A Chinese firm beat Kenyan developers to a multi-billion-shilling contract for the building of Nairobi’s tallest office block. The 39-storey National Social Security Fund (NSSF) owned Hazina Trade Centre will be built by China Jiangxi International. The Chinese firm had disputed award of the contract to Cementers Ltd, a Kenyan real estate developer that initially won the lucrative deal. “This project has previously been dogged by a number of false starts due to attendant legal hurdles, which I am glad have now been overcome,” said Labour Cabinet Secretary Kazungu Kambi on Friday at the start of the extension works on the building, which currently has eight floors. “It is gratifying to note that besides the main contractor, all other project works will be undertaken by a team of Kenyan consultants,” he added. The construction cost will rise by Sh700 million to Sh6.7 billion. Cementers Ltd had won the contract by putting in a bid of Sh6 billion. The contract, however, became hotly contested after it emerged that the lowest bidder, China Wu Yi with a contract price of Sh5.9 billion, had been overlooked. NSSF invited fresh bids in January this year. “I am aware that such projects have previously been marked by controversy and tendency to promote corruption. However, I am sounding a warning today that this will not be a white elephant project under my watch,” said Mr Kambi. The partially-built Hazina Trade Centre currently hosts Nakumatt Lifestyle. NSSF projects that it will be collecting Sh100 million in lease income from the building upon completion in about 18 months. Apart from renting, the Fund is also willing to sell off some of the floor space, which will see it retain its real estate investment below the regulatory maximum of 30 per cent. “We already have tenancy commitments from market leaders such as Nakumatt Holdings. This confirms the viability of this project,” said Mr Kambi.
Posted on: Mon, 15 Jul 2013 05:10:05 +0000
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