PPF TO MAKE A BIG FACELIFT OF BUKOBA TOWN

Dr. Anatory Amani, the Lord Mayor of Bukoba (center), Mr. William Erio, PPF-Director General, (second left), Mr. Martin Mmari, PPF Director of Finance, (second right), Mr. Celestine Some, PPF Ag. Director of Investments (far left) and Mr. Godfrey Grayson PPF Properties Manager (far right).

On Wednesday, the 1st February 2012 will mark an important history for Bukoba and its people. It is a day to remember as the Lord Mayor of Bukoba Municipal Council Dr. Anatory Amani, held an important meeting with the Director General of PPF Mr. William Erio and his management team. 

PPF Director paid his personal gratitude to the Lord Mayor for his visit and the honor the Bukoba Municipal Council has given to PPF for considering it as its potential strategic investor and partner. Mr. Erio took the opportunity to inform the Mayor about his historical background which has roots in Bukoba town where he attended his schooling from primary at Rumuli Primary School, Bukoba Secondary School then to Ihungo High School. The Director General proved vast knowledge of Bukoba.

This was a follow up meeting to the earlier one between Mr. Meshack Bandawe, PPF Zonal Manager (Lake Zone) and the Lord Mayor of Bukoba together with the Municipal Director, which was held in Bukoba on the 19th January 2012. The notes of the meeting were submitted to the Director General. 

The PPF Director General expressed the interest and willingness of PPF to invest in developing housing estates in Bukoba. He expressed the fact that Bukoba was not among regions that were in the focus but the fact that the council has land and seem to be ready to support investments it would be naturally wise to shift priorities and start with Bukoba.

Bukoba Municipal Council has completed the project of surveying 5000 plots in different location that will be suitable to develop different schemes to cater for different markets. The council is in the final stages of paying compensations. Gratitude is paid to Unit Trust of Tanzania (UTT) who provided the much necessary funding. Therefore, plots are unencumbered and will be sold through a transparent process on first come first served basis.

The Lord Mayor clarified that the plots will be serviced with all necessary infrastructures.

Presently the council is paving access roads to the surveyed plots. It is envisaged that these roads will be developed to all weather level passable all year round.

The council will make sure that the plots are served with reliable portable water supply.

With electricity, it was noted with emphasis that Bukoba is connected to reliable power supply under an international power purchase agreement from Uganda, therefore very reliable. More importantly, the present imported power capacity is underutilized; therefore the envisaged project /development will be of much interest and benefit to TANESCO and the government as it will expand the utilization capacity. It is therefore expected that TANESCO will support the project.

The two parties discussed on the kind of housing schemes to be developed. Affordable/low cost housing schemes will be suitable for lower cadres of civil servants, small and medium entrepreneurs as well as farmers and fishermen (formalized). The council has more than 3000 plots in Buhembe, Nyanga and other areas that will be suitable for such schemes.

It was noted that, given the historical problem of plots un-availability in Bukoba, it is a fact; most economically able people from Bukoba don’t own properties within Bukoba municipality. Therefore, it is obvious even the number of new plots will be a drop in the ocean. On the other hand the promising economic environment especially the opening of universities in and around Bukoba municipality will provide economic value to properties hence an incentive for people to own descent properties to meet that obvious/ potential demand.

The council has specifically surveyed over 1500plots with sizes ranging from medium to low density in Mugeza II. Those plots on the cliff have a wonderful view of Lake Victoria, therefore intended to capture this potential market. 

Following the government decision to re-locate the regional headquarters to Kahororo area on the same plateau, it is obvious the new posh town (high end market) will be developed on these neighboring Mugeza II plots. Therefore the two parties agreed on the idea of pre-selling houses that will be developed in that area. 

For the pre-selling idea to work, PPF borrowing from its experience suggested to develop at least three model houses from which would be buyers will make their choices from and suggest their own requirements to customize the properties to their own taste. 

Details of the arrangement will have to be discussed in more details at some stage of developing the partnership. Otherwise, this is an obvious opportunity to the people of Bukoba, which will also give a big facelift to the town after over thirty (30) years of stagnation.

As the way forward, the two parties agreed as follows:

Bukoba Municipal Council needs to expedite the finalization of processes to establish the plots acquisition procedures and the prices for various plot sizes for different locations and furnish such information to PPF at least before the end of February, 2012;

PPF will dispatch its team from the Investments Department headed by the Director of Investments to Bukoba by mid-next week on the 8th February 2012 to assess the potential and based on the team’s findings, PPF will make the decision; and The PPF Director General will arrange to travel to Bukoba any time towards the end of this February of early March 2012 depending to other travel arrangements to Mwanza of which dates are yet to be determined. Once dates have been firmed up, will be communicated to the Lord Mayor.