The Office of the Prime Minister pays Shs Shs902m in rent per year. PHOTO BY Abubaker Lubowa.
By Dorothy Nakaweesi
In Summary
...It is not like you want to build something and
finish it there and then. Other planned projects are on course like the
Auditor General’s offices,’
Mr Keith Muhakanizi, Permanent Secretary in the Ministry of Finance
Mr Keith Muhakanizi, Permanent Secretary in the Ministry of Finance
Kampala.
Red tape is said to be stifling the development of the National Social Security Fund’s major real estate projects.
NSSF managing director Richard Byarugaba has said the process (real estate development) tends to be extended because it involves a lot of external parties like the Procurement and Disposal of Assets Authority (PPDA), Ministry of Finance, the Solicitor General and now the Chief Government Valuer.
NSSF managing director Richard Byarugaba has said the process (real estate development) tends to be extended because it involves a lot of external parties like the Procurement and Disposal of Assets Authority (PPDA), Ministry of Finance, the Solicitor General and now the Chief Government Valuer.
“Because these offices are outside of our [NSSF] own control, the process of investing and getting the decision to commence any investment in the real estate tend to be drawn-out,” he added.
This may cause money loss to the Fund and the opportunity cost in this investment might have circulated.
Mr Byarugaba said: “By the time we produced the Pension Towers, the market for real estate in commercial and initial estimates used in trying to arrive at the cost benefit might have exceeded and the project might become unprofitable.”
NSSF’s investment policy provides for clear guidelines on investments.
Mr Byarugaba said: “By the time we produced the Pension Towers, the market for real estate in commercial and initial estimates used in trying to arrive at the cost benefit might have exceeded and the project might become unprofitable.”
NSSF’s investment policy provides for clear guidelines on investments.
The board and management are mandated by the NSSF Act to invest the money on behalf of the NSSF members.
Reacting to Mr Byarugaba’s outcry, the Permanent Secretary in the Ministry of Finance, Mr Keith Muhakanizi, said NSSF’s projects are not the only ones experiencing delays.
“If you plan properly there will be no delay. It is not like you want to build something and finish it there and then. Other planned projects are on course; like the Auditor General’s offices,” Mr Muhakanizi said.
Reacting to Mr Byarugaba’s outcry, the Permanent Secretary in the Ministry of Finance, Mr Keith Muhakanizi, said NSSF’s projects are not the only ones experiencing delays.
“If you plan properly there will be no delay. It is not like you want to build something and finish it there and then. Other planned projects are on course; like the Auditor General’s offices,” Mr Muhakanizi said.
The gigantic building will provide 59,413 square metres of office space in three towers; one with 25 floors, plus two towers of eight floors each. It will also have four basements which will take up to 500 cars.
NSSF has three major real estate’s projects which are still in their planning stages, for instance, Pension Towers whose construction started in April 2008 by Roko Construction Limited and its completion time is August 2015.
Mr Byarugaba said the total estimated cost of Pension Towers is Shs260 billion. The Fund has spent Shs42.5 billion on the construction of the first phase.
With the Temangalo housing project, NSSF intends to construct 5,000 housing units, a process which should have started last year.
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