FCC identifies new developer for state-of-the-art market
Chakalisa Dube | Friday July 17, 2020 11:04
Amasa Civils, a 100% citizen-owned company, was this week unveiled as the new developer for the state-of-the-art market.
FCC clerk, Lopang Pule said Amasa Civils would develop and lease the market for 25 years. The company was amongst three bidders short-listed by the council to develop the market facility.
“The company will be given two years to have fully developed the plot,” Pule told BusinessWeek.
“After two years it will start paying the council a monthly fee as per the lease agreement.
The company will pay the council P28,000 a month for the duration of the lease.”
Pule declined to disclose the amount of money that Amasa has committed to invest in the project, saying he did not have the details readily available.
“We have drafted a very intact contract and both parties will sign it soon.
“It has critical deliverables and a termination clause.
“The contract was properly vetted by the council legal team.
“If the council feels that the developer is not performing according to the contract, the termination clause will be activated.
“It is important to emphasise that termination will be activated if the differences between both parties cannot be resolved cordially,” explained Pule.
Amasa Civils is a construction company that also has interests in property development.
The tender to lease the central market was initially won by Equality Properties Holdings in 2004. Under the lease agreement, Equality was supposed to revamp the market and turn it into a modern CBD. However, the council terminated the contract early last year after months of negotiations for ‘lack of performance’ (on the part of Equality).
The council had troubles exiting its contract with Equality, as the deal did not have an explicit termination clause.
The FCC believes that through leasing the central market, which is situated in a prime location, it can generate much-needed cash to boost its coffers.
Councillors have been pushing for the development of the market in recent years. They have often posited that turning the market into a new state-of-the-art CBD can help create employment.