Queries on UBC land deal?
May 28, 2006
<br>AYA Investments Ltd, the company planning to build a modern hotel on former Uganda Broadcasting Corporation land in Nakasero, has secured the land title before signing a formal agreement with government.
AYA Investments Ltd, the company planning to build a modern hotel on former Uganda Broadcasting Corporation land in Nakasero, has secured the land title before signing a formal agreement with government.
Lands ministry officials say the firm did not pay the sh4b premium and ground rent of sh200m. The re-location of UBC TV will cost $5m. But unfortunately this is going to be met by the government. The land value has also been put at $10m (sh18b). Put together, government is losing about sh32b in revenue.
The investors have not executed a performance bond which would guarantee the completion of the project before the Commonwealth meeting next year. Some people are using CHOGM as a cover to grab prime plots in the city and dodge taxes.
Questions are being raised about this transaction. For instance, of the 15 acres, there are reports that the investors have taken only 12 acres. Who owns the extra three acres? Is it not possible for UBC to share the land with the investors? How is the project being financed? Was the land title surrendered because the investors want to secure external loans?
KCC says they have only seen the artistic impression of the hotel in the newspapers and not received the architectural plans. How can a project worth $90m take off without KCC approval? Besides, the government has been against the construction of high rise buildings near State House. The artistic impression shows the guests will have a clear view of State House.
This project is critical because it involves the relocation of the country’s national television. While it is technically possible to relocate UBC, some of the concerns raised need serious attention. Ugandans are not opposed to the project but simply want a better negotiated deal.
Ends
Lands ministry officials say the firm did not pay the sh4b premium and ground rent of sh200m. The re-location of UBC TV will cost $5m. But unfortunately this is going to be met by the government. The land value has also been put at $10m (sh18b). Put together, government is losing about sh32b in revenue.
The investors have not executed a performance bond which would guarantee the completion of the project before the Commonwealth meeting next year. Some people are using CHOGM as a cover to grab prime plots in the city and dodge taxes.
Questions are being raised about this transaction. For instance, of the 15 acres, there are reports that the investors have taken only 12 acres. Who owns the extra three acres? Is it not possible for UBC to share the land with the investors? How is the project being financed? Was the land title surrendered because the investors want to secure external loans?
KCC says they have only seen the artistic impression of the hotel in the newspapers and not received the architectural plans. How can a project worth $90m take off without KCC approval? Besides, the government has been against the construction of high rise buildings near State House. The artistic impression shows the guests will have a clear view of State House.
This project is critical because it involves the relocation of the country’s national television. While it is technically possible to relocate UBC, some of the concerns raised need serious attention. Ugandans are not opposed to the project but simply want a better negotiated deal.
Ends