Government is on the verge of finalizing negotiations to revive the stalled Saglemi Housing Units, with the project set to be handed over to a private developer for redevelopment in the next 14 days.This significant update was shared by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024.This progress follows President Akufo-Addo's approval of a framework for negotiations with the successful bidder(s) in response to a request submitted by Minister Oppong Nkrumah last month.Originally designed to deliver 5,000 affordable housing units, the Saglemi Housing Project received approximately $200 million in government financing.
However, by the time the project was halted, only 1,506 units had been partially completed, with the development deemed uninhabitable due to the absence of essential infrastructure such as water, electricity, and sanitation.A subsequent valuation conducted by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the unfinished units, a sum the government could not provide."Cabinet has directed the Ministry of Works and Housing to explore the possibility of selling the partially completed Saglemi Housing Project to a private sector entity to complete and sell the units without further government investment, and negotiations will be finalized within the next 14 days," he stated.He explained that under the approved framework, the current value of work done at Saglemi will be treated as government equity in the project, while the completion cost will be treated as the equity of the selected partner in a Special Purpose Vehicle (SPV) to be established for the project's completion.
Proceeds from the sale of the houses, once completed, will be shared between the government and the private partner according to their stake in the SPV.The Minister confirmed that five firms submitted bids, with two shortlisted for final negotiations: Quarm-LMI Consortium and Broll Ghana Ltd.Mr.
Oppong Nkrumah's remarks come as Ghana faces a housing deficit of 1.8 million units, a significant decrease from 2.8 million in 2010.