Ghana’s Ministry of Works and Housing is making significant progress in reviving the stalled Saglemi Housing Project, with negotiations to hand over the project to a private developer for redevelopment expected to conclude within the next 14 days.
Minister Kojo Oppong Nkrumah shared this update during a press briefing in Accra on September 30, 2024, highlighting President Akufo-Addo’s approval of a framework for negotiations with the successful bidder.
The Saglemi Housing Project, initially designed to deliver 5,000 affordable housing units, received approximately $200 million in government financing. However, only 1,506 units were partially completed before the project was halted due to lack of essential infrastructure.
A valuation by the Ghana Institute of Surveyors estimated an additional $100 million was needed to complete the unfinished units, which the government couldn’t provide.
To address this, the government plans to sell the partially completed project to a private sector entity to complete and sell the units without further government investment.
The current value of work done will be treated as government equity, while the completion cost will be the equity of the selected partner in a Special Purpose Vehicle (SPV).
Five firms submitted bids, with Quarm-LMI Consortium and Broll Ghana Ltd. shortlisted for final negotiations. This development comes as Ghana faces a housing deficit of 1.8 million units, down from 2.8 million in 2010 .
Minister Oppong Nkrumah emphasized the importance of innovative solutions to ensure access to decent and affordable housing, stating, “Housing is not just a necessity but a fundamental right.”
Additionally, the Koforidua Affordable Housing Project is set to resume construction under the State Housing Company Limited, aiming to expedite construction while maintaining high standards of quality and efficiency.
These efforts demonstrate the government’s commitment to addressing Ghana’s housing challenges and providing citizens with secure, decent, and affordable homes.
