Saglemi project: Work poised to resume

IN a bid to address Ghana’s housing deficit, government says it is poised to resume work on the partially-built Saglemi Affordable Housing Project, which has faced numerous challenges since its inception in 2012.

The announcement comes as part of broader government efforts to resolve stalled housing projects across the country, as outlined by Minister for Works and Housing, Kojo Oppong Nkrumah, when the Ministry took its turn at the Ministerial Press Briefing.

The Saglemi project, initially designed to deliver 5,000 affordable housing units at a total cost of US$200 million, encountered significant roadblocks, including financial and infrastructural shortcomings.

The project currently stands with 1,506 units that remain incomplete. According to the Minister, an additional US$46 million is required to finalize off-site infrastructure such as water, electricity, and storm drain systems.

Furthermore, an additional US$68 million is needed to complete the buildings and on-site infrastructure, including a sewage treatment plant and essential socio-economic facilities like schools and clinics.

The government has since adopted a new strategy to fast-track the completion of these units. Following a comprehensive bidding process, two companies have been shortlisted to partner with the government in completing the remaining work. These firms will be responsible for the final phase of the project under a public-private partnership (PPP) model.

“Once the selected partner is confirmed, we are confident that the project will be back on track, addressing a critical housing shortage in the country,” said Minister Oppong Nkrumah.

The decision to involve the private sector marks a shift in the government’s approach to housing delivery, moving away from full government funding. This PPP model is expected to not only provide the financial muscle needed to complete the Saglemi Housing Project but also ensure long-term sustainability.

The private sector will take over the responsibility of completing and selling the units, with the government offering the necessary support and infrastructure to make the venture viable.

Public-Private Partnership Approach to Closing the Housing Deficit

The Saglemi project is just one component of the government’s broader strategy to address Ghana’s housing needs, which has seen a reduction in the national housing deficit from 2.8 million units in 2010 to 1.8 million units in 2021.

In 2021, the government updated its Affordable Housing Programme to better collaborate with private developers. The Ministry of Works and Housing is now focused on incentivizing private sector participation in housing projects through several initiatives.

These include land grants, tax breaks, and discounted construction finance. This is expected to make housing more affordable for the average Ghanaian, addressing the growing urban population and the increasing demand for homes in major cities like Accra and Kumasi.

“We recognise that the government alone cannot solve the housing crisis, and that is why we are turning to public-private partnerships to make affordable housing more accessible. This will also reduce the risk of future stalled projects,” said the Minister.

Securing Land Banks for Affordable Housing

Another key initiative driving the government’s housing agenda is the creation of land banks to reduce the cost of construction, particularly in urban areas. The Ministry of Works and Housing has secured over 51,000 acres of land nationwide, which will serve as the foundation for future affordable housing projects.

A newly-established Land Banks Committee is tasked with protecting these lands from encroachment and ensuring that documentation is in place to facilitate partnerships with private developers.

The Ministry is also working with the Attorney General’s office to establish a holding company to manage these land holdings. The company will partner with private developers to deliver mass affordable housing across the country, using the government’s land as equity.

Government’s Redevelopment Programme

The government is also pushing forward its Redevelopment Programme, which seeks to regenerate old neighbourhoods in prime urban areas like Accra. This initiative, which began in the 1990s, has been updated to cater to the growing demand for housing, particularly for civil and public servants.

Through a land swap arrangement, private developers are given prime government-owned land in return for building modern townhouses and apartments. The Redevelopment Programme is expected to deliver 609 new housing units by the end of 2025, providing much-needed accommodation in Accra’s densely populated regions.

Outlook for 2024 and Beyond The government’s housing initiatives, including the Saglemi project and the various PPP models, are expected to significantly improve Ghana’s housing stock in the coming years.