NHC pacts with 21 building firms for apartment projects

30Jan 2024
James Kandoya
DAR ES SALAAM
News
The Guardian
NHC pacts with 21 building firms for apartment projects

THE National Housing Corporation (NHC) has signed a partnership agreement with 21 construction companies to build new elevated structures at Kariakoo in Dar es Salaam as part of the public private partnership (PPP) policy.

National Housing Corporation director general Hamad Abdallah Hamad (R) and his S H Amon Enterprises Co. Ltd counterpart, Saul Amon, exchange documents at a ceremony held in Dar es Salaam yesterday at which NHC signed residential and other house construction contracts with 21 partners. Third left (back row) is Lands, Housing and Human Settlements Development minister Jerry Silaa. Photo Correspondent Joseph Mwendapole

Hamad Abdallah, the NHC director general, said at the signing ceremony in Dar es Salaam yesterday that building apartments will increase the state entity’s asset value from 59bn/- to 271bn/-.

 

Sorting out the more suitable companies started after Prime Minister Kassim Majaliwa launched the partnership initiative in September last year, with the constructions of the first three apartments starting February, he stated.

 

Others will follow in sequence as building permits are issued, he said, affirming that the project involves 16 apartment projects in Kariakoo, one such project in Upanga, two projects in Mwanza city and a similar project in Iringa.

 

Current tenants have been issued with notices informing them of redeveloping the housing units and they cooperated well with management, he said elaborated, underlining that upon completion, the number of tenants will rise from 190 to 2,011 while shop frames will increase from 118 to upwards of 500 in the project areas as a whole.

 

Residential units will jump from 72 to 253 where the projects are slated for completion within three years, with varying completion time depending on the project, he further noted.

 

Jerry Silaa, the Lands, Housing and Human Settlements minister, called on investors to utilise the partnership opportunity in projects initiated by NHC

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The partnership in the construction sector resonates with the government's vision of ensuring the private sector participates fully in elevating the country's economy, urging the prospective partners in the construction of new apartments to ensure the projects comply with value for money and quality levels in line with the contractual agreements.

 

The NHC management needs to supervise the projects to ensure all projects are completed on time and meet the quality criteria, he stated, asking the corporation to repossess projects given to contractors under partnership but remain stalled, in Arusha, Morogoro and Dar es Salaam

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Maulid Kheri, the JR Real Estate Co, managing director, said that the demand for housing is rising by about 200,000 units a year, thus raising the current housing deficit to three million units.

 

“There is a huge increase in the purchase of apartments in Dar es Salaam. People are spending as much as $250,000 to buy a three-bedroom apartment and then rent it out,” he added.

 

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