The government of Ghana is nearing the conclusion of negotiations to hand over the stalled Saglemi Housing Project to a private developer for completion.
According to Kojo Oppong Nkrumah, Minister for Works and Housing, the redevelopment will begin within 14 days after finalizing agreements with the selected developer.
Speaking at a press briefing in Accra on Monday, September 30, 2024, Nkrumah revealed that President Akufo-Addo approved the framework for negotiations last month following a request from the ministry.
The Saglemi Housing Project, originally intended to deliver 5,000 affordable housing units with an initial government investment of $200 million, has been in limbo since only 1,506 units were partially completed.
These units remain uninhabitable due to the lack of critical infrastructure, such as water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors determined that an additional $100 million would be required to finish the project, a cost the government is unable to cover.
As a result, the cabinet directed the ministry to explore the possibility of selling the project to a private entity.
Two firms, Quarm-LMI Consortium and Broll Ghana Ltd, have been shortlisted for final negotiations.
The project will be completed under a Special Purpose Vehicle (SPV), with the government’s investment being treated as equity in the project.
Proceeds from the sale of the housing units will be split between the government and the private developer based on their stakes in the SPV.
Nkrumah highlighted the importance of the initiative, stating, “Housing is not just a necessity but a fundamental right,” emphasizing the government’s commitment to addressing the nation’s housing deficit, which currently stands at 1.8 million units.
