Chinese developer caught up in NHC Kawe satellite city project

29Dec 2017
The Guardian Reporter
The Guardian
Chinese developer caught up in NHC Kawe satellite city project

A Chinese state owned developer, China Poly Technologies Inc and Voell Kenya Limited are among companies caught up in Kawe Satellite city project with an investment of U$ 500m made so far.

MPs getting a briefing from NHC engineers when they visited Kawe Satellite City in Dar es Salaam recently. File photo. 

Sources at NHC and Ministry of Lands told Property Watch that while China Poly got the deal in 2014 when former President Jakaya Kikwete visited Beijing on a historic state visit during which several development agreements were signed, the Kenyan based company is one of the mysterious investors.

“One of the people in Kikwete’s delegation was NHC Director General, Nehemia Mchechu who signed several agreements with Chinese companies including China Poly Technologies,” the source said saying initially, NHC and China Poly were supposed to develop Valhalla Masaki project which however has not materialised so far.

The sources said Mchechu’s management then agreed with China Poly to get involved in the gigantic Kawe satellite city project which was already underway. “That is where the company came in.” As for Voell, the sources said it’s unclear how the Kenyan based company got involved. The NHC chief executive is currently suspended to pave way for investigations against abuse of office allegations.

The Kawe satellite city project has several other investors who are developing adjacent plots to NHC as competitors. “That area is huge and prime as such many developers are investing on different plots,” the source said.

During Kikwete’s visit to China, over 30 deals were signed values at over $1.7 billion and included several by NHC covering infrastructure, satellite cities and commercial towers in Dar es Salaam.

The satellite city project on the outskirts of Dar es Salaam would be a self-contained urban zone equipped with water, electricity, roads, banks, schools and hospitals. “The project, as well as a $500 million financial centre that will also be built in Dar es Salaam, are joint projects by the China Railway Jianchang Engineering Company Limited and Tanzania's state-run National Housing Corporation,” State House said in a statement then.

Initially, NHC and China Poly had agreed to develop the U$ 200 million Valhalla project at Masaki in Dar es Salaam while the state developer also signed two deals with China Railway Jianchang Engineering (CRJE) to jointly develop Salama Creek satellite city at Uvumba in Temeke municipality at a cost of U$ 1bn and a Financial Square located at Upanga in Kinondoni municipality worth U$ 500 million.

It was during President Kikwete’s visit that the ambitious U$ 10bn Bagamoyo Port and industrial park projects were signed. Although President Magufuli’s administration has promised to construct the port which will be hardly 100kms from Dar es Salaam, the current focus is expanding and modernising Dar es Salaam Port.




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