The Ghana Real Estate Developers Association commends Government's stated intentions and commitment to significantly tackle the huge housing deficit in Ghana, by supporting the construction of 200,000 units in 5 years to reduce the estimated 1 million housing units deficit.

We are particularly pleased by the PPP approach initiated by Government, its commitment to borrowing billions of dollars and issue sovereign guarantees in partnership with the private sector to solve this problem.

GREDA, however, is extremely disturbed by the nature of the whole STX deal, and the proposed Off-Taker Agreement between STX Engineering and Construction Ghana Limited and the Government of Ghana.

STX Corporation of Korea announced to the world that it had won a US $10 billion order from the Government of Ghana to build 200,000 homes over a five-year period, from 2010-2015.

The agreement has the following details: * The GOG will become an off-taker of 45% of the 200,000 units, i.e. 90,000, will be bought by Government.

* There shall be an initial phase where 30,000 units will be built at the cost of $ 1.5 Billion, to government. These are earmarked for the security services.

* HFC Bank will provide mortgage finance for the remainder (i.e. 55%), worth over $ 5 billion.

The $1.5 billion Suppliers Credit Financing agreement for the first 30,000 units has already been sent to Parliament requesting approval. Our concerns are many, ranging from the expediency of this deal to its financing and the effect of such a deal on our finances as a country and on the broader economy, and on our sense of self worth as a people. GREDA particularly also worries about the signal this is sending about our industry which has so far built Ghana.

200,000 units may just be a fraction of the total deficit, thus leaving a lot for others to deal with if they want, but as Ghanaians and the professionals in this industry we feel it a duty to draw attention to the fact that this is deal is does not at all represent value-for money.

GREDA is able to construct any type of building required in Ghana. Ghanaians built Dansoman, Sakumono and other estates, and all the barracks we have today. Ghanaians built the city of Tema, State House (Job 600), and Cedi House, local private estate developers have built world Class residential properties.

GREDA commits that given the same terms as STX, it can deliver the required housing at less than half the current cost.

We wish to state as professionals that STX has not provided any basis for pricing the units, it has not revealed the location of the project and other important facts, which will enable a professional compute the cost of a building, we therefore request that they put that information out.

GREDA is requesting that both Parliament and Government discontinue the approval process. Indeed in its present state this agreement will be damaging to Ghana, it should be cancelled.

It is also shrouded in ambiguity, and does not offer value for money. For example here are some of the terms to STX: All land will be provided by government free of charge to STX 1. All facilities to the land such as Roads, Electricity, Water, Telephones and the like will be provided by government free of charge to STX 2. No Taxes on all imports, including materials, machinery and equipment. 3. No Taxes on all earnings by STX 4. No VAT 5. No withholding taxes may be deducted even for locally purchased items 6. Full repatriation of profits and earnings for STX. 7. Ghana Government will pay for STX costs and expenses in executing the project under the “Financing Documents” (including legal, accounting, travel expenses, and other out of pocket expenses) and any VAT on those expenses. 8. STX may, if it wishes, convert all or part of the debt into Crude oil. 9. We also wish to reveal the false impression being created that this project is being funded by the Korean government. There is nothing in the agreement which states this. What is evident is that STX will obtain a sovereign guarantee from the Ghana Government.

We shall, however, encourage Government to stay true to its commitment to a PPP initiative to tackle the national housing deficit. It should retain its intention to off-take a sizeable percentage of the project for the security agencies etc, and its preparedness to issue sovereign guarantees to support the private sector deliver these houses.

Our plea to Government is to sit down with GREDA and the built environment professionals such as Architects, Engineers, Planners, Surveyors to jointly consider an alternative to the STX Deal.

We affirm that GREDA is well able to deliver these houses using Ghanaian expertise, materials and labour to Government’s satisfaction at half the STX cost.

We all know how such a project can stimulate our economy seeing that construction affects many sectors of an economy at once.

For the purpose of this press release we have kept our comments brief. We reserve our other discussions for the press conference.

We will hold a press conference on Thursday 24th June 2010. At 10 AM, at the Ghana International Press Centre, to properly put out our case and explain our position to the general public.

We will thereafter on the same day, present a petition to Parliament requesting that they do not pass the STX deal. We will then move to the Castle to present a petition requesting audience with The President to discuss how we can provide quality housing for Ghanaians at the right cost in support of the Presidents agenda for a ‘Better Ghana’.

We believe our Government will listen, and our Parliament will support our call. Above all we appeal to the people of Ghana to support us, this is about us, it is about the masons and carpenters we employ, and the various workers who have to be able to buy these houses. If our government listens to us we will make serious progress on the housing front in a way that will change Ghana our motherland. God help us all.

SIGNED GREDA PRESIDENT DR ALEX TWENEBOAH

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