Minister for Works and Housing, Kojo Oppong Nkrumah, has announced the government’s plans to hand over the Saglemi Housing Project to a private developer for completion.
In a press briefing in Accra on Monday, September 30, 2024, he disclosed that in the next 14 days, negotiations between government and the private developer will be finalized.
“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.
This development comes after President Akufo-Addo approved a framework for negotiations with the successful bidder(s), following a request from Minister Oppong Nkrumah last month.
Initially intended to provide 5,000 affordable housing units, the Saglemi Housing Project was backed by approximately $200 million in government funding.
However, when the project was suspended, only 1,506 units had been partially completed, and the site was declared uninhabitable due to the lack of vital infrastructure like water, electricity, and sanitation.
A subsequent valuation conducted by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the unfinished units, a sum the government could not provide.
He explained that under the approved framework, the current value of work done at Saglemi will be treated as government equity in the project, while the completion cost will be treated as the equity of the selected partner in a Special Purpose Vehicle (SPV) to be established for the project’s completion.
He added that the proceeds from the sale of the houses, once completed, will be shared between the government and the private partner according to their stake in the SPV.
The Minister also revealed that five firms submitted bids, with two being shortlisted for final negotiations: Quarm-LMI Consortium and Broll Ghana Ltd.
Mr. Oppong Nkrumah’s comments come as Ghana faces a housing deficit of 1.8 million units, a significant decrease from 2.8 million in 2010.
He stressed the need for innovative approaches to guarantee that all citizens have access to decent and affordable housing.
“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.”
In addition to addressing the Saglemi project, Nkrumah highlighted ongoing efforts to resolve other stalled housing initiatives across the country.
The Koforidua Affordable Housing Project is set to resume construction after being handed over to the State Housing Company Limited.
“This project aims to expedite construction while maintaining high standards of quality and efficiency,” he emphasized.
