FUFA project hits snag over VAT

By Swalley Kenyi and Norman Katende

CONSTRUCTION of the sh700m FUFA technical centre in Njeru near Jinja is in balance due to the exorbitant VAT and recent increase in prices of construction materials.

Regional FIFA development officer Ashford Mamelodi is expected in the country Thursday to solve the impending crisis.

FUFA president Lawrence Mulindwa said that the contractor, Allied Tech Engineers, was reluctant to start the project because the budget estimate had fallen short.

The contractors, who have held several meetings with FUFA to discuss the way forward, have requested the federation to write to FIFA to allow them adjust the estimates.

They have also asked FUFA to request government for a waiver on VAT.

“It is understandable, when the budget was made, prices were different but now everything has doubled. Now the money which was earmarked is not enough,” Mulindwa said.

The sh684m centre, to be constructed under the FIFA Goal Project, is expected to have a hotel, hostel, bar, training field, gymnasium, swimming pool, conference hall and an artificial turf.

The centre falls under the the second phase of the Goal Project after the construction of the FUFA House at Mengo.

The Njeru project was due to have commenced in April.