ABSTRACT
The detailed financial appraisal of any development project will be undertaken within the context of an overall feasibility study which examines all the issues of the project. The pre-feasibility study and earlier assessments in this appraisal should have ensured that the aggregate of all subsidy requirements can be met by surpluses created by the presence of commercial/industrial development in this project. Given a fixed amount of monthly income available for housing purposes, the rate of interest chargeable for accommodation provided has a strong influence on the affordable level of investment; the higher the level of investment possible. The charges to beneficiaries for the amortisation of capital costs will reflect the average rate of interest on funds raised by the project agency. Security of land tenure is not only one of the most important goals of the average beneficiary, but is also a stimulus to their investment of both time and money on constructing dwelling units on land they occupy.
