Saglemi project vindicates PPP model, should be mainstreamed for housing delivery – Oppong-Nkrumah

Former New Patriotic Party (NPP) Member of Parliament Kojo Oppong Nkrumah asserts that the continuation of the Public-Private Partnership (PPP) model for Ghana's Saglemi Housing Project by the current government validates the approach and emphasizes the necessity of incorporating it in tackling the country's housing shortage. Speaking to journalists at Parliament House, the former Minister of Works and Housing explained that after years of investigations and prosecutions, the primary hurdle is raising $60 million to $100 million to restart the halted project.

Due to struggles in acquiring public funds, the previous NPP administration resorted to a Private Sector Participation (PSP) model, involving a private partner to supply the capital and expertise essential for executing the project in stages.

Under this framework, completed homes would be sold via mortgage to purchasers, enabling both the government to recover its equity and margin, and the private partner to recoup its investment and margin, without imposing extra financial strain on taxpayers. Mr Oppong Nkrumah reviewed the six to nine-month deal finalized between April and December 2024, facilitated by a globally recognized accounting firm serving as the transaction advisor.

Despite facing criticism from the opposition at the time for claims of selling the venture to political allies, he affirmed that the agreement was transparent and aligned with international standards. He expressed satisfaction that the present administration is adhering to the same model and gearing up to construct 700 housing units, with an additional 2,000 units slated for delivery.

Mr Oppong Nkrumah lauded this as an illustration of the PSP model's efficacy, advocating for its broad adoption instead of relying solely on taxpayer funds or sovereign debt for such endeavors.

Addressing affordable housing, he underscored the importance of a pricing strategy agreed upon between the government and the private operator, insisting it must remain intact to guarantee that regular Ghanaians can purchase homes through a transparent bidding process and mortgage system on a public platform. He also revealed that a comprehensive framework for delivering affordable housing via public-private partnerships has been formulated and deposited with the Ministry.

This framework entails offering government support to facilitate lower-cost and lower-priced construction and sales by the more efficient private sector. He connected this issue to policy, revealing that the NPP's 2024 manifesto, spearheaded by Dr Mahamudu Bawumia, proactively highlights intentions to mainstream private sector participation in delivering public goods and services without unduly burdening taxpayers.

He pleaded with political figures to endorse advantageous national initiatives, irrespective of the administration that introduced them, urging an end to unfounded allegations directed at opposition actions. He concluded by calling for reforms to accelerate the approval processes for PPPs, noting that pre-feasibility and feasibility approvals at the Public Investment Division of the Ministry of Finance could take up to a year, and stressed the need for institutional capacity strengthening within the public sector to facilitate more infrastructure projects through partnerships without placing additional financial burdens on taxpayers.