The South Korean government has made available to Ghana a multi-billion cedi housing project that will roll out 200, 000 housing units over a five year period, beginning April 2010.
The deal will also lead to the construction of 300 executive-type units to supplement the state's obligation towards high ranking government officials including ministers of state, Members of Parliament and in support of protocol duties.
Mr. Albert Abongo, Minister for Water Resources, Works and Housing who disclosed this to the GNA in Accra before he emplaned for Seoul said the agreement will lead to the building of 40, 000 units each year over the five year period.
This, he explained, will enable government reduce by a fifth, a crippling national housing deficit pegged at one million units.
Mr. Abongo said the project will give the housing industry a "facelift" with the introduction of hi-tech Korean technology as well as providing direct employment to thousands.
He said under the arrangement, the HFC Bank, Ghana's leading public mortgage lender, will play a key role in roping in the private sector in
conjunction with STX Engineering and Construction Ghana Limited, a Ghanaian-Korea Consortium, who are to do the actual construction.
The STX Company, Mr. Abongo explained, will do the construction on the basis of a turn-key module, whereupon the company designs and finance the project.
Government, he said, has a 45 per cent stake in the project which will be financed with an undisclosed package from the Korean government under an off-taker agreement.
To conclude what bodes to be a major leap for Ghana's real estate industry, the Minister is already in Seoul, at the head of a 14 member
delegation to conclude the deal.
On the delegation is Mr. David Tetteh Assumeng, Member of Parliament for Shai-Osudoku, and Chairman, Parliamentary Select Committee on Water Resources, Works and Housing as well as Ms Cecilia Abena Dapaah, ranking member on the committee.
Mr. Abongo said the Seoul meeting will hammer out the details of the project but was hopeful that it would help give the Ghanaian real estate industry a major boost.
He said the South Korean government was determined to broaden its relationship with Ghana in several sectors such as housing, water, railways and energy.
Such a collaboration, he explained will lead to the rehabilitation of the Techiman and Wa water systems.
He said in a show of Korean determination of the housing project, they are to pay a reciprocal visit to Ghana four days after the return of his
delegation so as to enable both cabinet and Parliament deal expeditiously on the deal for construction to start in earnest.