By Favour Nnabugwu

A total of fourteen investors are vying  for the Federal capital territory’s land swap scheme  geared towards  the provision of affordable housing in the territory. Top on the list is Nigeria’s Dangote Group Plc and Edimo Gruppo of Italy.

The other investors 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.

FCT Minister, Senator Bala Mohammed  who disclosed this in Abuja, explained that each investor would pay a commitment fee N350 million on presentation of business plan to fund physical plan, preliminary design, detailed engineering design, survey plan, feasibility studies, and preparation of agreement.

He also announced that all developers or investors participating in the land swap model of the FCT Administration are to deliver business plans showing their technical capacity, financial capability and managerial competence.

In addition to that, Senator Bala said that each investor would 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.

The Minister stressed that in the event that there is any breach of the special contract, the Minister has the power to revoke such grant.

According to him, “The developer shall not commence real property development or sale of any land in the district until it achieves at least 35 percent of functional infrastructure works”.

He clarified that the funding structure of the project must include an acceptable ratio of  Debt 50 percent, Equity 15 percent percent and Off-plan sales 35 percent.

He added that developers are to provide an acceptable performance bond each from a reputable bank or insurance company as FCTA would retain at least 40 percent  of buildable plots in the district for direct allocation to people.