The first site is in Uganda, two hour’s drive from Capital Kampala and airport and administrative city Entebbe. There is a huge demand for affordable housing and the city government shall support to start a housing project there as soon as possible.
Uganda has a stable government, and this project has Parliamentary Speaker and Minister for Urban Development support, i.e. two key people in the federal government.
The current status is that a contract has been signed by the Main contractor (dataset Singapore) and the city for design and development of city Masterplan, Land management system for income generation and
affordable housing site design.
The proposed housing model in Mbarara municipality shall constitute a total of 2000 units. 50% of the housing development shall consist of affordable housing, 35% for mid-range housing and
15% for luxury housing. The development of the housing project shall be done in two different
sites, one for affordable housing and another for mid-range and luxury housing. Appropriate site
locations shall be identified, and the required lands shall be provided by the city council.
The estimated total cost of the project is US $73.25 Million, which includes Master Planning, Urban Design, Property tax system and License fee system. The detailed Cost and Revenue components are listed in the table below.
The master plan and Land Management System
Land Management system consists of Property tax and license fee system which has the potential of 5M revenue collection every year, but currently, the city only collects 1.5M. Once Land management system is implemented, revenue collection shall reach 5M in the span of 5 years progressively.
A master plan shall simulate the economy and city shall generate revenue from Land sales,
licensing and other fees.
Housing project Cash Flow
From the feasibility study, it is understood that the project would break even in the 21st month.
During the first 20 months, the average deficit is close to USD 6.5 million, while the peak deficit is
expected in the 8th, 9th and 10th month of the project with close to USD 10 million each month.
Based on the expected return, the project profit shall be 27% before taxes.