N167bn Kano economic city project underway

Nigeria’s foremost real estate development company, Brains and Hammers, has struck a N167 billion deal with the Kano state government for the construction of the Kano Economic City (KEC). DAVID AGBA reports

Before now, various governments of Kano had made efforts to construct the Kano Economic City in view of the potentials for job creation and economic rejuvenation it holds. However, several challenges continued to surmount the prospect until last week when the Ganduje administration signed a N167 billion deal with Brains and Hammers Real Estate Development Company for the construction of the long awaited project.
It is important to note that the project, which is located along Zaria-Maiduguri road, suffered setbacks in execution and subsequently abandoned in 2011, despite efforts to see to the success of the market.

The pact provides that Brains and Hammers will source for funds needed to execute the project, and proceed with the project on a Build, Own, Operate and Transfer (BOOT) arrangement. The developer will also own 25 per cent equity and will build the market and own it for 25 years before handing it over to Kano state government. The terms also provide for the engagement of a qualified facility management company which will ensure decent management of the Kanawa Economic City.
Brains and Hammers is expected to deliver the project within 72 months with an additional 18 months (making a total of 90 months) moratorium during which over 500,000 jobs would be created during the life span of the project.

In order to enhance the chances of acquisition by all class of people, a mortgage arrangement has been put in place. It involves finance arrangements with some banks and other institutional investors who have expressed interest in the project.
The Kano Economic City is designed to complement other markets in the city without necessarily competing with them in order to realize the role of Kano state as the commercial nerve center of Northern Nigeria. Findings show that the project has already started receiving patronage through request for warehouses, even when prices will be rolled out next year.
According to the Managing Director of Brains and Hammers, Malam Umar Abdullahi, the project accommodates a world class training school for businessmen from Kano who could avail themselves of such opportunities instead of paying through their noses to obtain same abroad, adding that other facilities include independent power plant, central sewage plant, fiber optic internet cable service, and world class security services.

He said it also accommodates a wholesale and retail market, adding that the supply chain would be taken into consideration in the design, which will have a multiplier effect and also complement other existing markets in the city while witnessing increase in economic activities.
Finance experts who spoke to Blueprint commended Brains and Hammers for “breaking the monopoly in brand marketing” as well as for carving a niche for itself in the property market. According to Abdullahi, “Brains and Hammers has made it possible for the middle class to own standard properties over a given period of time, adding that the company has been able to manage multiple projects simultaneously, at the board level trying to manage the growth with a long term vision.
In order to decongest the city of heavy vehicular traffic and movement of goods and services and also curb incessant fire outbreaks in some of the city’s markets, the development of Kano City project will be in three phases.

Phases 1 and 2 would accommodate a World Trade Center, an educational institute, twelve light factories for leather works, and beverages, a high powered transformer, conference center, ten thousand retail shops consisting of lock-up and open stalls, banks, a hundred warehouses, hospitals, mosques, police station, an educational institute, a games park, fire station, passenger and goods motor park, trailer park, ancillary buildings and ample green areas, among others.
On its part, phase 3 will comprise a World Trade Center.
Inquiry into the reputation of Brains and Hammers showed that the company has within the past six years conceptualized, designed, financed, developed and is presently managing over one thousand housing units with world class quality. One of its latest giant project is the Brains and Hammers City in Abuja comprising over three thousand housing units of which two thousand housing units will be delivered by the second quarter of 2017.

This reputation of prompt project delivery has boosted the confidence of the Kano public in the ability of the company to deliver the Kano City project in record time.
Brains and Hammers will also be responsible for the management of the mall through a world class facility management firm. Kano Economic City is scheduled for ground breaking launching for the general public in January 2017.
While signing the N167.508 billion agreements, the Executive Governor of Kano state, Dr. Umar Ganduje, said that the project would be executed in 72 calendar months. According to him, it will be cascaded in three phases and will ac¬commodate a World Trade Center, Ed¬ucational Institute, Light factories, 160 mega warehousing facilities, banks, a clinic and trailer parks in addition to other auxiliary infrastructure. Ganduje said when com¬pleted, it is expected to create a minimum of 500, 000 jobs for youths in the state.
Speaking during a brief ceremony at the Government House in Kano, the governour explained that, “the signing of the contract has opened a new chapter in the commercial development of the state stating that the project costs N167, 508, 992,430.15 with 9,067 market stalls, adding that the Kano Economic City indicates the commitment of his administration to improve livelihood and business in the state by providing world class business structures.

According to Dr Ganduje, “as you have witnessed, my administration has engaged the best hands for the overhaul of our market¬ing and commercial structures with the provision of modern facilities and other infrastructural facilities as roads to ease vehicular transportation as well as move¬ment of goods.”
He therefore maintained that the signing of the agreement has opened up a new chapter for the commercial development of the state in its journey towards evolving as a mega commer¬cial city.
Governor Ganduje, who noted that ef¬forts by past administrations to actualize the project had failed, explained that the decision to sign the agreement with the new developers was a significant depar¬ture from past proposals, adding that it is cogent enough to raise the hope that, “the state would soon have a befit¬ting market and other facilities solely fi¬nanced by the company.”

In his remarks, the Managing Direc¬tor/CEO, Brians and Hammers Ltd., Malam Abdullahi said the decision of the company to work with the government of Kano state on the project is based on the obvious determination of the Gandu¬je administration to improve human and infrastructural development of the state. He promised that his company would deliver a world class facility that would complement the state’s role as a major commercial nerve center of the entire West African sub-region.
Umar described Kano Economic City as a world class signature project for Brains and Hammers adding that the proposal has shown great departure from the past and has raised hope that the state will soon have a befitting market.