Crested Towers Repair Cost Doubles
Apr 16, 2003
THE cost of renovating and remodelling the Crested Towers building in Kampala, initially estimated at about $10.6m, has jumped to $20m.
THE cost of renovating and remodelling the Crested Towers building in Kampala, initially estimated at about $10.6m, has jumped to $20m.
Yunusu Abbey reports that the National Housing and Construction Corporation (NHCC) which owns the two towers, has secured loans from the National Social Security Fund (NSSF) and various banks to finish up the project.
Some government officials have criticised the NHCC management for the “soaring expenditure.â€
At the time NHCC and the Kawempe-based Roko Construction Ltd. signed the contract on August 3, 2000, the project was estimated to cost $10.6m. The renovation was to be complete by July 2002.
Last August, the cost rose to about $18m.
But Peters Musoke, the corporation secretary, and Aloysius Lubowa, the project technical manager, defended the rise.
The officials claimed that the escalating costs were a result of the variations in new works, including air-conditioning, ceiling, extra parking space and a modern communication system, among others.
Lubowa said details of the escalating cost had been explained in a 40-page report.
The tall tower has 20 floors while the short one has 11. Under the contract, the project is supposed to be ready in June.
Lubowa said they were putting a magnificent air conditioning system.
He added, “We are also improving on the current parking yard which will eventually accommodate about 300 cars.â€
Presently, the NHCC is directly under the Privatisation Unit headed by Michael Opagi. But Opagi could not be reached for comment yesterday.
The New Vision has established that NHCC is negotiating with Stanbic Bank for $5m loan for building a parking yard. NSSF gave another $5m loan.
NHCC also borrowed $3m from the East African Development Bank. Musoke said they would also borrow another $5m from Stanbic to cover their financial shortfall as they wait for condominium sales revenue.
Ends
Yunusu Abbey reports that the National Housing and Construction Corporation (NHCC) which owns the two towers, has secured loans from the National Social Security Fund (NSSF) and various banks to finish up the project.
Some government officials have criticised the NHCC management for the “soaring expenditure.â€
At the time NHCC and the Kawempe-based Roko Construction Ltd. signed the contract on August 3, 2000, the project was estimated to cost $10.6m. The renovation was to be complete by July 2002.
Last August, the cost rose to about $18m.
But Peters Musoke, the corporation secretary, and Aloysius Lubowa, the project technical manager, defended the rise.
The officials claimed that the escalating costs were a result of the variations in new works, including air-conditioning, ceiling, extra parking space and a modern communication system, among others.
Lubowa said details of the escalating cost had been explained in a 40-page report.
The tall tower has 20 floors while the short one has 11. Under the contract, the project is supposed to be ready in June.
Lubowa said they were putting a magnificent air conditioning system.
He added, “We are also improving on the current parking yard which will eventually accommodate about 300 cars.â€
Presently, the NHCC is directly under the Privatisation Unit headed by Michael Opagi. But Opagi could not be reached for comment yesterday.
The New Vision has established that NHCC is negotiating with Stanbic Bank for $5m loan for building a parking yard. NSSF gave another $5m loan.
NHCC also borrowed $3m from the East African Development Bank. Musoke said they would also borrow another $5m from Stanbic to cover their financial shortfall as they wait for condominium sales revenue.
Ends