8 November 2009
The Federal Housing Authority (FHA) has signed an agreement with a private firm worth N26 billion, comprising N22 billion as cost of constructing houses and N4 billion for infrastructure development, to build 932 new housing units in Abuja, aimed at tackling the housing crisis in the federal capital territory.
The project which is to be sited at the Apo district of the FCT and completed within three years, is being executed under a partnership deal between FHA and ENL Consortium Limited, who double as the developer.
Under the agreement, ENL will provide funds for the development and completion of the project comprising various house types, while the FHA would approve all designs, technical drawings, layout plans and any modification to be carried out.
Managing Director, FHA, Mr. Terver Gemade, signed the agreement on behalf of the authority, while the Chairman/Chief Executive of ENL Consortium Limited, Mr. Adesuyi Haarstrup signed on behalf of his company.
Gemade noted that the agreement was signed as part of the authority's efforts to fulfill the presidential directive to his management team to deliver affordable housing to Nigerians. He said that the proposed project also marked a major step in the efforts to meet the target of 100,000 new houses by the Year 2013 set by the new Management of the Authority when it assumed office in May this year.
The FHA boss, while assuring the developer that the FHA would faithfully discharge its obligations under the agreement, said that other partnership agreements were in the works and that an Iranian company under a similar pact being negotiated with the Authority would deliver no fewer than 30,000 houses.
Head, Corporate Communications, FHA, Mr. Tunde Ipinmisho, remarked in a statement that the developer was also to provide a performance bond from a financial institution covering five per cent of the project completion cost confirming the developer's ability to finance the project.
In addition, ENL would provide a performance bond from an insurance company guaranteeing that the project would be completed within the specified period. Also, an escrow account is to be opened and operated by the two parties where all funds from sales proceeds would be deposited, while the two parties are also to set up a post development management structure for facilities management of the estate.
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