The commitment of the Federal Government to a rapid infrastructural development and delivery of affordable housing in the Federal Capital Territory (FCT) has received an added boost, with the pre-qualification of 13 companies in the novel Land Swap initiative of FCT Administration (FCTA).
Documents obtained by THISDAY showed that pursuant to the requirement of the Land Swap Framework and preparatory to commencement of discussion with the Technical Committee, the successful 13 companies are expected to within 30 days of receipt of their letters open a Project Account with a reputable bank with the sum of N350 million commitment funds.
The 13 companies that have received government’s nod in the land swap project are Dangote Group (promoted by Aliko Dangote), Gilmor Engineering Nigeria Ltd., (already involved in infrastructure development in Guzape district), China Railway Construction Company Limited (CRCC) (backed by the Chinese), First Aries Crude Oil Limited, System Properties Development Consortium Limited and Adkan Services Limited.
Others are Edimo Group, Ridley Group, Afri-International Projects & Consulting Limited, Hongye Group, Rosehill Group, Nimec Investment Company Limited and Balmus International Limited.
The land swap policy is a development initiative recently introduced by the Senator Bala Mohammed-led FCTA under which it would give land to investors in exchange for infrastructural development.
Mohammed had at a forum to commemorate the first year anniversary of the Jonathan administration on May, revealed that all developers or investors participating in the land swap model are to deliver business plans showing their technical capacity, financial capability and managerial competence.
In addition, the Minister disclosed that each investor would pay a commitment fee of N350 million on presentation of business plan to fund physical plan, preliminary design, detailed engineering design, survey plan, feasibility studies and preparation of agreement.
He said that successful companies are also to provide detailed design together with infrastructure in the district within a maximum period of 48 months under strict compliance with FCDA specifications and standards for district infrastructure works.
“Investors, both foreign and local, had indicated interest in the land swap scheme initiative of the FCTA to accelerate delivery of affordable housing in FCT”, he said.
Accordingly, a letter dated September 28, 2012 and signed by the Coordinator, Abuja Infrastructure Investment Centre (AIIC), Mr. Faruk Sani, also directed the pre-qualified companies to “give specific and express instructions to the bank to monitor, inspect and take records of the Account at any time without any recourse to the Project Account holders.”
The letter indicated that Technical Committee has been constituted to closely work with representatives of the firms to produce the following: survey plan, topography & contour maps; detailed site land use and layout; engineering design; demographic reports for resettlement & compensation and any other technical task critical to commencement of work.
The letter also directed the firms to forward to the AIIC the list of their representatives for the technical discussion after opening a project account with N350 million and mandating the banks to give specific and express instructions for the AIIC to monitor, inspect and take records of the account at any time without any recourse to the account holders.
It further stated that the Technical Committee of AIIC will only commence work at the expiration of the 30 days grace at the end of October 2012.