The Government will on December 10, hand over the land on which Naguru and Nakawa housing estates stood to the contractor for redevelopment into a satellite city.
The acting permanent secretary in the ministry of Local Government, Patrick Mutabwire, said the contractor is expected to make the developments in 10 years.
M/s OPec Prime Properties was contracted by the Government in 2007 to redevelop the estates into a satellite city.
The construction would involve putting up modern public infrastructure, including roads, water supply, sewerage system and electricity.
Mutabwire said the 1,747 apartments of the bonafide tenants are expected to be completed in four years.
"We have not made changes in the agreement and it is a safe agreement that caters for the concerns of the bona fide tenants and those of the Government," he said.
He declined to divulge details of the project, but said they would be availed to the public during the handover ceremony on December 10.
"I do not have all the details, but they are contained in the master plan of the project. We shall, however, preserve Naguru Infants Primary School," Mutabwire added.
The school, with over 800 pupils, is privately owned and was established in the 1970s.
He said other public facilities such as the Nakawa division headquarters and St. Peter's Church, Naguru would also not be affected by the project.
Construction was expected to have started in July this year after the eviction of the tenants from the dilapidated buildings in the two estates.
Mutabwire said the project delayed because the Government wanted to clear a few issues and make sure it got a good deal.
He said they held an inter-ministerial meeting last week during which details of how the project will start and roll out were drawn.
M/S Opec Prime Properties is a partner of Comer Homes Group of the United Kingdom. Comer Homes is estimated to have assets worth over sh4,100b.
According to the agreement, the contractor will build apartments for the bona fide tenants, executive apartments, commercial blocks and institutional facilities such as schools, hospitals and places of worship.
The tenants will buy them at a subsidised price and the other structures will also be for sale.