GRi In Parliament 17-02-99

Government pays compensation on acquired lands only - Ohene-Kena

Accra, (Greater Accra) 16 Feb.

Mr Fred Ohene-Kena, Minister of Mines and Energy, today told Parliament that the government pays compensation for compulsory acquired lands only. "Royalties are not paid by government on acquisitions, for which compensation is paid", he said.

The Minister was responding to a Parliamentary question as to whether there are plans to pay annual royalties to the chief sand people of Akwamu-Anum-Boso in the Eastern Region, for their submerged lands and other properties subsequent to the formation of the Volta Lake and the construction of the Akosombo Dam.

The question stood in the name of Mr Kwame Dwamena-Aboagye, Member for Asuogyaman.

Mr Ohene-Kena said with regards to compensation payments to communities, which were affected by the project, 7.5 million pounds sterling had already been disbursed.

He said in recognition of compensation claims which are still outstanding due to land dispute, the government in 1996, set up the Resettlement Trust Fund, into which the cedi equivalent of 0.5 million dollars is paid annually for the benefit of all communities along the Volta Lake.

"This is a fair and lasting arrangement to compensate these communities", he added.

In an answer to a supplementary question by Mr Dwamena-Aboagye whether there are plans by the ministry to pay compensation for lands which were not properly acquired but which had become submerged following the project, Mr Ohene-Kena said it was assumed that the consultants would have determined the area to be covered for which land was acquired.

He said, however, that if he was furnished with specific lands submerged and for which no compensation has been paid, he would ensure that the appropriate compensation claims are paid.

On the provision of electricity to communities overlooking the Akosombo Dam, the Minister explained that it is the policy of the government to extend electricity to all communities by the year 2020.

However, communities which want to benefit from the amenity earlier, should avail themselves of the opportunity provided under the government's self-help electrification programme (SHEP), which is now in its third phase.

Under the programme, communities which are within 20 kilometres of an existing 33kv/11kv network, are connected to the national electricity grid.

Such communities are required to buy and erect their own low voltage distribution poles in order to qualify for SHEP.

Accra (Greater Accra), 17 Feb.

Mr Fred Ohene Kena, Minister of Mines and Energy said yesterday that All Afra Company Limited does not have monopoly over contracts awarded by Electricity Company of Ghana for public street lighting in the country. Awards for street lighting and other contracts by ECG goes through the normal tender procedure, he added. Mr Ohene-Kena said this while answering a supplementary question by Papa Owusu Ankamah- NPP member for Sekondi as to whether the company has monopoly since most of the time they are unable to deliver yet ECG continues to award them contracts.

The substantive question was ;''To ask the Minister of Mines and Energy what efforts his Ministry is making to ensure that All Afra Company Limited, which has been contracted by ECG to install lights in Sekondi completes the projects''.

The Minister explained further that among the companies that do contracts for ECG, All Afra is one of the few companies, which is prepared to continue work, even when they have not been paid after presenting their certificates for payment.

Mr Ohene-Kena said investigations into most of the contracts show that the company could not be blamed for the delay since the ECG in most cases failed to pay them at the right time. The company should rather be commended, he added.

He said all contracts awarded to All Afra go through the normal tender channels and disagreed with some members of the Minority, who asserted that because of the credit the company gives, ECG may give it special preference.

Mr Ohene-Kena also disagreed with Mr Yaw Osafo-Marfo, NPP-Akim-Oda, that because ofits readiness to work even when the contract sum has not been paid, All Afra is forced to use inferior materials or find another means to make up for the loss they may incur as a result of their capital being locked up.

''Assuming they go for a loan with an interest rate of 35 per cent to pre-finance a project, are they not going to make losses at the end of the day, what is the cost of that credit to the nation?, he asked.

Mr Ohene-Kena said the company should rather be commended since by financing their contracts they accept to reduce their profit margin unlike some other contractors, who would not like to forgo part of their profit and so wait for payment before executing contracts. He said All Afra is currently handling Phase One of the Sekondi/Takoradi streetlight project.

''All 24 concrete poles required to be erected in this phase have been erected on the Cape Coast Road in Takoradi. All Afra is expected to complete all complementary works by 12 March, while the contractor moves to work on the Sekondi street lights by 23 February''.

The Minister said he did not know why work at the Sekondi portion had been suspended since 1997, however the work is being done in two phases adding that the Sekondi one may be in Phase Two.

Accra, (Greater Accra) 17 Feb.

 Mr Nicholas Appiah-Kubi, NDC-Jaman, yesterday charged the Ministry of Finance to come out with well-publicized guidelines on Pensions to ensure its prompt payment.

In a statement to Parliament on the payment of pensions, he said unless pension administration and payment are streamlined, the impediments put in the way of would-be pensioners will persist.

Mr Appiah-Kubi recalled a similar statement he made on the topic some time in 1997, during which he suggested the decentralization of the payment of pension benefits to workers who are due to retire from active service.

He further suggested that payments be computerized as is the case of monthly salaries, so that beneficiaries would not find it difficult to collect their benefits at the local level.

Using the teaching profession as a classical example, Mr Appiah-Kubi enumerated the various cumbersome procedures that teachers have to go through in the course of "chasing" their pensions, and therefore stressed the urgent need to remedy the situation.

In his view, pension benefits should be worked out with despatch and paid as soon as the beneficiary is 60 years old, adding, "it should not take the officers more than a month for the payment to be effected".

Mr Evans Kodjo Ahorsey, NDC-Ayensuano, associated himself with the concern raised by Mr Appiah-Kubi, and said since the problem affects a cross-section of Ghanaians, the issue needs to be looked at critically in order to make life meaningful for retired workers of this country.

Mr Modestus Ahiable, NDC-Ketu North, said officers in charge of pensions should not abuse their offices by exploiting the plight of pensioners. Rather, they should adhere strictly to laid down procedures in processing pensions to ensure prompt payments.

Mr Kwadwo Adjei-Darko, NPP-Sunyani West, urged government to as a matter of policy, ensure that qualified personnel are recruited to ensure the smooth take-off of the decentralization process.

While calling for the immediate implementation of the recommendations made at the economic forum last year, Mr Yaw Osafo-Maafo, NPP-Akim Oda, suggested the setting up of private pension schemes to make for effective competition with the existing SSNIT Pension Scheme.

Accra, (Greater Accra) 17 Feb.

 An 11.88 million-dollar Concessional loan agreement between Ghana and Norddbanken of Sweden for the supply of electrical equipment and material for rural electrification under the self-help electrification programme, phase three (SHEP -3), was yesterday laid before Parliament.

The document was submitted for Parliamentary consideration by Mr Fred Ohene-Kena, Minister of Mines and Energy.The loan, which is interest-free, is to be repaid in eight years with a three-year grace period. It attracts a 0.25 per cent agency fee and repayment period is in 17 semi-annual installments.

An accompanying memorandum said a fundamental policy of the government, which has been pursued by the sector ministry since the PNDC era, is the national electrification scheme (NES), which aims at providing electricity to all communities over a 30-year period.

The scheme's implementation plan comprises six five-year phases from 1990 to 2020.

An agreement between Ghana and the Free Hanseatic City of Hamburg, Germany, for the establishment and operation of the Kumasi Centre for Collaborative Research into Plant Medicine, was also laid before the House.

The House also received for its consideration from the Ministry of Finance, papers on tax and duty exemptions for the construction of the Sekondi Fishing Harbour and the Rehabilitation of Phase Four of the Kumasi-Yeji (Gyato Zongo-Yeji) road.

Accra, (Greater Accra) 17 Feb.

The Ministry of Mines and Energy is planning to change all street lights to solar powered ones, Mr Fred Ohene-Kena, Minister of Mines and Energy has said.

To this end the Ministry is to ask Parliament for approval of an intended increase in the 'street lights maintenance levy' added to consumer's electricity bill to raise more money for the project. Mr Ohene-Kena, speaking during question time in Parliament yesterday, said what is realised from the current levy is so small that it is not enough to do maintenance work on street lights.

The Ministry, he explained, needs to raise part of the cost involved in the change over in addition to sourcing for loans from donors. Mr Akwasi Osei-Adjei, NPP-New Juaben, who asked the supplementary question, wanted to find out from the Minister, which organisation accounts for this levy and how much has been collected so far.

The member noted that Accra and other major cities are in total darkness as far as street lights are concerned yet ECG collects this levy every month. The Minister explained that ECG is responsible for the collection and disbursement of the levy. ''Street lighting is insufficient because the amount levied is so small that it is unable to pay for maintenance or for new equipment.''

One solar powered street light costs between 3,200 and 3,800 dollars depending on the type.

Mr Ohene-Kena said although drivers are expected to pay for the street lights they destroy in accidents, the Ministry has found it difficult to the get the Police to take such cases to court.

The substantive question asked by Mr Evans Ahorsey, NDC-Ayensuano, was however on a rural electrification project in his constituency.

It read: ''To ask the Minister of Mines and Energy when his Ministry intends completing the extension of electricity to the following towns under the National Electricity Programme, Ofoase, Marforkrom, Kraboakese, Kraboa Coaltar, Dokrochiwa and Kofi Pare''. Mr Ohene-Kena said all but two have been connected, these are Kofi Pare and Kraboakese.

''Kofi Pare, however, is being considered for connection to the grid under the SHEP Three project. Kraboakese should, therefore, also apply for consideration under the SHEP.'' The Minister said plans in place to cater for any shortfall in energy supply from the Akosombo dam in view of the reported fall in the level of the water in the dam.

He said the rate at which the water is falling is normal at this time of the year and barring any disaster, the thermal plants would be able to augment whatever comes from Akosombo. He said there will be no short fall in energy supply as a result of VALCO's scheduled re-opening of two of its portlines closed down last year as a result of the energy crises.