The stalled Saglemi Housing Project is on the brink of revival, as the government finalises negotiations with a private developer for its redevelopment. This was disclosed by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024.
The project is set to be completed within the next 14 days. This comes after President Akufo-Addo approved a negotiation framework with the successful bidder(s) following a request from Minister Oppong Nkrumah last month. The Saglemi Housing Project, which was originally intended to provide 5,000 affordable housing units, received around $200 million in government funding but was stopped after only 1,506 units were partially built.
The unfinished development was deemed uninhabitable due to the absence of key infrastructure such as water, electricity, and sanitation. A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be required to complete the project—funding the government could not provide.
Minister Oppong Nkrumah has stated that the cabinet has instructed the Ministry of Works and Housing to consider selling the unfinished Saglemi housing project to a private entity. The private entity would then complete and sell the housing units without requiring further government investment. Negotiations are expected to be finalized within the next 14 days. According to the approved framework, the current value of work done on the Saglemi project will be considered as government equity. Meanwhile, the private developer’s costs to complete the units will represent their equity in a Special Purpose Vehicle (SPV) that will be set up for this purpose.
Proceeds from the sale of the completed houses will be divided between the government and the private partner based on their equity stakes. Two companies have been shortlisted for the final phase of negotiations: Quarm-LMI Consortium and Broll Ghana Ltd. Mr Oppong Nkrumah’s statement comes as Ghana’s housing deficit stands at 1.8 million units, down from 2.8 million in 2010.
He stated the need for innovative solutions to ensure that every citizen has access to decent and affordable housing, underscoring that housing is both a necessity and a fundamental right. In addition to Saglemi, the Minister discussed efforts to revive other stalled housing projects across the country. The Koforidua Affordable Housing Project, which was recently handed over to the State Housing Company Limited, is set to resume construction. “This project aims to expedite completion while maintaining high standards of quality and efficiency,” he stated.
By: Abubakar Ibrahim
