STATEMENT

TO

PARLIAMENT

ON

REPORTED DEMARCATION AND ALLOCATION OF PLOTS OF LAND

TO VARIOUS PRIVATE INDIVIDUALS AT THE FORMER -

NAGURU HOUSING ESTATE

BY

BETI KAMYA TURWOMWE

MINISTER OF IANDS, HOUSING & URBAN DEVELOPMENT

1 2OTH APRIL, 202I.

Statement to Parliament on Reported Demarcation and Allocation of Plots of land to various Private Individuals at the former Nakawa-Naguru Housing Estate purportedly by the Minister of Lands, Housing & Urban Development

1. Right Hon. Speaker, at the 28th Sitting of the 3d Meeting of the 5ft Session of the 10th Parliament of held on Thursday 8ft April, 2021., in your communication, you informed Parliament of complaints you had received regarding reported demarcations and allocation of plots of lands to various private individuals, in the former Nakawa- Naguru Housing Estate, contrary to earlier undertakings by Government that previous occupants of the estate would be granted priority in allocation of housing units that were initially planned for the land. 2. Right Hon. Speaker, you directed that I clarify the matter on Thursday 15th APril 2021. Rt. Hon. Speaker and Hon. Members, I stand here to make a statement on the reported complaints regarding demarcations and allocations of plots of land to various individuals in the former Nakawa-Naguru Housing Estate.

3. Rt. Hon Speaker and Hon. Members, you will recall on Wednesd ay 17th March 2020 I made a statement to this august House and I informed this Parliament the decisions of Government to repossess the Nakawa- Naguru land. 4. Rt. Hon. Speaker & Colleagues, in my said statement to this August House, I cited the following milestones in the Public Private Partnership (PPP) Agreement between the Government of Uganda (GOU) and OpecPrime Properties Limited.

(i) On 15th October 2007, a PPP agreement was signed between the GOU and M/S Opec Prime Properties Ltd and OpecPrime Properties (U) Ltd to re-develop Nakawa and Naguru Estates into a satellite city comprising commercial buildings, offices and residential buildings, among which would be 1741low cost condominiums.

2 (ii) A Memorandum of Understanding (MoU) was also signed between the GOU and then sitting tenants of the Naguru Nakawa Housing Estate granting them first right of purchase of the low-cost condominiums once they were completed by the developer in four years' time.

(iii) Unfortunately the project failed to take of as planned due to challenges of getting vacant possession of the land by the developer occasioned by court injunctions, investigations by the Inspector General of Government (IGG) and political activism that encouraged the then sitting tenants to resist the development. All this cost the project six years until L4th October 2013 when the President finally handed over the project to the developer. I imagine by that time the main funders, the Comer Brothers, known to be the biggest Real Estate Developers in Northern Ireland had their confidence in doing business in Uganda eroded, which is perhaps why the project did not take off as expected.

(i") In 2018 Government finally decided to terminate the PPP Agreement with Opec Prime Properties Ltd on grounds of several breaches including failure to construct the 1741low cost condominiums promised to the former sitting tenants of Naguru-Nakawa Housing Estate. (") Opec Prime Properties sued GOU seeking orders to stop termination of the contract, but fortunately this was after GOU had terminated the contract and repossessed the premises.

("i) Upon cancellation of the PPP Agreement Cabinet decided the following:- (u) Since Naguru-Nakawa Housing Estate was Government land with dilapidated houses which Government had decided to upgrade with new, low cost condominiums, Government would offer former sitting tenants an ex-gratia amounting to UGX:17,797,079= (Seventeen million, seven hundred ninety seven thousand, seventy nine) per person. This is after the Chief Government Valuer had advised that a low cost, 2 bedroom house would cost about UGX = 72,000,000 = (Seventy two million) to construct in the outskirts of City including purchase of land. Government decided to offer the former sitting tenants an ex- gratia amounting to about 25% of the value of a new 2 bedroom house.

3 The verified list of former sitting tenants amounts to 1971. Cabinet has instructed Ministry of Finance, Planning and Economic Development to avail that money to the Office of the President for onward transmission to former sitting tenants. (b) Give Certificate of Title to institutions that were already there, like KCCA Offices, St Peter's Church, Nakawa Infant School, National Library of Uganda and Wholesellers who had acquired land in Nakawa but was requested to swap it for land in Naguru in order to make way for Aga Khan Medical Teaihing Hospital.

(.) Allocate land with titles to 3.d Parties to the PPP Agreement who had development on the land pursuant to a section in the PPP Agreement that provided for Joint Venture with Opec Prime Properties Limited. (d) H.E. the President directed that land be allocated to the following:-

- Internal Medicine of Virginia 15 acres - - 10 acres - Mediheal Group of Hospitals - 7 acres (") Cabinet created an Inter-Ministerial Committee consisting of-

Hon. Beti Kamya Turwomwe Chairperson Hon. Beti Amongi Ongom Member Hon. Esther Mbayo Member Hon. Matia Kasaija Member Hon. William Byaruhanga Member Hon. E.g. Monica Azuba Ntege Member The committee which was later enhanced by the Office of the Prime Minister represented by 1't Deputy Prime Minister, Gen Moses Ali was mandated to deal with 3'd Party interests that had development of Naguru land. (f) Rt. Hon Speaker and Hon. Members, Government decisions regarding the Nakawa-Naguru land are being implemented by the Sub Committee of Cabinet, the Ministry of Lands, Housing and Urban Developmen! and . t (g) Rt. Hon. Speaker and Hon. Members, It should be noted that the land in Nakawa-Naguru belongs to Government. The promise that Government had given the former sitting tenants in MOUs signed was purchase of the units after construction. When Opecprime failed to build the units, the PPP agreement collapsed and along with it the Memorandum of Understanding with former sitting tenants. Government therefore decided to offer an ex gratia to the former sitting tenants. The amount was determined and approved by Cabinet.

(h) Rt. Hon. Speaker and Hon. Members, the ex gratia is not compensation but rather the forbearance that Goaernment had promised- first right of purchase at subsidised price. The same was communicated to the Association of the former tenants and Office of the President is handling issues of the ex-gratia to the former sitting tenants.

(i) Rt. Hon. Speaker & Colleagues the reported demarcation and allocation of plots of land in former Naguru Estate will be in line with Presidential directives, Cabinet decisions, the inter-ministerial recommendations as well as Uganda Land Commission's mandate to allocate land to serious developers, carefully vetted under strict criteria. The developments must be compatible with the ultra-modern Satellite City envisaged (,) Rt. Hon Speaker and Hon. Members, the Ministry of Lands, Housing and Urban Development and KCCA developed a master plan for the remaining land that shall guide subsequent allocation to serious developers who are vetted under strict criteria to avoid the scenario of the impugned developers.

Rt. Hon. Speaker, I beg to lay on table this signed copy.

Beti Kamya Turwomwe MINISTER OF LANDS, HOUSING AND URBAN DEVELOPMENT 20th APRIL,2021.

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