President Nana Addo Dankwa Akufo-Addo has approved a framework for negotiations with the successful bidder(s) to resolve the stalled Saglemi Housing Project. The approval follows a request by the Minister for Works and Housing, Kojo Oppong Nkrumah.
The framework treats the current value of work done at Saglemi as government equity, while the cost of completing the project will be considered as the equity of the selected partner in a Special Purpose Vehicle (SPV) to be created for the project’s completion. Profits from the sale of the houses will be shared between the government and the private partner based on their stakes in the SPV.
Initially planned to deliver 5,000 affordable housing units, the project received $200 million in government financing. However, only 1,506 units were partially completed due to a lack of infrastructure like water, electricity, and sanitation. A valuation by the Ghana Institute of Surveyors estimated an additional $100 million would be needed to complete these units, funding the government cannot provide.
To address this, the Cabinet approved the use of private-sector financing and technical expertise, leading to a Request for Proposals (RFP) issued in April 2024. Bids from Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group were evaluated by Deloitte Ghana, serving as the Transaction Advisor.
The preferred bidder(s) will be presented to the Ministry of Works and Housing by mid-September. Following this, negotiations will establish the terms for a Joint Venture through the SPV, responsible for completing and operating the 1,506 housing units.
The President’s approval of the framework paves the way for negotiations to proceed once the preferred bidder(s) are announced.
