Banks Asked To Help Repair Unsafe Homes

More than 2,000 completed homes reflect the state's commitment to supporting low-income citizens

TDT | Manama

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A fund to repair homes at risk of collapse has cleared a parliamentary committee, despite a Finance Ministry warning that it would repeat work already handled by state bodies and add costs to the budget.

The plan, put forward by MPs Hassan Ebrahim, Mohammed Al Balooshi, Eman Shuwaiter, Khalid Buanaq and Mohammed Al Olaiwi, calls for the government to launch a fund paid for by the state and banks to rebuild and repair unsafe homes.

A joint committee made up of Parliament’s financial and economic affairs committee and its public utilities and environment committee has urged MPs to pass the plan.

The Finance and National Economy Ministry said unsafe and run-down homes were already dealt with by the Housing and Urban Planning Ministry, the Municipalities Affairs and Agriculture Ministry, municipal councils and Eskan Bank.

It said their work covers town and village development schemes, the repair of old homes and housing finance for repair work.

The ministry warned that a new fund would overlap with work already being carried out. It also said the proposal did not say where the money would come from.

Should the fund draw all or part of its money from the state budget, it would add new spending as the government seeks to cut costs, raise income and reach fiscal balance, the ministry said.

It added that a new body would need its own structure, staff, technical team and running costs, and called for the plan to be reconsidered.

The Housing and Urban Planning Ministry said repair finance is already offered under housing rules issued in 2015 and 2022.

It said the service covers renewal, upkeep and repair of structural or urgent faults, as well as needed additions or changes to homes.

More than 8,000 citizens have used repair finance since 2011, with help worth over BD80 million, the ministry said.

The Bahrain Association of Banks said banks had for years helped homes at risk of collapse through donations to charities and community schemes.

It suggested creating the fund with the Bahrain Chamber of Commerce and Industry, allowing a wider range of firms to take part, including builders, engineers, furniture sellers and home appliance firms.

The chamber said it supported the plan as part of its social role and was ready to urge its members to take part, so long as this did not breach chamber law.

It also called for one shared social and charity fund, rather than separate funds for each cause.

The Central Bank of Bahrain said the idea was sound in principle and worth studying, but any voluntary payments from financial firms would be left to their boards.

The explanatory note says the fund would deal with urgent cases where aid has stopped, add new eligible cases and form a committee made up of the Housing Ministry, the Municipalities Ministry and participating banks to identify homes and monitor the work.

Under the plan, banks would make yearly payments that could be renewed through their social programmes, as part of a public-private partnership for housing and infrastructure work.