The Public Procurement Authority (PPA) has granted approval for the appointment of a transaction advisor, who will play a pivotal role in facilitating the sale of the Saglemi Housing project to a private sector entity.
This decision comes after a directive from Cabinet to the Minister of Works and Housing to explore the possibility of divesting the project.
The primary objective is to sell the project to a private sector entity at its current value, whereby the entity will assume responsibility for completing the housing units and offering them to the public at no additional cost to the government.
To oversee and manage all the necessary tasks for the successful completion of the housing project, the Ministry of Works and Housing has established a technical working group, comprising representatives from various state and independent professional institutions.
Originally intended to provide mortgage arrangements for housing units to be sold to employees through the Ghana Home Loans Company, the Saglemi Housing project consists of 5,000 units and is situated in Prampram. However, due to project variations, only 1,506 housing units have been completed thus far.
President Nana Addo Dankwa Akufo-Addo has emphasized the significance of transparency and ensuring value for money in the implementation of the Cabinet’s directive. He also highlighted that valuable lessons learned from the Saglemi project have influenced the approach and execution of the new housing initiative.
Regarding the current status of the Saglemi Project, President Akufo-Addo acknowledged the delays and setbacks it encountered during execution.
He mentioned that issues related to the project’s scope of work and expenditure are being investigated by the criminal investigations division of the Ghana Police Service for subsequent judicial proceedings.
To prevent further deterioration of the project, the Ministry of Works and Housing has been actively engaging with Cabinet, the Minister of Finance, and the Office of the Attorney General. Additional financing amounting to $56 million will be required to complete offsite infrastructure works such as water, electricity, and storm drains to mitigate flooding.
Additionally, $68 million is needed to finalize the buildings and essential on-site infrastructure works, including a waste holding bay, sewage treatment plant, and the development of socio-economic and civic infrastructure, such as a basic school, a clinic, and shops.
The sale of the Saglemi Housing project to a private developer is expected to pave the way for its completion and successful integration into the Revised National Affordable Housing Programme.
