A negotiating framework with the successful bidder or bidders in the ongoing Saglemi Housing Project resolution has been approved by President Nana Addo Dankwa Akufo-Addo.
The President granted the consent in response to a request made by Kojo Oppong Nkrumah, the Minister of Works and Housing.
According to people familiar with the development, the framework will treat the current value of the work completed at Saglemi as government equity in the project, and the completion cost will be treated as the partner’s equity in a Special Purpose Vehicle (SPV) that will be created for the project’s completion.
The government and the private partner will split the proceeds from the sale of the residences when they are eventually finished, based on their respective shares in the SPV.
The Saglemi Housing Project, which was initially planned to provide 5,000 affordable housing units, was funded by the government to the tune of about $200 million. Only 1,506 apartments had been finished at the time the project was abandoned, and the lack of basic utilities like power, water, and sanitary facilities made the development uninhabitable.
According to a later appraisal by the Ghana Institute of Surveyors, an extra $100 million would be needed to finish the 1,506 incomplete apartments; this money was not something the government could afford.
After that, the Cabinet gave its approval to obtaining technical know-how and funding from the private sector to finish the project. To accomplish this goal, a Request for Proposals (RFP) was released in April of this year.
The government appointed Deloitte Ghana as the Transaction Advisor to assess the bids made on July 8, 2024, by Afro-Arab Properties Ltd., Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd., and Masiltin Group in order to guarantee a fair and transparent process.
By mid-September, the Transaction Advisor is supposed to submit the selected bidder or bidders to the Ministry of Works and Housing.
Following presentation, the government will engage in negotiations to determine terms that are advantageous for the two parties to establish a joint venture.
The 1,506 housing units will be built and put into service by the SPV that results from this agreement.
Following the conclusion of the assessment and the Transaction Advisor’s submission of the preferred bidder or bidders, the President’s approval of the framework opens the door for negotiations.
