Last Updated- Dec 8, 2009 19:47 - - 8 Comments


Ghana, STX Group of South Korea agree on $10b housing deal: Update

housing

The government of Ghana, the South Korean government and STX Group of South Korea have signed a deal for a $10 billion housing deal. Information emailed to ghanabusinessnews.com from South Korea Wednesday has confirmed that the deal was signed Tuesday December 8, 2009.  The Minister of Works and Housing, Albert Abongo signed on behalf of Ghana.

Earlier, the Bloomberg news carried a story which said the government of Ghana has agreed with a South Korean company, STX Group to build units of housing in the country in a deal worth $10 billion.

The report citing the South Korean Land Ministry said South Korea is seeking to win more construction contracts from sub-Sahara Africa, which accounted for 2.4 percent of orders by value as of the end of November.

At the time ghanabusinessnews.com published the story on Tuesday, Ghana government officials have not confirmed the deal, the Deputy Minister of Works and Housing, Dr. Hannah Bissiw told ghanabusinessnews.com by telephone that while she is not aware of the details of the agreement, she is aware that a government delegation is currently in South Korea “to discuss among other things a housing deal.”

The Reuters news service has however reported that the project involves the building of 200,000 homes in Ghana by 2015, funded by the government and a state-run bank in the country which was not named, quoting a spokesman at STX Group, a business group led by STX Corp.

STX Group is a shipping to construction conglomerate.

The information sent to ghanabusinessnews.com says, the project will begin from 2010 to 2014 and will include 200,000 units of housing and 300 luxury town houses.

The project according to the information, will be undertaken in all the ten regions of the country.

Ghana’s Ministry of Works, Housing and Water Resources will take charge of 90,000 houses and the rest will be sold.

It also said the project will be  a private, public partnership. The Ghana government will provide land and tax exemption for equipment and building materials. STX Group will provide the $10 billion fund and duties  and 30% of its workforce will be Ghanaian.

Meanwhile, the Minister of Works and Housing, Albert Abongo recently told the Ghanaian media that the government will construct 100,000 housing units over the next eight years through public-private partnerships as part of its efforts to meet rising housing demand in the country.

He also said, the government is determined to continue with the affordable housing programme that was started in 2006 to make housing accessible to the low and middle-income groups in the country.

Ghana is reported to have a housing deficit of about one million. While the country’s real estate sector is flourishing, estate developers have been cited for targeting affluent citizens and Ghanaians living abroad and therefore, do not cater for the housing needs of low income citizens.

By Emmanuel K. Dogbevi

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Comments

8 Responses to “Ghana, STX Group of South Korea agree on $10b housing deal: Update”

  1. J on December 9th, 2009 8:04 am

    Another big talk from our government. I believe the NPP also announced similar project and only God knows how it ended.We are a nation of talkers.

  2. Michael Kwame Nyame on December 10th, 2009 5:21 pm

    I want to get in touch with the Management of STX Group of South Korea as soon as possible please, kindly let me hear from you.0244 872484 is my mobile fon number.

    Thanks and expecting to hear from you.

  3. Kwasi on December 10th, 2009 6:14 pm

    I am an African and I have design, developed and build several affordable homes and schools for UK, South Korea markets and in many european countries. I will like to help Ghana Govt to develop an appropriate affordable housing for our people and not just rely on import from other countries. Please connect me with either the Minister for Housing or STX, my mobile number is +44 795 735 7079

  4. P A J HOLDINGS (PVT)LTD on December 15th, 2009 2:57 pm

    We are a property development and management company in zimbabwe.Please let us have contact details of STX .We would like to discuss the possibility of the establishment of joint venture partnership.

  5. Mr. Wonder Awumey on December 17th, 2009 1:02 pm

    This is good news for Ghana.
    Let us partner with STX to make Ghana better. Rent issues are getting worse by the day and such projects can minimize them.
    I employ all and sundry to support this worthy cause.

    Mr. Wonder Awumey
    (Plumbing Consultant)

  6. abdul nasser ibrahim on December 17th, 2009 4:03 pm

    saabeys enterprise limited is in costruction in ghana, we want to partner with stx construction to build affordable housing in ghana. 020 7080793, 0264820233

  7. ENGR. ADENIJI AYODEJI S. on December 27th, 2009 9:14 am

    WE ARE INTERESETED IN BEING A SUB CONTRACTOR TO STX Group. THIS IS A LAUDABLE ACHIEVEMENT BY YOUR ORGANISATIONS. WE LIKE TO BE ASSOCIATED WITH THIS DEVELOPMENTAL GOALS AND SUCCESS.
    WE ARE INTO ENGINEERING, PROCUREMENT, CONSTRUCTION, CONTRACTING, REAL ESTATE DEVELOPMENT AND PROJECT MANAGEMENT.

  8. MAPP H LIMITED on January 14th, 2010 10:40 pm

    Good news for the nation, let us build Ghana for our children.

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