Francis Asenso-Boakye, Minister of Works and Housing
Government is considering the possibility of selling the Saglemi housing project to a private developer at its current value. The buyer will then complete the project and sell it out, with the State not commitment itself to any further expenditure on the project.
The Minister of Works and Housing, Francis Asenso-Boakye, who has disclosed the government’s decision said proceeds from the intended sale would be reinvested into government’s affordable housing programme.
The Minister disclosed this yesterday during the Ministry of Information’s press briefing to provide updates on recent developments in the works and housing sector.
He indicated that a technical working team, made up of professionals and experts, had been set up to oversee and spearhead all engagements required to facilitate the processes.
This, the Minister noted, is being done with the aim of ensuring transparency and accountability, while guaranteeing value for money in the completion of the project.
Malfeasance?
The Saglemi Affordable Housing Project was initiated in 2012 for the delivery of 5,000 housing units at a total cost of US$200,000,000.00.
The project, which was under an Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited, saw its original contract amended three times. That effectively reduced the project scope to 1,506 housing units, despite $195,854,969.52, representing 98% of the project funds, having been expended.
That notwithstanding, none of the 1,506 housing units is habitable, as the units are at various stages of completion and lacking basic amenities, such as water, electricity, among others.
Meanwhile, a technical assessment report by the Ghana Institution of Surveyors in September, 2020, valued the total cost of works on site at US$64,982,900.74.
Mr Asenso-Boakye reaffirmed government’s commitment to forestalling further deterioration of the project, disclosing that “the Ministry has been engaging Cabinet, the Ministry of Finance, the Office of the Attorney-General and Ministry of Justice on the best viable options to complete the project”.
Following a comprehensive assessment of the project, the Sector Minister disclosed, government was to allocate additional financing of approximately US$46 million to provide off-site infrastructure such as water, electricity, and storm drain, in order to make the housing units habitable.
“Additionally, there is the need to invest approximately US$68 million to complete the buildings, and other essential on-site infrastructure works,” the Minister added.
Based on the huge discrepancies with the funds expended on the project, the Works and Housing Minister revealed government’s intent not to further sink tax payers’ money towards the completion of the project.
He further reiterated the Ministry’s commitment to ensuring a robust and sustainable development of public works and housing infrastructure.
Consequently, the Minister called for greater regard for rules and regulations governing the country’s settlement planning and development control, while admonishing citizens to be more intentional in managing household solid waste.
Rent ACT reform
Touching on the review of the Rent ACT, 1963 (ACT 220) and the Rent Control Law, 1986 (P.N.D.C.L 138), the Minister said Cabinet, after extensive engagements on the draft Rent Bill, 2022, gave approval for the draft Rent Bill, 2022, and recommended same for the consideration of Parliament.
He expressed the belief that Parliament will soon commence its engagements on the Bill to culminate in its successful enactment, stressing that “reforming the existing legislation on rent will breathe a new life in rent administration in the country”.
This, he indicated, would help promote a delicate balance between the needs of landlords and tenants in the face of rapid urbanisation.
Acknowledging the importance of provision of housing to government developmental goals, Mr. Asenso-Boakye stated that the reforms would help increase access to housing by the ordinary Ghanaian.
He added that the new Act should be able to “safeguard the rights of vulnerable tenants who have been out-priced by the uncontrollable hikes in the cost of rental accommodation”.
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