Govt cancels land allocation for 80 investors

By Francis Emorut                                        

The Government has cancelled land allocated to 80 investors at Namanve Industrial Park after failing to develop it.

The land was allocated in 2007.

This was disclosed by the state minister of state for investment, Gabriel Ajedra, who referred investors as   speculators.

"We together with Uganda Investment Authority (UIA) have received back 500 acres of land from speculators," Ajedra told building/road contractors and engineers.

Ajedra was speaking during the networking cocktail organized by Uganda National Association of Building and Civil Engineering Contractors (UNABCEC) at Kampala Sheraton Hotel last week.

"In 2007 land was allocated to speculators and nothing has happened. The President asked me the list of those speculators," he stated.

The minister was responding to a question by Nicholas Byengoma of Vicontra Limited who has taken 10 years pursuing land allocation in industrial park without any success wondering what criteria is used.

"I applied for a plant in Namanve Industrial Park and it has taken 10 years and yet I have machines parked in my home for three years. Where is the problem?" Byengoma asked.

Ajedra informed the audience of Government's new policy of land allocation in industrial park saying that an acre goes at $80,000 (about sh232m) and premium is not charged.

He informed guests that the land is leased for 49 years and renewed for more 50 years making it 99 years.

He said the new policy gives priority of investment in agro-processing, information, communication and technology (ICT) and hotel industry.

He pointed out that in order for one to be allocated land in industrial park an investor must have investment license.

He also outlined the questions an investor should ask as do you have the capacity and experience? Are you legally registered? Do you have the money? Do you have a business plan? And how many acres of land do you want?

He advised Byengoma to submit his application and the land committee will look at it and within a month land will be allocated to him.

The minister rapped contractors for buying expensive cars when the government gives them an advance payment in contract work.

"The day you give a contractor advance payment. He buys a benze or a landcruser. How can you do that when you have been given money to do contract work?" he asked.

The chairman of the association Michel Muvule Pinto blamed government for delayed payments when local contractors win a tender.

Jonathan Wanzira the chairman and board of directors pointed out that there is need for contractors to have sustainable financing if they are to succeed in winning government's contracts.