KAMPALA — Nakawa-Naguru housing project trouble as Nigerian investor demands UGX. 400m in court battle
KAMPALA – A court battle in which a Nigerian investor Ethelbert Enegbu says he was invited to pay UGX. 360 million for 12 housing units at the Nakawa-Naguru housing project that have since not been delivered is raging, with the investor seeking his money back.
Mr Enegbu now wants a refund of his money he paid through one of the promoters of the project.
In the suit before High Court, Mr Enegbu who is represented by Muwema & Co. Advocates, wants damages, costs of the case and interest on his money paid in 2011.
The promoters of the project are represented by Omongole Advocates and have in a written statement of defence, raised preliminary objections saying they were only acting as agents of Opec PrimeProperties and therefore are being sued wrongly.
The government, through the Ministry of Local Government, on October 15, 2007 signed a public-private partnership (PPP) agreement with OpecPrime Properties Ltd for redevelopment of the housing project.
Under the project, 1,747 low cost flats for former tenants were to be developed alongside bungalows, commercial buildings, a five-star hotel, a referral hospital, schools, houses of worship and recreational facilities.
The developer, supposedly a special purpose vehicle of the UK based Comer Group was also expected to deliver the project within at least four years from the date of signing.
Six years later, On October 14, 2013, President Museveni laid the foundation stone for construction of the Naguru-Nakawa satellite city estate, dubbed “New Kampala” but the Daily Monitor reported on April 3, 2019 that a Cabinet meeting that sat on April 1, 2019 had cancelled the project agreement and repossessed the land after Opec Prime Properties failed to develop the planned satellite city.