Using the USD:GH exchange rate that was set at drawdown, a $200 million loan has a 2 year grace period and a 5 year repayment period with an annual interest rate of 12.5%.
A profit of $1.8 million will be made on the sale of the 5,000 housing units, which will provide a total revenue of $257.27 million, compared to the expected total debt service of $249.6 million.
Under the original 5,000 unit proposal, a 2-bedroom unit will be sold for $29,000 and a 3-bedroom unit would be sold for $57,000.
Insisting that the project would not result in affordable housing at the time since his study revealed that the $29,000 and $57,000 cost mentioned by the committee was exorbitant, Hackman Owusu-Agyeman
Each of the 1,502 units must be sold for $172,000 to cover the loan balance plus interest of $257.27 million.
This excludes the extra $32 million required to finish the project.
The project’s total cost, $32 million, will increase to $289.27 million if it is added to the $257.27 million loan plus interest.
The interest on the $32 million that the government has yet to secure is unknown, thus it is not included.
$257.27m is the total of $200m + interest. $32 million more is required to finish. 1,502 units cost $289.27m less interest on the $32m that has not yet been secured.
Interest on the $32 million that hasn’t yet been secured isn’t included.
The price of one will exceed $187,000