The government has officially selected Quarm-LMI as the preferred developer to complete the stalled Saglemi Housing Project. This decision was announced in a statement by the Ministry of Works and Housing on Friday, October 18, 2024.
Previously, the Ministry had shortlisted two firms from a pool of five potential bidders for final negotiations. However, after extensive discussions, Quarm-LMI emerged as the preferred developer. The selection process was overseen by a government-led negotiation team that included representatives from the Ministry of Finance, the Office of the Attorney General and Ministry of Justice, and Deloitte, with technical assessments provided by the Ghana Institute of Surveyors.
According to the Ministry’s statement, the completion of the project will be carried out through a Special Purpose Vehicle (SPV). Under this arrangement, the government’s current investment in the project will be treated as equity, ensuring that both the government and Quarm-LMI will recoup their investments once the project is finished.
“As part of the redevelopment, the government and the developer will both recover their investments upon completion of the project,” the statement noted.
The Saglemi Housing Project, initially designed to provide 5,000 affordable housing units, was financed with approximately $200 million of government funding. However, progress was halted after only 1,506 units were partially constructed. These units were deemed uninhabitable due to the lack of critical infrastructure, including water, electricity, and sanitation.
A valuation by the Ghana Institute of Surveyors later determined that an additional $100 million would be required to complete the unfinished units. Unfortunately, the government was unable to secure the necessary funds to move forward with the project.
The revival of the Saglemi Housing Project is expected to play a crucial role in addressing Ghana’s housing shortage, which currently stands at a deficit of 1.8 million units.
Quarm-LMI Holdings is a joint venture comprising LMI, known for its involvement in industrial park development and real estate, and QUARM, which brings expertise in logistics, utilities, and finance. Their combined experience is seen as vital to the successful completion of the housing project, which is anticipated to make a significant contribution to the country’s housing needs.
SOURCE: http://dew360.net
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