President Nana Addo Dankwa Akufo-Addo has given the green light to a plan to resolve issues surrounding the Saglemi Housing Project, following a request from the Minister for Works and Housing, Kojo Oppong Nkrumah.
According to this plan, the work that has already been done on the project will be treated as the government’s share, while the money needed to finish it will be the share of a private partner. Both will join forces in a Special Purpose Vehicle (SPV) to oversee the completion of the project.
The Saglemi Housing Project was initially meant to provide 5,000 affordable homes, but it ran into serious problems. About $200 million was spent, but only 1,506 units were partially built before work stopped due to a lack of essential services like water and electricity.
A review by the Ghana Institute of Surveyors found that an extra $100 million is needed to complete the unfinished homes, which the government cannot afford.
Given these challenges, the Cabinet decided to seek private-sector funding and expertise. In April 2024, a Request for Proposals (RFP) was issued, and by the July 8 deadline, 10 companies, both local and international, had shown interest and submitted bids.
Deloitte Ghana has been hired as the Transaction Advisor to make sure the evaluation process is fair. They are expected to recommend the preferred bidder(s) to the Ministry of Works and Housing by mid-September, after which negotiations will begin to form a Joint Venture for the SPV that will manage the construction and operation of the 1,506 housing units.
Completing this project is expected to make a significant impact on the country’s housing needs and contribute to overall infrastructure development.
