Mahama spent $196m on Saglemi housing project, government needs $100m to complete it - Minister

Minister for Works and Housing, Francis Asenso-Boakye, has clarified why government is awarding the contract of the Saglemi Affordable Housing Project to private investors.

The Saglemi Affordable Housing Project, according to Deputy Information Minister, Fatimatu Abubakar, will not be affordable after completion.

She revealed during a panel discussion on Peace FM's "Kokrokoo" morning show on Monday, November 14, 2022 that one unit can "cost in excess of $205,000".

"The truth is that it will be deceptive on my part to say this project will be affordable because already government has invested $160m and we need an additional $114m . . . one apartment of a two-bedroom house will cost in excess of $205,000 per unit," she added.

The project was initiated in 2012 under the erstwhile Mahama government for the delivery of 5,000 housing units at a total cost of US$200 million under an Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.

Explaining to Ghanaians why the project stalled and why government is calling on the private sector to take charge, Francis Asenso-Boakye, on 'Kokrokoo' on Tuesday, November 15, disclosed that the Mahama administration received 200 million dollars to build 5,000 houses but failed to complete the project.

The original contract of the housing project, he revealed, was amended by the Mahama government from the initial aim of constructing 5,000 houses to 1,500 houses at the same cost.

"Even with the 1,500 that I am talking about, they were not even complete. They said it is at various stages of completion. Some were 90% complete and some 20%, so the 1,500 were not all completed. Also, it was inhabitable because there is no electricity connection to the place. There is no water connection to the place and other important amenities that, without them, will make living there very difficult," he expounded.

Mr Asenso-Boakye said because the current administration is committed to completing the project, his ministry has tasked the Ghana Institution of Surveyors to evaluate the housing unit and the findings pointed out that the Mahama government had spent $196 million representing 98% of the project funds without providing the basic amenities that will make it possible for people to live in the houses nor had they completed the 1,500 houses to make it available for people.