Saglemi Housing Project resolution approved by President Akufo-Addo.

President Nana Addo Dankwa Akufo-Addo has approved a negotiating framework for the ongoing resolution of the Saglemi Housing Project, allowing for discussions with the successful bidder(s). This approval was granted following a request by Kojo Oppong Nkrumah, the Minister of Works and Housing.

According to sources familiar with the matter, the framework designates the current value of the completed work at Saglemi as the government’s equity in the project. The cost required to complete the remaining work will be treated as the partner’s equity in a Special Purpose Vehicle (SPV) that will be established to oversee the project’s completion.

The government and the private partner will share the proceeds from the sale of the completed housing units based on their respective equity shares in the SPV.

The Saglemi Housing Project, originally intended to provide 5,000 affordable housing units, was funded by the government with approximately $200 million. However, only 1,506 units were completed before the project was abandoned, leaving the development uninhabitable due to the absence of essential utilities like electricity, water, and sanitation.

A subsequent appraisal by the Ghana Institute of Surveyors estimated that an additional $100 million would be needed to complete the 1,506 unfinished units—funds the government could not provide.

As a result, the Cabinet approved a plan to seek technical expertise and financing from the private sector to complete the project. A Request for Proposals (RFP) was issued in April 2024 to initiate this process.

To ensure a fair and transparent selection process, Deloitte Ghana was appointed as the Transaction Advisor to evaluate the bids submitted on July 8, 2024, by Afro-Arab Properties Ltd., Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd., and Masiltin Group.

By mid-September, the Transaction Advisor is expected to recommend the selected bidder(s) to the Ministry of Works and Housing.

Once the preferred bidder(s) is presented, the government will enter negotiations to establish a joint venture with mutually beneficial terms.

The resulting SPV will be responsible for completing and making the 1,506 housing units operational.

With the Transaction Advisor’s assessment nearing completion and the President’s approval of the framework, the path is now clear for negotiations to proceed.