Home World News Inside Africa Mwalimu Nyerere Foundation, Chinese on 50bn/- deal

Mwalimu Nyerere Foundation, Chinese on 50bn/- deal


Foundation’s Executive Director, Joseph Butiku

Construction work of 20 and 14-storey twin towers commercial block, which is a joint venture between Mwalimu Nyerere Foundation and China Railway Jianchang Engineering Company will start anytime this year.

The Foundation’s Executive Director, Joseph Butiku, told ‘Daily News’ in Dar es Salaam on Tuesday that preparations for the 32 million US dollars (over 50bn/-) complex that will incorporate office space, commercial and world class conference halls with car park are completed.

“We have finished all the paperwork in terms of title deed for the plot, design work and some adjustments done to the plot because of rapid bus transport project,” Mr Butiku said. He said Dar es Salaam Rapid Transit Project contributed to delaying the plot because part of the plot on which to erect the complex was also allocated to the Rapid Bus project.

The project was due to start in 2010 at its original site on the junction of Shaaban Robert and Sokoine drive but was denied a building permit by Dar es Salaam City Council on grounds that erection of high-rise buildings is restricted to six storeys only for security reasons.

The original site is hardly 1000 metres from State House which forced DCC to advise the Foundation to erect a not more than six storeys block or accept an alternative location. The new location which is a rectangular plot enclosed by Mansfield and Bridge streets on one side with Morogoro Road and Sokoine Drive intersection on the other, is much bigger than the 5,933 square metres original plot. The new plot has an area of 6,558 square metres.

“We are happy because the area is much bigger now which means that we have more space to invest on,” Butiku noted. The DCC had earlier planned to place a DART main bus terminal at the site. Established in mid 1990s to nurture the country’s Founding President, Mwalimu Julius Kambarage Nyerere’s ideals, the Foundation mulled the idea of constructing the high rise block to get its permanent residence but also raise income to finance its activities.

The CRJC obtained a 10 million US dollars (15.9bn/-) from International Finance Corporation in February 2010 to help finance the project which it will operate for 20 years before MNF takes over under a build, operate and transfer deal. Other project financiers are East African Development Bank and Shelter Afrique.

“We have both the money and contractor in hand and the paperwork is also done, so we should start work soon,” the MNF Executive Director pointed out. The MNF and CRJE signed an agreement in 2008 to jointly invest in the project which will also involve the Chinese company allocating equity of 50 per cent to substantiate bank loans.

“CRJE will be the developer and main contractor for the project. Project implementation is expected to take up to 30 months. Once constructed, the project will be managed and operated by Knight Frank, an international property services company,” IFC said in a statement soon after approving its loan.

The IFC, which is a commercial lending arm of World Bank Group, said in the statement that the loan was its first direct investment with a Chinese company operating in Sub-Saharan Africa to support the continent’s sustainable development.

By FINNIGAN WA SIMBEYE, Tanzania Daily News

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News



Please enter your comment!
Please enter your name here

error: Content is protected !!
WP Radio
WP Radio
Exit mobile version