Former President John Mahama has expressed concerns over the government’s decision to hand over the Saglemi Housing Project to private individuals without consulting the allodial landowners.

According to him, the project was initiated by the National Democratic Congress (NDC) under his administration after securing land from the people of Ningo-Prampram through consultation.

He argued that the governing New Patriotic Party (NPP) abandoned the project when they assumed office and thus if they have chosen to hand over the project to private entities, it is imperative to involve the original landowners in the decision-making process.

“It was the NDC that started the Saglemi Housing project. We consulted the people of the Ningo-Prampram before we started that project. After we left, this government has abandoned it. Recently, I heard they want to give it to private people.

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“But the point I’m making to them is that if you are changing the status of that project, from a government project to a private project, you need to discuss with the allodial owners of the land,” he said.

Mr Mahama further noted that, as of now, the government has yet to hold any consultations with the people of Ningo-Prampram.

“You cannot eliminate that land by handing that project to a private company without the permission and discussion and negotiation with the allodial owners who are the Ningo people. And so when we come, we’re going to review whatever you’re doing there,” he stated.

He emphasised that the housing project belongs to the people of Ghana, and it cannot be transferred to private interests without following the appropriate procedures.

“That is a notice to them,” he cautioned, adding that an NDC-led government would ensure that future agreements involving the project reflect the involvement and interests of the local community.

The former president pledged that a future NDC government would review the current agreement governing the project to ensure the active involvement and participation of the local community.

Background.

The stalled Saglemi Housing Project is on the brink of revival, as the government finalises negotiations with a private developer for its redevelopment.

The Minister for Works and Housing Kojo Oppong Nkrumah, during a press briefing in Accra on Monday, September 30, 2024, announced that work will resume on the stalled Saglemi Housing project in November this year.

This was disclosed by the Minister for Works and Housing, Kojo Oppong Nkrumah,

This development follows President Akufo-Addo’s approval of a negotiation framework with the successful bidder(s) after a request submitted by Minister Oppong Nkrumah last month.

The Saglemi Housing Project, initiated under the erstwhile NDC administration, initially aimed at delivering 5,000 affordable housing units, saw around $200 million of government funding but was halted after only 1,506 units were partially completed.

The unfinished development was deemed uninhabitable due to the absence of key infrastructure such as water, electricity, and sanitation.

A valuation by the Ghana Institute of Surveyors indicated that an additional $100 million would be required to complete the project—funding the government could not provide.

Minister Oppong Nkrumah explained that cabinet has instructed the Ministry of Works and Housing to explore selling the incomplete project to a private entity to finish and sell the units without further government investment.

Under the approved framework, the current value of work done on the Saglemi project will be treated as government equity, while the private developer’s cost to complete the units will represent their equity in a Special Purpose Vehicle (SPV) to be established.

Proceeds from the sale of the completed houses will be divided between the government and the private partner based on their equity stakes.

Two companies have been shortlisted for the final phase of negotiations: Quarm-LMI Consortium and Broll Ghana Ltd.