President Nana Addo Dankwa Akufo-Addo has given the green light for negotiations with the successful bidder(s) in the ongoing efforts to resolve the Saglemi Housing Project.
This approval follows a request from the Minister for Works and Housing, Kojo Oppong Nkrumah, who sought the President’s consent for the proposed framework.
According to sources close to the situation, the framework will allow the current value of work done at Saglemi to be considered as the government’s equity in the project.
Meanwhile, the completion costs will represent the equity of the chosen private partner in a Special Purpose Vehicle (SPV) that will be created to finalise the project.
Once the housing units are completed and sold, the proceeds will be divided between the government and the private partner, based on their respective equity stakes in the SPV.
The Saglemi Housing Project, initially planned to deliver 5,000 affordable housing units was backed by approximately $200 million in government funding.
However, when the project stalled only 1,506 units were partially completed. These units were deemed uninhabitable due to the lack of crucial infrastructure, including water, electricity and sanitation.
A valuation by the Ghana Institute of Surveyors later estimated that an additional $100 million would be needed to complete the 1,506 unfinished units – a cost the government could not afford.
In response, the Cabinet approved a plan to seek private-sector financing and expertise to complete the project. A Request for Proposals (RFP) was issued in April 2024 to attract potential partners.
To ensure a transparent and fair process, the government appointed Deloitte Ghana as the transaction advisor. Deloitte is tasked with evaluating bids submitted by Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group on July 8, 2024.
According to the established timeline, the transaction advisor is expected to present the preferred bidder(s) to the Ministry of Works and Housing by mid-September.
Once this is done, the government will begin negotiations to establish terms for the joint venture that will oversee the completion of the 1,506 housing units.
The President’s approval of the framework allows for negotiations to proceed once the evaluation process is completed and the preferred bidder(s) will be submitted by the Transaction Advisor.
