The government has chosen Quarm-LMI as the preferred developer to complete the long-delayed Saglemi Housing Project. According to a press release from the Ministry of Works and Housing, dated Friday, October 18, 2024, this decision comes after a comprehensive negotiation process involving a government team. The team consisted of representatives from the Ministry of Finance, the Office of the Attorney General, and the Ministry of Justice, with technical evaluation support from the Ghana Institute of Surveyors.
It said 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 completed.
“As part of the redevelopment, the government and the developer will both recover their investments when the project is completed,” the statement added. 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, with the development deemed uninhabitable due to the absence of essential infrastructure such as 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 1,506 unfinished units; financing which the government could not provide. The completion of the Saglemi Housing Project is anticipated to significantly impact Ghana’s housing landscape, helping reduce the country’s housing deficit, which stands at 1.8 million.
Source: Citi Newsroom
