Saglemi housing project: Akufo-Addo approves negotiation framework

President Nana Addo Dankwa Akufo-Addo has granted approval for a framework to initiate negotiations with the successful bidder(s) involved in the ongoing resolution of the Saglemi Housing Project.

This approval follows a request submitted by the Minister for Works and Housing, Kojo Oppong Nkrumah.

A press statement form the Works  and Housing Ministry noted that the approved framework outlines that the current value of the work completed at Saglemi will be considered the government’s equity in the project.

Meanwhile, the cost to complete the project will be regarded as the equity of the selected partner in a Special Purpose Vehicle (SPV) that will be established to oversee the completion of the project.

Proceeds from the eventual sale of the housing units will be divided between the government and the private partner based on their respective stakes in the SPV, according to the statement.

The Saglemi Housing Project, originally planned to deliver 5,000 affordable housing units, received around $200 million in government financing. However, by the time the project was halted, only 1,506 units had been partially completed, and these units were deemed uninhabitable due to the lack of critical infrastructure, including water, electricity, and sanitation.

A valuation by the Ghana Institute of Surveyors later estimated that an additional $100 million would be needed to complete the 1,506 unfinished units, a cost the government could not cover.

In response, the Cabinet approved the sourcing of private-sector financing and technical expertise to complete the project. To this end, a Request for Proposals (RFP) was issued in April 2024.

To ensure transparency and fairness in the process, the government appointed Deloitte Ghana as the Transaction Advisor to evaluate the bids submitted by several entities, including Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group, on July 8, 2024.