Gov't to finalize Saglemi housing deal with private developer in 14-days – Oppong Nkrumah
Accra, Ghana - September 30, 2024 - The Ghanaian government is on the cusp of reviving the long-stalled Saglemi Housing Project, with negotiations nearing completion.
According to Works and Housing Minister Kojo Oppong Nkrumah who share this at a press briefing in Accra on Monday, September 30, 2024., the project will be handed over to a private developer within the next 14 days.
This follows President Akufo-Addo's recent approval of a framework for negotiations with the successful bidder, following a request by Minister Oppong Nkrumah.
The Saglemi Housing Project, initially valued at $200 million, aimed to deliver 5,000 affordable housing units. However, only 1,506 units were partially completed before the project's halt due to lack of essential infrastructure.
A Ghana Institute of Surveyors valuation estimated an additional $100 million is needed to complete the project.
“Cabinet has directed the Ministry of Works and Housing to explore the possibility of selling the partially completed Saglemi Housing Project to a private sector entity to complete and sell the units without further government investment, and negotiations will be finalized within the next 14 days,” he stated.
He explained that under the approved framewor, the government's existing investment will be treated as equity, while the private partner's completion costs will be treated as their equity in a Special Purpose Vehicle (SPV).
“Housing is not just a necessity but a fundamental right,” he asserted. “A secure, decent, and affordable home is essential to one’s well-being, providing a sense of security, dignity, and opportunities for growth and development.”
The government and private partner will share proceeds from the sale of the completed units, proportional to their stake in the SPV. Five firms bid on the project, with Quarm-LMI Consortium and Broll Ghana Ltd shortlisted for final negotiations.
Ghana faces a significant housing deficit of 1.8 million units, down from 2.8 million in 2010. Minister Oppong Nkrumah emphasized the need for innovative solutions to ensure affordable housing for all citizens.
According to him, the government is also addressing other stalled housing initiatives nationwide, demonstrating its commitment to addressing Ghana's housing challenges.
Source: Lead News Online
