Government moves to complete stalled Saglemi Housing Project

Accra, Ghana - President Nana Addo Dankwa Akufo-Addo has given the green light for negotiations with the successful bidder(s) in the Saglemi Housing Project, paving the way for the completion of the long-stalled affordable housing initiative.

The approval, granted in response to a request by Works and Housing Minister Kojo Oppong Nkrumah, outlines a framework for negotiations with the selected partner. The framework establishes a Special Purpose Vehicle (SPV) to complete the project, with the government's current investment treated as equity.

The SPV will be responsible for constructing and operationalizing the 1,506 unfinished housing units, with proceeds from sales shared between the government and the private partner based on their stake in the venture.

The Saglemi Housing Project, initially designed to deliver 5,000 affordable housing units, has faced significant delays and challenges, including a lack of essential infrastructure.

 The government has engaged Deloitte Ghana as the Transaction Advisor to evaluate bids from five shortlisted companies.

The preferred bidder(s) are expected to be presented to the Ministry of Works and Housing by mid-September, after which negotiations will commence to establish a Joint Venture.

The President's approval marks a significant step forward in reviving the project, which has already received approximately $200 million in government financing.

Source : Lead News Online