The stalled Saglemi Housing Project is on the brink of revival, as the government finalises negotiations with a private developer for its redevelopment.

This was disclosed by the Minister for Works and Housing, Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024.

The project is expected to be handed over within the next 14 days.

This development follows President Akufo-Addo’s approval of a negotiation framework with the successful bidder(s) after a request submitted by Minister Oppong Nkrumah last month.

The Saglemi Housing Project, initially aimed at delivering 5,000 affordable housing units, saw around $200 million of government funding but was halted after only 1,506 units were partially completed.

The unfinished development was deemed uninhabitable due to the absence of key infrastructure such as water, electricity, and sanitation.

A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be required to complete the project—funding the government could not provide.

Minister Oppong Nkrumah explained that cabinet has instructed the Ministry of Works and Housing to explore selling the incomplete project to a private entity to finish and sell the units without further government investment.

Negotiations are expected to conclude in the next 14 days.

Under the approved framework, the current value of work done on the Saglemi project will be treated as government equity, while the private developer's cost to complete the units will represent their equity in a Special Purpose Vehicle (SPV) to be established.

Proceeds from the sale of the completed houses will be divided between the government and the private partner based on their equity stakes.

Two companies have been shortlisted for the final phase of negotiations: Quarm-LMI Consortium and Broll Ghana Ltd.

Mr Oppong Nkrumah’s statement comes as Ghana’s housing deficit stands at 1.8 million units, down from 2.8 million in 2010.

He stated the need for innovative solutions to ensure that every citizen has access to decent and affordable housing, underscoring that housing is both a necessity and a fundamental right.

In addition to Saglemi, the Minister discussed efforts to revive other stalled housing projects across the country.

The Koforidua Affordable Housing Project, which was recently handed over to the State Housing Company Limited, is set to resume construction.

"This project aims to expedite completion while maintaining high standards of quality and efficiency," he stated.