Gov’t to Sell Saglemi Affordable Housing Project to Private Developers – Works & Housing Minister Reveals
In the wake of the numerous controversies surrounding the Saglemi Affordable Housing Project, Minister for Works and Housing, Francis Asenso-Boakye has disclosed that government is considering the option of selling the project to a private developer.
The Minister made this revelation on Sunday, November 13, 2022 when was addressing the media on the country’s affordable housing projects as well as the new rent law aimed at regulating the renting market.
According to the Minister and the Member of Parliament for Bantama Constituency in the Ashanti Region, a technical working team has been established to facilitate the processes required to engage in the sale of the 1506 housing units.
The team, the minister indicated comprises of professionals and experts to oversee and spearhead all engagements relation to the sale.
Justifying the need for the sale of the project, Francis Asenso-Boakye explained that after rigorous auditing and assessment of the project, it emerged that government will require additional funding in excess of about US$46 million to provide amenities such as water, electricity and storm drain in order to make the housing units habitable.
In addition, another $68 million dollars is required to fully complete the buildings and other essential on-site infrastructure.
On the basis of these huge additional costs the state will have to incur to fully complete the project despite the initial $200,000,000 budget, the Minister disclosed that “government does not intend to expend additional tax-payers money towards the completion of the project.
“After a painstaking period of assessment, verification and consultations, Government has decided to explore the possibility of selling Saglemi Housing Project, covering the 1506 housing units, at the current value to a private sector entity to complete and sell at no further cost to the state,” the Works and Housing Minister noted.
He added that “proceeds from the sale will come to the state and reinvested into affordable housing projects.”
