The government has announced its decision to explore the possibility of selling the Saglemi housing project, covering all 1,506 homes, at current value, to a private sector entity to complete and sell at no additional cost to the state.
Proceeds from the sale will revert to the state and be reinvested in the government’s affordable housing program.
Public Works and Housing Minister Francis Asenso-Boakye, who unveiled the series of press briefings yesterday in Accra, said that to facilitate the processes, a technical working team, comprised of professionals and experts, has been put in place to oversee and direct all commitments necessary to complete the project.
This, he noted, was done with the aim of ensuring transparency and accountability, while ensuring value for money in the completion of the project.
The Saglemi Affordable Housing Project, launched in 2012 for the delivery of 5,000 housing units at a total cost of US$200,000,000.00 under an Engineering, Procurement and Contracting (EPC) agreement ) with Messrs. Construtora OAS Ghana Limited, had its initial contract amended three times, effectively reducing the scope of the project to 1,506 housing units, despite $195,854,969.52, representing 98% of the project funds having been spent.
Despite this, he said none of the 1,506 units were habitable, as the project was in various stages of completion and lacked basic amenities, such as water, electricity and other ancillary amenities. .
Meanwhile, a technical assessment report by the Ghana Institution of Surveyors in September 2020 assessed the total cost of site works at US$64,982,900.74.
As part of the government’s commitment to prevent further deterioration of the project, Asenso-Boakye said his team had engaged the Cabinet, Ministry of Finance, Attorney General’s Office and Ministry of Justice on the best options. viable to complete the project.
Following a comprehensive assessment of the project, the sector minister revealed that the government will need to allocate additional funding of approximately US$46 million to provide off-site infrastructure such as water, electricity and storm sewers, to make the dwellings habitable.
“In addition, there is a need to invest about $68 million to complete buildings and other essential infrastructure works on site,” he added.
Due to the huge discrepancies with the funds spent on the project, Asenso-Boakye revealed the government’s intention not to funnel more taxpayers’ money towards the completion of the project.
While reiterating the sector ministry’s commitment to ensuring sound and sustainable development of public works and housing infrastructure, the minister called for greater compliance with the rules and regulations governing the country’s settlement planning and development control. , while urging citizens to be more intentional in household management. solid waste.
Commenting on the Review of the Rents Act, 1963 (ACT 220) and the Rent Control Act, 1986 (PNDCL 138), Asenso-Boakye said the Cabinet, after many engagements on the Rent Control Bill Rents, 2022 at its last meeting on October 27, 2022 approved the Rents Bill, 2022 and recommended it for consideration by Parliament.
He said parliament would soon begin its engagements on the bill in preparation for its enactment.
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