The government has chosen Quarm-LMI as the preferred developer to finalize the long-delayed Saglemi Housing Project, originally intended to provide 5,000 affordable housing units.
In a press release dated Friday, October 18, 2024, the Ministry of Works and Housing announced that this decision followed extensive negotiations involving representatives from the Ministry of Finance, the Office of the Attorney General and Ministry of Justice, and Deloitte, with technical assistance from the Ghana Institute of Surveyors.
The release indicated that the redevelopment will be structured through a Special Purpose Vehicle (SPV), with the government’s existing investment in the project treated as equity.
This arrangement ensures that both the government and Quarm-LMI will recoup their investments upon the project’s completion.
“As part of the redevelopment, the government and the developer will both recover their investments when the project is completed,” the statement emphasized.
The Saglemi Housing Project was initially financed by the government for approximately $200 million, resulting in the construction of only 1,506 units out of the planned 5,000 before work was halted.
The partially completed units were deemed uninhabitable due to a lack of basic infrastructure, including water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be necessary to complete the 1,506 unfinished units, a funding amount that the government could not provide.
The selection of Quarm-LMI to oversee the project’s completion is viewed as a crucial step in addressing Ghana’s housing deficit, which currently stands at 1.8 million.
The completion of the Saglemi project is anticipated to significantly impact the country’s housing landscape.
