Mr Francis Asenso-Boakye, Minister for Works and Housing, Sunday says the private sector will take over the completion of the Saglemi Housing Project.
This is because, “Government does not intend to expend additional tax-payers’ money towards the completion of the project, ” he said.
The Minister said Government had decided to explore the possibility of selling the project, covering the 1,506 housing units, at the current value to a private sector entity to complete and sell the housing units to the public, at no further cost to the State
Mr Asenso-Boakye said this during the Meet the Press session at the Ministry of Information, Sunday, November 13.
He said aside the approximately US$196 million Government had already expended on the 1506 housing units, it needed US$46 million to provide water, electricity and storm drains to make the housing units habitable.
The Minister said: “Additionally, there is the need to invest approximately US$68 million to complete the buildings, and other essential on-site infrastructure works.”
The Saglemi Affordable Housing Project was initiated in 2012 for the delivery of 5,000 housing units at a total cost of US$200,000,000.00 under an Engineering, Procurement, Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.
Mr Asenso-Boakye, also the Member of Parliament for Bantama Constituency, said the original contract of the project had been amended three (3) times at the end of the stipulated completion date.
“And the project scope had reduced from the initial 5,000 housing units to 1,506 housing units although US$195,854,969.52 representing 98% of the project funds had been expended,” the MP said.
He said a technical assessment report by the Ghana Institution of Surveyors in September, 2020, valued the total cost of works on site at US$64,982,900.74.
The Minister said the State had some equity in the form of the land and assets on site that could be leveraged for the completion of the units by the private developer.
He said the proceeds from the sales of the project would be for the State and reinvested into affordable housing projects.
Mr Asenso-Boakye said a Technical Working Team had been set-up, comprising professionals and experts to oversee and spearhead all engagements required for the completion of the project.
He said the Ministry had been engaging Cabinet, the Ministry of Finance (MoF), Office of the Attorney-General and Ministry of Justice on the engagement of the private sector and completion of the project.