Former Housing Minister Kojo Oppong Nkrumah says progress at the Saglemi Affordable Housing Project vindicates the private-sector participation (PSP) model adopted by the previous New Patriotic Party (NPP) administration to revive and complete the long-delayed housing project.
Mr Oppong Nkrumah, who was Housing Minister when the project was restructured, said he was encouraged by the decision of the current National Democratic Congress (NDC) administration to maintain the PSP arrangement rather than abandon it and place the entire financial burden on the state.
The Ofoase-Ayirebi MP made the remarks while speaking to journalists about developments at the Saglemi housing project following President John Dramani Mahama’s visit to the site last Thursday.
The Saglemi project has remained at the centre of Ghana’s housing debate for more than a decade. Originally conceived as a major affordable housing development, it was expected to provide thousands of housing units but stalled over financing challenges, construction delays and political disagreements over how the project should be completed.
During the Akufo-Addo administration, Mr Oppong Nkrumah advocated the use of private capital and expertise to revive the project. The proposal faced opposition from sections of the then Minority, who raised concerns about aspects of the arrangement and the government’s approach to completing the estate.
Mr Oppong Nkrumah, however, maintained that the private-sector model was appropriately structured to protect the state’s interests while limiting further significant financial commitments by government.
NDC maintains PSP arrangement
Reflecting on the latest developments, Mr Oppong Nkrumah said the current administration’s decision to continue with the arrangement was an indication that the model adopted during his tenure was viable.
“I was pleased to note that, first of all, the process that we went through to use private-sector participation to complete the Saglemi project, that process has been upheld by this administration,” he said.
According to him, the private developer selected under the arrangement has continued work on the project, while the terms agreed for financing and completing the development remain in place.
He recalled that the arrangement came under further scrutiny following a fire at the project site after the private developer commenced work.
At the time, he said, allegations were made suggesting that the incident was intended to conceal information about the project.
Mr Oppong Nkrumah said subsequent developments had demonstrated that the private developer remained committed to completing the project and that the framework was capable of delivering the intended outcome.
Phased completion
He also pointed to the phased approach to the development as evidence that the broad framework established under the previous administration had been retained.
“I was happy to hear that the benchmarks, the first 700 and then the subsequent about a thousand and two thousand, and then the continuous development of Saglemi, the President has upheld all of those,” he said.
President Mahama’s visit to Saglemi has renewed attention on the project, with the government outlining plans for completing the initial batch of housing units and subsequently expanding development across the site.
Mr Oppong Nkrumah said the progress was encouraging because it meant Ghanaians would eventually benefit from the long-delayed project.
He expressed appreciation to the technical team, consultants and private-sector developers involved in restructuring the project, saying their contributions had helped place Saglemi on a more sustainable path.
Private-sector participation
Mr Oppong Nkrumah rejected the political opposition that accompanied the PSP model during his tenure, arguing that the continuing development of Saglemi demonstrates the potential of private-sector involvement in delivering major public projects.
He said the project could serve as an example of how government and private investors can collaborate to deliver public goods without placing the entire financial burden on the state.
“I look forward to the completion so that we can all see this project see the light of day,” he said.
He further called for greater collaboration between government and private investors in the delivery of public infrastructure and services.
“This is a testament that private-sector participation in delivering public goods and services is an idea or an approach that works and we should embrace it some more,” he said.
The continued development of Saglemi has therefore renewed debate over the financing and delivery models used by successive governments to complete major public projects.
Although the project has undergone several changes under different administrations, Mr Oppong Nkrumah said its successful completion should ultimately matter more than which government receives political credit.
He said he looked forward to joining other stakeholders when the project is eventually completed, describing the delivery of the housing units as the ultimate objective.
