President Nana Addo Dankwa Akufo-Addo has given the green light for a framework to negotiate with the successful bidder(s) involved in resolving the Saglemi Housing Project.
This approval came following a request from the Minister for Works and Housing, Kojo Oppong Nkrumah.
According to the new framework, the value of the work already completed at Saglemi will be recognized as the government’s equity in the project. The cost required to finish the remaining construction will represent the equity of the chosen partner in a Special Purpose Vehicle (SPV) that will be set up to complete the project.
Profits from the sale of the houses will be divided between the government and the private partner based on their respective shares in the SPV.
The Saglemi Housing Project, which was initially planned to deliver 5,000 affordable housing units, received around $200 million in government funding. However, only 1,506 units were partially finished, and the project was put on hold due to the absence of crucial infrastructure like water, electricity, and sanitation facilities.
Anestimation done by the Ghana Institute of Surveyors indicates that an additional $100 million would be required to complete the unfinished units—funds that the government could not allocate.
Due to this, the Cabinet authorized the pursuit of private-sector funding and expertise, leading to the issuance of a Request for Proposals (RFP) in April 2024.
Government appointed Deloitte Ghana as the Transaction Advisor to assess bids submitted by Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group on July 8, 2024 to ensure a transparent process,
Deloitte Ghana is expected to present the selected bidder(s) to the Ministry of Works and Housing by mid-September. Following this, negotiations will commence to finalize the terms for creating a Joint Venture.
The Special Purpose Vehicle (SPV) established through this partnership will be tasked with completing and managing the 1,506 housing units.
With the President’s approval of the negotiation framework, discussions will move forward once the evaluation process is finalized and the preferred bidder(s) are announced.