We are pleased to announce that President Nana Addo Dankwa Akufo-Addo has given his approval for the framework that will guide negotiations with the successful bidder(s) in the resolution of the Saglemi Housing Project. This significant development comes in response to a request from the Minister for Works and Housing, Kojo Oppong Nkrumah.
The framework, as approved by the President, outlines that the current value of work done at Saglemi will be considered as government equity in the project. Additionally, the completion cost will be treated as the equity of the selected partner in a Special Purpose Vehicle (SPV) that will be established for the project's completion. It is envisaged that proceeds from the eventual sale of the houses will be shared between the government and the private partner in accordance with their stake in the SPV.
Originally intended to provide 5,000 affordable housing units, the Saglemi Housing Project received approximately $200 million in government financing. Regrettably, only 1,506 units had been partially completed by the time the project was halted, with essential infrastructure such as water, electricity, and sanitation still lacking.
A subsequent valuation conducted by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the unfinished units, a financing gap that the government was unable to bridge. Consequently, the Cabinet approved the exploration of private-sector financing and technical expertise to bring the project to fruition. This led to the issuance of a Request for Proposals (RFP) earlier this year.
To ensure a fair and transparent process, Deloitte Ghana was engaged as the Transaction Advisor to evaluate bids submitted by various entities. The Transaction Advisor is expected to present the preferred bidder(s) to the Ministry of Works and Housing by mid-September, following which negotiations will commence to establish terms favorable for setting up a Joint Venture between the government and the selected partner.
The establishment of a Special Purpose Vehicle (SPV) through this partnership will be tasked with the construction and operationalization of the 1,506 housing units. With the President's approval of the framework, we are now poised to commence negotiations once the evaluation process is completed and the preferred bidder(s) are submitted by the Transaction Advisor.
This marks a crucial step forward in the resolution of the Saglemi Housing Project and underscores the government's commitment to addressing the housing deficit in Ghana. We look forward to productive negotiations and eventual progress towards delivering much-needed housing units to our citizens.
-source citinewsroom | curated by Tetteh Belinda | Mydailyreports24
0 Comments