Three Vie For Sh5.8b Udyam House Repair
Apr 11, 2004
THREE companies have been pre-qualified to tender for the renovation of the dilapidated Udyam House in Kampala, owners National Social Security Fund (NSSF) said.
By Yunusu Abbey
THREE companies have been pre-qualified to tender for the renovation of the dilapidated Udyam House in Kampala, owners National Social Security Fund (NSSF) said.
The Kawempe-based Roko Construction Ltd., the Egyptian-owned Arab Contractors and Mugoya Construction were short-listed for the multi-billion-shilling job.
But the fourth bidder, Spencon Services Ltd.,which had also been pre-qualified, reportedly withdrew during the April 2, 2002 bid opening in Kampala.
Leonard Mpuuma, NSSF’s managing director, said on Thursday, the contract to refurbish the Plot 4 Jinja Road property would be awarded in a month.
“We are not changing the design at all. We shall only give it a new-look the way the IPS Building was done,†Mpuuma said.
“Even the lifts which stopped working over 30 years ago will be fixed. Many people have already booked space there, especially the ground floor which is on high demand,†he said.
The state-owned NSSF has reportedly budgeted about sh5.8b for the renovating the four-storey building.
Work will include fixing new lifts, constructing a parking yard and several other facilities and is expected to take 12 months
Habitat, the project consultants evaluating the bids, were given two weeks within which to give recommendations for the contract award.
In February 2000, NSSF bought the building at sh9.7b amid protests from various circles.
The Inspector General of Government (IGG) also contested the purchase, saying the cost was inflated and caused NSSF a sh3.3b loss.
The IGG blamed the then chief government valuer, Eddie Nsamba-Gayiiya for allegedly inflating the cost of the building.
Jotham Tumwesigye, the IGG, said the correct value then would have been sh6.4b.He recommended Gayiiya’s suspension over the matter.
In August 2001, the then NSSF management headed by Dr.Yoram Barongo, hired a local firm, Habitat Consultants, to establish the cost of refurbishing the house.
In its report, Habitat had said carrying out minor repairs would cost about sh3.8b, while re-modelling and re-designing the existing structure required over sh6b.
According to Habitat, if the entire structure was to be refurbished with new lifts fixed, a parking yard constructed and other facilities installed, the project would take sh10b.
Initially, the 43-year-old Udyam House belonged to the Mehta Group. But the Mehtas later mortgaged it to Bank of Baroda over a sh4.5b loan which the Sugar Corporation of Uganda Limited (SCOUL) owed the bankers.
Until last year, the building housed several offices including that for gender, labour and social development ministry among others.
All tenants have since vacated it to pave way for the refurbishment. The building has been deteriorating over the years with the paint feeling off and creeping plants growing around it.
But Mpuuma said there should be no cause for alarm because work would start soon.
Ends
THREE companies have been pre-qualified to tender for the renovation of the dilapidated Udyam House in Kampala, owners National Social Security Fund (NSSF) said.
The Kawempe-based Roko Construction Ltd., the Egyptian-owned Arab Contractors and Mugoya Construction were short-listed for the multi-billion-shilling job.
But the fourth bidder, Spencon Services Ltd.,which had also been pre-qualified, reportedly withdrew during the April 2, 2002 bid opening in Kampala.
Leonard Mpuuma, NSSF’s managing director, said on Thursday, the contract to refurbish the Plot 4 Jinja Road property would be awarded in a month.
“We are not changing the design at all. We shall only give it a new-look the way the IPS Building was done,†Mpuuma said.
“Even the lifts which stopped working over 30 years ago will be fixed. Many people have already booked space there, especially the ground floor which is on high demand,†he said.
The state-owned NSSF has reportedly budgeted about sh5.8b for the renovating the four-storey building.
Work will include fixing new lifts, constructing a parking yard and several other facilities and is expected to take 12 months
Habitat, the project consultants evaluating the bids, were given two weeks within which to give recommendations for the contract award.
In February 2000, NSSF bought the building at sh9.7b amid protests from various circles.
The Inspector General of Government (IGG) also contested the purchase, saying the cost was inflated and caused NSSF a sh3.3b loss.
The IGG blamed the then chief government valuer, Eddie Nsamba-Gayiiya for allegedly inflating the cost of the building.
Jotham Tumwesigye, the IGG, said the correct value then would have been sh6.4b.He recommended Gayiiya’s suspension over the matter.
In August 2001, the then NSSF management headed by Dr.Yoram Barongo, hired a local firm, Habitat Consultants, to establish the cost of refurbishing the house.
In its report, Habitat had said carrying out minor repairs would cost about sh3.8b, while re-modelling and re-designing the existing structure required over sh6b.
According to Habitat, if the entire structure was to be refurbished with new lifts fixed, a parking yard constructed and other facilities installed, the project would take sh10b.
Initially, the 43-year-old Udyam House belonged to the Mehta Group. But the Mehtas later mortgaged it to Bank of Baroda over a sh4.5b loan which the Sugar Corporation of Uganda Limited (SCOUL) owed the bankers.
Until last year, the building housed several offices including that for gender, labour and social development ministry among others.
All tenants have since vacated it to pave way for the refurbishment. The building has been deteriorating over the years with the paint feeling off and creeping plants growing around it.
But Mpuuma said there should be no cause for alarm because work would start soon.
Ends