NHC’s 15bn/- Luguruni Satellite City project relocates to Dodoma

02Dec 2016
Francis Kajubi
The Guardian
NHC’s 15bn/- Luguruni Satellite City project relocates to Dodoma

A mega satellite city project worth 15.47bn/- planed for Luguruni in the outskirts of Dar es Salaam has been shelved and instead will be implemented in Dodoma where President John Magufuli’s government will be based by 2020.

Dodoma Airport undergoing major repairs to accommodate larger aircraft as government shifts capital to the central region town.

National Housing Corporation’s Sales Manager, Erasto Chilambo told Property Watch that the state real estate developer had planned to build 300 houses for residential and commercial purposes at Luguruni while another 300 would have been built next fiscal year.

"This project has been suspended indefinitely after the government announced that it is moving to Dodoma by 2020. As main state developers we have to comply and implement projects in line with government thinking which is why we are now focusing on Dodoma,” Chilambo said.

He explained that instead of Luguruni Satellite City the 300 houses will now be built at Iyumbu in Dodoma where senior government officials will be based.

“NHC will not implement a new project in Dar es Salaam in recent days, our focus is now the designated capital,” he stressed echoing words announced by NHC Director General, Nehemiah Mchechu earlier.

He said the 300 houses which will be built in Dodoma will be sold under existing new arrangement known as Tenant Purchase Scheme which aims to enable people buy homes monthly instalments for a period of up to ten years.

Luguruni was a 156.53 acres of land in the outskirts of the commercial capital which was meant to offload congestion from the central business district.

Immediately after President Magufuli announced his intention to shift to Dodoma by 2020, NHC Director General, Nehemiah Mchechu said the corporation acquired 236 acres of land at Iyumbu area to construct residential and commercial buildings which will accommodate government officials and commercial investors.

"In the first phase, we plan to build between 300 and 500 houses in the next twelve months. Apart from Iyumba we also have plots in Chamwino, Bahi and Chemba," Mchechu told a news conference in Dar es Salaam saying budget for the project will peak 60bn/- to be raised from various sources.

He said some 15bn/- will be raised from the sale of 97 units at Medeli Housing Estate in Dodoma while an additional 30bn/- will come from its satellite centres across the country including Safari City in Arusha and Kawe in Dar es Salaam.

"We have a total of 153 units at Medeli, out of which 97 are leased while the rest were sold out. Tenants occupying the 97 units will be given first priority in the sale but if they fail the houses will be sold to other Tanzanians," the DG noted.

The NHC as well seeks to raise 15bn/- in outstanding rent fee by tenants in Dar es Salaam, while the funds will be channelled to the housing projects in Dodoma, he explained.

Prime Minister, Kassim Majaliwa has already relocated to Dodoma and has ordered all cabinet ministers to relocate by February next year. President Magufuli will likely relocate before seeking re-election in 2020. (Chilambo’s full interview is on page 24)

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