Government has insisted that its decision to sell off the Saglemi Housing project to a private developer is the right one for the country.
Despite criticisms and backlash over the intended move, Deputy Minister of Finance, Dr. John Kumah says the decision is the best option available for government as the project has proven to be less affordable as earlier estimated.
Making his submission on Accra-based JoyNews’ Newsfile, Dr John Kumah said government will ensure it is transparent in its choice of buyer or private developer for the housing project.
“The project is no longer affordable per the arrangement that has happened to it because if you divide $200 million by 10,000, you are going to get it at $10,000 and they reviewed it to 1,500 (housing units) which makes it up (from) $40,000 to $50,000 per unit. So how affordable can that be?” he is quoted by Joy Business.
“So, in the present circumstances, the best option is to bring the private sector in,” the deputy finance minister insisted.
The Saglemi Housing project started under the erstwhile John Mahama administration. It was originally expected to see the construction of 10,000 residential housing units but was later reviewed to 5,000 units in order to ease construction cost, among others.
The housing project is situated on a 300-acre land and has courted controversy over the years which has led to two former government officials being prosecuted by the state.
Following the announcement by Works and Housing Minister, Francis Asenso Boakye, to sell the project to a private developer, minority lawmakers in parliament have cautioned against the intended sale.
They believe government must rather look for funds to complete the project instead of resorting to privatisation.
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