STX housing deal to benefit local companies, create 40,000 jobs in Ghana – Bagbin

The STX housing deal will benefit Ghanaian companies and additionally create 40,000 jobs in the country, the Minister of Water Resources, Works and Housing has said.

Speaking to the press in Accra Tuesday July 27, 2010, Alban Bagbin said Ghanaian companies would benefit from the 1.5 billion dollar STX Korea Housing Project.

He said the main objective of the project was to use Ghana as the launching pad for an integrated building and construction industry in the West African Sub-region.

According to him, STX would also build  major cement, steel and power generating plants and factories and thereby create about 40,000 jobs in Ghana, which would help move the country’s economy in its movement to the middle income status.

Bagnin denounced the attitude of the opposition’s attempt to demonise the otherwise very important deal.

Since the deal was announced in December 2009, the STX housing deal has come under a great deal of controversy.

According to reports reaching ghanabusinessnews.com, the former Minister of Works and Housing, Albert Abongo, leading a government delegation signed a $10 billion deal on December 8, 2009. The project, at the time of signing was expected to begin from 2010 to 2014 and includes 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.

By Emmanuel K. Dogbevi