Government to let private developer complete and sell Saglemi housing project | General news

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Public Works and Housing Minister Francis Asenso-Boakye (MP) has announced the government’s decision to explore the possibility of selling the Saglemi housing project, covering all 1,506 homes, at current value to a sector entity private to complete and sell at no additional cost to the state.

In addition, proceeds from the sale will revert to the state and be reinvested in the government’s affordable housing program.

To facilitate the processes, said the sector minister, a technical work team made up of professionals and experts has been set up to oversee and direct all the commitments necessary to carry out the project. This, the Minister noted, is done with the aim of ensuring transparency and accountability, while ensuring value for money in the completion of the project.

The Minister made them known during the Minister’s briefing program to update the recent developments in the works and housing sector today in Accra.

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, 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 the ministry has engaged Cabinet, the Ministry of Finance, the Attorney General’s Office and the 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, approximately US$68 million is required to be invested to complete buildings and other critical infrastructure works on site.” The Minister 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 control of the development, while urging citizens to be more intentional in household management. solid waste.

Addressing the review of the Rent Act of 1963 (ACT 220) and the Rent Control Act of 1986 (PNDCL 138), Asenso-Boakye said the Cabinet, after numerous engagements on the Rent Control Bill 2022 rents, at its last meeting on October 27. , 2022, approved the Rents Bill, 2022 and recommended it for consideration by Parliament.

The Minister expressed his belief that Parliament will soon begin its engagements on the Bill to culminate in its successful enactment.

STATEMENT BY THE HONORABLE MINISTER OF WORKS AND HOUSING, FRANCIS ASENSO-BOAKYE (MP), DURING THE MINISTER’S PRESS BRIEFING

[Sunday, November 13, 2022 @ The Conference Room, Ministry of Information @ 1pm]

Hon. Minister,
Hon. deputy ministers,​
Senior Directors,
Directors, Heads of Departments and Agencies,
Media Friends,
Distinguished Ladies and Gentlemen,
Good afternoon,

1. It is a pleasure to be back here, once again, to update the fine people of Ghana on key developments in the works and housing sector of the economy. Over the years, these commitments have remained important to our system of governance.

2. Personally, I do not take these commitments lightly, considering that they have formed the basis of our democracy, enhancing transparency and accountability in our system of governance.

3. I extend the Ministry’s compliments to our esteemed viewers, who have joined this briefing, through various social media and virtual platforms.

4. Our engagement today will focus on two key areas:

1. Revision of the law on rents; and
2. The Saglemi housing project.

REVISION OF THE RENTS ACT, 1963 (ACT 220) AND THE RENT CONTROL ACT, 1986 (PNDCL 138)

5. Ladies and gentlemen, one area that has dominated the housing space for decades is the regulation of the rental housing market in Ghana. As I mentioned recently, the existing law was passed by Parliament fifty-nine years ago, and therefore its relevance has been overtaken by current population growth and urbanization, housing availability, rental rates, housing redistribution and eviction controls, among many other co-occurring difficulties, which have engulfed the housing sector.

6. The review aims to protect the rights of vulnerable tenants who have been overstretched by runaway increases in the cost of renting accommodation.

7. In addition, the review aims to remove inherent constraints and provide incentives that will stimulate private sector investment in the rental housing sector. This will ensure that property developers are not discouraged from investing in the housing sector by rigid rent control mechanisms, which reduce payable rents to artificial levels.

8. In addition, the Rents Act provides that a landlord who demands payment of advance rent for more than one month in the case of a month-to-month tenancy or a tenancy of less than one month or more than one year in the case of a lease of more than one year, commits an offence, clearly identified in the bill.

9. After some extensive engagements on the Rents Bill, 2022, the Cabinet at its last meeting held on 27th October 2022 approved the Rents Bill, 2022 and recommended it for consideration by the parliament. It is expected that soon, Parliament will also begin its engagements on the Bill to hopefully lead to its successful enactment.

10. I take this opportunity to implore all well-meaning Ghanaians to take a keen interest in these commitments and contribute to their adoption. This can be done by sending your views and expectations to your respective MPs as the House is about to consider the bill.

COMPLETION OF THE SAGLEMI HOUSING PROJECT –

11. Ladies and Gentlemen, as you may all be aware, the Saglemi Affordable Housing Project was initiated in 2012 for the delivery of 5,000 housing units at a total cost of USD 200,000,000.00 under an engineering, procurement and contracting (EPC) agreement with Messrs. Construtora OAS Ghana Limited.

12. By the end of the stipulated completion date, the original contract for the project had been amended three (3) times, with the scope of the project increasing from the initial 5,000 units to 1,506 units, although USD 195,854,969.52 representing 98% of the project funds had been spent.

13. Despite this, the 1,506 units were in various stages of completion.

14. None of these 1506 dwellings were habitable, as the project currently lacks basic amenities, such as water and electricity, and other related amenities.

15. Meanwhile, a technical assessment report by the Ghana Institution of Surveyors in September 2020 assessed the total cost of the site works at USD 64,982,900.74.
16. Consequently, criminal proceedings are pending in the High Court to determine the discrepancies between the funds spent on the project and the estimated cost of the works and original scope of the project.

17. Ladies and gentlemen, since taking office, I have had the opportunity to assure the good people of Ghana that as a people-centred government, we have not ignored the call to the completion and habitation of the Saglemi Affordable Housing Project.

18. With this in mind, and to avoid further deterioration of the project, the Ministry actively engaged the Cabinet, Ministry of Finance (MoF), Attorney General’s Office and Ministry of Justice on completion of the project.

THE PROBLEM

19. It should be mentioned that throughout these commitments, it has been demonstrated that whichever option the government chooses, the government will be required to provide additional funding to the tune of approximately $46 million to provide infrastructure off-site, i.e. water, electricity, and storm sewer, to make the dwellings habitable.

20. In addition, an investment of approximately US$68 million is required to complete the buildings and other essential infrastructure works at the site.

21. Ladies and gentlemen, what makes the Saglemi housing project even more complicated is that the government has already spent approximately US$196 million on the project, as listed earlier, and after further consideration thoroughly, the government has no intention of spending additional taxpayers. money for the realization of the project.

22. Fortunately, the state has equity in the form of land and site assets that can be leveraged for the completion of the units by the private sector.

23. Ladies and gentlemen, after a painstaking period of assessment, verification and consultations, the government has decided to – Explore the possibility of selling the Saglemi housing project, covering the 1,506 dwellings, at current value to an entity private sector to complete and sell the housing to the public, at no additional cost to the state.

24. Proceeds from this sale will revert to the state and be reinvested in affordable housing projects.

25. In continuation of the above, and to facilitate the processes, a Technical Task Force has been set up, composed of professionals and experts to oversee and direct all the engagements necessary for the completion of the project. This is done with the aim of ensuring transparency and accountability, while ensuring value for money upon project completion.

CONCLUSION

26. Ladies and Gentlemen, I take this opportunity to reiterate my position that, as a sector ministry, we will continue to remain committed to the path of strong and sustainable development of public works and housing infrastructure, for the benefit of our present and future generations.

27. While doing the same, I wish to reiterate the call for greater compliance with the rules and regulations governing our settlement planning and development control, while urging citizens to be more intentional in managing our waste solid household items. It is my fervent hope that all will answer the call and put our nation first, in all our dealings.

28. On this note, I would like to express my sincere thanks to you, Hon. Minister of Information and your team and the media for indulging my ministry and providing a platform for us to present updates on some of the major happenings in the sector.

29. May Almighty God bless us all.

Source: Peacefmonline.com/Ghana

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