The Minister for Works and Housing, Kojo Oppong Nkrumah, announced that negotiations regarding the stalled Saglemi Housing Project will be finalized within the next 14 days.
The government plans to hand over the project to a private developer for completion, following the approval of a new framework by President Nana Akufo-Addo.
Originally intended to provide 5,000 affordable housing units, only 1,506 units were partially completed before the project was halted due to insufficient infrastructure, including water and electricity.
Under the new arrangement, the government will treat the work completed thus far as its equity, while the private developer will finance the remaining construction. Both parties will share the proceeds from the sale of the completed units according to their equity stakes in a Special Purpose Vehicle (SPV) established for the project.
A recent valuation by the Ghana Institute of Surveyors estimated that an additional $100 million will be needed to complete the unfinished units, a financial burden the government cannot currently bear.
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“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. Negotiations will be finalized within the next 14 days,” Nkrumah said at a press briefing in Accra.
The current value of the completed work will be recognized as government equity in the SPV, while a completion cost index will be used to determine the equity for the selected partner. Revenue from the sale of the completed houses will be allocated to both the government and the private partner according to their stakes in the SPV.
Two firms, Quarm-LMI Consortium and Broll Ghana, have been shortlisted for the final phase of negotiations. The Saglemi Housing Project is part of the government’s broader strategy to address a housing deficit in Ghana, currently estimated at 1.8 million units.
