By Kafui Dey
The Saglemi Housing Project, once a beacon of hope for affordable housing in Ghana, has been plagued with numerous challenges since its inception. In a recent press briefing, the Minister for Works and Housing, Kojo Oppong Nkrumah, addressed the key issues surrounding the project and outlined the government’s strategic interventions to bring it to fruition.
Background and Challenges
The Saglemi Housing Project was initiated with the vision of constructing 5,000 housing units to alleviate the housing deficit in Ghana. The government secured a $200 million loan for this ambitious endeavor. However, the project has been mired in difficulties, resulting in 1,506 incomplete units, with some only at the foundation level. Critical infrastructure such as water, electricity, and sewage systems remains absent, further stalling progress.
In 2017, an assessment by GIS estimated that an additional $100 million was needed to complete the units. Despite this, the work conducted so far has not met the estimated requirements, leaving the project in limbo.
Legal and Financial Hurdles
A significant roadblock has been legal disputes. The project faced litigation that halted construction activities. Recently, the courts have allowed the project to proceed, but funding remains a critical issue. Traditionally, housing projects have been government-funded, but financial constraints have necessitated a shift towards seeking private investment.
Government Interventions
Minister Kojo Oppong Nkrumah detailed several interventions aimed at resuscitating the Saglemi project:
Private Sector Collaboration:
In April 2024, the government issued a Request for Proposals (RFP) to invite private developers to complete the project. By July, five out of ten companies had submitted bids, which are currently under evaluation by Deloitte. The government plans to announce the preferred bidder soon, who will collaborate with the state to secure funding and complete the units.
Affordability and Accessibility
To ensure that the Saglemi units remain affordable, the government has mandated that the units be sold through unions, preventing wealthier individuals from purchasing multiple units and restricting access to those in need. Originally priced at $40,000 per unit, the government aims to keep prices within reach for average Ghanaians.
Infrastructure Development
The lack of essential infrastructure has significantly hindered progress. The government has highlighted the necessity of completing roads, sewage systems, and utility installations to facilitate the project’s completion. This lesson from Saglemi emphasizes the importance of comprehensive planning in future housing projects.
Public-Private Partnership Framework
The project is part of a broader Public-Private Partnership (PPP) framework designed to stimulate private investment in the housing sector. This includes offering incentives such as tax waivers and reduced interest rates for loans under the National Home Ownership Fund (NHF).
Legal Proceedings
In response to the project’s mismanagement, several individuals, including two former ministers, a chief director, and a contractor (now deceased), have been put on trial. This underscores the government’s commitment to accountability and transparency in public projects.
Moving Forward
The Minister assured that the government is dedicated to seeing the Saglemi Housing Project through to completion. Contractors are expected to resume work by September 17, 2024. This renewed effort aims not only to provide much-needed housing but also to restore public confidence in the government’s ability to manage large-scale projects effectively.
The Saglemi Housing Project represents a critical step in addressing Ghana’s housing deficit. With strategic interventions and a focus on collaboration between the public and private sectors, the government is working to turn the tide and provide affordable housing for Ghanaians.
