President approves framework for negotiations on Saglemi Housing Project

President Nana Addo Dankwa Akufo-Addo has approved a framework for negotiations with the successful bidder(s) in the ongoing effort to resolve the stalled Saglemi Housing Project.

This approval was granted at the request of the Minister for Works and Housing, Kojo Oppong Nkrumah. Under the new framework, the work already completed on the Saglemi project will be treated as the government’s equity. The cost to finish the remaining construction will be considered the private partner’s equity in a Special Purpose Vehicle (SPV) to be formed for the project’s completion.

Proceeds from the sale of the completed housing units will be shared between the government and the private partner based on their respective stakes in the SPV.

Initially, the Saglemi Housing Project was designed to deliver 5,000 affordable housing units with an estimated $200 million in government funding. However, the project was halted after only 1,506 units were partially completed due to a lack of critical infrastructure such as water, electricity, and sanitation.

A valuation conducted by the Ghana Institute of Surveyors revealed that an additional $100 million would be needed to complete the unfinished housing units, funding that the government could not provide. In response, the Cabinet approved seeking private-sector financing and expertise to complete the project.

In April 2024, a Request for Proposals (RFP) was issued. As part of the transparent process, Deloitte Ghana was appointed as the Transaction Advisor to evaluate bids submitted by companies including Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group.

The preferred bidder(s) are expected to be presented to the Ministry of Works and Housing by mid-September, after which negotiations will begin. The final goal is to establish terms for creating a Joint Venture responsible for completing and operationalizing the 1,506 housing units.

With President Akufo-Addo’s approval of the framework, negotiations can proceed once the evaluation process concludes and the preferred bidder(s) are selected.