You are here: HomeBusiness2013 02 14Article 264947

Business News of Thursday, 14 February 2013

Source: Daily Guide

GREDA disappointed

The Ghana Real Estates Developers Association (GREDA) has noted that it is unhappy about the number of times government has invited it to tender proposals on the construction of houses following the failure of the STX deal.

According to the association, nothing positive has come out of the many proposals it tendered to government despite its commitment to build the apartments at half the cost quoted by the Koreans.

“As I speak to you now, we don’t know where the proposals are and what is going to come out of it.

We told government we could build the houses at half of the cost quoted by STX but it has since not showed any interest in the proposals, “Emmanuel Asamoah, Executive Director of GREDA, disclosed this yesterday during a press conference by a civil society organisation, Citizens Alert Forum in Accra on the proposed GH¢50,000 for each MP for rent.

The Government of Ghana announced in April last year that it was repossessing all 15 sites it handed over to STX Korea for the construction of the botched affordable housing project.

According to the former Minister of Employment and Social Welfare, E.T. Mensah, government set up a Housing Project Management Committee with a “mandate to receive and review all proposals on housing.”

Mr. Mensah said the decision to close the chapter on the STX housing deal was in Ghana’s best interest. “Government is therefore considering all available options to ensure that the interest of sovereign Ghana is not compromised in anyway under this deal.

“In due course, government will present to you the specific steps that are being taken to ensure that the housing required for our security personnel is provided.”

The 30,000 affordable housing project was meant to provide accommodation to the country’s security agencies.

However, as a result of boardroom wrangling by the parties – STX Korea and GKA Airports Company Limited (STX Ghana) – the deal hit a dead-end.

After that he said his ministry received 40 proposals of which four were identified as credible. Government did not seek legal action against its Korean partners in the STX deal for breaking their side of the bargain, although government fulfilled its part of the agreement.