The government is approaching the final stages of negotiations to revive the stalled Saglemi Housing Project, with plans to hand over the development to a private company for completion within the next 14 days.
This significant update was disclosed by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024.
The Saglemi Housing Project, initially designed to deliver 5,000 affordable housing units, encountered multiple delays and challenges, leading to its abandonment. Despite the allocation of approximately $200 million in government funding, only 1,506 units were partially completed. Furthermore, these units lacked critical infrastructure, such as water, electricity, and sanitation, making them unsuitable for habitation.
Addressing these issues, Mr. Oppong Nkrumah emphasized that the government had sought innovative measures to address the challenges facing the housing sector. The Minister highlighted that the decision to engage a private developer was prompted by President Akufo-Addo’s recent approval of a negotiation framework with selected bidders. This request was initiated by the Minister of Works and Housing in August 2024, following an assessment conducted by the Ghana Institute of Surveyors.
The assessment revealed that an additional $100 million was required to complete the housing units, a cost that the government found itself unable to bear. As a result, the Ministry proposed transferring the partially completed project to a private developer who would finish the construction and sell the completed units without the need for any further government investment.
“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,” stated Mr. Oppong Nkrumah.
Under the approved plan, the value of the existing work on the project will serve as the government’s equity, while the cost of completing the construction will represent the private developer’s equity. This arrangement will be managed through a Special Purpose Vehicle (SPV) set up to oversee the completion of the project. Profits from the sale of the completed housing units will then be divided between the government and the private developer based on their respective equity shares in the SPV.
So far, five firms have submitted bids for the completion of the project. Two companies, Quarm-LMI Consortium and Broll Ghana Ltd., have been shortlisted for final negotiations. The government expects to make a final decision within the coming days, with work on the project anticipated to resume shortly after.
The stalled Saglemi Housing Project has been a key issue for the government, with many Ghanaians eagerly awaiting its completion. Originally launched as part of efforts to address the country’s housing deficit, the project’s delay has become a point of concern for both the government and citizens alike.
Mr. Oppong Nkrumah stressed that addressing the housing deficit remains a top priority for the government. “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 remarked.
In addition to the efforts to revive the Saglemi project, the Minister also provided updates on other stalled housing developments across the country. He announced that the Koforidua Affordable Housing Project, which had similarly encountered delays, has now been handed over to the State Housing Company Limited for resumption of construction. The government aims to ensure that the project meets high-quality standards and is completed efficiently to provide more affordable housing options for citizens.
As the housing sector continues to face challenges, Mr. Oppong Nkrumah reiterated the government’s commitment to finding long-term solutions. By partnering with the private sector, the government hopes to complete stalled projects, increase the supply of affordable housing, and reduce the housing deficit in the country.
The next 14 days will be critical as negotiations for the Saglemi Housing Project reach their final stages. Many are hopeful that the completion of this long-awaited project will mark a positive step forward in
