New Lease on life for Saglemi Housing Project as Quarm-LMI partners with Gov't

Accra, Ghana - October 19, 2024 - The Saglemi Housing Project, a long-stalled initiative aimed at providing affordable housing, has finally found a new lease on life. The government has announced Quarm-LMI as the preferred developer to complete the project, following an extensive negotiation process.

This decision marks a significant step towards addressing Ghana's housing deficit, which currently stands at 1.8 million.

Project Background

Originally designed to deliver 5,000 affordable housing units, the Saglemi Housing Project received approximately $200 million in government financing. However, by the time the project was halted, only 1,506 units had been partially completed, lacking essential infrastructure such as water, electricity, and sanitation.

Redevelopment Plans

The redevelopment will be structured through a Special Purpose Vehicle (SPV), with the government's current investment in the project being treated as equity. This ensures that the government and the developer will recover their investments once the project is complete.

According to a press release from the Ministry of Works and Housing released on friday, October 18, 2024, this decision follows an extensive negotiation process led by a government team that included representatives from the Ministry of Finance, the Office of the Attorney General and the Ministry of Justice, and Deloitte, with technical evaluation support from the Ghana Institute of Surveyors.

A technical evaluation conducted by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the 1,506 unfinished units.

Source: Lead News Online