Saudi billionaire Prince Alwaleed bin Talal bin AbdulAziz Alsaud who is supposed to build a five- star hotel at the 14-acre plot on Nile Avenue will not pay for the property. The prince will not pay for the relocation of tenants currently occupying the property, who include Shimoni Demonstration School and Shimoni Teacher’s College.

Reports quoting a memorandum of understanding between the Government and Kingdom Holdings say the investor “will not be expected to pay any compensation in any way for the tenants on site.”

However, the officials had earlier said that the tenants would be relocated to Lugogo by-pass at the investor’s cost. It is estimated that the Government will need over sh14b to meet conditions of the deal and relocate the two schools.

The investor also demanded for omission of taxes, fees, charges and import duties on all material and equipment used in the design, construction and operation of the hotel. Other demands include removal by the Government of all legal and illegal tenants from the property and delivering the site to the investor within six months from the date of signing the document.

Investment state minister Semakula Kiwanuka however declined to comment on whether the Saudi investor would pay for relocation costs but said the Government was happy with the deal. “The proposed incentives are okay. As a country, we are competing for investors so we have to make the country attractive for investments,” he said.

Prince Alwaleed bin Talal bin AbdulAziz Alsaud is the world’s fifth richest man, and owns Kingdom Holdings Company.

By Kisibo Jackie
Uganda hotel News