THE University of Ghana (UG) has signed an agreement with Prime Premier Haven Limited for the construction of a 10,130-bed hostel facility to ease accommodation challenges on campus.

Under the agreement, the university will cede 10 acres of land to the developer for a 30-year lease period. In return, UG will receive between zero and six per cent of the gross revenue annually and will take over ownership of the facility after the lease expires.

Additionally, the contractor will complete one of the four abandoned legacy projects of the College of Humanities in lieu of any direct lease payment to the university.

The project, expected to be completed within 36 months, will see the first phase delivered within 12 calendar months.

The Vice-Chancellor of UG, Professor Nana Aba Appiah Amfo, signed on behalf of the university, while the Chief Executive Officer of Prime Premier Haven Limited, Mr Razak Awudulai, signed for the construction firm. Officials of the Ghana Infrastructure Investment Fund (GIIF) and the Public Investment Fund of the Ministry of Finance witnessed the signing ceremony.

The Pro Vice-Chancellor in charge of Academic and Students Affairs, Professor Gordon A. Awandare, said the agreement was reached after painstaking negotiations and expressed gratitude to the GIIF for facilitating the opportunity.

He noted that the university would manage the property after the project debts had been cleared, expressing optimism that this would be achieved within 16 years to enable the institution to explore additional opportunities.

Professor Amfo described the signing as a milestone achieved after years of negotiations and legal reviews to ensure due diligence.

“One of the greatest challenges confronting the university is accommodation, and we are committed to doing everything within our power to expand residential capacity for our students,” she said.

She added that beyond easing accommodation pressure, the completion of the College of Humanities project would demonstrate the institution’s commitment to delivering holistic and quality education.

“The negotiators have worked day and night to reach this final stage. We look forward to the sod-cutting and to seeing the project through to completion,” she stated.

Professor Amfo commended President John Dramani Mahama for fulfilling his pledge to support the initiative, as well as the Attorney-General and the Minister of Finance for their roles in ensuring the successful conclusion of the agreement.

She urged the contractor to exercise due diligence to ensure the project met the expected standards and timelines, assuring management’s support throughout its execution.

Mr Awudulai said the project would be undertaken by APC Contractors and gave assurance of quality delivery, calling on all stakeholders to support its smooth implementation.

The Chief Executive Officer of GIIF, Mr Solomon Asamoah, said partnering with the private sector to deliver the facility was a strategic move and pledged the fund’s commitment to de-risking projects of such nature. He also encouraged financial institutions to participate actively from inception to completion to ensure sustainability.