Akufo-Addo Breathes New Life Into Troubled Saglemi $200m Venture

 

In a significant development, President Nana Addo Dankwa Akufo-Addo has approved a framework for negotiations with the successful bidder(s) to revive the stalled Saglemi Housing Project.

The move marks a crucial turning point in the project’s history, which has been marred by controversy, mismanagement, and abandonment.

The Saglemi Housing Project, initially designed to deliver 5,000 affordable housing units, has been a white elephant since its inception.

Despite receiving approximately $200 million in government financing, only 1,506 units were partially completed, lacking essential infrastructure such as water, electricity, and sanitation.

The project’s woes began in 2012 when the then-government signed a contract with Construtora OAS Ltd, a Brazilian construction firm, to build the housing units.

However, the project was halted due to allegations of mismanagement, corruption, and breaches of contract.

In 2020, the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the 1,506 unfinished units. With the government unable to provide the necessary financing, the Cabinet approved sourcing private-sector financing and technical expertise to complete the project.

Fast-forward to 2024, the government has issued a Request for Proposals (RFP) to attract private investors.

Five companies, including Afro-Arab Properties Ltd, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Ltd, and Masiltin Group, submitted bids on July 8, 2024.

With the President’s approval of the negotiation framework, the stage is set for the government to partner with the preferred bidder(s) to establish a Joint Venture.

The Special Purpose Vehicle (SPV) formed through this partnership will be responsible for completing the 1,506 housing units, with proceeds from sales shared between the government and the private partner.

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