President Nana Addo Dankwa Akufo-Addo has given the green light to a negotiation framework for engaging with the successful bidder(s) in the ongoing efforts to resolve the Saglemi Housing Project. This approval follows a request from the Minister for Works and Housing, Kojo Oppong Nkrumah.
According to sources familiar with the situation, the framework outlines that the current value of work completed at Saglemi will be considered as government equity in the project. Meanwhile, the cost required to finish the project will be treated as the equity of the selected partner within a Special Purpose Vehicle (SPV) that will be established to oversee the project’s completion. The proceeds from the sale of the completed housing units will then be divided between the government and the private partner according to their respective equity in the SPV.
The Saglemi Housing Project was initially designed to deliver 5,000 affordable housing units and received around $200 million in government funding. However, when the project was halted, only 1,506 units were partially completed, and the development was deemed uninhabitable due to a lack of critical infrastructure, including water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be needed to complete the 1,506 unfinished units, a sum the government could not provide. Consequently, the Cabinet approved the pursuit of private-sector financing and expertise to complete the project. A Request for Proposals (RFP) was issued in April 2024 to identify potential partners.
To ensure transparency, the government enlisted Deloitte Ghana as the Transaction Advisor to assess bids from Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group. The evaluation of these bids, submitted on July 8, 2024, is expected to conclude with the Transaction Advisor presenting the preferred bidder(s) to the Ministry of Works and Housing by mid-September.
Upon selection, the government will negotiate terms to establish a Joint Venture between the parties involved. The SPV formed through this partnership will be responsible for completing and operationalizing the 1,506 housing units.
With the President’s approval of the negotiation framework, the path is now clear for discussions to commence, pending the final evaluation and submission of the preferred bidder(s) by the Transaction Advisor.
