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You Are Here: Home » Investment, Lead Story » Ghana, STX Group of South Korea agree on $10b housing deal: Update
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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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.
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.
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
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.
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)
saabeys enterprise limited is in costruction in ghana, we want to partner with stx construction to build affordable housing in ghana. 020 7080793, 0264820233
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.
Good news for the nation, let us build Ghana for our children.
dont we have real estate developers in ghana any more to help korea develop its construction sector.
it is no better deal for money
the goverment should involve architecural students in this housing development, for them to learn from STX within the five years of construction, i really want to take part and learn…………sky
Irequested for STX Korea’s contact in other to submitmy application to them for business purposes but i have not recieve anything from them yet, but i’m still waiting.
This is a good deal it think the Government should involve the youth. expercially the fresh-graduate
Let help build the nation Ghana for this is all that we have.
GOD BLESS OUR HOME LAND GHANA
AND HELP US DEAL WITH ANYONE WHO DISTROY THIS IDEA.
THANKS
KENNY GRAHAM
I think ,it is very nice project from the government.we also have similar project from Switzerland and Germany.i wish if we can b e connected us to the government we can also submit our proposals.
Omar Saeed 0244272225
The suggestion from Yaw Kuffuor is laudable and I do agree with him.We should all embrace the idea and use this opportunity to equip our building construction and building engineering students to learn and cultivate the habit of building maintenance from the Koreans because I strongly believe they have a building maintenance which enables them to undertake such projects .Ghana ought to seize this opportunity to equip her students in this field to be in a better position to maintain this national asset when the Koreans are gone…
This deal is really nice but the cost involved is just too much. The 30 percent of the labour from GHANA is also too small. Anyway, i will like to know when recruitment will start.
Are we expecting skyscrapers from STX Group of South Korea to design the country with nice projected skyscrapers instead of wasting our precious land for so – called horizontal wasted houses across the country, so that the youth will have enough space to put their head as it is in the Western land.
More affordable rooms is what we need in the country of Ghana, therefore if one building may contain 20 flats and about 29 rooms, just imagine how rooms will be more easy to afford in the country of Ghana.
LET STOP THE HORIZONTAL BUILDINGS AND BUILD MORE VERTICAL OR SKYSCRAPERS TO BEAUTIFY OUR NATION LIKE THE BUILDINGS IN KOREA AND OTHER WESTERN COUNTRIES, I AM SERIOUS OF WHAT I AM SAYING.
WHY WASTING OUR LAND TO ERECT SMALL HOUSES WITH ABOUT FIVE TO SIX BED ROOMS, WHICH AT THE LONG RUN WILL CONSUMES MORE LOCATION.
Mr. Alexander Darko
BY
Lets all thank God for this project .I believe when completed will help we all as Ghanaian with one purpose. Since this is a good step taken by the President and its team.
But then, let make good use of our limited land and put some thing butter like flats.
JULIUS SENYEGAH
ACCRA
WITH GOD ALL THINGS ARE POSSIBLE SO LET KEEP OUR FINGERS CROSS
AND WITH HARD WORK WE WILL GET THERE.
great investment by all standards,however question of its accesibility is of great concern.
Truly is a good initiative the NDC government has taken on behalf of all Ghanaians and i very will be happy to see the project come to pass so the cry of housing cost will be reduced as it has been said.
We live in perilous times and the deal has its cost and benefit analysis. First, I know and am fully aware that only 30% of the Ghanaian construction workers will be allowed to with STX KOREA. What does this mean? It means more contract employment would rather be created fro the korean youth construction workers? Not Good enough!
Secondly, building 200, 000 houses with 300 luxury town houses for government officials must be analised. When it comes to infrasture we must consider our population the demand for houses. Why not consider a little 10 or 15 storey complex that can house about 50 to 60 flats instead of wasting government land scattering houses all over the 10 regions of Ghana. This shows we were not strategic in our approach.
Thirdly, we could have more than 200,000 apartments should we have considered a building this flats and have also cut the overall construction cost by 25%
Finally, I applaud the vision and tenacity of the government but next time lets take our time when striking such deals with the Koreans. Remember these koreans are always strategic and very cunning when it comes business deals and negotiations not withstanding their brilliant technology.
I hereby advice the Ministry of Works and Housing to be strategic and very future oriented when striking such deals in the near future with any of the Asian countries.
Ghana be strategic and wake to the global war of brain power.
Sylvester Phish
CEO/MD Consultant
GeNeric 7 Consult International ( Research and Global Marketing Consultancy Firm)
Mob:+233 76 999 500
Ghana-West Africa
This deal is just a drop in the iceberg, but all the same if the previous governments had thought of solving Ghana housing issues and had started small deals like this, we would no have being suffering from housing deficit of this kind. please, the opposes of this deal should better fashion out the best guidelines, that will help the party in power to take a proper decision that would interest us as a nation but not because of their selfish individual interest.
The deal have in mind the future of its citizens which is far better than raising funds in the money market with higher interest rate and use it to pay workers salaries thinking that you have done something better for the people.
Even the first president of Ghana suffered the same bashing when he was developing the Tema communities and the motto way but now we can still see the benefit is accruing for us.
So Mr. President the majority of us who have the future in mind are with you and we are ready to support you with this project. But also take the positive criticism of the opposition into consideration and not the bad ones that will delay the process
thank you
this is by far the most brilliant idea i’ve seen from any ghanaian government except the first president. ghana need measures like this to put us on the global scale.i even suggest they consider rebuiding places like osu and other prime areas with well planned projects like thi to attract more tourist. this govenment shouldn’t rest on this. they should do more of such mammoth projects. they shouldn’t listen to any opposition as such people or groups are only interested in their selfish interest. Dubai, Abu Dabi and other countries have undertaken such project and we can all see how beautiful these countries are.we should distant ourselfs from that ghanaian mindset of being satified with the little we have.
we’ll support this project in every step of the way.
thank you
Sometimes i do feel sorry for my country Ghana. I can’t believe our intellectuals making arguments thinking we listeners and the public are fools, who will buy into their deceitful lies. I will like to see the day our leaders will put this country above their selfish interest, and take politicies out of national issues which will benefit the whole lot. Please the deal must go through.
LETS KNOW WHEN RECRUITMENT STARTS
IT’S A LAUDABLE IDEA BY THE GOVERNMENT.I THINK MORE OF THESE HOUSES SHOULD BE BUILT;LIKE 900,000 OR MORE AND SOLAR ENERGY SHOULD ALSO BE INTRODUCED;THE SUN IS VERY SC
am happy about the housing project ,can i please get the email address of the minister of work and housing?
It can be sent through my email .
Need to pass on an information to him..
Thank you.
I want to get the email address of STX Ghana, I am a graduate from KNUST, where I offered Civil Engineering. I would like to be considered for employment as a Civil Engineer for the housing project. Thank you