President Nana Addo Dankwa Akufo-Addo has approved a framework for negotiations with the successful bidder(s) in the ongoing resolution of the Saglemi Housing Project.
The approval follows a request by the Minister for Works and Housing, Kojo Oppong Nkrumah.
Under the new framework, the value of the work already completed at Saglemi will be treated as the government's equity in the project, while the cost to complete the remaining work will be considered the equity of the selected partner in a Special Purpose Vehicle (SPV) to be established for the project's completion.
Proceeds from the sale of the houses will be shared between the government and the private partner based on their stake in the SPV.
The Saglemi Housing Project, originally intended to deliver 5,000 affordable housing units, received approximately $200 million in government financing.
However, only 1,506 units were partially completed, and the project was halted due to a lack of essential infrastructure such as water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be needed to complete the unfinished units—funding that the government could not provide.
As a result, the Cabinet approved seeking private-sector financing and expertise. A Request for Proposals (RFP) was issued in April 2024.
To ensure transparency, the government appointed Deloitte Ghana as the Transaction Advisor to evaluate bids submitted by Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group on July 8, 2024.
The Transaction Advisor is expected to present the preferred bidder(s) to the Ministry of Works and Housing by mid-September. Negotiations will then begin to establish terms for creating a Joint Venture.
The SPV formed through this partnership will be responsible for constructing and operationalizing the 1,506 housing units.
The President’s approval of the framework allows negotiations to proceed once the evaluation process is completed and the preferred bidder(s) are announced.
Latest Stories
-
“With all due respect, Mr. President”, make elections 2024 a befitting legacy – Chambas to Akufo-Addo
55 mins -
GJA President calls for support of Media Freedom at Northern Regional GJA Awards
3 hours -
Trailblazing ballerina Michaela DePrince dies aged 29
5 hours -
Cher drops bid for conservatorship over her son
5 hours -
Anis Haffar: The persistent terrorism of galamsey
5 hours -
Paa Grant Medals for Excellence Award: Justmax Travels CEO named ‘Most Outstanding Entrepreneur of the Year’
8 hours -
South Africa’s Deputy President Mashatile collapses on podium
8 hours -
Evans Mawunyo Tsikata: Why resist an audit if you are clean?
8 hours -
You are a nation-wrecker if you live in Ashanti and vote for NDC – NAPO
9 hours -
2024/2025 GPL: Medeama SC secure back-to-back victories with win over Legon Cities
10 hours -
Ekow Yamson offers 10 Agriculture Q&As on NDC 2024 Manifesto
10 hours -
Embrace AI to remain competitive – Mark Okraku-Mantey to creatives
11 hours -
You’ve failed the creative industry – Sadiq Abdullai tells NPP gov’t
11 hours -
Photos: Day two of JoyNews/Ecobank 3rd mini Habitat Fair
11 hours -
NPP PC for Bole-Bamboi distributes 140 pieces of streetlights to enhance security of constituents
12 hours