Gov't To Let Private Developer Complete And Sell Off Saglemi Housing Project | General News

[Sunday, November 13, 2022 @ The Conference Room, Ministry of Information @ 1pm]

Hon. Minister,
Hon. Deputy Ministers,​
Chief Directors,
Directors, Heads of Departments and Agencies,
Friends from the Media,
Distinguished Ladies and Gentlemen,
Good afternoon,

1. It is a pleasure to be again right here, as soon as once more, to replace the nice individuals of Ghana, on key developments inside the works and housing sector of the financial system. Over the years, these engagements have continued to stay essential to our governance system.

2. Personally, I don't take these engagements frivolously, contemplating the actual fact, that, it has fashioned the idea of our democracy, by strengthening the transparency and accountability in our governance system.

3. I lengthen the compliments of the Ministry to our esteemed viewers, who've joined this briefing, through numerous social media and digital platforms.

4. Our engagement right now, will concentrate on two key areas:

1. Review of the Rent Law; and
2. The Saglemi Housing Project.

REVIEW OF THE RENT ACT, 1963 (ACT 220) AND THE RENT CONTROL LAW, 1986 (PNDCL 138)

5. Ladies and Gentlemen, one topic space that has dominated the housing house for many years is the regulation of the rental housing market in Ghana. As I've talked about in current instances, the prevailing legislation was handed by Parliament fifty-nine years in the past, and subsequently, its relevance has been outlived by the present inhabitants progress and urbanization, housing availability, rental charges, housing redistribution and eviction controls, amongst a number of different attendant difficulties, which have engulfed the housing sector.

6. The evaluate is meant to safeguard the rights of weak tenants who've been out priced by the uncontrollable hikes in the price of renting lodging.

7. Additionally, the evaluate seeks to take away inherent constraints and provide incentives, which can stimulate personal sector funding within the rental housing sector. This will be certain that, property builders usually are not discouraged from investing within the housing business by inflexible hire management mechanisms, which suppress chargeable hire to synthetic ranges.

8. Furthermore, the Rent Bill offers {that a} landlord who calls for the fee of hire prematurely for multiple month in a month-to-month tenancy, or a tenancy which is shorter than one month, or multiple yr in a tenancy, which exceeds one yr, commits an offence, clearly recognized within the Bill.

9. After some intensive engagements on the draft Rent Bill, 2022, Cabinet at its final assembly held on twenty seventh October, 2022, gave approval for the draft Rent Bill, 2022 and really useful similar for the consideration of Parliament. It is predicted that quickly, Parliament can even begin its engagements on the Bill to culminate, hopefully, in its profitable enactment.

10. I need to take this chance to implore on all well-meaning Ghanaians to take specific curiosity in these engagements and contribute to its adoption. This could be carried out by sending your views and expectations to your respective Members of Parliament, because the House is about to think about the draft Bill.

COMPLETION OF THE SAGLEMI HOUSING PROJECT –

11. Distinguished Ladies and Gentlemen, as you could all know, the Saglemi Affordable Housing Project was initiated in 2012 for the supply of 5,000 housing models at a complete price of US$200,000,000.00 below an Engineering-Procurement-Contracting (EPC) Agreement with Messrs Construtora OAS Ghana Limited.

12. By the tip of the stipulated completion date, the unique contract of the mission had been amended three (3) instances, with the mission scope lowering from the preliminary 5,000 housing models to 1,506 housing models, though US$195,854,969.52 representing 98% of the mission funds had been expended.

13. That however, the 1506 housing models have been at numerous phases of completion.

14. None of those 1506 housing models have been liveable, as a result of the mission at present lacks primary facilities, similar to, water and electrical energy, and different associated facilities.

15. At the identical time, a technical evaluation report by the Ghana Institution of Surveyors in September, 2020, valued the overall price of works on website at US$64,982,900.74.
16. Consequently, there may be an on-going legal prosecution on the High Court to find out the discrepancies with the funds expended on the mission, vis-à-vis the valued price of works and authentic mission scope.

17. Ladies and Gentlemen, since assuming workplace, I've had the chance to guarantee the nice individuals of Ghana, that, as a people-centered government, we now have not ignored the decision for the completion and habitation of the Saglemi Affordable Housing Project.

18. In pursuance of this, and to forestall additional deterioration of the mission, the Ministry has been actively participating Cabinet, the Ministry of Finance (MoF), the Office of the Attorney-General and Ministry of Justice on the completion of the mission.

THE PROBLEM

19. It is price mentioning that all through these engagements, it was evidenced that whatever the choice government takes, government should present extra financing to the tune of roughly US$46 million to supply off-site infrastructure, that's, water, electrical energy , and storm drain, to make the housing models liveable.

20. Additionally, there may be the necessity to make investments roughly US$68 million to finish the buildings, and different important on-site infrastructure works.

21. Ladies and Gentlemen, what makes the Saglemi Housing Project much more sophisticated is that, Government has already expended roughly US$196 million on the mission as has been enumerated earlier, and upon additional consideration, government doesn't intend to expend extra tax-payers cash in direction of the completion of the mission.

22. Thankfully, the State has some fairness within the type of the land and property on website that may be leveraged upon for the completion of the models by the Private Sector.

23. Distinguished Ladies and Gentlemen, after a painstaking interval of evaluation, verification and consultations, Government has determined to - Explore the opportunity of promoting the Saglemi Housing Project, protecting the 1,506 housing models, on the present worth to a non-public sector entity to finish and promote the housing models to the general public, at no additional price to the State.

24. The proceeds from this sale will come to the State and reinvested into Affordable Housing initiatives.

25. In furtherance of the above, and to facilitate the processes, a Technical Working Team has been set-up, comprising professionals and specialists to supervise and spearhead all engagements required for the completion of the mission. This is being carried out with the objective of making certain transparency and accountability, whereas guaranteeing worth for cash within the completion of the mission.

CONCLUSION

26. Distinguished Ladies and Gentlemen, I want to take this chance to reiterate my place that because the Sector Ministry, we will proceed to stay dedicated to the course of making certain a sturdy and sustainable improvement of public works and housing infrastructure, for the good thing about our current and future generations.

27. While doing the identical, I want to repeat the decision for better regard for guidelines and governing laws our settlement planning, and improvement management, whereas admonishing residents to be extra intentional in managing our family stable waste. It is my fervent hope that every one will heed to the decision and put our nation first, in all our dealings.

28. On this be aware, I want to lengthen my honest appreciation to you, Hon. Minister for Information and your workforce, in addition to the media, for indulging my Ministry and offering a platform for us to current updates on among the main happenings of the Sector.

29. May the Almighty God Bless Us All.