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5 Bid to invest $100m in Saglemi project

Five private entities have submitted bids to invest over $100 million in the completion and operationalisation of the 1,506 Saglemi Affordable Housing Project.

The entities are Afro-Arab Properties Limited, Quarm-LMI Consortium, Dredge Masters-Titanium, Broll Ghana Limited and Masiltin Group. The Technical Working Group on the Saglemi housing project’s completion and operationalisation received the bids in the presence of the Minister of Works and Housing, Kojo Oppong Nkrumah, in Accra last Monday.

On April 17, this year, the Ministry of Works and Housing called on private investors who were interested in assisting the government to complete and operationalise the Saglemi housing project to submit their proposals between April 17 and July 8, 2024, followed by the opening of bids on July 8 at 5 p.m.

Addressing stakeholders, the media and representatives of bidding entities, among others, the sector minister said that based on the last estimate by the Ghana Institute of Surveyors, over $100 million was required to complete the project.

He said that was because the project currently did not have electricity, water and sewage system, and other facilities. He said the government could not afford that at this time, but in its quest to operationalise the project, it considered a public-private partnership agreement.

“The state in 2012 secured a $200 million loan for the construction of 5,000 housing units at Saglemi, a community near Sege in the Greater Accra Region. “However, at the end of the stipulated completion date for the project and full payment made to the original contractor, only 1,506 housing units were provided but were all at various stages of completion and that was what the investor was expected to work on,” he said.

He said steps had also been taken to complete similar uncompleted projects. The minister said the move formed part of the government’s commitment and passion to address the national housing deficit of over 1.8 million.

“So, if we have all these projects hanging in there, it would deter future projects from being embarked on. This is why it’s important we take the opportunity to end this trend,” he said.

Evaluation

Mr Oppong Nkrumah said an independent evaluation entity would be appointed to evaluate the bids and advise the ministry on the favourable bidder.

“We have already requested the Public Procurement Authority (PPA) to help us to select an independent evaluation entity and I do understand that four organisations are pre-qualified by the PPA, out of which we will select one.

“We will select one of these accounting firms by close of business on Wednesday and we will hand over all of these bids to the independent evaluation entity so that they do the evaluation and submit to us the evaluation report,’’ he said.

Mr Oppong Nkrumah assured all stakeholders that the ministry would publish all bids received and the evaluation report in accordance with the proactive disclosure sections of the Right to Information Act.

“We are committed as a Ministry, in accordance with our transparency policy in transactions of this nature and in accordance with the proactive disclosure sections of the Right to Information Act, and we will publish online all of these bids we have received, and we will also publish the evaluation report that comes so that every Ghanaian knows how these bids were evaluated,” he said.

Background and scope

Prior to that, the ministry had taken steps to secure Cabinet’s approval. The scope for the private partner includes the completion of the 1,506 housing units to habitable standards, show of project financing capabilities, legal and regulatory compliance and the provision of infrastructure such as electricity, water supply, sewage treatment, waste disposal and roads to support residential life.

The prospective applicant is expected to have experience in large-scale housing projects, financial capacity, legal standing and technical and managerial ability.

The applicant should also have innovative solutions, and ethical business practices, show commitment to community engagement and demonstrate how the applicant’s local involvement would generate employment and contribute to social welfare.

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