The government has settled on Quarm-LMI as the preferred developer to complete the Saglemi Housing Project.
This was announced in a statement issued by the Ministry of Works and Housing on Friday, October 18, 2024.
The Ministry had earlier announced two preferred bidders had been shortlisted for final negotiations among five firms.
However, the statement has noted the selection of Quarm-LMI follows an extensive negotiation process led by a government team.
Other members of the negotiation team included; representatives from the Ministry of Finance, the Office of the Attorney General and Ministry of Justice, and Deloitte, with technical evaluation support from the Ghana Institute of Surveyors.
The statement explained that the redevelopment will be structured through a Special Purpose Vehicle (SPV), with the government’s current investment in the project being treated as equity.
This ensures that both the government and the developer will recover their investments once the project is completed.
“As part of the redevelopment, the government and the developer will both recover their investments when the project is completed,” the statement added.
Originally designed to deliver 5,000 affordable housing units, the Saglemi Housing Project received approximately $200 million in government financing.
However, by the time the project was halted, only 1,506 units had been partially completed, with the development deemed uninhabitable due to the absence of essential infrastructure such as water, electricity, and sanitation.
A subsequent valuation conducted by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the 1,506 unfinished units; financing which the government could not provide.
The completion of the Saglemi Housing Project is anticipated to have a significant impact on Ghana’s housing landscape, helping reduce the country’s housing deficit which stands at 1.8 million.
Quarm-LMI Holdings is a consortium consisting of LMI, with interests in industrial park development and real estate, And QUARM with expertise in logistics, Utilities and Finance.
ALSO READ: