Works on the first of 200 two-bedroom housing units worth Ghc3 million has started at Lahagu a suburb of Tamale Metropolis.

The project, which is a social housing scheme under the Community-Led Infrastructure Financing Facility, seeks to assist active productive and low income earners in the public and private sector to acquire houses under flexible financing terms.

It is being funded by Homeless International, a United Kingdom based organisation with support from Government, the chief of Nanton, Water and Sanitation for Africa (WSA) and Credit Union Association of Tamale.

Ms Destina Samani, Resident Representative of WSA, speaking at a sod-cutting ceremony at Lahagu on Thursday said after the completion of the first 200 houses in the next six months, an additional 1,000 units would be constructed annually for a period of four years.

She explained that beneficiaries would be required to make an upfront interest-free payment of 20 percent of the cost as commitment while the rest of the cost would be spread over a period of five years at an interest rate of 18 percent.

“By design, government is subsidising the project with the provision of land, roads and utilities to the site to cushion beneficiaries,” she said.

Mr Hanan Gundadow Abdul Rahaman, Metropolitan Chief Executive of Tamale who cut the sod to start the project, expressed government’s readiness to partner non- governmental agencies and the private sector in the development of the country.

He said the project was in responds to government’s call on the Metropolitan, Municipal and District Assemblies to maximise available opportunities to address the acute housing deficit in the country.

He appealed to residents in the area to own the project and ensure that it succeeds due to its potential of direct and indirect opportunities for women and children.

About 400 women would be engaged to provide various services such as the supply of water to facilitate the execution of the project.