A few more weeks is needed by the Chinese government to complete formalities before the transfer of the $70 million EXIM Bank loan.

Housing Authority acting chairman Ratu Jo Nawalowalo said they just have to wait for all this to be completed before the first part of the building process begins.

Under the loan agreement a Chinese company, China Railway will be undertaking the construction, which was expected to start mid this month.

The loan was secured early this month to the PRB and Housing Authority for the building of 500 multi units in Raiwai and Raiwaqa and 1500 lots and 350 homes around the Central Division.

The loan will be paid at an interest rate of 2% over the next 25 years however a grace period of 5 years has been given with repayment of the loan starting from 2014.