The government is set to finalise negotiations to revive the stalled Saglemi Housing Units, with plans to hand the project over to a private developer for redevelopment.
The Minister for Works and Housing Mr Kojo Oppong Nkrumah, disclosed this at a press briefing in Accra on Monday.
This progress follows President Akufo-Addo's approval of a framework for negotiations with the successful bidder(s) in response to a request from the minister.
The Saglemi Housing Project was originally designed to deliver 5,000 affordable housing units and received approximately $200 million in government financing.
However, by the time work was halted, only 1,506 units had been partially completed, and the development was deemed uninhabitable due to the lack of essential infrastructure such as water, electricity, and sanitation.
He stated that a valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be needed to complete the unfinished units, a sum the government could not provide.
"Cabinet has directed the Ministry of Works and Housing to explore the possibility of selling the partially completed Saglemi Housing Project to a private sector entity to complete and sell the units without further government investment, and negotiations will be finalized within the next 14 days," he added.
Under the approved framework, the current value of work done at Saglemi will count as government equity in the project while the completion cost will be treated as equity for the selected partner in a Special Purpose Vehicle (SPV) established for the project's completion.
He noted that proceeds from the sale of the completed houses would be shared between the government and the private partner based on their stake in the SPV.
In addition to addressing the Saglemi project, Mr Nkrumah discussed ongoing efforts to resolve other stalled housing initiatives across the country.
The Koforidua Affordable Housing Project is set to resume construction after being handed over to the State Housing Company Limited.
"This project aims to expedite construction while maintaining standards of quality and efficiency," he noted.
