The government is nearing the completion of negotiations to revive the stalled Saglemi Housing Units project, with plans to hand it over to a private developer for redevelopment within the next 14 days.

This announcement was made by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on September 30, 2024.

The progress comes after President Akufo-Addo approved a framework for negotiations with the successful bidder(s) following a request from Minister Oppong Nkrumah last month.

The Saglemi Housing Project was initially designed to provide 5,000 affordable housing units, with approximately $200 million allocated for government financing.

However, only 1,506 units were partially completed before the project was halted, leaving them uninhabitable due to a lack of essential infrastructure such as water, electricity, and sanitation.

A valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be necessary to complete the unfinished units—funding that the government currently cannot provide.

In response, Cabinet has instructed the Ministry of Works and Housing to explore selling the partially completed project to a private sector entity that can complete and sell the units without further government investment.

Under the approved framework, the work already completed at Saglemi will be regarded as government equity in the project, while the costs required for completion will count as the equity of the chosen private partner in a Special Purpose Vehicle (SPV) established for the project.

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

The Minister revealed that five firms submitted bids, with Quarm-LMI Consortium and Broll Ghana Ltd. shortlisted for final negotiations.

Oppong Nkrumah’s comments come amid Ghana's significant housing deficit, which currently stands at 1.8 million units, a decrease from 2.8 million in 2010.

He stressed the importance of innovative approaches to ensure all citizens have access to decent and affordable housing, stating, “Housing is not just a necessity but a fundamental right.

A secure, decent, and affordable home is essential to one’s well-being, providing a sense of security, dignity, and opportunities for growth and development.”

In addition to the Saglemi project, the Minister also addressed other stalled housing initiatives, noting that construction on the Koforidua Affordable Housing Project is set to resume after being handed over to the State Housing Company Limited. He emphasized that this project aims to expedite construction while maintaining high standards of quality and efficiency.