The South Korean Company, which is to undertake the multi-billion 200,000 housing project in Ghana is making another huge foray into the housing sector.
This time round, the company is seeking to establish a cement factory to complement its real estate outlay, estimated to be worth 10 billion dollars over a five-year period.
Mr Albert Abongo, Minister of Water Resources, Works and Housing, disclosed this to the Ghana News Agency in Accra on Saturday after leading a government delegation to seal the housing deal with the South Korean conglomerate.
STX Engineering and Construction Ghana Limited, a Ghanaian-Korean consortium subsidiary of the Korean company, is to build 200, 000 affordable estate units and 300 executive-type buildings over a five year period, starting April 2010.
The project will deliver 40, 000 units each year for a period of five years and help reduce by a fifth, the national housing deficit estimated at one million units.
Mr Abongo described the visit to Seoul as highly successful as it reflects a growing international opinion that Ghana is ready for development in view of her sterling democratic credentials.
He said to ensure proper appraisal of the company, the delegation including Members of Parliament across the political divide, and captains in the private sector, visited STX’s on-going interests in South Korea and Abu Dhabi.
He said the Korean side is to visit Ghana within four days to finalise talks on the building designs and the handing over of lands on which the projects are to be sited.
Mr Abongo said government intended to buy some of the units for the security agencies so as to solve their perennial housing problems.
The rest of the estates will be sold to patrons in both the private and public sectors.
Dilating on the proposed cement factory, Mr Abongo said government would supply geodetic data to the company to enable them to determine the type of clinker deposits they may wish to use for their manufacturing.
Mr David Assuming, Member of Parliament for Shia-Osudoku and the Chairman of the Parliamentary Select Committee of Water Resources, Works and Housing, expressed delight with the genuineness of the Koreans to assist Ghana overcome some of her development challenges.
He said it was incumbent on all regardless of their political affiliations to lend support for the project to ensure that the people fully benefit from it.
His sentiments were shared by Ms Abena Dapaah, Ranking Member of the Committee, who described the deal as a good one in solving the age-long housing shortages that the nation continue to experience.
Available information indicates that STX, which has interests in heavy industry, construction, energy and ship building, has 23 billion dollars in assets by the second quarter of 2008.