President Nana Addo Dankwa Akufo-Addo has approved a framework for negotiations with the successful bidder(s) in the ongoing resolution of the Saglemi Housing Project.
The approval follows a request by the Minister for Works and Housing, Kojo Oppong Nkrumah.
Under the new framework, the value of the work already completed at Saglemi will be treated as the government’s equity in the project, while the cost to complete the remaining work will be considered the equity of the selected partner in a Special Purpose Vehicle (SPV) to be established for the project’s completion.
Proceeds from the sale of the houses will be shared between the government and the private partner based on their stake in the SPV.
The Saglemi Housing Project, originally intended to deliver 5,000 affordable housing units, received approximately $200 million in government financing.
However, only 1,506 units were partially completed, and the project was halted due to a lack of essential infrastructure such as water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be needed to complete the unfinished units—funding that the government could not provide.
As a result, the Cabinet approved seeking private-sector financing and expertise. A Request for Proposals (RFP) was issued in April 2024.
To ensure transparency, the government appointed Deloitte Ghana as the Transaction Advisor to evaluate bids submitted by Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group on July 8, 2024.
The Transaction Advisor is expected to present the preferred bidder(s) to the Ministry of Works and Housing by mid-September. Negotiations will then begin to establish terms for creating a Joint Venture.
The SPV formed through this partnership will be responsible for constructing and operationalizing the 1,506 housing units.
The President’s approval of the framework allows negotiations to proceed once the evaluation process is completed and the preferred bidder(s) are announced.