By Bright Ntramah
Government is seeking a suitable private sector entity with the requisite technical and financial capability to complete the Saglema housing project. The one thousand five hundred housing units started by the previous government have stalled due to issues about the scope of work and the money expended on the project and is under investigation by the CID.
In addition to the already 198 million dollars expended on the project so far, the government will need an extra one hundred and fourteen million dollars to complete the project, making it more expensive and defeating the purpose for which it was being constructed.
This has compelled the government to seek private-sector investors to complete and subsequently sell to the public.
Speaking at the launch of the National Affordable Housing Programme and the groundbreaking ceremony for the Pokuase Affordable Housing Project, President Akufo-Addo said lessons learnt from the Saglema Housing Project have been invaluable in shaping the approach and execution of the Pokuase Affordable Housing Project.
The Government of Ghana, through the Ministry of Works and Housing, initiated the revised National Affordable Housing Programme, dubbed ‘My Home, My Peace,’ which adopts pragmatic approach to tackle the affordability gap and improve access to housing for Ghanaians.
In this revised version, Government will subsidise the housing units with land and infrastructure which is to absorb a critical component of the construction cost. The private sector will complement these efforts by raising funds to build the apartments on cost recovery basis. The initial project under this revised programme entails the construction of eight thousand housing units on over 200 acre of land in Pokuase in the Greater Accra region and six thousand Housing units on a 200 acre land in Dedesua in the Ashanti Region.
President Akufo-Addo said his government’s determination to provide affordable housing to all Ghanaians remains resolute. Quoting from statistics which show that only five percent of Ghanaians can purchase a house without assistance, while 60 percent require support facilitated by the state and the remaining 35 percent of the population cannot afford a home even with government subsidies, President Akufo-Addo said government has designed a sustainable framework aimed at enhancing housing delivery in the country. On the delayed Saglema housing project, the President said the government is seeking a strategic investor to take over the project.
“We are aware of the delays and setbacks encountered during the execution of this project. The issues about the scope of work and the money expended on the Saglemi project have been taken to the Criminal Investigations Division of the Ghana Police Service for investigation, which has resulted in criminal judicial proceedings.
However, in the meantime, to forestall the project from deteriorating, the Minister of Works and Government has actively engaged government, cabinet, the Ministry of Finance and the office of the Attorney General on the completion of the project.”
He noted that government will need additional 46 million dollars to complete off site infrastructure work, including the provision of water, electricity, and storm drains to mitigate flooding. Government will also require extra 68 million dollars to complete the building and other essential infrastructure work like waste holding bin, sewage treatment plants, and the development of social and civic infrastructure such as basic schools, clinics, and shops, among others.
“It has been established that in addition to the $198 million already expended on the project, the government has to raise additional funding to the tune of $ 46 million to complete the infrastructural works. That is water, electricity, and drains to mitigate flooding.”
“Further, $68 million is required to complete the buildings and other essential onsite infrastructure works like the waste holding bay, sewage treatment plants, and the development of socioeconomic and civic infrastructure such as basic schools, clinics, and shops,” he stated.
The project, which is expected to be completed in fourteen months, will be the largest single affordable housing programme initiated by any government.