New Vision (Kampala)
November 24, 2003

David Muwanga

Aga Khan to Invest $19m in Nile Hotel

Serena Hotels a company owned by Aga Khan is investing US$19m in rebuilding of Nile Hotel International.

The Privatisation Unit (PU) on Friday opened the financial bid from Serena Hotels.

"The management is providing a commitment fee of $1.2m and will be paying four percent of the rental income every year which ranges between $ 238,000 and $554,000," the PU director, Michael Opagi, said during the function held at Communications House.

He said the company is also providing $3m performance bond issued by Barclays Bank of Kenya.

Opagi said legal documents will be ready by the end of this week.

He said by the end of the year they will be ready to handover.

"This is a long-term lease of 30 years during which the company is supposed to upgrade the hotel to a five star level, add more rooms from 85 to 140 and replace the lifts," Opagi said.

The managing director of Serena Hotels, Mahmud Jan, said Ugandans won't lose jobs.