The framework for the Saglemi Housing project has been approved by President Nana Addo Dankwa Akufo-Addo.
This approval aims to pave the way for negotiations with the successful bidder, following a request by the Minister for Works and Housing, Kojo Oppong Nkrumah.
The approximately 60% completed work on the project is considered as the government’s equity, while the remaining cost for completion will be treated as the equity of the selected partner in a Special Purpose Vehicle (SPV).
The project, initiated under the erstwhile John Mahama-led government, aims to deliver 5,000 affordable housing units to Ghanaians in an effort to decongest Accra. By the time the Mahama administration exited office, over 60% of the 1,506 units had been completed.
An additional $100 million was required to fully complete the 1,506 units, an amount the government noted it could not afford. Consequently, the government decided to lease the project to a private developer. The current SPV the government is entering into is focused on the completion and operationalization of only the 1,506 units.
The government has appointed Deloitte Ghana as the Transaction Advisor. So far, five companies have submitted their bids: Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group.
