Govt to hand over Saglemi to private developer in two weeks – Oppong Nkrumah

The government is nearing the conclusion of negotiations to revive the stalled Saglemi Housing Project, with plans to transfer the development to a private company for completion within the next 14 days.

This update was announced by the Minister for Works and Housing, Kojo Oppong Nkrumah, at a press briefing in Accra on Monday, September 30, 2024.

The move follows President Akufo-Addo’s recent approval of a negotiation framework with selected bidders, a request initiated by Oppong Nkrumah last month.

Initially planned to deliver 5,000 affordable homes, the Saglemi Housing Project received approximately $200 million in government funding.

However, by the time construction halted, only 1,506 units had been partially built and lacked essential infrastructure like water, electricity, and sanitation, rendering them uninhabitable.

A subsequent assessment by the Ghana Institute of Surveyors revealed that, an additional $100 million was required to complete the project, a cost the government was unable to meet.

“Cabinet has instructed the Ministry of Works and Housing to explore selling the partially completed Saglemi project to a private developer, who would finish and sell the units without any further government expenditure. We expect to conclude negotiations within the next 14 days,” Mr Nkrumah stated.

Under the approved plan, the value of the existing work will be treated as the government’s equity, while the costs for completion will represent the private partner’s equity in a Special Purpose Vehicle (SPV) set up for the project’s completion.

Profits from the sale of the completed units will be divided between the government and the private entity, based on their respective shares in the SPV.

The Minister confirmed that five firms submitted bids, with Quarm-LMI Consortium and Broll Ghana Ltd. being shortlisted for final negotiations.

Mr. Oppong Nkrumah also stressed the need for innovative solutions to guarantee that all citizens have access to decent and affordable housing.

“Housing is not merely a basic need but a fundamental right. A secure and affordable home contributes significantly to one’s well-being, providing security, dignity, and opportunities for personal growth,” he said.

Mr Nkrumah also highlighted progress on other stalled housing projects, including the Koforidua Affordable Housing Project, which has been handed over to the State Housing Company Limited to resume construction, with a focus on ensuring high-quality standards and efficiency.