Chinese construction firms have lined up for the multi-billion shilling contract to build 1, 500 low-cost homes on Nairobi’s Park Road.
The state department of housing and urban development intends to build the one, two and three-bedroom houses to provide affordable housing for workers and top Chinese firms including Sinohydro Limited and China Road and Bridge Corporation are among the top contenders to be selected for the job.
Located on the outskirts of the CBD, the development will consist of 105 one-bedroom units, 540 two-bedroom units and 855-three bedroom units built on a 7.9 acre parcel of land in Nairobi’s in Ngara area. The project should be complete within the next two years.
The project will adopt a design, build and finance model. Upon completion of the first 400 units, the developer will be paid 20 per cent of the contact value, 40 per cent upon project completion and 40 per cent after the defect liability period.
The government is cushioning the buyers from high cost of houses by providing the developers with free land as well as the installation of required infrastructure. Developers are only expected to take care of constructing the houses to standard.
The ministry of lands has set aside about 7,000 acres of public land for the construction of up to a million low-cost houses in major towns including Kisumu, Nairobi and Mombasa by 2022. The entire project is estimated to cost KSh. 2.3 trillion.
Source: Business Daily