The Government has cleared the construction of a five-star hotel on the land formerly occupied by Shimon Demonstration School after the investor, Azure Holdings, signed an agreement with Inter-continental Hotels.
Investment minister Aston Kajara told The New Vision on Saturday that according to the agreement, the hotel will now be managed by the Inter-continental Hotels group.
“We met the investors on Friday and I was informed that the finances (about $80m) are now available. The new partner has already approved the plan to start the construction,” he said.
Azure, a Dubai-based company, plans to construct a luxury hotel, an international convention centre, 20 conference halls, serviced apartments as well as office towers and a shopping mall, costing $80m (about sh170b).
The construction is expected to begin in the next six months after all consultation works and approval by the Ministry of Works, National Water and Sewerage Corporation (NWSC) and the National Environment Management Authority (NEMA).
Kajara dismissed reports by the former investment minister, Ssemakula Kiwanuka, that the Government had discovered that Azure Holdings was not a credible investor.
“The investigations have revealed that Azure is comprised of Ugandan Asian, speculators whose intention is to sub-divide the land and sell it off,” Kiwanuka said. Kiwanuka is now Uganda’s ambassador to the United Arab Emirates.
In December 2008, Saudi prince Al Waleed, who had originally been allocated the land, wrote to President Yoweri Museveni saying his company, Kingdom Holdings, would not proceed with the construction of the hotel due to the global financial crisis.
Al Waleed also asked the Government to refund the $2m (about sh4b) he had already paid for the land.
The money was used for the relocation of Shimoni Primary School and Shimoni Teachers' College.
In April, the Uganda Land Commission chairman, Mayanja Nkangi, advised that the Government could not refund the money because Kingdom Holdings had breached the contract.
