Wednesday, May 09, 2007

The Kathankudy Housing Project - STATUS REPORT!

The Kathankudy Housing Project had to temporary suspended operations late last year due to the prevailing unrest and war condition in the North and East of the country. As a consequence of this militant state, traversing to and fro from there to Colombo became exceedingly difficult. Following on from this situation, and due also to the extensive rebuilding operations that took place post Tsunami, the cost of raw material and resources required for construction, including labour charges, increased by almost 45%. In light of all of these circumstances, the original contractor with whom we contracted, stepped down and refused to continue work, specially since all his hired labour were from Colombo.

Given this background, we are now in the process of negotiating with 4 other contractors with whom we want to try and complete this project. We commenced this project when the cost of constructing one house costed approximately LKR 700,000 (exclusive of VAT). However, at present, we have been given estimates for a cost of over LKR 1,000,000 per house. Given the increase in costs and given the funds we have at hand, we may not be in a position to complete all 72 houses as originally planned, unless we are able to obtain more funds.
We will post periodic updates on the blog.

Thank you.

Housing Committee