory to get
available strength
with the allowable
design. .

29
3.3.3 Contractors / Subcontractor

(a) Tendering for Construction

Tendering for construction works, and QA/QC works can be made at the same time in order to
reduce time duration. In the tendering system, the contractors are chosen by LCS (Least Cost
Selection). The contractors have to submit two envelope, one for technical and one for price or
profit sharing ratio. The tender selection committee is chaired by Director General, Deputy
Director General and Directors from Ministry of Construction. The number of person in Jury
Board is (7) to (10) depending on project size. The marking system for project including as
follows;

 Financial condition of the contractor (30) point

 Construction experience in building (20) point
 The program for internal QA/QC (10) point
 Required heavy machineries and equipment possession
and resources for qualified engineers (10) point
 The plan for Safety Management System (10) point
 Plan for master schedule (construction period) (10) point
 Company’s reputation (20) point
Total (100) point

(b) Contractual Stage for Construction

After tendering, three companies have been chosen by MOC. There are ATY
construction company, KMM company and KN company. In tendering ,contract agreement is
very important which all the words written in the contract must be clear. Before the contract
agreement is signed contractors and owner must check thoroughly the contract and, debate and
assign. The attachment of contract of essential documents must include scope of works,
drawings, specifications, master schedule, payment system, fine or penalty for delay, change
order process.

30
 Between Government and quality third party must include payment system, reporting
system and scope of work, the essential data and document in the report, etc. The forms for
inspection works and ITP must be attached in this contract.

The responsibility of contractor affords the works to attain the end result including
designing, door and window, delivering to site, scaffolding in term erecting and dismantling,
constructing, installing ,concrete testing and making good defects.

The important factor of contractor had implemented starting date and completion date.
The contractor is required skill labors, machines, money, good supplier and safety manager.
Scope of work; Contractor must follow the rule and regulation of time , cost and quality and
starting date , finished date and completion of project.

Drawing; Project manager/ engineer of contractor always checked complete of foundation

design, superstructure, roofing, steel, door and window and M&E design clear or not.

Specification: Contractor must follow the specification of building design .

Fine or penalty for delay: If the contractors do not finished during the project time, they will
pay fine cost to owner according to the contract agreement.

Payment: DUHD payment system is four times, First is 25%, second 25%, third 25% and final
payment is 25% for contractor work done of actual cost.

The building cannot be finished during period of project contractor must pay penalty
charges to the owner (DUHD) as the contract agreement.

31
 Table (3.3.4) Strength and Weakness of Contractor

Strength Weakness Recommendation

KMM a. Early completion is a. Lease cost selection in
company -stricter enforcement
finished cannot pay fine tendering focus low of contract agreement
b. Tender system is price of building cost
transparecy (plinth area estimated -need to deploy value
engineering function
c. The contractor can cost is low price)
carry out the quality b. The cheapest building
-need to emphasis the
and the performance become in terms of importance of safety
specified in contract low quality building
agreement c. The owner added -need to control the
reputation of the
d. Payment system is good extra cost such as company
e. Inexcusable of revised change design and
ATY
construction estimate cost control over quality in
company -Weekly meetings
f. Project location is not design;
should be held with
far from city that is d. Performance warranty
the guidance of
many labor and cost can get DUHD together with
construction material. completion of project the contractors,
g. Work schedule is e. Rework of change quality consultants
during one year design and designers (if
complete f. Safety management necessary)

h. In Tender competition system is bad in -Third-party meetings

on Lease cost selection, project (eg. between DUHD and

contractors should be
but not to consider Scaffolding work,
KN held two or three
construction inflation rate because of welding work etc)
company times on one months
low cost housing g. lack of one time of
during construction
i. Inspection (quality meeting on month
period.
assurance and quality h. lack of skill labors
-Safety and Health
i. Payment cannot easy to
control) team always program ( Tool Box
get within one week.
check the sequence meeting )should be
activity made enforcement to

32
 j. If the low cost housing j. lack control of labors in reduce accident and
is succeed , can get Myanmar festival near miss.

good reputation and - no need QCBS and

QBS because of low
other project of
cost housing
ministry in bidding

3.4 Land Acquisition

The land area of project are about (27) acres and there is problem with acquisition. The
problems appeared the famers who are planting the paddy. Before the project, the famers
wanted to get compensate 100 lakhs (Kyats) or (10000USD) per acres. The project includes
(64) buildings had been implemented by phase by phase in three phase since 2013, with a
target to complete the whole project by the year 2015. So according to the DUHD law, the
buyers will not have a chance to own partially the land on which the project has finished
because nobody possesses the land for condominium in Myanmar law.

(a) The Viability of Land Acquisition

The government has limited land acquisition to acquiring space for providing
governmental services, such as roads, water and sewer lines, and government offices.
Although land acquisition long has been recognized as an effective management tool to
implement land use and environmental policies, large-scale land acquisition as an urban
growth management tool often has been rejected as too costly and politically infeasible.
Nevertheless, governments frequently acquire land for specific purposes. For example,
governments at all levels regularly acquire land for parks and for wildlife and waterfowl
preserves. Although less common, governments recently have acquired land to promote urban
renewal, to prevent development in hazard areas, and to preserve open space. While the total
amount of land acquired for public use is relatively modest, individual acquisition proposals

33
often generate extreme controversy and strong political opposition. Citing that the federal
government owns approximately one third of the nation's land, critics decry the socialization
of one of our most highly treasured private resources-private property. Although more than
ninety percent of federally owned land is western land that never has been owned privately,
the federal government recently indicated concern over any extension of land ownership by
the federal government. At the state and local levels, opposition to land acquisition proposals
generally centers on the cost of acquisition and the loss of tax revenues. A philosophical
uneasiness with government having anything other than a very limited role in land owner ship
undoubtedly is also a potent underlying factor causing opposition to many state and local
acquisition proposals. In coastal areas, land acquisition can be a tremendously valuable
resource management tool. Wetlands critical to fisheries and wildlife have been developed at
an alarming rate."' Draining, filling, or developing wetlands diminishes their value as fisheries
and waterfowl habitat, destroys spawning and food supply areas, and renders them ineffective
for flood control and water quality protection. Development of adjacent lands can be almost as
disruptive because of the harmful effects of storm water run-off. Preserving these areas
through acquisition is often more equitable and effective, legally and politically, than
attempting to curtail development through regulation. Additionally, strong demand for
recreational use of coastal waters and beaches requires that this land not be left entirely in
private hands. Further, in some coastal areas, the public costs resulting from development, in
the form of subsidies for water, sewer, and transportation services, as well as flood insurance
and disaster relief, are potentially so high that land acquisition is less costly to taxpayers over
the long term. Finally, ownership of key land areas can influence development patterns for an
entire coastal area and affect the type, tuning, and intensity of development of nearby lands.

(b) Extent of Interest Acquired

Public land acquisition generally requires the government to acquire the full fee simple
interest. The reasons are clear: a need to acquire all property rights to adequately protect the
property; the lack of any significant cost savings with alternatives; simplicity for both the
private landowners and the government; and a lack of familiarity with less than fee
acquisition." In most instances, then, acquiring the full fee simple interest is justified and
reasonable. In some situations, however, an alternative to fee acquisition can be used more

34
effectively to benefit all parties involved. The most frequently used alternative is acquiring an
easement. Easements fall between uncompensated regulation and full fee acquisition and are
particularly advantageous when the government is attempting to accomplish a specific
objective, such as preventing future development while preserving the landowner's limited use
of the property. Public easements can be either negative or positive. Negative easements
prevent the landowner from taking certain actions deemed adverse to the public interest. For
example, when the government acquires an easement to preserve a scenic view, the owner
sells the government his right to develop the property in ways that obstruct the view.
Landowners also may sell to the government their right to develop wetland areas. Such a sale
prevents any alteration of the area, but the owner retains exclusive hunting and fishing rights.
This arrangement often meets the principal objective of both the government, which is
interested in habitat preservation and water quality protection, and wetland owners,
particularly those who originally purchased extensive wetland areas for waterfowl hunting. In
contrast, positive easements give the public limited use rights. Examples of positive easements
include public hunting or fishing rights and public use of a strip of upland property as a
walkway to the beach. Whether the public easement is negative or positive, the underlying fee
simple interest remains in private hands, and the owner retains the right to make economically
productive use of the property. ' Easements have advantages and disadvantages as compared to
fee acquisition.

35
Table (3.3.5) Strength and weakness of Land Acquisition

Strength Weakness Recommendation

- Government owns - not suitable to build for If implementing the project,
land acquisition housing because of field - to consider the farmer
satisfaction

- Easy to carry out the - The farmers don't want to - More compensation
project get compensate - More incentive

- Land Cost is -Government has loss of High rise building should build on
subsidized for low profit especially the land for long term
income people construction tax and land
tax.
-Not consider land cost

- decrease the -insufficient pure water and Should supply pure water system
population density in Security and build police station near the
the city project

3.5 Permit / Approval

Because low income people will be constructed in four storey building, phase (1) project of 32
buildings were built with major to complete in time. Once the project was started, DUHD
supports documentations to negotiate with chief ministers of Yangon, YCDC and other
relating government’s organizations and held many meetings with obligation official to get
BCP as quick as possible. Because the project is directly connected with low income people
and Ministry of Construction (MOC), YCDC issued pre BCP for low cost buildings in phase
(1) project as very importance case.

36
Table (3.3.6) Strength and Weakness of Permit/ Approval

Strength Weakness Recommendation

- Four storeyed low cost - Many meeting - reduce many meeting

housing ( Not High rise )
- Many negotiate - reduce many negotiate

- Government project - Lack of law and - be strong rule and regulation of

regulation of permit permit/ approval
- Not to need building
permit and construction
permit

-reduce permit cost

3.6 Funding
3.6.1 Government funding
It is a system of housing provision with the capital budget allocated by government
from its yearly budget for civil servants’ housing and public housing with rental status as well
as basic infrastructure. The department relies on government budget and housing revolving
fund to finance housing. A national level CHDB bank has already been established and has
come into operation since January 2014. It has disbursed development loans to housing
developers and mortgage loan to home buyers.
The department is considering to establish a National Housing Fund with capital
surplus from Housing Revolving Fund, that was established during the heyday of the
department. The fund will finance housing.
Housing finance is the linchpin of a successful housing policy. It demands several
reform in the financial management of the economy and in establishing an effective regulatory
frame work. Without a functioning housing finance system in place, it is difficult to envisage
an effective housing delivery system. At present, financial market is poorly developed.

37
Secondary market does not exist. Thus, formal housing financial system will take some time to
mature.
In line with the reform strategy of the new government-economic liberalization,
decentralization, and privatization, the DHSHD has formulated housing policy and undergone
regulatory and organizational changes. Reform strategy will pave a way to the emergence of
housing finance mechanism, resulting in well-functioning housing sector and low and middle
income people who cannot afford the housing supplied by the market are mainly targeted to
fulfill low cost and affordable housing. It is, therefore, a potential for housing market to be
stable and an opportunity for low and middle income people to own or rent a formal decent
housing. The following diagram shows government’s vision to achieve the goal of housing for
all.

Figure 2 Overall Shelter

Delivery Framework

Source: Jap Kioe Sheng, Urban

Low-income housing in cities of
developing countries in Asia
(Power point presentation in
Myanmar), UNESCAP, 2011

It was found that, before

1988 and after 1988 up to present, housing problem is one of currently popular topic of
Yangon city. Periodically, Myanmar governments have tried to solve the housing problems by
using appropriate techniques, such as site and services program, hut to apartment program,
low cost housing program, and public rental housing for civil servants. However, such
programs can partially fulfill housing needs of target group but not for all Yangon city
dwellers.

38
 Table (3.3.7) Strength and Weakness of Government Funding

Strength Weakness Recommendation

- If Infrastructure cost - Budget is limited - reduce interest rate per year
was subsidized , the
unit price decreased
- prepare for long-term

- Easy to get budget -Revolving fund is not -not pay rental charges
funding for low cost limited but is not subsized for
housing housing

-Infra cost (1.5) billion -insufficient cost of -try to get more infrastructure cost
kyats was allowed by infrastructure especially ( Budget) to Parliament
Parliament in 2010-12 water supply
Year.

3.6.2 Loan for low Cost housing

Shwe lin Pan housing project is the first and foremost housing recently implemented in
Yangon city as a pilot project that can be available and accessible to low and middle income
people who cannot afford the housing market supply. The people target to sell the housing
units are low and middle income group that includes government employees, pensioners and
the people who has regular monthly income.
The project phase (1) of Shwe Lin Pan housing project completed and all apartment
units were already sold out under the supervision of Yangon Region government. Housing
prices range from kyats 110 Lakhs to 125 Lakhs according to the building level with least
price at top floor. Housing units can be bought through installment payment to DHSHD or
banks loan from the Construction and Housing Development Bank (CHDB) under the
Ministry of Construction.
The project is mainly designed to accommodate low income families, including
government employees and pensioners, who cannot access and afford the housing offered in
the market, to make sure that affordable housing units are reached out to low income people
needing home, eligible criteria for home buyers are prescribed.

39
 Applicants must follow rules and regulations that forbid them to resell, sublet or
mortgage the housing within 5 years starting from the date of his or her possession. If he or
she fails to follow the rules, the unit will be confiscated, and moved out from the apartment, as
well as he will be enlisted in the blacklist.
If the home buyer takes the housing loan from CHDB bank, he must make agreement
with DHSHD and CHDB bank both. According to repayment schedule, the buyer has to pay
down payment that is equal to 30% of house value and the remaining 70% is payable in
monthly repayment within four years with an annual interest rate of 9% and services charge of
1% in the first year and 5% interest rate in the next three years. Eligible criteria for home
buyers can be summarized as follows:
- Applicant must be Republic of the union of Myanmar’s nationality. (show with copy of
NRC card or household ratification)
- Must be over 30 years of age.
- One household one applicant
- If government servant, who must be at least 10 years in service
- Applicant must be head of household and no home in YCDC area.
- This affordable housing is targeted to low-income government servants, pensioners,
company staffs and other low-income people (who has regular income level), so that;
(a) Applicant of Government low income servants must be accomplished with
recommendation of head of department. (show with labor card copy)
(b) In case of pensioners, copy of pensioners’ book and household certificate must be
presented.
(c) If the company staffs, must be show head of company recommended.
(d) As for low income people, two recommended persons are needed for regular
income.
- These affordable housing is available in two ways
(a) monthly installment for four consecutive months step
(b) mortgage loan from CHDB bank
- To purchase the affordable housing unit, the applicant’s household
Income should be kyat 5 lakhs and kyat 7 lakhs per household.

40
 - The apartment is not allowed to be transferred within five years. If he fails to follow,
he will be removed from the apartment.
- After 5 years, he may resell his apartment.
- The housing unit can be bought with 4-month installment from the DHSHD.
- If bank loan is preferred, the CHDB bank will offer bank loan payable in four years
with the following rules ,
(a) Cash down payable 30% of housing price and bank service charges 1%.
- Loan payable 70 % with interest rate of 9 %in first year, 5% in second, third, and
fourth years.
- Home buyer who takes housing loans must make mutual contract with both DHSHD
and CHDB bank.
Home buyers can pay in two ways:
(1) Payment in four installments for four consecutive months, and
(2) Payment by housing loan.
For home buyers who take housing loan from CHDB bank, payment schedule
is calculated based on room price, down payment, interest rate and repayment period of
the bank loan. Payment schedule for housing loan is shown in table (3.3.8) and table
(3.9).

Table 3.3.8 Loan Payment Schedule for Steel Structure Building

Unit Price
No. Item (Kyats in Lakh)
110 113 115 120
1 Initial Payment
(a) 30% down payment 33.00 33.90 34.50 36.00
(b) Bank loan (77) (79) (80) (84)
(c) 9% rent 6.93 7.11 7.24 7.56
(d) 1% service charges 1.10 1.13 1.15 1.20
Total Payment 41.03 42.14 42.89 44.76

41
 2 Yearly Rent Deposit
(a) 2nd yr 5% 3.85 3.95 4.02 4.20
(b) 3rd yr 5% 3.85 3.95 4.02 4.20
(c) 4th yr 5% 3.85 3.95 4.02 4.20
Total rent (4 yrs) 19.58 20.09 20.45 21.36
3 Monthly Deposit
(a) Asset value 1.60 1.64 1.67 1.75
(b) Rent per month 0.32 0.33 0.34 0.35
Total 1.92 1.97 2.01 2.10
4 (a) Total rent 19.58 20.09 20.45 21.36
(b) Capital 110.00 113.00 115.00 120.00
Total Payment 129.58 133.09 135.45 141.36
Source: DUHD

Table 3.3.9 Loan Payment Schedule for RCC Building

Unit Price
No. Item (Kyats in Lakh)
116 119 122 125
1 Initial Payment
(a) 30% down payment 34.8 35.70 36.60 37.50
(b) Bank loan (81.2) (83.3) (85.4) (87.5)
(c) 9% rent 7.31 7.50 7.69 7.88
(d) 1% service charges 1.16 1.19 1.22 1.25
Total Payment 43.27 44.39 45.51 46.58
2 Yearly Rent Deposit
(a) 2nd yr 5% 4.06 4.17 4.27 4.37
rd
(b) 3 yr 5% 4.06 4.17 4.27 4.37

42
 (c) 4th yr 5% 4.06 4.17 4.27 4.37
Total rent (4 yrs) 20.65 21.20 21.72 22.24
3 Monthly Deposit
(a) Asset value 1.69 1.74 1.78 1.82
(b) Rent per month 0.34 0.35 0.36 0.37
Total 2.03 2.09 2.14 2.19
4 (a) Total rent 20.65 21.20 21.72 22.24
(b) Capital 116.00 119.00 122.00 125.00
Total Payment 136.65 140.20 143.72 147.24
Source: DHSHD

Table (3.3.10) Strength and Weakness of Loan

Strength Weakness Recommendation

- If Infrastructure cost - Budget is limited

was subsidized , the - reduce interest rate per year
unit price decreased
- prepare for long-term
- Easy to get budget -Revolving fund is not - not pay rental charges
funding for low cost limited but is not subsidized
housing for housing

- ( CHDB) - Down payment 30 % not Reduce down payment 30 % and

construction and suitable for low income interest
housing bank has people and interest rate is
disburse bank loans high.
for mortgage loans to
home buyers
- Low income people - Mortgage loan matunity Should join and invite foreign
can easily get period is very short and bank
apartment from loans monthly loan repayment
of CHDB bank accounts should pay at least
- Cash down payable Myanmar kyats two lakh To provide mortgage loan with
30% of housing price (200000). low interest and long-term
and bank service repayment
charges 1 % and loan
payable 70 % with
interest rate of 9 % in
43
first, 5 % in second
,third and the fourth
years

3.7 Market/ Customer

Shwe Lin Pan housing project is the first and targeted to sell the housing units are low and
middle income group that includes government employees, pensioners, and the people who
has regular monthly income.
(1) Households who has average monthly income of more than Kyats three Lakhs can
afford the housing, as mortgage loan maturity period is very short and monthly loan
repayment accounts for at least Kyats two Lakhs.
(2) Analysis of low cost housing of those who earn monthly salary of Kyats 1.05 and 1.7
Lakhs respectively, taking into consideration of 20% down payment, 30 years of loan
maturity and annual interest rate of 13%, 9%, 5% and 4% respectively that both
income groups cannot afford the house without government subsidy. If 13% interest
rate is defined, both would be heavily subsidized, 71% and 100 % respectively. Only
if the least interest rate of 4% is defined, both can afford the house with the slight
subsidy of the government, 13% and 20% respectively. From this, it was found that
low-income people can access the affordable housing only if the government
provides financial support of housing loan with least down payment, longer term
repayment and low interest rate. See Appendix (XIII).
(3) Completed housing units of 768 from phase (1) were sold out to the public through
newspaper advertisement, expressing rules and regulations for home buyers. The sale
process took place through lucky draw system, as there were a lot of applicants,
approximately 80,000. According to 503 home buyers who win the lucky draw, it
was found that:
- Home buyer includes government servants (344), retirees (8), company staff (4)
and general public (101) who has regular income. Government servants account
for 68%, followed by general public 20%.

44
 - In terms of payment option, 67% of home buyers are willing to pay in four
month installment to DHSHD, and remaining 33% prefer to take housing loan
from CHDB bank.
- Although eligible criteria for home buyers are prescribed, it cannot be practiced
on sale of housing.
(4) Housing survey was conducted by DUHD since in 2014 on 4641 households from
13 townships in Yangon City with high population density and lower middle income
households live in order to provide low cost and affordable housing for the public in
need of housing among 13 townships. – Dawbon, Thaketa, Thingangyun, Dagon
(South), Dagon (North), North Oakkalarpa, Ahlone, Kyimyindine, Sanchaung,
Kamaryut, Hlaing, Insein and Hlaing Tharyar, the highest population live in Dagon
(South) with 297884 people, followed by Hlaing Tharyar with 295345 people. The
number of households is the highest in Hlaing Tharyar with 62178, followed by
Dagon (South) with 59467 and North Oakkalapa with 58344. Survey was undertaken
based on the number of houses so as to find out the housing conditions of the
populace.

45
Table (3.3.11) Strength and Weakness of Market

Strength Weakness Recommendation

- Can get the unit - Not profit from the - be strong bank system
with regular income market
- Not to consider profit from
market

- Less homeless and - Not easy to get money - Need to reduce less than 100
slums from low income people lakhs for one unit

- More development - More income to people

for country - Lack of Bank system
-have consider rental system not
-Can get the good -One Unit cost is to buy homeless
environment expensive
-Be good drainage system and
-Uplift of education -lack of education and job disposal sewage system
and job
- lack motivate to buy
- Create and improve home -good social and religious
near the city building not only and should
(Yangon) attractive supermarket ( owners)
- bus transit system and
social service

46
3.8 Related with Final Completion Cost

One building cost is about (2181.14) lakhs. The total floor area is 12992 sqft , the unit
area is 468 Sqft and the floor area cost is 13.75 USD. Thus one unit cost is ( 6435 USD) 77.22
lakhs.
Table (3.3.12) 6 units 4 Storeyed RCC Building cost

6 UNITS 4 STOREYED RCC BUILDING COST AT SHWELINBAN

Item Description Amount (Kyats)

1 Foundation Cost [ with miscellaneous cost (5%) ] 30058799.17

2 Building Cost [ with miscellaneous cost (5%) ] 116986638.29

3 Roofing Cost [ with miscellaneous cost (5%) ] 9446631.43

4 Door & Window Cost [ with miscellaneous cost (5%) ] 17661805.73

Finishing Cost [ with miscellaneous cost (5%) ]

5 18360145.39
[ Including Ceiling, Painting, Iron Grill and Tiling Works ]
Other Cost [ with miscellaneous cost (5%) ]
6 [ Including Scaffolding and Apron & Drain Works ] 4476633.78

M&E Cost [ with miscellaneous cost (5%) ]

7 21124070.75
[ Internal Water Supply + Internal Electrical Supply System ]

Grand Total [ with miscellaneous cost (5%) ] 218114724.54

6 UNITS 4 STOREYED R.C.C Building ( Low Cost )

Total Floor Area 12992.00 sft

1 sqft cost 16788.39 kyat

Floor Area Estimate ( 1 sqft cost ) Say- 16500.00 kyat USD=1200kyat

Floor Area Estimate ( 1 sqft cost ) Say- 13.75 USD

47
 Chapter (4)
4.1 Findings

Summary Of Results

Item Good Fair Poor Discussion

Technology
-Conventional
method

 - Very suitable for low cost housing

by using simple technology

- Reducing cost
-Well defined scope
-Clear risk allocation
- Avoid poor information input from
construction

Material
- Project has not far from raw material
Raw material
 and very cheap labor cost
-Avoid use timber for deforestation

Contractor
LCS (Lease cost
selection)
KMM company
ATY company
KN company  - not created new technology and
they emphasis profit of a project

Land Acquistion
Government land

 - land area is so wide but compensate

cost is not cheap.

48
Permit / Approval Â
- Very easy to get permit from local
authority because of low cost housing
Government - Government fund is limited but
Funding  infrastructure cost was subsidized by it.

- DUHD bank help low income people

Loans Â
which is 30 % cash down payment and

70% with interest rate 5 % in four years

Market
Homeless and slum
Poor Income people
 - Low income people want to buy
apartments because rental charge is very
expensive in Yangon.

4.2 Recommendation for Improvement

(a) Related to Funding

In order to complete the project without cost overran, reworks must be avoided as much as
possible. Moreover, Variation Orders (VO) should be confirmed by the responsible engineers
to get claim. The engineers for cost estimating of tendering are also an important one to
calculate efficient project cost with profit. In construction projects, there are many items to
waste and only a good project manager can control to minimize the wastage. The plan for
sequence of activities must be correct to reduce undesirable cost overran.

As for the Low cost project, the meeting should be held at least (4) times during
construction period. Therefore, this meeting should be held quarterly or once in every six
months depending on construction period.

49
 (b) Related to Design
Before the construction is started, PEP must be prepared by the project manager. In relation
to quality of the finished buildings, PEP must include PQP, in which the necessary documents
for quality such as ITP, the procedure for CAR whenever NCR is issued by quality consultant
are added. And then ITP must also include witness point, hold points and the inspection
procedures. In order to get good quality product, both construction materials and workmanship
must be checked and inspected properly.

One important item to get good quality is the attitude of contractors according to the design.
Some contractors want to keep their dignity and good reputation, they want to make every
work qualified even though there is no one to inspect. Whereas most contractors want to get
cost effective and do not want to care their quality and used to do just acceptable and difficult
to ask rework for defects.

(c) Related to Market

Low Cost & Affordable housing plays an important role in response to housing needs
of low-income people. Therefore, the government is making earnest effort to implement the
affordable housing projects that will actually accessible and beneficial to low-income people -
ownership housing for those who can afford a house as well as rental housing for those who
cannot afford a house. A study on low-cost and affordable housing development in Yangon
City clearly highlighted that despite the growing demand for housing available and accessible
to low-income people, the supply the government has provided could not meet the demand as
well as housing prices far exceed the affordability of the majority of households needing home
due to lack of well-defined housing policy, well-functioning housing delivery system, and
proper housing finance system.

(d) Related to Customers

Majority of urban people find it difficult to access to urban housing due to high cost,
formal nature of supply and constraints in land availability, finance and services. On their

50
own, not every family can afford the housing the market supply. Majority of households prefer
to own a house while the other small segments of households are willing to rent a house. It is
clear that a large segment of households still rely on rental housing due to their low
affordability although they desire to purchase low cost affordable housing. More than half of
the households focus on low cost housing. As they are migrants from States and Regions and
want to settle down in Yangon, they are willing to purchase a house for their permanent
settlement at the price of less than K 100 Lakhs. Households cannot purchase an apartment in
cash payment because the unit prices of the apartment far exceed their monthly expenditure. If
they do not get installment, they would turn to government rental housing if provided.

Providing affordable housing has become an urgent task for Myanmar government.
Affordable housing development targeted to low income people established in late 2012 is
facing many weaknesses and challenges at its initial stage of development. For the sustainable
development of affordable housing available and accessible to low income people in terms of
both supply expansion and increase in affordability, the following recommendations are
proposed, based on findings on current housing development process in Myanmar and
international experiences of affordable housing development.

(e)Related to Material

In technical sustainability is very important for low cost housing. It implies good quality
materials and serviceability in the environment.

The important of material in construction involving such as cement, sand, aggregate stones,
steel, form-work, bamboo for scaffolding etc. The owner can issue the material buying
procedure even before the selection of a contractor in order to avoid low grade materials,
shortages and delays. Shortages may delay work, thereby wasting labor resources or delaying
the completion of the entire project. The building will not be completed by using low grade
material and impure water in construction. The cost of materials is based on prices obtained
through effective bargaining. The transportation costs are directly proportional to price of
materials. The material resources are as close as possible in site, higher prices of material
cannot occur. MOC should help to pass for tax of construction material in this project.

51
(f)Related to Loan

The project is mainly designed to accommodate low income families, including government
employees and pensioners, who cannot access and afford the housing offered in the market, to
make sure that affordable housing units are reached out to low income people needing home,
eligible criteria for home buyers are prescribed.
Applicants must follow rules and regulations that forbid them to resell, sublet or
mortgage the housing within 5 years starting from the date of his or her possession. If the
home buyer takes the housing loan from CHDB bank, he must make agreement with DUHD
and CHDB bank both. According to repayment schedule, the buyer has to pay down payment
that is equal to 30% of house value and the remaining 70% is payable in monthly repayment
within four years with an annual interest rate of 9% and services charge of 1% in the first year
and 5% interest rate in the next three years. Goals of low cost housing project have to reduce
slums, squatters and to increase good opportunity for occupation and development for country.
Most of buyers (Low income people) like housing loan with low interest rate and long-term
repayment. Most of buyers are generally low income people if the interest rate is high and
repayment is short-term, they cannot possess the apartments. DUHD should strive that buyers
can get housing loan with low interest rate, down payment and long-term repayment (20 years
to 30 years). CHDB bank should have to improve bank system more and more and join link
between local bank and international bank for mortgage loan to low cost housing project.

(g) Related to Contractor

In the Tendering system of low cost housing, the contractors are chosen by lease cost selection
method. And then the contractors can get a little bite profit from low cost housing project
because they cannot produce mass production and concrete precast system, walling including
(door and window) accessory. They cannot afford precast factory investment cost because lack
of technology. If government has precast factory, cost of building is not only reduced but also
price of units (apartments) will be decreased. The responsibility of contractors afford the
works to attain the end result including drawing design, delivering to site, scaffolding in term
of erecting and dismantling, concrete testing and making good defects. The main factor of
contractor should be implemented starting date and finishing date in the project and required
skill labors, machines, money, good supplier and safety manager.

52
The contractors should be followed rule and regulation, fidic (International Federation of
Consulting Engineers) and contract agreement. In tradition construction approach, The
contractors should be afforded (a)well defined scope (b) clear risk allocation and should be
avoided (a) poor information input from construction expert (b) take long period of time (c)
costly change order (d) lack of training (e) poor cleaning and safety in site .

4.3 Final Recommendation

(a) In order to address the growing housing needs of low-income people, the
targeted approach should be applied. Well-defined targets and eligibility criteria
is essential for the effectiveness of the targeted policy.
(b) According to existing housing situation, housing supply cannot meet demands.
Therefore, supply-side incentives should be encouraged in the short term to
expand the supply, while increasing demand subsidies should be targeted in the
longer run.
(c) It is recommended to provide both tenure rights: ownership housing targeting
to low-income households who can afford the housing the government offers
and rental housing addressing housing needs of the lowest-income group. In
case of rental housing, rental status should be transferred to ownership right
based on their increased income level .Low-income housing projects should be
integrated into short-term and long-term National Housing Master Plan and it
should be comprehensively equipped with basic infrastructure and services and
employment opportunity to avoid social inequality and to secure access to basic
services.
(d) In order to increase the effectiveness of low-income housing policies, close
coordination and a clear division of functions between the central and local
government is essential. The central government should be responsible to
provide, and effectively enforce, a comprehensive regulatory framework
comprising an appropriate legal base, a definition of main goals and targets and
an affordable housing finance scheme, leaving the responsibilities of low-
income housing provision to the local government.

53
(e) Where housing projects are implemented by the government, it is suitable to
practice inclusionary zoning and high-density zoning system to expand the
affordable housing supply. To accomplish zoning system, developers should be
given incentives such as tax deductions, density bonus, direct subsidies, land
grants and bureaucratic and administrative streamlining to reduce processing
costs and time at the central and local level.
(f) The National Housing Agency could be in charge of the preparation and
execution of a National Housing Plan, coordinating central, local and municipal
inputs and their respective financial contributions, and fostering the
participation of the private sector and not-for profit organizations. In addition,
the agency could also take on the role of a national mortgage agency for
affordable housing, in addition to supporting other initiatives to ease the access
of the lowest-income groups to housing finance.
(g) In order to increase affordable housing supply to lower middle income group, it
is recommended that the cost of land and infrastructure should be subsidized to
reduce the unit cost of housing; launching ppp housing projects the profit from
which are cross-subsidized to low cost affordable housing; execute mixed
development projects where low cost housing are proportionality produced by
developers, and encourage redevelopment of public rental housing estate in
deterioration to expand the supply of housing. Reconstruction projects
including the demolition of low-quality housing and slums should aim at
replacing demolished units with affordable housing for the affected persons.
Existing tenants should also be given priority in the allocation of the new units.
(h) It is difficult to envisage a reasonably effective housing delivery system
without a functioning housing finance system in place. It is required to
establish housing finance mechanism, to improve low-income group’s access to
financing. Housing development fund, housing provident fund, housing
mortgage loan with low interest rate and longer term repayment are also
appropriate provided target and eligibility criteria are clearly defined and
strictly enforced. Tax exemption on imported construction material and tax
reduction on domestic building material industry is also required.

54
 (i) The government should demarcate the public land and set aside the land
necessary for road, drainages, public open space and to the possible extent,
housing development. It is also recommended to improve the existing land
management system.
(j) Government should endeavor to encourage the innovations in manufacturing
and application of building materials through innovative designs, quality
control, and mass production that can reduce the cost of construction and hence
cause the housing unit price to fall down in terms of economy of scale.
It is literally different from "low-cost housing" or “subsidized housing”, where there is
a strong element of the public sector subsidizing private citizens who have no means of
affording housing on their own means. In such cases, it is common to find that relatively cheap
housing is developed without much consideration of its sustainability.
The low cost housing on the other hands include multi-dimensional factors to put into
consideration which include income levels of target buyer group, consumer buying power,
availability of financing, interest rates, construction cost, land supply, and housing prices.
Such considerations are many and they are all interwoven.
One of the biggest problems that lower and middle income households face today is
finding affordable and appropriate housing which they can live and work for long term.
Suffice to say that a sustainable housing development is more than a roof over head. It
involves and encompasses economic viability, social and environmental sustainability. People
must be able to afford it, they must also be willing to stay there and call it their home.
As a developer attempting to develop a project to meet such challenges, there is a need
to consider many factors other than costs and profits. The key to success requires the
developer to have a broader perspective and understanding of social needs balanced with
market sentiments.

55
Appendix (1) Shwe Lin Pan low Cost Housing Master Plan
pau ;- wpfv u fr =200 ay
, ,
a&Tv i fyef;pu fr IN
rd
KU
?wefzdk;en f; t dr f&mpD
rH
udef;

Ad
kv fat mifau smfv r f;wH
PHASE-II
PHASE-I TYPE-B 8U-4S Residential &G floor shop 4-nos.(112 units) TYPE-B 8U-4S Residential (540 sft) &G floor shop = 5 nos (140 units)

6U-4S Residential Bldg (468 sft)/ Hall TYPE-A 8U-4S Residential Bldg 12-nos.(384 units) PHASE-IV PHASE-III- Project Description 7.4 acres
32 nos -768 units 9.5 acres (including road area)

wm;
9.0acres
10.3 acres total units = 496 units.
6U-4S Residential Bldg (468 sft) = 21 nos (504 units)
t &H
x m;&Sd
ajr
Total number of Buildings = 644 nos
Total number of Rooms = 26 nos

Wa l k way Project Area - 7.4 Acre (322344 sq-ft)

Uti li ties

a&Tv i fyef;acsm
i f;
&Jpcef;

u sefppfo m;v r f;wH

pm
;ao m uf yef;N
cH Cant een
Cant een

qdkif P ark
rD
;o wf
a&Tv i fyef;acsm
Cant een Rel igious

i f; Ins ti tu ti onal

yef;N
cH
pm
;ao m uf yef;N
cH
a&Tv i fyef;b kef;Bu D

30'

qdkif

pm;ao mu fq dkif
yef;N
cH
v rf;)
U ti li ties

fay;ao m
41

wm;
35 42
;q u fo G
,
36

Ad
U ti li ties

m
oD

u smfv rf;t

72'-58"
46 t &H
xm;&Sd
ajr

kv fat mifau smfv r f;

v &Sifau smif;

kv fat mifa
90'-816"

48 COMMERCIAL

5
45 Ad
;v r f;ESifh
13
U ti li ties
30' 21'-116"
7
m
;(u sefppfo
1

40 43 44 18'-9 " 47
;au smif;

v rf;o G
39 16
34 37 38 30'
ay60v rf
-4 N Os
30'

33
U ti li ties
30'

, f-1
GT GT
30' GT GT

TYPE B

12'
52'-916"
s
GT GT

-12 NO 16'
GT GT
16'

15
TYPE A
16'

yef;N
cH
aq ;ay;cef;
a&Tv i fyef;t r u

u sefppfo m;v r f;
TOTAL PROJECT AREA = 36.74 acres

Appendix ( 2 ) 8 Units 4 Storeyed Low Cost Building

56
Appendix ( 3 ) 8 Units 4 Storeyed Low Cost Building’s Floor Plan

57
Appendix ( 4 ) 6Units 4 Storeyed Low Cost Building

Appendix ( 5 ) 6 Units 4 Storeyed Low Cost Building’s Floor Plan

124'

18' 18' 18' 18' 18' 18' 8'

W2 W2 F F W2 W2 W2 W2 F F W2 W2 W2 W2 F F W2 W2

D3 W.C W.C D3 D3 W.C W.C D3 D3 W.C W.C D3

8'
KITCHEN KITCHEN KITCHEN
13' W2 BATH BATH BATH BATH BATH BATH W2

26'

LIVING ROOM LIVING ROOM LIVING ROOM LIVING ROOM LIVING ROOM LIVING ROOM
13'
UP
UP

D1 D1 D1 D1 D1 D1

W2 W1 W1 W2 W2 W1 W1 W2 W2 W1 W1 W2

58
Appendix ( 6 ) 6Units 4 Storeyed Low Cost Building’s View

59
Appendix ( 7 ) 8 Units 4 Storeyed Low Cost Building’s View

60
Appendix ( 8 ) 6 Units 4 Storeyed Building’s Foundation

61
 References

1. Managing Residential Construction Project written by Derek Graham.

2. Code of Practice for Project Management for Construction and Development

(Fourth Edition) written by Wiley-Blackwell.

3. DHSHD(2014) Urban and Housing Development Policy and Planning , Naypyitaw,

Workshop outcome

4. DHSHD (2014) Report on Housing Survey of Yangon City

62