EXECUTIVE

SUMMARY

Fundashon Kas Popular (’FKP‘) is a foundation for social housing projects on Curacao. FKP manages
and leases about 5,000 houses. Among others, FKP owns ‘Wechi’, a former plantation of 134 ha.
This plantation is to be developed into an urban area with 3,500 to 4,000 dwellings plus all necessary
amenities as shops, sport areas, parks, schools, etc. (the ‘Project’). The Project is estimated to house
about 8,000 to 10,000 inhabitants of Curacao from a broad spectrum of income categories.

FKP is in the process of finding a reliable partner to invest in the Project. The investment needed for
the Project amounts to a total of about $90 million in a period of 10 to 15 years. FKP is planning to
build another 1,000 social tenements in this period of time, for which about $65 million will be
invested. The total investment needed for social housing will annually be approximately $6 million
in Wechi (for 10 to 15 years) and $3 to $5 million in different projects on the island.

Curacao is an island in the Dutch Caribbean. It is an autonomous constituent country within the
Kingdom of the Netherlands. The population is expected to grow from 160,000 in 2016 to 200,000-
220,000 in 2050, according to the Bureau of Statistics of Curacao. The estimated amount of houses
to be constructed in the next 35 years is approximately 30 to 35,000.

FKP plans to contribute to this demand for housing by means of annually constructing 350 houses,
of which 250 in Wechi. The government will provide land to FKP in other areas of the island for the
construction of (mostly social) housing projects.

The policy of FKP is to build 2 houses for sale purposes to every rental/social house. The surplus
from the sale of houses will be used to lower the rent for the social tenements. At this moment FKP
has about 7,000 people listed who want to rent or buy a house from FKP.

The government financially contributes to the costs of social housing, as a large part of the
population is not able to singly pay the full rent. The Ministry of Social Affairs, the Ministry of Urban
Planning and Housing, and FKP recently agreed on working together on the development of a new
system for subsidizing social housing, due to the extent of the need for decent housing for the lower
incomes.

In the upcoming three years 750 houses are planned to be developed in Phase 1 of Wechi, of which
250 social tenements and 500 houses for sale purposes. The 500 houses will be sold in price
categories from $80,000 to $150,000. The infrastructure in Phase 1 is already under construction.
The government is subsidizing this infrastructure.

Furthermore, FKP is going to construct at least 134 social tenements in other areas of the island
within the next 2 years. These housing projects need an investment of approximately $8 million.

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TABLE OF CONTENTS

1. Introduction 3

2. Investment 3

3. Curacao Fast Facts 4

4. About Curacao 5

4.1 Currency 5

4.2 Selected Economic and Financial Indicators 5

4.3 Government and Political System 7

4.4 Education System and Infrastructure 8

4.5 Legal and Judiciary System 9

4.6 Standard of Living 10

4.7 Communication and Logistics 11

5. Accessibility of Curacao 12

6. About Fundashon Kas Popular 12

7. Upcoming FKP projects 15

7.1 Wechi 15

7.2 Other projects 16

- Annex 1: A map of Curacao 17

1. FUNDASHON KAS POPULAR – WECHI PROJECT FINANCING

This paper provides the reader with a comprehensive overview of the island of Curacao, its
economy, political constituency, education and legal system and introduces Fundashon Kas Popular,
its aims and objectives and the Project at hand.

2. INVESTMENT

The total investment in the Project consists of approximately $90 million over a period of 10 to 15
years. The payback period will be 30 years, in which the costs will also be recouped. Below you will
find a preliminary financial overview of the investments needed (per month), the cost of the
funding(s) and the income from rent payments. With this model the preferable profit comes to 3%
(all costs included).

The average rent for a house in Wechi will be around $400 per month. The houses for rent in Phase 1
of Wechi will have different sizes (1 to 3 bedrooms) with a size varying from 60 to 100 m2. This
amount of rent is common in Curacao for social housing and can be seen as minimum revenue for
the Project.

A healthy cash flow in the Project is achieved with dynamic advances and back payments starting in
January of the year following the start of the funding. Further information regarding the details of
the required funding will be available on request.

Wechi investment overview

Assumptions
Note: All amounts are in USD

Phase 1 to 5 total Phase 1

Construction timeframe 15 years
Year 2017 2018 2019
Average rent in USD 400 Total rental buildings 83 166 249
montly rent realization 100% Total annual income (dynamic) 215,795 614,185 1,012,576
Average construction per month 7
Annual investment - 2017 2018 2019
Average investment per rental building 73,000 Dynamic loan (backpayments start in januari 2018) (225,809) (534,927)
Average monthly investment 511,000 Net profit (= reservation/costs for maintenance c.a.) 215,795 388,376 477,648

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3. CURACAO FAST FACTS

Geography Population 158986 (01-01-2016, CBS)

Location Caribbean 30 nm off Population growth 1.2 % (2012-2015 CBS)

the coast of Venezuela
Geographic 12 10 N, 69 00 W Birth Rate 13.8 births/1000 population
coordinates
Map references Central America and Death rate 8.2 death/1000 population
the Caribbean
2
Area 444 km Net migration rate 9.2 migrants/1000
population (2013-2015, CBS)
Coastline 364 km Urbanization 89.3% of total population
Maritime claims Territorial sea 12 Life expectancy 78.2 years
nautical miles
Climate Tropical marine Education expenditures 4.9% of GDP
climate
Terrain Generally low and hilly
Elevation Highest point 372m Government
Land use Agricultural 10%, 90% Country name Land Curacao
other
Natural hazards South of the Dependency status Constituent country within
Caribbean hurricane the Kingdom of the
belt Netherlands
Geography note Part of the Windward Government type Parliamentary
Island (southern)
group
Capital Willemstad

People and Society Constitution Previous 1947, 1955, latest

adopted Sept 5 2010

Nationality Dutch Legal system Based on Dutch civil law

system
Ethnic groups Afro-Caribbean, Executive branch Chief of state King Willem
Dutch, French, Latin Alexander of the
America, Asian, Arab Netherlands represented by
the governor.
Languages Papiamento, Dutch, Legislative branch Unicameral Parliament of
Spanish, English Curacao
Religions Roman Catholic, Judicial branch Highest court, Common
Pentecostal, court of Justice of Aruba,
Protestant, Adventist, Curacao, St. Maarten,
Jehovah’s Witness, Bonaire, St. Eustatius and
Evangelical, Islam Saba.
Subordinate courts, first
instance courts, appeals
courts, specialized courts.
Source: ‘The World Factbook’ and ‘Central Bureau of Statistics Curacao’

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4. ABOUT CURACAO
Curacao is a long and generally flat island, stretching 4o miles (64km) from the southeast to the
northwest. The island is about 10 miles at its widest point and about 180 square miles in total,
making it the largest island of the Dutch Caribbean Islands (Curacao, Aruba, Bonaire, St. Maarten,
St. Eustatius and Saba) group.
The coastline along the south is irregular, peppered with small bays and inlets, including the
spectacular bays and beaches at the west end of the island. The largest bays are located along the
central east and east end of the island, where you’ll find the capital Willemstad and its major port.
Most of Curacao’s 150.000 plus residents live in and around the historic town of Willemstad.
The long north coast of the island is characterized by a rough coastline, which is buffeted by
constant northeast trade winds. Here you find, limestone cliff formations set on top of eons-old
volcanic rock and weather-beaten terrain. It is generally less inhabited than the south coast, but you
will find smaller villages and many of the island’s famous old plantation houses and structures here.
The west end of the island is also characterized by expansive hilly terrain, most of it encompassed
by Christoffel Park. The 4500m-acre (1820 hectare) park contains Mt. Christoffel, at 372 meters the
highest elevation on Curacao. The east end of the island comprises flat and mostly barren plain,
with few settlements and some secondary roads weaving to and from its coastal inlets.
With an average 20 inches (510mm) of yearly rainfall (October to February), Curacao is generally a
dry island. There are a few standing bodies of water save some saline ponds, and most of the
island’s water is provided by a large desalination plant found on the south coast.

Time Zone AST (UTC – 04)
Airport code CUR
Internet TLD cw (curacao west indies)
Calling code 5999
Electricity 127V/50Hz (North-
American plug) and
220V/50Hz (European)

4.1 CURRENCY

The currency is the Netherlands Antillean florin, also called guilder, which is abbreviated NAf. Our
NAf. and the US dollar circulate freely, so it is possible to get by using only American dollars or
credit cards. The NAf. is pegged to the US dollar.
Exchange rates may vary slightly at stores and hotels. Daily exchange rates are available daily.
Euros are accepted at some hotels and restaurants but unlike dollars they do not circulate freely.
Major credit cards are accepted almost everywhere on the island.
ATM machines can be found all over the island at major population centers and at the airport. Most
ATMs offer the option to withdraw in local currency or US dollars.

4.2 SELECTED ECONOMIC AND FINANCIAL INDICATORS

Tourism, petroleum refining, offshore finance and trade and transport are the mainstays of the
economy which is closely linked to the global world. Although GDP grew slightly during the past

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decade, the island enjoys a high per capita income and a well-developed infrastructure compared to
other countries in the region.
Curacao has an excellent natural harbor that can accommodate large oil tankers and container
vessels. Venezuelan state oil company PDVSA leases the single refinery on the island from the
government employing about 1500 people; most of the oil for the refinery is imported from
Venezuela with most of the refined products being exported to the US. Almost all consumer goods
and capital goods are imported, with the US, Brazil, Italy and Mexico being the major suppliers. The
government continues its efforts to diversify industry and trade.
Most of Curacao’s GDP results from services. Natural resources are scarce and natural water
supplies are inadequate to sustain any significant form of agricultural initiatives. In 2013 the
government implemented changes to the sales tax and the public pension and health care system.
Sales tax was increased from 5 to 9% on some products, the general retirement age was increased
to 65 years and citizens required to pay higher premiums.
The economy of Curacao expanded modestly in 2015. In the previous three years we suffered a
contraction and as opposed to the economic contraction during the first half of 2015, the economy
expanded during the third quarter of 2015 with a total of 0.3%.
The economic expansion was mainly due to growth in public demand as government investment
and consumption rose. Net foreign demand has a positive contribution to GDP growth as decline in
imports offset the drop in exports
The main contributors to the economic growth in 2015 were transport, storage and communication,
restaurants and hotels and the whole sale and retail trade sectors.
On the fiscal front the government recorded a budget surplus and the economy is projected to
expand by 0.5% during 2016.
We furthermore refer to the latest IMF statement on Curacao “Kingdom of The Netherlands –
Curacao & St. Maarten: Concluding Statement of the 2016 Article IV Consultation Discussions
Visit” issued in May 2016 and accessible at www.centralbank.cw.

Economic and financial indicators (US dollars) - 2015
GDP (official exchange 3.146 Public debt 44.3% of GDP
rate) in millions of US dollars
Inflation rate -0.5%
GDP - real growth rate 0.3% Exports 2,183.3
GDP – per capita 20,260. - Export commodities Petroleum
products
GDP composition by Agriculture 0.7% - Imports 2,384.7
Industry 15.5% -
sector of origin
Services 83.8%

Industries Tourism – Petroleum Import commodities Crude petroleum, food,

refining –
manufactures
Petroleum
transshipment – light

Manufacturing

Unemployment rate 11.7% Exchange rate* Netherlands Antilles

Guilder (NAf.) – 1.79

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Taxes and other revenues 29.5% of GDP Net official foreign 1.344.9
exchange reserves (in millions
of US dollars

Budget surplus (+) or -2.8% of GDP Net foreign receivables 546.4

deficit (-) commercial banks (in millions of
US dollars)

Standard & Poor Rating: A- (Stable)

*The monetary policy of the Central bank has been geared toward promoting a stable value of the
NAf. with respect to the US dollar. Since 1971 the official NAf./US$ rate of 1.79 has been firmly
supported by the monetary authorities. The Central Bank’s main reason for pegging the NAf. to the
US dollar is that over the years, more than 60% of its international trade relations have been
conducted with the United States in US dollars. To maintain the standard, the Bank ensures a
sufficient supply of foreign exchange, which is monitored closely. The Central Bank’s foreign
exchange policy aims to support monetary and policy efforts, to maintain Curacao as an
international financial center, to prevent the use of Antillean Guilders as a means of payment in the
international payment system, and to gather the necessary information and data essential for
compiling the balance of payments.
Sources: Central Bank of Curacao & St. Maarten and Central Bureau of Statistics Curacao

4.3 GOVERNMENT AND POLITICAL SYSTEM

Per 10 October 2010 Curacao is an autonomous constituent country within the Kingdom of the
Netherlands. All residents retained the Dutch nationality and continued to carry Dutch European
Union passports.
The form of government is a parliamentary representative democracy, based on underlying
premises such as freedom of association, the right to form political parties, freedom of press and
freedom of speech.
Curacao has one level of government with the one-house parliament consisting of 21 members
elected by constitutional direct votes every four years and where the legislative power is entrenched.
The executive power is exercised by the government through the council of ministers headed by a
prime-minister and his cabinet.
The judiciary is independent of the of the executive and the legislature. The government also has a
representative in The Hague, the Netherlands in the capacity of Minister Plenipotentiary.
The constitutional head of the Government of Curacao is the Governor appointed for a six-year
term by the monarch of the Netherlands (read Government of the Netherlands) on a proposition of
the Government of Curacao.
Within the Kingdom of the Netherlands we also have a Council of Ministers of the Kingdom of the
Netherlands consisting of the Council of Ministers of the Netherlands together with the
aforementioned Minister Plenipotentiary.

4.4 EDUCATION SYSTEM AND INFRASTRUCTURE

In the Kingdom of the Netherlands, general advanced education and diplomas are automatically
recognized between the countries within in the Kingdom.
The education system is derived from the Dutch system and is primarily financed by the
government. Education is either provided by public institutions or by private institutions which are
privately funded (private foundations).

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In Curacao’s primary and secondary education Papiamentu and Dutch are the instruction languages
and both English and Spanish are part of the program. Education is mandatory for children aged 4
to 18.
Secondary advanced education has the same kind of differentiation and degree of difficulty as in
the Netherlands. Most people in Curacao speak English very good, as well as Dutch and Spanish.
Fluency in English is required in most corporate settings.
There are several higher and college/university education facilities in Curacao like the College of the
Dutch Caribbean (CDC), the Inter-Continental University of the Caribbean, and the University of
Curacao, all government recognized institutions. Furthermore there are some “offshore”
universities like the Caribbean Medical School and the Avalon University School of Medicine.
The University of Curacao (recognized by law) offers higher as well as scientific education and
consists of several faculties e.g. a General Faculty (4-year Bachelor’s degree), a General Faculty
Master’s degree (bachelor’s education plus 2 years), Law Faculty (Masters), Faculty for Social and
Economic Sciences (4-year bachelor’s degree), a Faculty of Technical Sciences (4-year bachelor’s
degree and Techno MBA) and a Faculty of Behavioral Sciences (4year bachelor’s degree).
Furthermore, university and college studies are mostly pursued in the USA and the Netherlands
after the Curacao-based education.
The literacy rate for Curacao stood at 96.7% .

4.5 LEGAL AND JUDICIARY SYSTEM

Until 10 October 2010 The Netherlands Antilles formed together with Aruba and the Netherlands,
the Kingdom of the Netherlands. The Netherlands Antilles comprising of the islands of Curacao, St.
Maarten, Bonaire, Saba and St. Eustatius, as an autonomous country in the Kingdom. After a
complex process of dismantling, the Netherlands Antilles ceased to exist as from 10 October 2010.
The islands Bonaire, Saba and St. Eustatius referred to as the “BES islands, transformed into public
entities within the country The Netherlands.
Apart from certain affairs that are considered to be affairs of the Kingdom (such as defense, foreign
affairs and citizenship) Curacao has full autonomy. The system of government of Curacao is a
parliamentary democracy based on the Dutch model and free elections are held every four years.
Curacao is a so-called associate member of the European Community. The purpose of such
association is to promote the economic and social development of Curacao and to establish close
economic relations between Curacao and the European Community as a whole.
Curacao has a civil law system. The main legal document is the Civil Code. To a large extent nearly
all laws and regulations are based on their equivalents in The Netherlands.
Curacao has a Court of First Instance established in Curacao and a court of Appeal of Aruba,
Curacao, St. Maarten, Bonaire, St. Eustatius and Saba also established in Curacao. The Supreme
Court for Curacao is the Supreme Court in The Hague, The Netherlands, which is also the Supreme
Court for Aruba, St. Maarten, The BES islands and the Netherlands itself.
In January 2012, thirteen national ordinances have taken effect in Curacao. Herewith a second stage
in the introduction of a new Civil Code in Curacao was completed. The first stage of this project was
already completed in 2001. As is the case in the Netherlands, the principles of “reasonableness and
Fairness” are an important factor in the civil relations between parties. Contracts can be enforced
either when they are merely oral or when put in writing. The Civil Code offers important protection
to relatively vulnerable parties in contractual relations, such as employees in labor law and
consumers when buying goods or acquiring services from professional providers.

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The mandatory regulations with regard to legal entities under private law (such as the foundation
and the (private) limited liability company), which can be used for doing business in Curacao, are
contained in Book 2 of the Civil Code. The legal entities explicitly regulated are:
• The foundation
• The private foundation (SPF)
• The association
• The cooperation
• The trust
• The mutual guarantee company
• The public limited liability company (N.V.)
• The private limited liability company (B.V.)
The N.V. and the B.V. are, besides the sole proprietorship the most common formal structures for
the conduct of business in Curacao. The sole proprietorship is not regulated in Book 2 of the Civil
Code; neither are the Curacao law partnerships.
Source: VanEps Kunneman VanDoorne

4.6 STANDARD OF LIVING

The most accepted and best measurement of a country’s standard of living is the GDP per capita
measure which reflects a country’s average income per person or put more sharply the country’s
economic output per person. Below we list the GDP per capita for various island in the Caribbean as
well as a global indication to give an impression of the comparative standard of living in Curacao.

Caribbean comparison
Country GDP per capita Country GDP per capita
US dollars US dollars
Bahamas 21,280 Grenada 7,110
Curacao 20,260 St. Lucia 6,530
Puerto Rico 18,000 Dominica 6,460
Trinidad & Tobago 14,400 St. Vincent & the Grenadines 6,380
St. Kitts and Nevis 13,330 Jamaica 5,140
Antigua 12,640 Belize 4,180
Surinam 8,480 Guyana 3,410
Source: The World Bank Report

Global comparison
Country GDP per capita Country GDP per capita
US dollars US dollars
USA 54,629 Curacao 20,260

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Netherlands 52,138 Argentina 12,509

Canada 50,230 Brazil 11,726
France 42,725 Mexico 10,325

Spain 29,721 South Africa 6,483

Source: The World Bank Report

Dwellings by Facilities (%)

Census 2011
Landline telephones 71.5
Mobile telephones 94.0
Personal computers/laptops 62.8
Internet connection to dwelling 53.2
Television set/flat screen 92.9
Cable TV/ wireless 44.8
Refrigerator 97.5
Freezer 24.8
Washing Machine 87.0
Source: Central Bureau of Statistics 2011

4.7 COMMUNICATION AND LOGISTICS

Curacao has a state-of-the art information and communication technology (ICT) connectivity with
6+ subsea fiber cables and located at the crossroads of the highest capacity Caribbean submarine
fiber cable networks such as Arcos 1, Panam and Americas II, and the newest PCCS providing ample
bandwidth while maintaining redundant connectivity options to/from the island. Curacao is also
home to one of the 11Tier IV certified data centers in the world offering safe and secure data and
advanced cloud services. Curacao is catalogued as one of the countries with the highest internet
speed and reliability in the Western hemisphere and poised for the further development of the
Global ICT and data sector service.
2 Commercial television stations, 5 multi-channel pay cable TV subscription services and 28 radio
stations are available providing local and international coverage. 4 Morning and 4 afternoon papers
complete the local communication sector.
Island wide fixed and mobile telephone services are available with high per capita mobile cellular
phone usage aided by the presence of multiple providers.
Business internet (Fixed, Wireless and Mobile), Mobile solutions, Fixed Connectivity, PABX and
United Communication Systems, Business Continuity and Disaster Recovery etc. are standard.

For the Logistics sector, both by sea and air Curacao offers many attractive solutions. The Curacao
International Airport can handle all types of aircrafts and daily flights from Europe, the US, South
and Central America and the Caribbean. Plans are underway to transform the island into a gateway
to and from Latin America. The island is situated strategically outside the hurricane belt with

11

several natural harbors. A well-developed main harbor including a natural deep seaport, container
terminal and dry dock with multiple connections from/to the Caribbean region as well as from/to
South/Central and North America and the European union. Mooring facilities are right in the center
of the capital Willemstad and used for cargo shipping, mega cruise ships, the refinery and the dry
dock. The dry dock is the largest in the Caribbean with over 45 years of experience.

5. HOW TO GET TO CURACAO
Curacao is easily accessible from the United States and Europe with multiple flights per day through
(e.g.) the airports of Amsterdam, Düsseldorf, New York and Miami with numerous connecting
flights by KLM and American Airlines and their partners British Airways, Air France, Blue Jet etc.

Curacao is also a common port for cruise ships with a Caribbean route, which leads to many visitors
from the harboring cruise ships.

6. ABOUT FUNDASHON KAS POPULAR

Objectives and government relationship
The foundation Fundashon Kas Popular (FKP) was founded in 1979 by the Government of Curacao
with the goal to work in the interest of improving public housing in Curacao. This includes among
other things, construction, rental and improvement of public housing, but also renovations,
restorations and major repairs to buildings.

FKP founded the foundation “Fundashon Fiansa Popular” (Foundation for Popular Financing) in
1980, in order to allow the tenants of public housing to purchase a dwelling with some form of
advancement and also to finance third parties for the purchase, construction or repair of an own
dwelling.

Mission
Fundashon Kas Popular is a customer-oriented organization offering sustainable living to all
inhabitants of Curacao.
FKP has clear added value for Curacao when it comes to housing. It focuses on more than just build,
sell, rent, manage and maintain houses and buildings. We are also engaged in community
development, quality of life, recreation, safety, environment and nature, energy efficiency,
construction advice, and modern building techniques. In short, involved in all those kind of elements
that contribute to a better fulfillment of Curacao’s housing needs.

Vision
Fundashon Kas Popular is the housing authority with more than 5000 social houses under its
management in Curacao. Our people combine their efforts to provide affordable and quality
housing for the while population but especially the socially needy and thereby contribute to the
quality of life in the neighborhoods of Curacao. This is also reflected in our focus on the
environment, nature, safety and recreation. FKP is also a major partner of the government and
other civil social partners and plays a pivotal role in satisfying the social housing needs in Curacao.

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Activities
FKP carries out the following activities to improve public housing in Curacao:
• Build homes which are accessible to different income levels within the community of
Curacao;
• Build and obtain ownership of houses and other buildings;
• Acquire ownership or land lease for the construction of public housing;
• Renovate and remodel homes and buildings;
• Construct, operate, manage and sell real estate;
• Ensure maintenance, renewal and administration of its own properties
• Contract, manage and exploit real estate

History of Building activities
The construction activities of FKP over the years can be divided in four categories:
• New public houses projects for rent or sale
• Renovation and restoration projects
• Maintenance of own properties, schools and government buildings
• Build-your-own (Do-It-Yourself) projects

The first construction projects of FKP were completed in 1980 and consisted of about 108 public
housing dwellings and some 705 middle class dwellings
For the so-called St. Michiel project 11 different models were chosen (as varied as possible), with
prices ranging between NAf. 70.000 to NAf. 140.000. Construction cost was between 20% to 30%
lower than going market prices at that time for the same type of dwellings. Those eligible could get
mortgages up to 100% through FFP at a rate of 9.5% per year for a maximum term of 25 years.
The macroeconomic effect was an increase of 700 jobs during a five-year span (1996 – 2000) and an
investment of about NAf. 25 million. The spinoff effect of the project is estimated at approx. NAf. 8
million.

Restoration and renovation projects
FKP contributed to the restoration/rehabilitation program of the Government in connection with
the so-called Monuments policy of the government. Efforts were poured into the restoration of
monumental buildings in the capital, Willemstad which helped lead to the proclamation of
Willemstad as an historic city by UNESCO in 1997 and inclusion on the World Heritage City list. A
total of 117 houses and buildings were renovated from 1986 to 1994.
In the city centre another 32 apartments were constructed during 1999/2000 and a neighborhood
on the outskirts of town was rehabilitated.

Maintenance of schools and government buildings
FKP started with the maintenance of government schools and buildings in the late 80’s. with a total
of 8 buildings and schools.

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Build Your Own (BYD)
In 1979 FKP started with the do it yourself (“DIY”) homebuilders’ program. Five years later 600
people were registered as homebuilders with mortgages running up to 30 years. 6 July 1984 the
600th person signed a mortgage deed.

Special projects
Included are various old age housing projects, shelters for young residents etc.

FKP and the Government
The Minister in charge of Housing Affairs appoints the chairman of the board of FKP, while the
relationship between the government of Curacao and FKP is anchored in the bylaws of FKP. Apart
from acquiring is own plots of land for the construction of public houses, the government also
regularly through its land administration authority allots plots of land to FKP for construction
purposes. Not only are these plots transferred legally to FKP but the government also ensures that
upon transfer the infrastructure (public roads, sewer system, water, electricity and communication)
for the plot in question has been put in place.
The relationship FKP/Government is a very intensive one.

FKP Management and Organization
The organization is comprised of two levels, based on a so called two-tier model:
• The Supervisory Board consisting of maximum 7 members.
• The Managing Board comprised by a General Managing Director supported by 3 sector
managers.

Social Housing
The Central Bureau for Statistics on Curacao estimates a population growth of approximately
40,000 to 60,000, from 160,000 people in 2015 to 200,000 to 220,000 in 2050. (www.cbs.cw,
publications, population projections 2015-2050).
This growth on one hand and the decline of housing occupancy, leads to a need of approximately
35.000 houses in the coming 35 years.
Taking into account that 25% of the population lives under the poverty line, it is clear that the
demand for social rental housing, will grow properly for the coming years.
Right now there are 7,400 households registered with FKP in order to qualify for a house. The big
majority (85%) is primarily looking for a rental house, and is in need of subsidy from the government
to be able to cover the cost of the house.
There is a great need to seek for alternative forms to reduce the cost of housing, assuming that the
government will not be able to keep up with this form of subsidy.
FKP intends to use the profit on the sale of houses in order to cover part of the building cost of
rental social housing and to reinvest in building. This is a way of internal subsidy. 1/3rd of the houses
will be for rent, varying from rental for the lower incomes to the middle incomes. The other 2/3rd of
the houses will be for sale.

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7. UPCOMING FKP PROJECTS

7.1 WECHI

The currently largest project of FKP is the project of Wechi (see last page for location on a map of
Curacao). Wechi is a 134 Ha piece of land, owned by FKP. Wechi is less than 5 minutes by car from
the airport, but outside the flight path and therefore has no nuisance of airplanes. Furthermore,
Wechi is also less than 5 minutes away from the University of Curacao and other great amenities
like supermarkets, retail, business centres and shopping malls and not to forget beaches. Wechi is
at 11 kilometres from the inner city of Curacao with all its amenities.

FKP aims to develop this land into a residential area of 8,000 to 10,000 residents with all necessary
amenities. This residential area will be a reflection of the average income structure of the island of
Curacao.

Right now the efforts are focused on 3,500 to 4,000 homes, health care facilities, schools, retail,
sports and similar. The project is in phases in order to respond flexibly to new developments.

The first phase of 20 Ha consists of 750 houses to be built in the coming 3 years. After this phase
there will be 4 more phases to go, flowing into one another, with at least the same number of
houses striving for a higher density. An important part of the area consists of wide park zones
needed for the drainage function among others for the lower lands of Wechi and beyond. These
parks will have a dual function, where they also perform the function of recreation areas for sports,
picnic, leisure etc. There will also be schools and leisure facilities within this green environment,
which proves Wechi to become a family friendly area.

The government of Curacao believes in this project and considers it a high priority. Therefore, the
government has decided to fund the infrastructure and contribute in the cost this way. The
infrastructure for half of the first phase has already been build, with sewerage, all underground
infrastructure, street lighting and greenery.

First phase: 2016-2019
Consists of 750 homes, ranging from single monolayer houses to apartments in higher buildings, of
which 250 are rental.

The total investment for the social rental houses in this first phase will be $17 million spread over
the next 3 years.

Subsequent Phases of Wechi: 2016-2030
Consists of approximately 2,000 homes for sale and 1,000 homes for rental purposes.

The total investment for the social rental houses in whole Wechi will be $90 million spread over 10
to 15 years.

The total investment in buildings other than dwellings is still estimated at $15 million to $25 million
over the coming 10 to 15 years.

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7.2 OTHER PROJECTS

FKP has several other housing projects throughout the island of Curacao. Most of the building lots
are made available in a long lease by the government of Curacao to FKP including the infrastructure.

For the coming 10-15 years FKP is planning to build 1,000 houses beside the development of Wechi.
The total investment for these houses outside of Wechi is estimated at $65 million up to $70 million.
The finance necessary for the coming 3 years in regard of social housing (rent) is calculated to be $8
million to $10 million.

Part of these housing projects will be in a form of partnership with the government of the island of
Curacao, where FKP will build social houses on behalf of the government and will cover the other
half on its own.

Source: ProGaya

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Location of Wechi on the map of Curacao

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