Developers of the stalled Pinnacle Towers have resurrected hopes of the project’s completion after resuming reinforcement works on the site which has been dormant since 2018 following a mix of adverse occurrences.
In the latest statement, developers of the project said that plans have been made to reinforce works at the construction site, a move which has been seen by some as a reaction to warnibgs issued to the developer by the National Construction Authority (NCA).
NCA had given the developer 14 days to begin restoring environmental safety at the site or risk losing it.
“Landowners are planning to contact the National Construction Authority (NCA) to provide details of mitigation works to secure the construction site through reinforcing the perimeter wall and strengthening the surface through a process known as shoring,” the developers said.
Work on the Ksh. 20 billion Pinnacle Towers which is being developed as a joint venture between landowner Jabavu Village Ltd and Indian-based White Lotus Group began in 2017 before stalling in 2018.
The developers said demolitions of properties in parts of Nairobi from 2018 greatly impacted on international financing, leading to lowering of confidence in the Kenyan building and construction sector. As a result, the foreign investors abandoned the project in 2019.
According to the developers, they are currently working on securing finance and redesign of the project. It was not clear what the redesign would entail.
The property developers said efforts to secure alternative investors were hampered by the Covid-19 pandemic which not only affected banking and finance but also shook the hotel and tourism industry worldwide.
Hass Petroleum (Jabavu Village) and White Lotus Group awarded the work contract to China State Construction Engineering Corporation (CSCEC) in a contract worth around $200mn.
According to unverified sources, the developers had agreed to contribute $50 million with the balance financed by Afreximbank and other Kenyan banks.
The project which was supposed to rise to 300 metres making it the tallest building on the continent on its initial date of completion (2020) may never claim the coveted title anymore unless the redesign supplies an additional 85 metres to top it.
China State Construction Engineering Corporation (CSCEC) has been hired by the Egyptian government since 2017 to deliver a cluster of 20 commercial towers in its new central business district and administrative capital that is under construction.
The tallest of the 20 towers which are already under construction will be Africa’s tallest upon completion in 2022, with a height of 385 metres. The North African country’s new administrative and cultural hub will cost $3bn, mostly financed by Chinese Banks.
The new Egyptian capital is estimated to cover 700 square kilometres in total with residential districts capable of accommodating 7 million people.