NHC signs deal to establish financial hub in Dar

THE National Housing Corporation (NHC) has signed a 1.7 billion US dollars deal with two Chinese companies for three housing projects, among them a financial square to be built at Upanga in Dar es Salaam.

Currently, Dar es Salaam, which is the commercial city of the country, lacks a financial centre making it difficult to make optimal use of its strategic geographical location to become the regional trade and financial hub.

The signing, witnessed by President Jakaya Kikwete who is on a five-day state visit here, also involved the developing of Masaki business area and Salama Creek Satellite City in Kinondoni and Temeke respectively. NHC Director General Nehemiah Mchechu said the three housing projects has no government guarantee.

They are only based on their business value to pay back. “The three projects are selffinancing after we conducted a necessary risk analysis,” Mr Mchechu told the ‘Daily News’ on the sideline of the 3rd Tanzania and China Business Forum that bring together about 500 business persons from the two countries.

Mr Mchechu said the three projects envisaged to reduce house problem in Dar es Salaam at a significant amount thought the demand will continue to be there.

The construction of all three projects are designed to start at the beginning of first half of next year and estimated to take between five and seven years - as they are mega projects.

The construction of the Financial Square to cost about 500 million US dollars will be jointly developed by NHC and China Railway Jianchang Engineering (CRJE).

“We have identified the area in Upanga and we will demolish the NHC old houses to pave way for the financial hub, the first of its kind in the country,” Mr Mchechu said. The SalamaCreek Satellite City at Uvumba, in Temeke District will costs 1.0 billion US dollars and will be completed in seven years.

“The houses will take about three years…but the entire project will consume seven years as it’s a big project to be undertaken in phases,” Mr Mchechu said. Mr Mchechu said they expected to sign an agreement with Poly Technologies before next month ends to jointly develop Valhalla Project in Masaki, Kinondoni.

“We have just seen the MoU today, the agreement would be signed before November ends,” the youth CEO who have turnaround NHC said.

The Masaki Project will cost 200 million US dollars and where a business and housing centre will be developed also between five and seven years.

The Dar es Salaam Regional Commissioner (RC), Saidi Meki Sadiki said the NHC is assisting the Dar es Salaam City to solve the housing problem which its demand is very high.

“We need good and quality houses units, the city is expanding by 5.6 per cent per year. Soon the population of Dar es Salaam will reach five million…we need houses,” Mr Sadiki said.

The RC said the three projects will reduce considerable the demand of quality houses in the city that is expanding faster than the real estate developing pace.

Mr Sadiki also said the city is preparing to receive real estate projects as the city infrastructure are improving every day. The availability of electricity continues to become stable while peace and security issue is good.

SOURCE: DAILY NEWS

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