The government is nearing the conclusion of negotiations to revive the stalled Saglemi Housing Units, with plans to transfer the project to a private developer for redevelopment within the next 14 days.
This important update was provided by Kojo Oppong Nkrumah, the Minister for Works and Housing, during a press briefing in Accra on Monday, September 30, 2024.
This development follows President Akufo-Addo’s approval of a negotiation framework with the successful bidder(s), based on a request made by Minister Oppong Nkrumah last month.
Initially intended to create 5,000 affordable housing units, the Saglemi Housing Project received around $200 million in government funding.
However, by the time construction was halted, only 1,506 units had been partially completed, and the development was deemed uninhabitable due to the lack of essential infrastructure, including water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be necessary to finish the remaining units, a figure the government was unable to allocate.
“Cabinet has instructed the Ministry of Works and Housing to investigate the possibility of selling the partially completed Saglemi Housing Project to a private sector entity, which would take over the completion and sale of the units without any further government investment. Negotiations will be finalized within the next 14 days,” he stated.
Under the approved framework, the current value of the work completed at Saglemi will be recognized as government equity in the project, while the completion costs will represent the equity of the chosen partner in a Special Purpose Vehicle (SPV) to be established for the project’s finalization.
The proceeds from the sale of the completed homes will be distributed between the government and the private partner based on their respective shares in the SPV.
The Minister confirmed that five firms submitted bids, with two—Quarm-LMI Consortium and Broll Ghana Ltd.—being shortlisted for final negotiations.
Mr. Oppong Nkrumah’s comments come as Ghana grapples with a housing deficit of 1.8 million units, down from 2.8 million in 2010. He stressed the need for innovative solutions to ensure that all citizens have access to decent and affordable housing.
“Housing is not merely a necessity; it is a fundamental right,” he asserted. “A secure, decent, and affordable home is crucial for individual well-being, offering security, dignity, and opportunities for growth and development.”
In addition to the Saglemi project, Nkrumah highlighted ongoing efforts to address other stalled housing initiatives throughout 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 accelerate construction while upholding high standards of quality and efficiency,” he noted.
