By Yinka  Kolawole
Some investors, both foreign and local, have indicated interest in the land swap scheme initiative of the Federal Capital Territory Administration (FCTA ) to accelerate delivery of affordable housing in FCT.

The land swap policy is a development initiative recently introduced by the FCT administration under which the administration would give land to investors in exchange for infrastructural development.

FCT Minister Bala Mohammed, disclosed this in a presentation at the ongoing Ministerial Platform in Abuja, to commemorate first year anniversary of the Jonathan administration. He said all developers or investors participating in the land swap model are to deliver business plans showing their technical capacity, financial capability and managerial competence.

In addition, he said each investor is to pay a commitment fee of N350 million on presentation of business plan to fund physical plan, preliminary design, detailed engineering design, survey plan, feasibility studies and preparation of agreement. They are also to provide detailed design together with infrastructure in the district within a maximum period of 48 months under strict compliance with FCDA specifications and standards for district infrastructure works.

According to the minister, Dangote Group Plc and Edimo Gruppo of Italy top the list of investors that have expressed interest in the scheme. Others are Adkan Services Nigeria Limited; Ridley Group; Afri-International Projects & Consulting Limited; China Railway Construction Company; Hongye Group; Rosehill Group; Nimec Investment Company limited; Balmus International Limited; First Aries Crude Oil Production; System Properties Development Consortium Limited and Gilmor Engineering Nigeria Limited.

Mohammed stressed that in the event of any breach of the special contract, the minister has the power to revoke such grant, adding that the developer shall not commence real property development or sale of any land in the district until it achieves at least 35 per cent of functional infrastructure works.

According to him, the funding structure of the project must include an acceptable ratio as follows: debt (50 per cent), equity (15 per cent) and off-plan sales (35 per cent). He added that while the developer is to provide an acceptable performance bond from a reputable bank or insurance company, the?FCTA is to retain at least 40 per cent of buildable plots in the district for direct allocation to people.