GRi Business, Economics & Finance 04 – 04 - 2003

Salt to be developed as "white gold"

Missing oil vessel seized by owners

Ghana Expo 2003 Launched

Suspend Procurement Bill

 

 

Salt to be developed as "white gold"

 

Winneba (Central Region) 04 April 2003- Vice President Aliu Mahama said on Wednesday that the government would support individuals and groups that would invest in salt mining to develop the mineral as the nation's "white gold" for the creation jobs, wealth and prosperity.

 

He was speaking at Winneba, in the Awutu-Effutu-Senya District, where he inspected a 283 hectare salt mining project, being developed at a cost of 2.3 million dollars, by two Ghanaian entrepreneurs, Ernest Ofori Sarpong and Osei Kwame, alias 'Despite'.

 

Vice President Mahama, who is on a three-day tour of the Central Region, to inspect development projects and to interact with the people to ascertain their views on government policies, earlier visited a small-scale salt project at Gomoa Nyanyano, where it was announced that the government had allocated 17.2 billion cedis to support small-scale salt miners this year.

 

Vice President Mahama, who said he was 'pleasantly shocked' by the huge investments and the size of the Winneba Salt Project, pledged the government's assistance to make the project a success.

 

Sarpong, who took the Vice President and his entourage round, said the project was scheduled for completion in two months for production to start in October. About 30,000 tonnes to 40,000 tonnes of salt would be mined annually for export to countries in the Sub-Region where there is a huge demand for salt, he said.

 

More than 500 people would be employed at the mine, which has 24 large clay-based saltpans. The project, which started last year January, would be expanded, under a second phase, to include the cultivation of seafoods, such as prawns and shrimps.

 

Sarpong told the Vice President that electricity and other basic infrastructure were required and asked for the government's support in providing them. Vice president Mahama had earlier called on Nenyi Ghartey VII, Omanhene of the Effutu Traditional Area, where he asked for the co-operation of his people on the salt project to ensure its viability.

 

He said the government considered chiefs as partners in development, who must be consulted on the formulation of policies and their implementation to facilitate socio-economic development.

 

He told Nenyi Ghartey that he would discuss his request for action to be expedited on the divestiture of the Pomadze Poultry Farms with the Divestiture Implementation Committee.

 

The Omanhene said the Farm, which collapsed several years ago, should be revived to create jobs in the area, adding that employment would ensure peace and progress. Vice president Mahama also visited Gomoa Potsin, Adzentam, Panfokrom and Awombrew where he addressed the chiefs and people at separate durbars held in his honour.

 

He encouraged parents to send their children to school, saying the difficulties they endured in rural settings should not deter the children from pursuing higher education. The Vice President said: "Most people in leadership positions today, including most of our heads of state, grew up in rural areas. Your children can also make it to the top so you should support them to develop their talents."

 

He stressed the importance of education as the key to self-development and the elimination of poverty. The Vice President told them that their requests for the provision of electricity, dams to support agricultural activities, the rehabilitation of roads, schools and other infrastructure would be addressed in due course as the government was determined to fulfil its promises to Ghanaians.

 

The Minister of Local Government and Rural Development, Kwadwo Adjei-Darko, Minister of Lands and Forestry, Professor Dominic Fobih, Dr Kwaku Afriyie, Minister of Health, Central Regional Minister Isaac Edumadze, Deputy Ministers Hajia Alima Mahama of Local Government and Alex Sofo of Roads and Highways, accompanied the Vice-President. The District Chief Executive of Gomoa, Joyce Aidoo and other government Officials were also on the entourage.

GRi.../

 

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Missing oil vessel seized by owners

 

Accra (Greater Accra) 04 April 2003- The oil vessel that disappeared over the weekend at the Saltpond Oil Fields is reported to have been seized by its owners in Nigeria, Albert Kan-Dapaah, out-going Minster of Energy, announced on Thursday in Accra.

 

The storage vessel, MT Asterias I was alleged to have gone missing with 73,701 barrels of crude oil worth two million dollars which had accumulated since trial production began in June last year at the Saltpond Oil Fields.

 

Kan-Dapaah told the press that a Reuters news report on Thursday said the Nigerian company, Ocean & Oil Limited, which seized the vessel, said the cargo was impounded as a way of security for non-payment of freight charges and interest due them.

 

He said the Ghana National Petroleum Company (GNPC) also on Tuesday received a copy of a letter that said the charter company owns the vessel owners an amount of 1,915,428.61 dollars. He said Mr Paul Okoloko, Managing Director of Ocean & Oil Limited, in a statement faxed to Reuters, said they took that action after the chatterers, Lushann International Energy Incorporated of USA, failed to respond to a final demand notice for payment.

 

The report said, "The chatterers had failed to make any payment for the hire of the vessel in the last seven months." The Minister said the crude oil that had been taken away belonged to a joint venture including GNPC, which had 40 per cent interest, Lushann International and the Saltpond Offshore Producing Company Limited (SOPCL).

 

He said had the oil been properly disposed of through the joint venture, the SOPCL would have received funds to meet its operational and production expenses including the servicing of loans obtained by the company for the payment of royalties of three per cent of the gross value of 60,000 dollars to the government.

 

Kan-Dapaah said the government was mindful of the potential criminal nature of the incident. He said when the matter was brought into the public domain by the initial press statement, a conscious decision was taken to recognise the need to avoid interfering with the due process of investigations.

 

He explained that the oil field was first discovered in 1970 by Signal/Amoco Group and developed and put into production in 1978. He said the field was shut in 1985 when production declined and the platform (rig) named "Mr Louie" that was used in the production was left at the location to be decommissioned.

 

He said when the new government came to office, it noticed that the charter company was not giving Ghana any royalties, carried interests, training allowances and annual surface rentals which were mandatory under the petroleum laws of Ghana.

 

He said new agreements were later made with the charter company, which agreed to subject their agreement to the appropriate prerequisites. A draft Petroleum Agreement incorporating terms that favoured Ghana had been negotiated pending Cabinet approval.

 

The Minister cautioned the media as well as the public to be circumspect when commenting on matters concerning the missing vessel for investigations to take their full course. Meanwhile the government had tasked the Attorney -General to commence action to place a temporary lien on Lushann's assets in Ghana.

GRi.../

 

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Ghana Expo 2003 Launched

 

Accra (Greater Accra) 04 April 2003- Ghana has made tremendous strides in meeting targets under the African Growth and Opportunity Act (AGOA) in less than a year after joining the programme, becoming the eighth largest exporter under the Act to the United States market.

 

Consequently, 50 million dollars worth of goods were exported last year and a new target of 62.5 million dollars had been set for this year, Dr Kofi Apraku, the outgoing Minister of Trade and Industry said in Accra on Thursday at the Ghana version of the Ghana EXPO 2003 Launch.

 

Ghana EXPO 2003 is a specialized trade and investment exhibition and conference to be held in London to showcase Ghanaian businesses and products. It is to promote inter-regional trade and help investors sample the best from Ghana and to explore market opportunities.

 

The event to be held from 16th to 18th October 2003 is also meant to bring Ghanaian, European, Asian and American business communities together for business interactions.

 

Dr Apraku said the AGOA Secretariat would soon embark on a comprehensive capacity building and training exercise for Ghanaian exporters to enable them to meet the high and sophisticated tastes of the overseas markets.

 

He described the event "as most appropriate as it comes at a time when the government is pursuing an agenda of developing Ghana into a Golden Age of Business". He said in the absence of Ghanaian Commercial Officers in some countries, the opening of Trade Houses in Malaysia, Mauritius, Singapore and Portugal "will become the Trade and Investment hubs for Ghana in those important trade and investment countries."

 

Dr Apraku pledged government's commitment to intensify its efforts and provide more capital to support domestic industry. "In this regard, we shall make the Export Development and Investment Fund (EDIF) even more supportive of the private sector."

 

He explained that EDIF as at 20 March this year granted loans totalling 113.9 billion cedis to exporters for products covering salt, wood, handicrafts, plastics and pharmaceuticals and for agro-processing.

 

He said art and craft villages were also being created in each region to improve the quality and diversity of Ghana's exports. Launching the event, Nana Akomeah, Outgoing Deputy Minister of Tourism, said the Ghana EXPO 2003 was a clear testimony that government was committed to the success of the Private Sector.

 

He said the government would strive to reduce inflation and to make sure that doing business in Ghana was made more profitable. "Inflation was reduced from 41 per cent at end of 2000 to 21 per cent at end of 2001 to 16 per cent (rpt 16 per cent) at end of 2002, despite the turbulence on this inflation front due to the turbulence on the oil market."

 

Isaac Osei, Ghana's High Commissioner in London, said the event provided the platform for Ghana to show what it had, its potential and what it could give to the world. He, therefore, urged the Private Sector and small and medium scale Ghanaian entrepreneurs to take part in the EXPO.

GRi.../

 

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Suspend Procurement Bill

 

Accra (Greater Accra) 04 April 2003- The Third World Network (TWN)- Africa on Thursday called for the suspension of the proposed law on government Procurement Bill citing several discrepancies which it said were inimical and detrimental to the growth and development of local firms.

 

It said the Bill, to be discussed in the next session of Parliament, did not pave the way for broad national consensus building, hence compromising the national interest. Stating the position of TWN, an international network of groups and individuals that seek to articulate the needs and rights of third world countries, at a forum in Accra, Dr Yao Graham, Co-ordinator of the organisation said "the progress of the Bill should be suspended to inject public interest in the entire process.

 

"It is better to have a broad consensus than just to have a Bill turn into law with all the suspicions that are in the public domain," he said. Putting forward the TWN's content analysis and evaluation of the Draft Bill, Ms Nana Eshun, a Consultant on International Trade Law, argued that the Bill as it stood now, showed a clear position of Western countries influencing market accessibility as a requirement for achieving transparency in procurement process.

 

She said the intention of the Western world particularly the US and European Union was to have equal access to contracts being awarded by public bodies in developing countries such as Ghana invariably to the detriment of local enterprises.

 

Ms Eshun said the market access provision must be removed entirely from the Bill because its implication was entirely different from the issue of transparency and minimizing corruption in the procurement process.

 

Besides, she said, international competitive tendering ought to be separated from the national tendering because equal treatment of all countries would work only in an ideal situation where all countries were at the same level of development.

 

"The fact that countries are at different levels of development necessitates the application of differential treatment tailored towards the particular circumstance and need of a country and aimed at achieving economic and social development of a country."

 

Ms Eshun said there was the need to specify the grounds upon which foreign firms would be invited to participate in the procurement process, adding, "for instance where it is unlikely that local firms will have the requisite expertise."

 

She said contracts should be packaged in a manner that would allow local firms to qualify to bid for them, and that procuring entities should avoid bunching up services or projects in large quantities that discriminated against local firms.

 

"The requirements for tender securities and the international standards should be reviewed to address local conditions and practices, which discriminate against small and medium-sized local firms".

GRi.../

 

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