President Nana Addo Dankwa Akufo-Addo has approved a negotiation framework aimed at resolving the stalled Saglemi Housing Project.
The approval comes following a request by the Minister for Works and Housing, Kojo Oppong Nkrumah, and paves the way for the government to engage with the successful bidder(s) in the project’s completion.
According to sources familiar with the framework, the government will treat the current value of work done as its equity in a Special Purpose Vehicle (SPV) to be formed, while the selected partner’s equity will cover the completion cost of the project.
The Saglemi Housing Project, initially intended to deliver 5,000 affordable housing units with approximately $200 million in government financing, was halted after only 1,506 units were partially completed.
The units remain uninhabitable due to the lack of essential infrastructure, including water, electricity, and sanitation.
A subsequent valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the 1,506 units, funding that the government is unable to provide.
As a result, the government opted to seek private-sector financing and technical expertise, with Cabinet approving this approach earlier in the year.
To ensure transparency, the government engaged Deloitte Ghana as the Transaction Advisor to evaluate the bids from several companies, including Afro-Arab Properties Ltd and Quarm-LMI Consortium.
The evaluation process is expected to conclude by mid-September, after which negotiations will commence based on the President’s approved framework.
The SPV formed through this partnership will be responsible for completing and operationalizing the 1,506 housing units, with proceeds from the eventual sale of the homes to be shared between the government and its private partner according to their stakes in the SPV.
