The government has selected Quarm-LMI as the preferred developer to complete the long-delayed Saglemi Housing Project, which was initially designed to deliver 5,000 affordable housing units.
In a press release dated Friday, October 18, 2024, the Ministry of Works and Housing announced that the decision followed extensive negotiations led by a team comprising representatives from the Ministry of Finance, the Office of the Attorney General and Ministry of Justice, and Deloitte, with technical support from the Ghana Institute of Surveyors.
The release outlined that the redevelopment would be structured through a Special Purpose Vehicle (SPV), with the government’s current investment in the project being treated as equity. This arrangement ensures that both the government and Quarm-LMI will recover their investments upon the project’s completion.
“As part of the redevelopment, the government and the developer will both recover their investments when the project is completed,” the statement noted.
The Saglemi Housing Project, originally financed by the government to the tune of approximately $200 million, saw the construction of only 1,506 units out of the planned 5,000 before work was halted. The partially completed units were deemed uninhabitable due to the lack of basic infrastructure such as water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors estimated that an additional $100 million would be required to complete the 1,506 unfinished units, funding which the government was unable to provide.
The selection of Quarm-LMI to lead the completion of the project is seen as a significant step toward addressing Ghana’s housing deficit, which currently stands at 1.8 million. The completion of the Saglemi project is expected to make a meaningful impact on the country’s housing landscape.
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