The Commission of Inquiry instituted by President Michael Sata to probe among other issues the $98 million dollars deal and the sale of ZAMTEL by the previous government today heard that the National Pension Scheme Authority (NAPSA) expects to raise over 200 million United States (US) Dollars from its 98 million US Dollar investment in the redevelopment of Society House in the next 20 years.
NAPSA Director General Stanley Phiri says the authority remains committed to improving the benefits of pensioners in the country hence the decision to invest in the redevelopment of Society House and Central Arcade.
Mr. Phiri said this in Lusaka today when he appeared before the Commission sitting at the Mulungushi International Conference Center.
He explained that the investment was conceived on a concession basis saying NAPSA would build, operate and transfer Society House to the Zambia National Building Society (ZNBS) after the concession period of 20 years.
He said NAPSA would recover the $98 million dollar investment in 12 years and operate Society House for an additional eight years to raise interest before handing it back to ZNBS.
Mr. Phiri noted that ZNBS who are the owners of Society House would be getting a monthly concession fee of 3.5 percent during the 20 year concession period.
Earlier, ZNBS Managing Director Noriana Muneku told the commission that the concession agreement between NAPSA and ZNBS was to lease out Society House to NAPSA for 20 years during which NAPSA would redevelop the property, manage and collect rentals during the concession period.
Ms. Muneku added that at the end of the concession period NAPSA would hand back the developed assets after ZNBS pays an exit fee which was at the remaining useful economic value of the developed property.
She noted that NAPSA would operate the project assets for the entire concession period in order to recover all the money invested with a profit.
She clarified that there was no loan from NAPSA to ZNBS that would warrant direct funding to ZNBS saying NAPSA was financing the implementation of the project directly to Zambezi Consortium engaged to develop the project.
The redevelopment of Society House was aimed at developing an innovative and comprehensive commercial facility housing a 4 star Hotel, office space, shopping complex and a 1, 068 capacity automated car park.
ZANIS
Explanation looks plausible and professionally done. But as the Bible says, in Proverbs 18:17 “The first to plead his case seems right, Until another comes and examines him.” We wait to see the conclusion of this matter.
Walasa!
I hope this Project is not politicsed. It is a good project and Lusaka really needs this. Parking in city is dreadful especially during peak hours. The quality of building around the city center will also be uplifted, it is about a broken window theory here. Society house is an eyesore
#1 those are wise words indeed. I hope sanity prevails in these hearings
I just love the professional explanations in this story. Very satisfying. When people provide this high quality of explanations it becomes difficult for politicians to manipulate projects because everybody will have known what is going on. Unlike if the two guys were just waffling and not making sense, then politics can very easily come in and kill even a good project. Anyway the final decision is with President and his minister. The two organisations involved in this are being led by good quality professional chaps and I hope they are not dragged into politics and people finding excuses to kick them out. I hope the govt will be careful to retain some of the experienced people in the system, otherwise they will make big mistakes that could cost them popularity in the end.
Have they found investors to invest in 5 star hotel or these are assumptions? The best ZNBS should have done is to lease this structure to an investor and not developing it using tax payers money when NAPSA itself has so many pending payments for pensioners.
The problem is NAPSA thinks they have too much money to throw around while starving our poor pensioners.
They are a lot of real estate investors out there, who are willing to come and develop this building into a modern structure. Use their monies please.
@5 above, it is a 4 star hotel
Most projects that were commissioned by the last government were not bad in themselves. The problem was that they were pre-dominantly brokered by one family who collected fees, commissions, introducer fees and in some cases walked away with subsidiary propoerties where assets were disposed of. Example ZAMTEL Hq building in Ndola…check out the current ownership
holiday inn is the hotel operating , think if they improve the roads going into town could be boon for property prices in the next few years with levy junction just a few block away
Good project. Good explanation
Zingani Phiri, Kasongo Kamfwa and Chibamba Kanyama are the chaps who reconstructed ZSIC; lending their professional hand to Ireen Muyenga. Kasongo left in 2005, Zingani and Chibamba in 2008. I know Zingani as a highly professional guy and that is why MCS will choose to stay with him. Napsa may have been abused by politicians but, guarantee from my personal knowledge of him, he stole not an iota! This project is good. Those that received commissions illegally are the ones to be pursued. Do not throw bath water with the baby!
I agree with most comments above and would just like to say the process of awarding the contracts must be probed
# 5…. NAPSA has no problems paying pensioners. Tell me which pensioner failed to collect money. Do not confuse NAPSA with Pension Fund for the government workers. NAPSA is very liquid my dear. They can afford such magnitude of projects without much a do.
The simple reason why pensions in Zambia are peanuts is because Kaunda’s government never invested the money wisely. There is big money in mutuals and pensions. It is this money that builds infrastructure. Now, President Sata reckons that the $98 million should have gone to paying pensioners. It’s like eating the handful go ground nuts now so that the children don’t starve instead of sowing the seed for bags of ground nuts next season. The choice has to be made, invest and let the money grow or eat it all now. This is the difference between PF and MMD.
Did you mean to say that plundering is investing in your MMD mindset.you guys would have just pocketed the same money.Iam very sure that you guys will walk the street.we thank the LORD for giving as a leader who has an ear to the ground.
Not very good return on investment. They are better off deposting this money in secure high interest banks and with onlly 1% interest per month, they can double their money in 10 years as opposed to 20 years. I am finding it unbelievable how Zambians can so easily be swayed. This Society building which is already erect can easily be refurbished for less that $30M. It staggering how money is desrespected in Zambia. I have just been on a future proof project ( improvements to buildings and facades of Exhibition Road). for those of you in London go and have a look at what £20M can do. I think the MMD did not just understand the value for money
Good point dear
Imagine empowering Zambians with that sort of money to grow cash crops such as cotton, tobbacco, sugar cane, fuel plants with coordinated manufacturing and processing plants. With just relying on African markets, the returns can sustainably be realised in less than 5 years. The money is not in buildngs but in dirty soil which we have in abundance.
In any way we are learning a lot from these commissions inquiries. This is what we call transparency. Truth should be known by every Zambian so that Zambians themselves can see who is wrong, who needs prosecution and alike. It is just sad that our UPND leader Haakainde is busy condemning the formation of this. Last time he appeared on the Muvi-tv programe called “the assignment”, he strongly castigated the idea saying it is meant to appease people who campaigned for him (Like Chief Bright Nalubamba of the Ila people). Sad indeed.
WHERE IS THE PROBLEM IN THIS INVESTMENT?GOOD IDEA INDEED.ITS ONLY RB AND HH WHO CAN UNDERSTAND THIS KIND OF INVESTMENT.THE BUILD, OPERATE AND TRANSFER IS USED ALL OVER THE WORLD.MONEY IS A SEED,UNLESS YOU PLANT IT ,IT MIGHT NOT MULTIPLY.I KNOW WE ARE USED TO HAND AND MOUTH SITUATION.BUT WILL MR SATA ACCEPT THE RESULTS OF THIS INQUIRY IF IT WILL GO AGAINEST HIS WISHES?
At last bloggers are now starting to understand that most of these projects are good investments. I hope politician will follow suit. Let’s not just critic without understanding some of these issues..
Sounds like a plausible project and there seems to be transparency in the process. Lets embark on big projects that will create jobs and bring wealth to the country.
I agree with most sentiments above. This project and the Levy junction will give a major face lift to Lusaka’s Central Business Area. The president should not shelve the building of a new terminal at KK International Airport.
Great project, great comments. Amayama, are you a civil engineer? Cause I want to study civil engineering next year and any advice or information on this course will be greatly appreciated.
Thanks
I call this a waste of money at its best. 98 Million dollars can finance a better modern structure than spending it on this old building.Zambians should learn to properly utilize the little money they have.We are not as rich as as we think to waste all that kind of money renovating an old outdated structure and you call it investment. The Chinese are putting up modern beautiful structures in many countries which costs far less than this amount. we are still leaving in the 50s. It would have been better if they demolished this building and erect another modern structure. than this nonsense they are calling redevelopement
@21 do you know the cost of demolitioning a building and laying down foundations for a new 1 with the same rental space ??? the project is not perfect bt. the idea behind it and the effects it’ll are positive , new buildings will come once people see some1 is taking the plunge if you need a case study go look at new york or read donald trumps book .
I was also at the tendeingr process of this project the guidelines we’re a bit silly and really have to be reworked bt their was a tender put in place.
# 10 KQ, you do not know much about ZSIC. The turn around at ZSIC was done by one Alisandi Singogo and Mike Mwemba as his assistant. Zingani was Finance manager at the time and was based in Ndola. Kasongo Kamfwa was legal council and in no position to make important decisions. Chibamba was still at ZNBC. Government brought to ZSIC Alisandi and Mike for a period of two years in which a lot was done and the reason why ZSIC is the only parastatal not privatised. ZSIC Napsa owns a lot of investment properties on behalf of clients.
By the way , your Kasongo Kamfwa almost looted Zsic property by wanting to give himself Zamsure sports club in Lusaka, the move was blockedby workers.
.
This is what you get when you involve people who understand Investments, Equity and Real Estate Property Development. These guys have an Investment Forecast by looking at where Zambia will be 20 years from now
We have looked into the Business Model aka (Society Project) and put our capital to where it matters for the future of our national development and pensioners yields.
We do not need Politicians standing daily on pulpits at state house trying to disrupt all good investment programs to please cadres that fits the 90 Days – 1 million job creations that is un-heard of in modern times.
Let the nation also proceed with the project to upgrade of Lusaka International Airport without involving too many “sniffer dogs” looking for Null Evidence just to play politics.
who is zambezi consortium please? any relationship with zambezi airline? and as some body already said, if NAPSA was paying off outstanding claims on time, one would encourage investiment but they are not .Retirees are getting a raw deal, can you imagine being paid K3million after 25years of contribution, what fomular do they use/
Can some one help me understand #1 if NAPSA is a money making venture, #2 if the contractor in question went thru thro’ the legal tender procedures? foget politics but this sound plausible and proffesionally thought through.
The “devil is in the detail”!! The explanation may sound plausible and therefore justifiable, but the commission must look at the details and packaging of the project. Such explanation is easy, bit is the project really worth $98 Million? How much fat has been allowed to grease palms, to “sneak” out, to cream off, how many are “eating” along the way? Were procedures followed in the award of the contract? The commission ought to scrutinise the deal and go through all aspects with a fine tooth comb. Sensitivity analysis? Risk assessment? Value engineering? There is a big worm in this deal!!!
We are interested in the contract issues associated with this invetsment viz the kenyans involved
the explanation makes sense enough. NAPSA are these profits transferred onto the Pensioners too?
Rational and objective thinking for an investment of $98m not in society house please. All road lead to town centre is disaster. Lusaka Central Business District (CBD) is a disaster we need to decongest the town. As long as support infrastructure (roads) is not drastically improved these infrastructure development are likely to fail. traffic congestion getting into town already is a nightmare and Levy Junction is not even operational yet. Then you want to bring in another building that will no doubt draw huge amounts of traffic? that $100m could be used to build a totally new complex away from the city centre say airport area. thats why this deal smells fishy!
@ZAMBI-CAN
WITH ZERO EMPLOYMENT GOING INTO NAPSA PENSION BANK,AND YOU ARE ONLY WITHDRAWING FOR THOSE WHO RETIRE,THE COFFERS WILL BE EMPTY.REMEMBER NAPSA PAYS INTEREST FOR EVERY MONEY WHICH THEY RECEIVE,WHERE DO YOU THINK THE INTEREST COMES FROM?BWANA AS PENSION MANAGERS YOU MUST INVEST THE MONEY IN ORDER TO” GROW ” IT.REMEMBER ALSO IN ZAMBIA,SOME COMPANIES LIKE ZAMTEL WERE FAILING TO PAY THEIR CONTRIBUTION TO NAPSA,AND YET YOU EXPECT THE MONEY TO GROW WITHOUT INVESTING IT.ZAMBIANS LET US NOT SHOT DOWN VERY THING FOR THE SAKE OF WINNING POPULARITY.
INDEPENDENT OBSERVER
Good observation.
We however need sniffer dogs in every big project undertaking. We have a very “impressive record on corruption” and we can not avoid to make sure that national issues are conducted in a clean manner.
I am not saying Professionals must not be allowed to be innovative. We just need some way of checking what they are doing. Remember, an educated thief is a very destructive thief
Guys, Is a project with a pay back period of 12 years a good investment?
Some take more than that. Do you know how long it takes plane makers like Boeing and Airbus to break even on their new planes?
WE ARE DOING THIS FOR OUR CHILDREN INDEED. 20 YEARS FROM NOW THESE LEADERS WILL BE DEAD OR THOSE SURVIVING WOULD HAVE RETIRED. WE ARE SLOWLY LEAVING ZAMBIA BETTER THAN WE FOUND IT.
IN 20 YEARS WE SHALL HAVE MODERN STADIUMS, AIRPORTS, UNIVERSITIES IN MUCHINGA AND NORTHERN PROVINCE. BAROTSE LAND WILL BE LIKE LESOTHO. OUR CHILDREN WITH MASTERS AND PHDS.
GOD BLESS ZAMBIAN AND ITS PIPO
Am a civil Engineer. Per/km cost of a road in Namibia’s karahari desert is about Zmk 3.5 billion and yet we are doing roads at a cost of Zmk 5 billion….can anyone explain the logic to me.?
#24 you are spot on I have spent the last 15 years with ZSIC and yes that man Alisandi Singongo brought a lot of sanity in the managment of ZISC he exhibted rare qualities I never knew existed in civil servants..infact if MCS wants any job done he should look for Alisandi Singongo whereever he is ZSIC was loss making he made it profitable and we have never stopped singing his praises at Zisc..We have brought Herve Renard back Mr. president send Alisandi Singongo to Napsa or bring him back here not some of those corrupt people called MDs. Only David Matongo has such a record at Zsic the rest we just laugh..
Am a bit confused here the concession is for 20 years to whom? It is totally financed by Napsa who will pay ZNBS 3.5% concession fee? On what? profits? WHy 3.5 and not 2 or 1%? What amount of monies will go to Zambesi Consortium is it the construction amount or a managment fee whose percentage is not disclosed? After 20 years ZNBS will be expected to pay an exit fee of how much or of what perentage? Too many loopholes I hope the people recieving the evidence have drank ink!
Just wondering,when will the PF GRZ start new projects?
@37…..the consortium gets 10% of the $ 98m construction cost.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! which is a staggering $ 9.8m……..guess who else is on board..!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I have just done the math for you, the consortium gets Zmk 49 billion.
To me this is a classic problem with the Zambian psyche. Anyone with ideas and initiative is viewed with suspicion. We are too risk averse to a point where we hinder development with our suspicious minds. We thrive on innuendo. This project sounds like a great idea and was conceived by Zambians. Let it proceed. Sometimes politicians should just stay away.
@41…..but the cost of services should be reasonable………Zmk 9.8 billion is too much for consultancy boss…….someone is being wasteful in our system
In the Bill of quatities, the contractor has 10% profit margin on every item, and he is also part of the consortium………………..do the math and add that to $9.8m
THAT PROJECT THOUGH EXPENSIVE SOUNDS VIABLE AND WILL CHANGE THE LANDSCAPE OF CBD. THAT BUILDING HAS BEEN INM THAT STATE SINCE 1997 AND NOTHING HAS BEEN DONE. SAMES GOES WITH THE INCOMPLETE BUILDING ON KATONDO/FREEDOM WAY JUNCTION. LETS BEAUTIFY OUR CITY. CAR PARK WITH WITH 1000 PLUS SPACE AND 4STAR HOTEL WILL MAKE TOWN CENTRE VIBRANT IN ADDITION TO LEVY JUNCTION. LETS US AVOID POLITICIZING THIS PROJECT. LET EXPERTS DETERMINE ITS COSTS AND VIABILITY.
CAN EXPERTS IN TOWN AND COUNTRY PLANNING MOVE IN AND ADVISE GOVT TO RELOCATE THE PALNNED NEW STADIUM TO BE BUILT BY THE CHINESE GOVT NEXT TO INDEPENCE STADIUM TO EITHER LUSAKA SOUTH NEAR THE PROPOSED ECONOMIC ZONE OR SOME WHERE IN IBEX HILL AREA. YOU CANT LOCATE ALL MAJOR SPORTS FACILITIES IN ONE AREA. WHAT IS SUPPOSED TO BE DONE IS MODERNISE INDEPENDENCE STADIUM BY INCREASING ITS SEATING CAPACITY TO SAY 50,000. LETS US AVOID CONGESTING THINGS IN ONE AREA. I DONT KNOW WHAT WAS GOING WITH THOSE THAT HAD RESPONSIBILITY TO PLAN ON OUR BEHALF. COMMENTS FROM EXPERTS AND OTHER STAKEHOLDERS.
Reasonable explanation.
If the commission of inquir finds nothing wrong, a new commission should be set up to examine why commissions are set up. Some are mere witch hunting, some a waste of money and valuable time. Aren’t there better ways of resolving issues?
PIPO PIPO IF you dont have anything to talk about keep quite. Do you know that a square metre cost of quality construction is more expensive in zambia than in uk because of the high cost of input material. Jealousy how do you say that 10% for consultancy is too much. why do you think usa or british consultants flock to saudi or gulf for? mind u the 10% will be taxed and the consortium is made up of zambians y kalijo so.the building will be re-enveloped meaning that every inch exposed will be retouched and reinforcement will be enhanced. from the scheme presented i think the cost projected is for middle range materials coz if you go for preserved aluminimum or space materials awe kwena the cost can go up. i
oh the project is feasible and good for our country. y are pipo not talking about the levy junction project aikona it was funded by the same NAPSA??By the way i would like to know how much the commissioners are getting per sitting otherwise these commissions maybe similar to the drains that we witnessed under the TASK FORCE
President Michael Sata was quick to criticise the project at Lusaka International Aiport as well…. That project was going to make Zambia a TOURIST HUB as all flights to SA, MALAWI, DRC, ZIMBABWE and so on were going to go through KK International Airport. The Turkish Airlines are the biggest and most vibrant Airline in the World at the moment… The Turkish Airline wanted to make Zambia their hub with a five star hotel, Air links into terminals and such incredible infrastructure. We have always talked about the strategic location of Zambia in Central and Southern Africa but have never utilised it… Why go all the way to South Africa to get to DRC, BURUNDI etc when there is Zambia?? Why go all the way to England to get to the United States or such places when you get fly into Istanbul??
Guys please, advice on civil engineering? I really need some information from the experienced out there, or even reference on where i can find the information? Thanks
@Kay you are correct the benefits of these undertakings though formulated under the defunct MMD make economical and viable progress that zambia needs to make. How do you advertise a PPP project. If a person feels it and thinks can fund u the latter receipient can either agree or refuse. that is a problem of having pipo of yester years in power
Its amazing how gullible we zambians can be! The so called learned people just use some sweat terminologies and they get away with murder. One plus one equals two whether you use a calculator or you just count your fingers. If napsa has so much money to throw around , why not throw it into a new projects such as levi junction instead of giving it to onother under perfoming parastatal. We still have a lot of land waiting to be developed and there is no need to be crowding the central business district. If znbs needs a loan they should go to the bank or to the government.
Amuna ngaongao….give me your email address,and am sure you will understand that am not jealousy about this project. All am trying to say is that NAPSA was screwed on this deal….10% profit on BoQ items plus 10% fees equals 20%…..maths please
What will be the value of $200m in 20 yrs? I think the cost is exaggerated and who ever the investments manager for Napsa is didnt do a good job. What is the rate of return on this investment and over 20 yrs goodness me what a rip off. The only good thing that will come out of this project is the beautiful site of th etown and more parking space.
@51……Glad that you can see the other side of the coin. By the way, NAPSA will be paying $800,000 in concession fees pay year….NAPSA deliberately put the risk of exchange rates on us and also the potential risk of finding stable anchor tenants is on our hard earned cash.
With that amount of money, we can build a new CBD in Lusaka Chalala area
yaba ..ba PF ..poor finishing guys..what are u trying to achieve..?
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