Parliament endorses recommendation for loan approval

NDC women MPs condemn planned demonstration

Ghana to have seventy per cent first class roads in ten years

Accra (Greater Accra) 25 Nov. '99

Parliament on Wednesday, unanimously endorsed a recommendation by its Committee on Finance, for the approval of a 10 million-dollar Dutch loan, to part finance technical/vocational education and training resource centre projects.

A loan agreement to facilitate the project was contracted between the government of Ghana and the ABN Amro Bank of Amsterdam, Netherlands.

The House saw the loan as an opportunity to help provide adequate vocational and technical skill training to the youth to make them self-reliant and employable as well as serve the middle-level manpower needs of the country.

In a motion calling on the House to approve a report by the Finance Committee on the loan agreement, Commodore Steve Obimpeh (rtd), Chairman of the Committee said the loan would finance about 50 per cent of the total cost of the establishment of 20 technical/vocational education and training resource centres in the country.

Among other things, the loan will cover supply and installation of equipment and materials, staff development, including local and overseas training for Ghanaian personnel and internal rehabilitation of existing workshops and classrooms of selected centres.

The project will provide training centres to supplement existing facilities in technical/vocational training institutions and give ample opportunity to practical work, using modern facilities and techniques.

It will also provide training for students in institutions, both public and private without well-equipped workshops, and enhance the orientation of beneficiaries towards self-employment by imparting entrepreneurial skills to them.

Commodore Obimpeh told the House that the total cost of the project is estimated at 20 million dollars and would be funded from three sources.

He said the Dutch Government would provide a non-refundable grant-in aid of 45 per cent of the total project cost, the ABN Amro loan representing 49.5 per cent of the cost, while the Ghana Government would contribute 2.8 billion cedis, or 5.5 per cent of the total cost.

He said 20 institutions, two in each region, would benefit from the three-phased project. the first phase would cover seven institutions, eight institutions would benefit from the second phase with the third phase covering five institutions.

Under the loan agreement, the government is expected to grant a tax waiver, estimated at 11.238 billion cedis, on materials, equipment, tools and vehicle contained in the project document.

The Committee urged the government to make every effort to release its counterpart funding in order not to delay the implementation of the project.

Under the terms of the agreement, the loan is repayable in seven years in 14 consecutive equal semi-annual instalments at an interest of 5.95 per cent per annum.

The first payment is to be made in three years but not later than May one, next year.

The loan has a management fee of 0.375 per cent, calculated on the loan amount and payable within 30 days from the date of the signing of the agreement.

It has a commitment fee of 0.5 per cent per annum to be calculated daily on the undrawn amount of the loan and payable in arrears on an actual 360 days basis.

Seconding the motion, Mr J.E. Ackah, NDC-Jomoro, noted that the establishment of the vocational and technical centres would not only attract the youth to acquire employable skills but would also help provide the manpower needs of the country.

Ms Christine Churcher, NPP-Cape Coast, said the education reform programme sought to provide practical orientation to the youth and any loan that would help promote technical and vocational training "is heart-warming".

She said, however, that the establishment of such skill training centres should have been earlier to enable junior and senior secondary school leavers to avail themselves of such facilities to improve their lot.

Mr J.K. Afful, NDC-Abura-Asebu-Kwamankese, said the loan was laudable since it would help provide materials and equipment to enhance vocational and technical training.

Mr Kwadwo Adjei-Darko, NPP-Sunyani West, said the centres should be made to offer training to both full-time and part-time students.

Squadron-Leader Clend Sowu, NDC-Anlo, suggested that after their training, beneficiaries should be assisted to set up small enterprises to manufacture tools and equipment, using local raw materials to feed the big companies.

Mr J.E.K. Abeka, CP-Effia-Kwesimintsim, said the loan would help to rehabilitate some of the facilities in technical institutions.

Papa Owusu-Ankomah, NPP-Sekondi, noted that, in several instances, beneficiaries of such technical and vocational training do not have access to finance.

He suggested that people with such capabilities should be supported so that "we can derive the maximum benefits from their technical and vocational endowment".

Mr M.A. Seidu, Deputy Majority Leader, said though there is regional balance in the distribution of the centres, districts that would not benefit from the package should be brought on board.

Mr Ekwow Spio-Garbrah, Minister of Education, commended the House for its understanding in dealing with the loan agreement.

Reacting to some of the concerns expressed by members, Mr Spio-Garbrah assured them that people who go through the training would not remain unemployed since there has been a remarkable growth in the sector to absorb them.

He said the Ministry would find new avenues of sourcing counterpart funding to support such laudable projects.

The Minister appealed to Parliament to expedite action on the approval of the loan to allow for the credit facility to be made available on schedule.

GRi../

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Accra (Greater Accra) 25 Nov. '99

The National Democratic Congress NDC) women caucus in Parliament on Wednesday added its voice to the call on opposition parties to stop their nation-wide demonstration slated for tomorrow, November 25.

In a statement signed by Mrs Margaret Clarke-Kwesie, MP for Ga South, the 15 member-group said: "We are afraid of a possible mob action, which can endanger the lives of innocent people.

"As women, we believe that a demonstration is not the best way of expressing your views in a democracy".

The statement said although times are hard, Ghanaians should appreciate the peace and stability that they enjoy.

"We, as women of Ghana, do not wish to become refugees in other countries when the nation moves into despair".

GRi../

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Accra (Greater Accra) 25 Nov. '99

The Government is targeting a 70 per cent improvement of the nation's entire road network into a first class within 10 years, Mr Steve Akorli, a Deputy Minister of Roads and Transport, told Parliament on Wednesday.

"We are currently making a 20 to 34 per cent and hope to hit the mark within the coming years."

Mr Akorli, who was answering a parliamentary question, said the Road Fund has aided immensely in the payment of contractors, thus keeping regular maintenance on course all year round.

Mr J.E.K. Abeka, CP-Effia Kwesimintsim, had asked why most contractors delayed work under the pretext of non-payment of contract fees.

Mr Akorli said for sometime now, the ministry had to contend with certain deviants in the system and assured the House that such persons are blacklisted and hardly get jobs within the public domain.

The Deputy Minister said a number of factors including the volume and consistency of traffic are considered in the upgrading of roads.

"Economic factors and even social factors all come to play before gravel or tar is put on a road".

He mentioned a number of roads, including the Bongo-Bolgatanga road, as slated for improvement in 2000.

GRi../

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