Govt urged to provide counterpart funding promptly

Parliament Report House adopts report on Free Zones Board

Black Star Line ships fetch 11 million dollars

Accra (Greater Accra) 10 Dec. '99

Some Minority Members of Parliament on Thursday, expressed concern about the inability of the government to provide counterpart funding on time to complement foreign loans contracted.

They said this has often stalled a number of vital projects to the detriment of the nation.

They, therefore, urged the government to provide such funding promptly to ensure timely execution of projects for which it has contracted specific loans.

The members were contributing to a debate on a motion for the adoption of a report on a 7.7 million-dollar supplementary loan agreement between Ghana and the Arab Bank for Economic Development in Africa (BADEA) to finance the Tamale Storm Water Drainage project.

The House also approved without debate a motion for the adoption of the Finance Committee's report on an additional loan agreement of 549,700 Deutsche Marks from a German financial institution to fund the Village Infrastructure Project (VIP).

This followed the Minority Leader Mr J. H. Mensah's intervention that since the House had already approved the greater part of the loan, the additional facility should be approved without debate.

The Minority Leader was seconding the motion for the adoption of the report on the 549,700 Deutsche Marks loan agreement.

The report was accordingly adopted without debate.

Commodore Steve Obimpeh, Chairman of the Finance Committee, recalled that the House on July 24, last year, approved by a resolution a German Government loan of 15.0 million Deutsche Marks to finance various priority programmes, including the Village Infrastructure Project, which was allocated 10.0 million Deutsche Marks.

He said before the loan could be disbursed, KFW, the German financial agency, made available an additional 549,700 Deutsche Marks, thus increasing the loan amount to 10.549 million Deutsche Marks.

The additional loan would be used exclusively to finance rural infrastructure in the fields of agro-economic water supply, rural transportation and post-harvest protection.

Cdr. Obimpeh told the House that the VIP was, intended to support the government's effort at poverty alleviation and to improve the quality of life of the rural poor through increased transfer of technical and financial resources.

Under the terms of the loan agreement, the pre-payment period is 40 year's inclusive of a 10-year moratorium.

The loan attracts 0.75 per cent interest per annum with a commitment charge of 0.25 per cent.

On the BADEA loan, Cdr. Obimpeh told the House that the inadequate drainage system in the Tamale municipality and its attendant periodic flooding during the rainy season, has been the greatest concern of the government.

These concerns led to the initiation of the preparation of a drainage master plan in 1993, for the township.

He said BADEA agreed to a government's request to pre-finance the preparation of the master plan and that the cost of the study should be included in any future loan made available by the bank for the project.

Cdr. Obimpeh said the first loan of 277,000 dollars granted in 1993, was used to finance the preparation of the drainage master plan and detailed designs and preparation of tender documents for the drainage network in the central business district of the municipality.

Under the agreement, the loan is to be repaid in 14 year's semi-annual instalments, commencing December 2002.

The loan carries an interest rate of three per cent per annum on the principal amount withdrawn and outstanding from time to time, while the interest and other eventual charges, shall be payable semi-annually.

The government is enjoined by the agreement to provide a counterpart fund of two million dollars.

The Hydrological Services Department within the Ministry of Works and Housing is to make adequate annual budgetary allocations to meet the counterpart funding provided for under the budget.

GRi../

Accra (Greater Accra) 10 Dec '99

Parliament on Thursday adopted the Ghana Free Zones Board 1998 Annual Report laid by the Select Committee on Trade, Industry and Tourism on.

The Ghana Free Zone Programme aims at promoting economic development by attracting Foreign Direct Investment into the country as well as stimulating local entrepreneurial activities.

Expected from this initiative are the expansion and diversification of Ghanaian exports, creation of employment for Ghanaians and injection of the much-needed foreign exchange into the economy.

The programme also sets the stage for the Private Sector to lead "in these endeavours, by making the entire activities private sector driven with (the) government only playing a facilitating role".

Also dove-tailed into this programme is the Gateway Project, which aims at making Ghana the economic entry point into the West African sub-region.

Mr. John Kofi Gyasi, NDC-Adansi Asokwa, Acting Chairman of the Committee, told the House that the main problems facing the programme are litigation over and title to land, inadequate government subvention, and the unavailability of reliable utility services.

He said apart from the Tema and Sekondi-Takoradi enclaves, many zoned areas have problems of litigation and securing appropriate land titles.

He blamed the situation on the non-payment of compensation to traditional landowners at the time of acquisition.

Citing the Fumesua In-land Port, as a typical example, the Acting Committee Chairman said it was informed by the sector Minister that a Committee has been set up to look into the matter, and that a solution would soon be found to the impasse.

He expressed concern about the unsatisfactory supply of utilities to companies in the Free Zone, saying, "whereas there have been delays in the provision of these services to some of the companies, others have also been experiencing unannounced interruptions".

Mr Gyasi said in an effort to solve the problems associated with approved Free Zones, certain measures must be introduced.

Among them, he said, landowners should be encouraged to own equity shares in the lands, while the Board should be adequately capitalised for effective performance.

The Board should also expedite action to ensure the provision of adequate and reliable utility services, while the Ministry of Finance is urged to show keen interest in the activities of the Board.

Mr Dan Abodakpi, Deputy Minister of Trade and Industry and Member of Parliament (MP) for Keta, said 50 factories would soon be built in the Tema enclave of the Free Zone to promote industrial growth.

Other members who associated themselves with the report praised the Free Zone Programme as a "laudable one" and expressed the hope that when given the necessary commitment and support by all stakeholders, "the programme will play an important role in Ghana's investment drive".

They included Dr Kwame Addo-Kufuor, NPP-Manhyia, Mr Modestus Yawo Ahiable, NDC-Ketu North, Mr Akwasi Osei-Adjei, NPP-Ejisu-Juaben, Mr Evans Kodjo Ahorsey, NDC-Ayensuano, Mr Joseph Henry Mensah, the Minority Leader and Member for Sunyani East, Mr Edward Salia, Minister of Roads and Transport and Alhaji Collins Dauda, NPP-Asutifi South.

GRi../

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Accra (Greater Accra) 10 Dec.'99

Two Black Star Line ships sold in 1994 raked in 11.1 million dollars when the National Shipping Line was divested.

Mr. Edward Salia, Minister of Roads and Transport, told a questioner in Parliament on Wednesday that "all seafarers engaged by co-operation have been duly compensated.

" Seafarers are usually employed on contract basis, and all entitlements are paid at the end of each contract of between six months and 12 months duration."

The questioner, Mrs Gladys Asmah, NPP-Takoradi, wanted to know what kind of rewards were given employees, especially, those who serve for longer periods.

He said employees, who were at post during the divestiture, were paid their benefits following the due process negotiated with them and the Divestiture Implementation Committee (DIC) with the advice of the Ministry of Labour and Social Welfare.

On roads, Mr. Salia said the ministry has plans to rehabilitate roads to facilitate the economic growth of the rural areas.

He mentioned the Agona Nyakrom-Kwaman-Bobikuma road as one of those programmed for spot improvement in 2000.

GRi../

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