The Ghanaian government is close to finalizing negotiations to revive the stalled Saglemi Housing Project, which will be handed over to a private developer for redevelopment within the next 14 days. This significant development was announced by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024.
This progress follows President Akufo-Addo’s recent approval of a negotiation framework for selecting the successful bidder(s), a request initially made by Minister Oppong Nkrumah last month.
The Saglemi Housing Project was originally planned to deliver 5,000 affordable housing units with approximately $200 million in government funding. However, the project was halted with only 1,506 units partially completed, none of which were habitable due to a lack of basic infrastructure like water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the unfinished units, a cost the government was unable to cover.
“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 finish and sell the units without further government investment,” the minister stated, noting that the negotiations will conclude in the next 14 days.
Under the approved framework, the current value of the work completed at Saglemi will be treated as the government’s equity in the project. The private partner will cover the completion cost, which will be recognized as their equity in a Special Purpose Vehicle (SPV) to be created for the project’s completion. Once the homes are sold, the proceeds will be shared between the government and the private partner according to their respective stakes in the SPV.
Minister Oppong Nkrumah also confirmed that five companies submitted bids, with two shortlisted for final negotiations: Quarm-LMI Consortium and Broll Ghana Ltd.
This news comes at a time when Ghana is facing a housing deficit of 1.8 million units, a significant improvement from the 2.8 million deficit recorded in 2010. The minister emphasized the importance of creative solutions to ensure all citizens have access to decent, affordable housing.
“Housing is not just a necessity but a fundamental right,” he affirmed. “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.”
In addition to the Saglemi project, Nkrumah highlighted ongoing efforts to restart other stalled housing projects across the country. The Koforidua Affordable Housing Project is set to resume under the management of the State Housing Company Limited, aiming to expedite construction while maintaining high standards of quality and efficiency.