President Nana Addo Dankwa Akufo-Addo has approved a new framework to kickstart negotiations with potential private partners for the completion of the Saglemi Housing Project.

The move follows a request from the Minister for Works and Housing, Kojo Oppong Nkrumah, signalling a renewed government commitment to resolving the project’s prolonged stagnation.

Under the newly approved framework, the value of the existing work done on the project will be considered the government’s equity, while the completion costs will count as the equity of the private partner.

A Special Purpose Vehicle (SPV) will be created to manage the project, with the government and private partner sharing proceeds from the sale of completed housing units based on their respective stakes.

Initially designed to deliver 5,000 affordable housing units with a government investment of around USD 200 million, the Saglemi Housing Project stalled after only 1,506 units were partially built.

These units were deemed uninhabitable due to the lack of critical infrastructure such as water, electricity, and sanitation.

A valuation by the Ghana Institute of Surveyors estimated that an additional USD100 million would be needed to complete the remaining units—a cost the government cannot afford alone.

Consequently, the Cabinet approved the sourcing of private-sector funding and expertise, issuing a Request for Proposals (RFP) in April 2024 to attract suitable partners.

To ensure a transparent selection process, Deloitte Ghana was appointed as the Transaction Advisor to evaluate bids from several companies, including Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group.

The chosen bidder(s) will be presented to the Ministry of Works and Housing by mid-September.

Once the preferred bidder is selected, the government will enter negotiations to establish a Joint Venture, with the SPV overseeing the construction and operation of the 1,506 housing units.