National Housing seeks financier for ‘affordable’ Bukerere project
The National Housing and Construction Corporation Impala housing estate in Namungoona, a city suburb. NHCC is looking for a financier to put up a similar project in Bukerere. PHOTO BY STEPHEN OTAGE
What you need to know:
- The Bukerere project is the largest project yet for NHCC and will be built in five phases. Because of the scale of the project, financing will be the most critical aspect for the consortia expressing interest in building the houses.
- NHCC expects to have concluded the awarding of the contract by June 16, 2017.
Kampala. In what is considered to be its most ambitious project, National Housing and Construction Company (NHCC) is now seeking consortia to finance and build the Bukerere Housing Estate.
Located in Mukono District, the Bukerere Jubilee City project is expected to have at least 3,600 housing units on 320 acres of which the lowest price for a house is estimated to be Sh89m ($25,000).
“The target market is for the medium income market with the range of sales prices/unit between US$25,000 to US$120,000. NHCC intends to provide a wide choice of housing tenure, including housing for sale, rented housing and rent to buy opportunities,” read the call for Expression of Interest (EOI) to finance and build the project.
The minimum requirement NHCC wants from those expressing interest is about $15m (Shs54b), for the first phase (658 units) of the project.
NHCC is 51 per cent owned by the Ugandan government and 49 per cent by the Libyan government. Both entities have not been in position to replenish it with enough capital to embark on large-scale housing projects.
Going to seek an investor means NHCC will not be bringing in financing for the entire project. In the EOI, it states that they will be seeking consortia – could be banks or fund managers with the money and construction companies to build.
“Also, given the size of the project, it is assumed that teams consisting of multiple consultants and contractors may be assembled in consortia. The proposer should identify the roles and responsibilities of each team member and how they will be utilised for the delivery of the Bukerere Jubilee City,” it further reads.
Despite being around for 50 years, NHCC has not been able to deliver massive housing projects that would unlock the cost of housing in the country.
The Bukerere project is the largest project yet for NHCC and will be built in five phases. Because of the scale of the project, financing will be the most critical aspect for the consortia expressing interest in building the houses.
Uganda’s government has no specific definition for what affordable housing means. However, in the past NHCC has built houses, with a two bedroomed house being about Shs72m.
Due to the financing expected to come in foreign currency, the cost of the houses will be higher due to the weak position of the Uganda Shilling.
NHCC expects to have concluded the awarding of the contract by June 16, 2017.
