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The Public Procurement Authority (PPA) has given its approval for the appointment of a transaction advisor to facilitate the sale of the Saglemi Housing project to a private sector entity. This decision follows a directive from Cabinet to the Minister of Works and Housing to explore the possibility of disposing off the project.
The aim is to sell the project at its current value to a private sector entity, which will take on the responsibility of completing the housing units and selling them to the public at no further cost to the government.
To oversee and manage all the necessary engagements required for the 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.
The Saglemi Housing project, which comprises 5,000 units and is located in Prampram, was originally intended to provide mortgage arrangements for the housing units to be sold to employees through the Ghana Home Loans Company. However, due to variations in the project, only about 1,506 housing units have been completed.
According to a report by Graphic.com.gh, President Nana Addo Dankwa Akufo-Addo has emphasized the importance of transparency and ensuring value for money in the execution of the Cabinet’s directive. He also noted that valuable lessons from the Saglemi project had influenced the approach and execution of the new housing initiative.
Regarding the current state of the Saglemi Project, President Akufo-Addo acknowledged the delays and setbacks it faced during execution. He informed that issues concerning the project’s scope of work and expenditure have been taken to the criminal investigations division of the Ghana Police Service for investigation and 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 like 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.
