NHC projects to face further scrutiny

Dar es Salaam. The stalling of multi-billion projects is among top issues that will be discussed by the National Housing Corporation (NHC) new board when it meets next month, The Citizen has learnt.

NHC’s official, who asked for anonymity, said the board which was appointed at the end of May this year will meet in July to make plans for the state housing agency.

“Now that we have a board, we are hopeful, things will start moving,” said the official.

The minister for Land, Housing and Human Settlements Development, Mr William Lukuvi told The Citizen in Dodoma on Tuesday that not even a single of NHC’s projects will be halted.

“They (board members) were here for a retreat. They spent several days here….I understand that not even a single NHC project will be halted,” he said.

The Minister said it was the board’s authority to come up with ways of ensuring that the projects were sustained.

Last year, Mr Lukuvi dissolved the then NHC board and suspended the contract of its director general Nehemia Mchechu after it emerged that the two were not in good terms.

The decision came just days after President John Magufuli publicly warned the NHC management of poor financial management and discordant among the board members.

The changes have put a number NHC mega projects on hold and have exposed the corporation to the risk of incurring damages of up to Sh99 billion to contractors.

Early this year, the Controller and Auditor General (CAG), Mussa Assad, warned in his latest report of a financial risk following the suspension of the projects.

“The board must sit and design the way out. It may decide to borrow...bring us the proposal so long as the utmost goal is to make sure that the ongoing projects are completed in line with the contractual obligations between NHC and the contractors,” said the minister.

He spoke to The Citizen shortly after he met heads of 197 public and private institutions and companies as well as owners of industrial and commercial plots with accumulated land rents arrears totaling Sh200 billion.

The new NHC board chair, Ms Sophia Kongela, said everything will be made official and public when they meet.

There have been fears of rising costs due to the stall of the projects due to various market factors which will put the NHC at financial risk of return on investment and payback period.

Reports show that the several NHC multi billion housing projects have stopped since 2017 due to lack of funding.

NHC had sought approval to borrow up to over Sh300 billion but according to the CAG report the Ministry of Finance is yet to endorse.

One mega project is on plot number 711 Kawe Ward, Kinondoni District in Dar es Salaam in which the NHC contracted Estim Construction Company in 2014 for design and construction work at Sh105 billion. The project had already cost Sh26.3 billion by the time it stalled.

The other is the Golden Premier Residences on plot number 711-2 at Kawe Beach. NHC had contracted CRJE (EA) in 2013 for proposed design and construction at Sh64.37 billion. However, the construction price was increased to Sh71.17 billion in 2014.