US businessmen to reactivate limestone project

IMF Blocks $300 Million Grant To GNPC

Government releases 60 billion cedis to support small-scale entrepreneurs

Tamale (Northern Region), 24^th May '99 --

A seven-member US investment team is in the country to explore the possibility of reactivating the Buipe limestone project which was abandoned after the coup in 1966.

The team, led by Captain Michael Quaye (rtd), a Ghanaian living in the US, on Friday held discussions with the northern regional minister, Mr Joshua Alabi in Tamale.

Captain Quaye said the investors, who attended the African-African American Summit in Accra expressed satisfaction with the feasibility report on the project prepared by the geological survey department.

He hoped that the investors would also focus attention to other areas of interest, especially in the agricultural sector.

Mr John Brown, a member of the team said a turbine engine will be provided at the project site to boost power supply for production.

Mr Agyei Duodou, a senior geologist who accompanied the team from Accra said investigations by the geological survey department reveal that there is an initial lime deposit of 10.212 million tonnes which could last for 55 year.

He said a major attempt to mine the lime deposits, discovered since 1916, was initiated by the late President Dr. Kwame Nkrumah when he sought Russian assistance to begin exploratory works in 1964.

Another effort was made between 1987 and 1990 when the United States Agency for International Development assisted the government to undertake another feasibility studies.

The regional minister said the reactivation of the project would generate employment and help accelerate the development of the region.

He urged the team to look at other areas for investment, especially agriculture and agro-processing in which the region has comparative advantage.

GRi…/

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Sekondi (Western Region) 24 May ’99

Delays in the release of $300 million to the Ghana National Petroleum Corporation (GNPC) may adversely affect the pace of development of the Western Power Project.

The project is a GNPC initiative to produce electric power using in the short-term crude oil, and in the long-term liquified gas.

It is expected to generate about 125 mega watts of power to supplement power production to meet the growing needs of Ghanaians and perhaps for export.

The agreement for the grant was signed in November 1998 between the GNPC and Exim Bank of the United States.

The grant is needed to complete work on the whole Western Power Project.

Mr Tsatsu Tsikata, Chief Executive of the GNPC, told members of the Institute of Financial and Economic Journalists (IFEJ) during a familiarisation tour of the GNPC's facilities at Sekondi last Friday that the International Monetary Fund (IMF) has ordered the suspension of the grant.

The tour took members of IFEJ to Esiama, Mangyea, Effaso, Sekondi and Aiyinase in the Western Region.

Mr Tsikata said due to the suspension order the Exim Bank has not been able to grant the facility.

He said the Exim Bank has demonstrated its readiness and willingness to assist the GNPC to bring the project to fruition.

Mr Tsikata said various studies conducted proved the viability of the project.

He was optimistic that when the $300 million grant is made available, the project will be completed within 12 months.

Mr Tsikata said without the grant, it will take about three more years to arrange for funding to complete the project, adding that.the Japanese Government is assisting the project with a 100- million-dollar grant.

Mr Lloyd Evans, President of IFEJ, said the institute is committed to improving upon standards of economic and financial reporting in the country.

He was hopeful that the trip would give members of IFEJ insight into the activities of GNPC and the development of the country as a whole.

Mr Evans expressed the appreciation of the financial journalists to the GNPC for sponsoring the tour.

GRi../

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Tamale(Northern Region) 24 May ’99

The Government has committed 60 billion cedis to the export development fund during this fiscal year to support micro and small scale enterprises.

The money, which will be disbursed through Association of Small Scale Industries (ASSI), will enable the beneficiary entrepreneurs to provide collateral required by the financial institutions for loans to assist them to venture into the export market.

Reverend Samuel Kwabena Fugah, president of the ASSI disclosed this at a national review workshop of the association in Tamale on Saturday.

He appealed to the government to speed up the disbursement process to enable cash-strapped members take advantage of it.

Reverend Fugah called for effective collaboration between the association, the District Assemblies and NGO’s in order to achieve objectives of the vision 2020 development document.

Rev Fugah said the ASSI is assisting the Ministry of Trade and Industry to come out with a policy document to regulate the operations of small-scale industries and other service providers.

Mr Martin Wilde, country resident representative of the Konrad Adenauer Foundation of Germany, which is offering technical assistance to the ASSI, said the foundation has earmarked over 100 million cedis to support activities of the association this year.

He called on the members to contribute 15 million cedis as a local initiative to be self-supportive in the implementation of their programmes.

The 30 delegates attending the three-day workshop would among others discuss access to credit, capacity building and skills training.

GRi../

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