The government is about to wrap up talks to restart the long-stalled Saglemi Housing Units project, and within the next 14 days, a private developer will take over the project for reconstruction.
On Monday, September 30, 2024, at a press briefing in Accra, Minister of Works and Housing Kojo Oppong Nkrumah provided this important update.
In response to a request made by the Minister of Works and Housing, Oppong Nkrumah last month, President Akufo-Addo approved a framework for negotiations with the successful bidder or bidders. This advancement comes after that.
The Saglemi Housing Project, which was initially planned to provide 5,000 affordable housing units, was funded by the government to the tune of about $200 million.
Only 1,506 apartments had been finished at the time the project was abandoned, and the lack of basic utilities like power, water, and sanitary facilities made the development uninhabitable.
The Ghana Institute of Surveyors projected in a later appraisal that an extra $100 million would be needed to finish the incomplete units the government was unable to supply.
According to Oppong Nkrumah, the approved framework will treat the current value of work completed at Saglemi as government equity in the project, while the completion cost will be treated as the equity of the chosen partner in a Special Purpose Vehicle (SPV) to be established for the project’s completion.
The Minister confirmed that five firms submitted bids, with Quarm-LMI Consortium and Broll Ghana Ltd. being shortlisted for final negotiations.
The Minister’s remarks coincide with Ghana’s facing a housing deficit of 1.8 million units, a notable decrease from 2.8 million in 2010.
