Debates of 15 Mar 2006

MR. SPEAKER
PRAYERS 10:04 a.m.
CORRECTION OF VOTES 10:04 a.m.
AND PROCEEDINGS AND 10:04 a.m.
THE OFFICIAL REPORT 10:04 a.m.
Mr. Speaker 10:04 a.m.
Order! Order!
Correction of Votes and Proceedings of Tuesday, 14th March, 2006. Pages 1. . . 6?
Majority Chief Whip (Mr. Osei Kyei-
Mensah-Bonsu): Mr. Speaker, I noticed that some Members had been marked as absent without permission. The Members are: The hon. Member for Atwima- Mponua (Mr. Isaac Kwame Asiamah) and the hon. Member for Nkwanta North (Mr. J. K. Nayan). Mr. Speaker, the two hon. Members sought permission and I relayed the leave of absence to your Office. I hope the Table Office will take note of that.
Mr. Speaker 10:04 a.m.
Thank you. Pages 7
. . . 15.
Alhaji M. M. Mubarak 10:04 a.m.
Mr. Speaker, yesterday the Committee on Health met but it is not indicated here.
Mr. Speaker 10:04 a.m.
This is an omission, I
am sure; we will put it right.
Hon. Members, we do not have any Official Report. Item 3 - Questions, Minister for Energy.
ORAL ANSWERS TO QUESTIONS 10:04 a.m.
MINISTRY OF ENERGY 10:04 a.m.
Mr. Labik 10:15 a.m.
Mr. Speaker, from the Answer given, it looks as if there is hope for Ghana striking oil in commercial quantities. And from the Answer, it looks like the Minister is telling us that there are some impediments, maybe in the acquisition of rigs to be able to achieve our targets. I want to find out what his Ministry is doing to make sure that these companies get the rigs to enable Ghana have oil in commercial quantities soon.
Prof. Oquaye 10:15 a.m.
Mr. Speaker, rigs are indeed a difficult situation now in view of the high activity of exploration in the world today. One way to ensure that a company brings a rig is to ensure that even at the due diligence stage, it demonstrates the capacity to produce a rig within a reasonable time. Furthermore, the time-frame element that we have brought into the exploration also means that if you are not able to produce a rig within a stipulated time, you stand a chance of losing what one may call your contract or your concession. This is also a further incentive to ensure that rigs are produced at an expeditious time.
Mr. Labik 10:15 a.m.
Mr. Speaker, exploration, as the Answer given to us by the Minister indicates, is capital intensive. Someone comes in with plenty money to drill or for exploration of oil. He believes that there are large quantities of oil in the country; and he will only put in this money based on the information he has. Yet he will not be prepared to go in now -- now that there is even the hope that he can get oil -- to bring in those rigs to drill wells that can let us exploit the large quantities of oil. Why is it so?
Prof. Oquaye 10:25 a.m.
Mr. Speaker, respect- fully, the question again.
Mr. Labik 10:25 a.m.
Mr. Speaker, from the Answer, we are made to believe that oil exploration is capital intensive, fine; and companies come in. The Answer here now shows that we have large deposits of oil. Why are these companies now not prepared to come in with these rigs to make sure that Ghana gets oil?
Prof. Oquaye 10:25 a.m.
Mr. Speaker, as to the companies not coming forth with the rigs, it depends upon the availability of the rig, the distance that the nearest may be within our waters, and their own alternative programmes as a whole. There are not too many capable companies, globally- speaking, and you will definitely have to have some waiting period according to the contract that will be signed, so that a reputable company can come and work in your shores or in your waters.
So Mr. Speaker, it is a matter of relativity. They may be willing, they see the prospects, nevertheless how close is a rig is another matter. The important thing is to be able to balance the equation in the best interest of the country and to attract the most capable companies at any given time.
Mr. Labik 10:25 a.m.
Mr. Speaker, I would want to really thank the Ministry for its efforts but to also want the hon. Minister to give me a last answer, as to what he is doing to make sure that he attracts the big companies that can really undertake these explorations so that Ghana can benefit as soon as possible from oil exploration.
Prof. Oquaye 10:25 a.m.
Mr. Speaker, it is a matter of advertisements, attending conferences and selling Ghana, making the
Mr. Haruna Iddrisu 10:25 a.m.
Mr. Speaker, if you look at page 11 of the Minister's Answer, the hon. Minister has stated that Heliconia Energy Ghana Limited is a subsidiary of Vitol Oil from Far, Switzerland. Mr. Speaker, I do have the memorandum to the agreement between Heliconia Energy Ghana Limited and GNPC and the parent company is the Atlantic Energy of Bermuda. I would want the hon. Minister to reconcile which of his statements we should rely on. Is Heliconia entering into the agreement with Bermuda Atlantic or with Vitol?
Prof. Oquaye 10:25 a.m.
Mr. Speaker, respect- fully, I did make this correction in the presentation I made this morning. Heliconia Ghana Limited, a subsidiary of Vitol Limited from Far, Switzerland had submitted this application in this regard and which Mr. Speaker, I did mention this morning. So the correction has been made that the application was with Vitol. That is the presentation I made this morning and I would like my hon. Friend to take that one that was made this morning.
Mr. Kojo Armah 10:25 a.m.
Mr. Speaker, it is public knowledge that Ghana, through GNPC acquired a rig some years ago
which was sitting in the waters of Angola. It is also public knowledge that this rig was towed and it is now sitting in the waters of Sekondi. I would want to know from the hon. Minister what is happening to this rig.
Prof. Oquaye 10:25 a.m.
Mr. Speaker, if my hon. Friend wants the details of what is happening with regard to the rig in Sekondi, which does not automatically flow from this general question, Mr. Speaker, I will answer him readily.
Dr. Kwame Ampofo 10:25 a.m.
Mr. Speaker, conspicuously absent from the hon. Minister's Answer is the hope given to the nation by His Excellency the President that gas has been discovered by a Norwegian company in commercial quantities which will change the aspirations of this country for the better. Would the hon. Minister use this opportunity to dilate further on the issue, as part of the Answer given to the Question?
Mr. Osei Kyei-Mensah-Bonsu 10:25 a.m.
Mr. Speaker, the specific Question relates to what the progress of oil exploration is and not gas. So Mr. Speaker, the supple- mentary question being asked is completely tangential to this main Question and, to that extent, he is completely out of order.
Prof. Oquaye 10:25 a.m.
Mr. Speaker, if my hon. Friend on the other side would bring this question appropriately, with notice, I will answer him accordingly.
Mr. J. A. Ndebugre 10:25 a.m.
Mr. Speaker, in the hon. Minister's Answer, as reflected on page 9 of the Order Paper, he said that there has been established the need to review the existing fiscal regime put in place in the 1980s to make it more competitive with similar fiscal regimes of other countries in the subregion. He repeated this on page 10 where he said that a review was undertaken which resulted in the proposal for changes in the fiscal and
the regulatory regime, which means that the fiscal regime is so important. May I know what are the components of this fiscal regime?
Prof. Oquaye 10:25 a.m.
Mr. Speaker, that will basically be the financial gains and “take homes” of the exploratory companies in this regard, vis-à-vis Ghana's own retentions. Mr. Speaker, these details are being worked upon and they will be presented at the appropriate time.
Mr. Lee Ocran 10:25 a.m.
Mr. Speaker, I am very much interested in the Minister's Answer because much of the Tano basin is in my constituency. Mr. Speaker, I want to know from the hon. Minister what measures he has put in place to make sure that oil drilled during the time of prospecting is not taken away, the way oil was taken away from our waters to Nigeria some time ago.
Prof. Oquaye 10:25 a.m.
Mr. Speaker, when oil is found, at the appropriate time this responsible Government will make all relevant arrangements and take all relevant steps to ensure that it is applied to the effective interest of our people.
Electricity Connection to Atrensu, Ayaasu and Asubingya
Q. 240. Mr. Alex Kyeremeh asked the Minister for Energy what plans the Ministry had to connect electricity to the following towns:
(i) Atrensu;
(ii) Ayaasu; and
(iii) Asubingya.
Prof . Oquaye 10:25 a.m.
Mr. Speaker, the Atrensu, Ayaasu and Asubingya communities form part of the ongoing SHEP-3, Phase-3 Project in the Techiman District of the Brong Ahafo Region.
Prof . Oquaye 10:35 a.m.
Installation works for High Voltage (HV) and Low Voltage (LV) networks at Atrensu and Ayaasu have been completed including customer service connections. Further, installation works for HV and LV networks at Asubingya have been completed. The only outstanding work at Asubingya is customer service connections which are expected to be completed by June 2006.

Mr. Speaker, my hon. Friend on the other side may please advise his constituents to approach the Ministry or the ECG and complete connection formalities in this connection.
Mr. Kyeremeh 10:35 a.m.
Mr. Speaker, I would
like to know why the long delay in the completion of the projects because it has been there for almost six years now.
Prof. Oquaye 10:35 a.m.
Mr. Speaker, I do not
know what was happening in six years. Mr. Speaker, what is the state of affairs as at today is what we have presented this morning, with regard to the connections that are expected to be completed at what time, and what steps they can take in order to obtain a benefit from the services.
Mr. E. T. Mensah 10:35 a.m.
Mr. Speaker, what
we ought to know is that the electricity did not start yesterday, from 2001; it started long ago. It started six years ago, yet nothing has happened. We would want to know why for six years nothing has happened; yet the hon. Minister is now giving us hope. Should we believe him? That is the issue at stake.
Prof. Oquaye 10:35 a.m.
Mr. Speaker, I think that my Friend on the other side should believe me -- [Laughter.]
Mr. Albert Abongo 10:35 a.m.
Mr. Speaker,
Prof. Oquaye 10:35 a.m.
Mr. Speaker, I
did explain to this honourable House sometime ago that apart from the fact that the SHEPs have been programmed as they are now, there have been times when certain difficulties arose, including certain rotten trees, et cetera, which did not make it possible for a particular phase to be completed. Nevertheless, these continue to be ongoing and when all conditions are satisfied, they will be connected accordingly.
Connection to the National Electricity Grid
Q. 241. Mr. Alex Kyeremeh (on behalf
of Mr. Simons Addai) asked the Minister for Energy what plans his Ministry had to connect the following towns to the National Electricity Grid:
(i) New Techiman
(ii) Twimia Nkwanta
(iii) Koase
(iv) Twimia
(v) Nkrankrom
(vi) Bonkwae
(vii) Bowohommoden
(viii) Faaman
(ix) Traa; and
(x) Sansama.
Prof. Oquaye 10:35 a.m.
Mr. Speaker, the New Techiman community is part of the on- going SHEP-3, Phase-3 Project in the Techiman District of the Brong Ahafo Region. Installation works for High Voltage (HV) and Low Voltage (VL) networks have been completed. We note however that about 70 per cent of the LV poles in the community are rotten and this would not allow for customer service connections to be undertaken on those rotten wooden poles. The few concrete LV poles in the community would allow only a few registered customers to be served. The major hindrance to the completion of the project is the rotten LV wood poles, which must be replaced.
The Ministry of Energy has regularly advised communities and District Assemblies on the procurement of standard and treated wooden poles from certified manufacturers only, in order for the poles to last for a long time. We therefore request the community to arrange to replace the rotten poles with standard ones to allow for the total completion of the project, Mr. Speaker.
The Twimia Nkwanta, Twimia-Koase, Nkrankrom, Bonkwae and Bowohom- moden communities have been earmarked for connection to the national electricity grid under the SHEP-4 Project. These communities however do not form part of the ongoing SHEP-4, Phase-1 Project, which is of limited scope. The communities would therefore be connected to the grid under the subsequent phases of the SHEP- 4 in line with the implementation schedule and the availability of funds and material.
The Traa and Sansama communities have not been listed under any of the on-
going electrification projects currently being carried out by the Ministry of Energy. These communities may therefore apply for consideration under the SHEP if they meet the eligibility criteria of the
SHEP.
Mr. Speaker, may I take this opportunity to advise hon. Colleagues that it will be very useful to watch this matter of the poles, knowing very well what kind of damage ECOMOG poles, for example, have done to us in the past.
Mr. Kyeremeh 10:35 a.m.
Mr. Speaker, I would
like to know from the hon. Minister for Energy which poles are rotten, because every low-tension pole there has a wire in it. And it would be very difficult for the communities to know the rotten poles -- if his Ministry can assist to identify these poles.
Prof. Oquaye 10:35 a.m.
Mr. Speaker, the
Ministry of Energy will always be very willing to assist in this connection, and I would love that my Colleague on the other side, whether by way of himself or the DCE, comes forward; and we will give them appropriate officials to go and assist in the detection.
Ms Akua Sena Dansua 10:35 a.m.
Mr. Speaker,
I would like to know from the hon. Minister for Energy where this name “ECOMOG” came from; and whether the continuous use of “ECOMOG” to describe low quality poles is not derogatory of the laudable contribution of ECOMOG to peace-keeping in the sub-region.
Prof. Oquaye 10:35 a.m.
Mr. Speaker, before 2001, a number of poles were detected by the Ministry to sub-standard, rotten and unfit for application. They gained the nomenclature ECOMOG poles - [Laughter.]
Mr. John Gyetuah 10:35 a.m.
Mr. Speaker, in the
hon. Minister's Answer to Question 241,
Mr. Speaker 10:35 a.m.
What is the question,
hon. Member? Your question please.
Mr. Gyetuah 10:35 a.m.
Mr. Speaker, my question
is that in the hon. Minister's Answer to Question 241, the major obstacle facing the rural electrification project in Brong Ahafo, Techniman area, is the fact that the community procured sub-standard poles. And I am saying that since in the urban centres when there is an electrification programme, those communities which enjoy those programmes do not actually procure poles from their own sources, why is it that in the rural electrification programme the rural folks are supposed to procure those poles? What is his Ministry doing to ensure that the rural folks are also free from that burden?
Prof. Oquaye 10:35 a.m.
Mr. Speaker, self-
Mr. Speaker 10:35 a.m.
Order! Order!
Prof. Oquaye 10:35 a.m.
Mr. Speaker, it is
part and parcel of this programme that the element of self-help must be there; and that is exactly what it is.
Mr. E. T. Mensah 10:45 a.m.
Mr. Speaker, the hon. Minister did not answer or respond to the question with regard to “ECOMOG poles” very well to my satisfaction. The issue at stake is that ECOMOG happened to be a very important institution, and it played a very important role in the peace of West Africa, in Liberia. All the West African countries contributed troops, so even if the thing started before he took over, when somebody of his stature, a Minister of State and presidential aspirant -- [Laughter] -- and former Ambassador - [Laughter] -- talks about this and thinks that it is okay, on the floor of this House, it is not the best. So we are saying that it has to be withdrawn. He must deal with the issue about the “ECOMOG poles”.
Mr. Speaker 10:45 a.m.
Chief Whip, this is not a question. Question No. 243 - Hon. Daniel Abodakpi, Member of Parliament for Keta.
Extension of Electricity to Hortagba and Gbetuinu Communities
Q. 243. Mr. Daniel Abodakpi asked the Minister for Energy what plans his Ministry had to extend electricity to the communities of Hortagba and Gbetuinu which had erected electricity poles but were not connected to the National Electricity Grid during the execution of the SHEP 3 programme.
Prof. Oquaye 10:45 a.m.
Mr. Speaker, we
note that the Ministry of Energy has no records that the Hortagba and Gbetuinu communities have erected their Low Voltage (LV) poles. We further note that the SHEP 3 Project had a defined number of communities, which did not include Hortagba and Gbetuinu. The communities may therefore apply for consideration under the SHEP if they meet the eligibility criteria of the SHEP.
The communities which do not form
Mr. Abodakpi 10:45 a.m.
Mr. Speaker, may I ask from the hon. Minister whether there is a problem of record-keeping in that Ministry, because I personally shepherded this process through in the year 2000. So to say that there is no record beats my imagination. I know that there is a request from those communities to the Ministry.
Mr. Speaker 10:45 a.m.
Hon. Member for Keta, are you asking a question? This is a statement you made. Do you have any question?
Mr. Abodakpi 10:45 a.m.
I am asking whether there is a problem of record-keeping in the Ministry?
Prof. Oquaye 10:45 a.m.
Mr. Speaker, I would be very grateful to have any evidence of any such record, and we would definitely want to oblige. But Mr. Speaker, it is simply important to note that, as at today, we do not have any records of these communities having erected their low voltage poles; if they have, they may please let us know and we would work on them accordingly.
Alhaji Sumani Abukari 10:45 a.m.
Mr. Speaker, this problem raised by hon. Dan Abodakpi occurs in several places in the country, where poles were erected, high-tension lines were connected, even transformers were installed, but the communities have not yet been connected to the national grid. What is the Ministry doing about these problems?
Prof. Oquaye 10:45 a.m.
Mr. Speaker, I do
not know of any such gaps. If such a gap should be pointed out to me, it would be acted upon with dispatch.
Mr. Kyei-Mensah-Bonsu 10:45 a.m.
Mr. Speaker, further to the question asked by the hon. Member for Keta, may I ask the hon. Minister if he is aware that pursuant to the National Elections of 2000, certain promises were made which occasioned the erection of poles by some communities in anticipation of the supply of electricity? Is the hon. Minister aware?
Prof. Oquaye 10:45 a.m.
Mr. Speaker, in fact, I am aware of this and these are some of the problems inherited by this Government from the previous Government, pursuant to the 2000 elections -- [Uproar.]
Ms. Akua Dansua 10:45 a.m.
Mr. Speaker, I rise to ask the hon. Minister if he is aware that there are several communities in Nkwanta North that have erected poles and are waiting to be connected to the national grid?
Prof. Oquaye 10:45 a.m.
Mr. Speaker, I am not aware - [Laughter] -- but if these are “ECOMOG poles” then there will be difficulties.
Mr. E. K. D. Adjaho 10:45 a.m.
Mr. Speaker, in an answer to an earlier question, the hon. Minister said that these were some of the problems they inherited. I want to find out how long he needs to solve the problems that he has inherited.
Prof. Oquaye 10:45 a.m.
Mr. Speaker, when work is being done at a particular place and when suddenly you realize that unanticipated poles are falling as a result of how they were erected in the past, the kind of poles that were erected that have come to be called “ECOMOG”, definitely you cannot even anticipate when these programmes would be completed in the SHEP programme.
Prof. Oquaye 10:45 a.m.
Mr. Speaker, with the
exception of the Hobor, Kwaku Panfo, Akoteaku, Kofi Kwei, Mayera Faasee and Kyekyewere communities which have been earmarked for connection to the national electricity grid under the SHEP-4 Project, the remaining communities have
not been listed under any of the on-going projects currently carried out by the Ministry of Energy.
The Hobor, Kwaku Panfo, Akoteaku, Kof i Kwei , Mayera Faasee and Kyekyewere communities however do not form part of the ongoing SHEP-4, Phase-1 Project, which is of limited scope. The communities would therefore be connected to the grid under the subsequent phases of the SHEP-4 in line with the implementation schedule and the availability of funds.
The remaining communities namely H o n i , O b a a k r o w a , M a m p h e h i a , Domefaase, Fankyenekor, Paanor, Twerebo, Obokwashie, Akweiman and Amooman may apply for consideration under the SHEP if they meet the eligibility criteria of the SHEP.
Mr. Yemoh 10:55 a.m.
Mr. Speaker, the hon. Minister has used certain phrases in his Answer. I may want him to clarify some of these phrases like “eligibility criteria of the SHEP” as well as the “implementation schedule”. If he could further explain some of these.
Prof. Oquaye 10:55 a.m.
Mr. Speaker, it is a Self-Help Electrification Programme, you must help yourself to be helped. If these communities help themselves by providing the low voltage poles, we would definitely offer assistance to them. And if my hon. Friend wants more discussions on this, he may come to discuss that with us. But I would have thought that the criteria for qualification under the SHEP have been well appreciated in this House.
Mr. Albert Abongo 10:55 a.m.
Mr. Speaker, this question comes from paragraph 2 of the Answer to Question 243 where the hon. Minister talks about the Ministry running another programme apart from the SHEP.
So I want to know how districts can also benefit from that programme, not under the SHEP.
Prof. Oquaye 10:55 a.m.
Mr. Speaker, this question relates specifically to SHEP and so it has been answered. But if he is talking about other programmes, they include street lighting of ceremonial streets, for example. Those are paid for under separate funding.
Connection to the National Electricity Grid
Q. 245. Mr. Daoud Anum Yemoh asked the Minister for Energy when the following communities which have erected low voltage poles 5 years ago, would be connnected to the national electricity grid:
(i) Obuom (ii) Krokoshire; and
(iii) Nsuobri.
Prof. Oquaye 10:55 a.m.
the Obuom, Krokos- hiure and Nsuobri communities have been earmarked for connection to the national electricity grid under the SHEP- 4 Project. These communities however, do not form part of the ongoing SHEP-4, Phase-1 Project, which is of limited scope. The communities would therefore be connected to the grid under the subsequent phases of the SHEP-4 in line with the implementation schedule and availability of funds.
Mr. Yemoh 10:55 a.m.
Mr. Speaker, the hon. Minister indicated earlier on that these are “self-help projects”, and here are communities which have managed to procure low voltage poles. For over five years now nothing has happened and it is a rural community. What would he do to
assist them to get connected to the national electricity grid?
Prof. Oquaye 10:55 a.m.
Mr. Speaker, other communities are helping themselves too. And in any case, there is a programme that has to be followed. Finally, availability of funds is a determining factor.
Mr. E. P. Aidoo 10:55 a.m.
Mr. Speaker, I would like to know from the hon. Minister whether the poles at Obuom and others which were planted in the year 2001, are also the ECOMOG type or the so-called ECOMOG poles. And if not, why is it that their project has delayed for so long a time?
Prof. Oquaye 10:55 a.m.
Mr. Speaker, if my hon. Friend on the other side is talking about specific poles for specific community, they would have to be examined to see whether they are ECOMOG or not.
Mr. A. K. Agbesi 10:55 a.m.
Mr. Speaker, the hon. Minister has said that he is aware that pursuant to some promises before the 2000 elections some areas erected poles but they have not been connected. I want to know from him whether he is aware that pursuant to some promises made before the 2004 elections some areas have erected poles which are yet to be connected.
Mr. Speaker 10:55 a.m.
Hon. Member, is this a supplementary question to Question No. 245?
Mr. Agbesi 10:55 a.m.
Mr. Speaker, it is a follow- up question, that he is aware that before the 2000 elections there were some promises made so some communities erected poles and they are yet to be connected - because of the promises. My question is, whether he is aware that pursuant to some promises made before the 2004 elections some communities also erected poles which are yet to be connected.
Mr. Speaker 10:55 a.m.
Hon. Member, is your
Mr. Agbesi 10:55 a.m.
Yes, Mr. Speaker, it is related because he has already answered that in respect of 2000 elections and my question is on 2004 elections
Mr. Speaker 10:55 a.m.
All right.
Prof. Oquaye 10:55 a.m.
Mr. Speaker, I am not aware - [Uproar.]
Mr. F. A. Agbotse 10:55 a.m.
Mr. Speaker, I would like to find out from the hon. Minister whether he is aware that during the 2004 elections - [Interruptions.]
Mr. Speaker 10:55 a.m.
Order. Hon. Member, please go ahead.
Mr. Agbotse 10:55 a.m.
Mr. Speaker, I would like to find out from the hon. Minister what steps he is taking to have the poles which were erected by the Electricity Corporation under his Ministry in the Abutia Traditional Area connected as promised before the 2004 elections.
Prof. Oquaye 10:55 a.m.
Mr. Speaker, I assume he means the “Electricity Company of Ghana” and I am not aware of what my hon. Friend is suggesting.
Electricity Project at Mami Krobo (Installation)
Q. 298. Mr. R. K. Ahaligah asked the Minister for Energy when the installation of electricity project promised the people of Mami Krobo during the 2004 electioneering campaign would be completed.
Prof. Oquaye 10:55 a.m.
Mr. Speaker, the electrification project carried out by the Ministry of Energy at Mami Krobo was completed as far back as June 2005. High Voltage (HV) and Low Voltage (LV) network construction was completed in
May, 2005. This was followed by the commissioning of the transformer in June 2005. After the installation of the transformer in June 2005, 893 registered customers were served with meters and these customers service connections were also completed in June 2005. It was however reported that the transformer, which was installed in June 2005, became faulty. This faulty transformer has since July 18, 2005 been replaced and the community is enjoying power supply.
Mr. Ahaligah 11:05 a.m.
Mr. Speaker, I know as a Member of Parliament for Afram Plains South, only two-thirds of the project has been completed; one-third of the town is in darkness. With about hundred poles to be planted, may I know when the rest of the poles would be planted?
Mr. Speaker 11:05 a.m.
Would you please repeat the question.
Mr. Ahaligah 11:05 a.m.
Mr. Speaker, I am from there and I know what is happening there. I am saying that two-thirds of the poles has been planted in the town. We came and calculated the quantity and we needed one hundred poles now; and he is saying the whole thing is completed. This is not true. So I would want to know when the one hundred poles would be sent for the project to be completed.
Prof. Oquaye 11:05 a.m.
Mr. Speaker, the hon. Member of Parliament reportedly wants more low voltage poles. If that is the case, these have to be provided by the community. We have given the details of service already well rendered. If there is any request for more, we may want to oblige Oliver Twist, but Oliver Twist must provide the low voltage poles, Mr. Speaker, and we will oblige accordingly.
Mr. Ahaligah 11:05 a.m.
Mr. Speaker, I would

want to know from the hon. Minister if he is aware that the people of Mami Krobo bought their own two hundred poles - [Interruptions.] They bought their own two hundred poles. I am saying that the poles he is saying we should buy, we bought our own two hundred poles and he is requesting us to make this - [Interruption.] Because when the Vice President came during the year 2004, he promised the people that he was going to complete the project before the elections. Up till now the project is not completed and that is why they have sent me to come and ask him. [Laughter.] So I am asking the Vice President through him as to when the project will be completed.
Prof. Oquaye 11:05 a.m.
Mr. Speaker, I will be very obliged if my hon. Friend on the other side would come over to the Ministry and this would be looked into and he would be assisted accordingly.
Mr. Speaker 11:05 a.m.
Thank you very much, hon. Minister for Energy, for appearing to answer these Questions. You are discharged.
Item 4 - Statements - A Statement by the hon. Member for Ketu South.
STATEMENTS 11:05 a.m.
Mr. Albert K. Zigah (NDC - Ketu South) 11:05 a.m.
Mr. Speaker, I rise to make a Statement on the challenges of security at the south-eastern border of the country, Aflao and its environs. The Aflao border post is one of the major exit and entry points in the country.
Most of the travellers in the subregion and Africa as a whole enter Ghana through Aflao.
Mr. Speaker, there are a series of daily theft cases coupled occasionally with armed robbery at Aflao. The presence of these thieves and robbers has negatively affected the image of our country and is also destroying the goodwill established with neighbouring countries since independence over four decades ago.
It is very sympathetic to see travellers and traders of the subregion weeping and crying like babies when they fall victim to attacks by these hoodlums.
Mr. Speaker, it will interest the House to know that last year the month of October alone recorded four serious robbery cases at Aflao and its environs in which over thirty people were seriously robbed of millions of cedis and foreign currencies, beaten and shot at with various degrees of injuries.
Mr. Speaker, the Aflao border is bound at the south by the Atlantic Ocean hence robbers and thieves take advantage to seek refuge at the beach area, which has no distinct access roads.
Security forces at Aflao have always been very busy for twenty-four hours putting up their best but cannot meet the tricks of these criminals and are most often outwitted by them. The relentless efforts of the security agencies need adequate resources to enable them to perform their duties effectively and efficiently.
Mr. Speaker, I would therefore appeal to the Government of Ghana, especially the Ministry of the Interior to institute a special intervention fund, which will allow for the allocation of resources to all security agencies along the borders of the country, especially Aflao and its environs to enable them work effectively.
Furthermore, strong four-wheel vehicles should be provided to the security
Mr. James Klutse Avedzi (NDC - Ketu North) 11:15 a.m.
Mr. Speaker, thank you for the time to associate myself with the
Statement on the floor.
Mr. Speaker, Ketu District consti- tuencies, of which my constituency is one share a boundary with Togo and most of the time, as said in the Statement, travellers to this country use the main border post at Aflao. Robbery has been one of the difficulties that we are facing in the districts.
Mr. Speaker, if you remember, last year I made a Statement on the robbery in the district in which a citizen lost his life through one of the attacks. And Mr. Speaker, based on that patrols were sent to the district and I must commend the Ministry of the Interior for handling the situation well as the situation was brought under control. But Mr. Speaker, as noted in the Statement, travellers entering Ghana through the Aflao border suffer a lot through this armed robbery.
As called by the hon. Member who made the Statement, I want to support and call on the Ministry of the Interior and the security apparatus to provide more border check-points in the districts in the Ketu North and Ketu South constituencies so that these robbers can be checked. There are a few police stations in the district which are not equipped.
There are police stations like Tadzewu Police Station and another police station at Abekpe; the Fenyi Police Station and the Dzodze Police Station which is the district capital for Ketu North have very few police personnel. Sometimes if you go and report a case, there is no officer who would man the station for another officer to go and verify.

Therefore, I am calling on the Ministry of the Interior to provide these police stations with enough personnel so that they

can be going and be mounting road checks, in order that they can control these robbers who are now putting fear in the ordinary people of Ghana in the district in attending to their daily activities.

Mr. Speaker, with these few words, I support the Statement by calling on the Ministry to help in controlling the armed robbery in the district.

Mr. Speaker, when you are crossing the border to the Republic of Togo or to Lome, you will see that the security at the border post, there are some lapses. Especially when you first meet the Ghana Immigration, they are in uniform but immediately you stamp your passport and you want to go out, you would meet other officials who are in mufti. And so you do not know those who are criminals, those who are Gorro boys and those who are officials of the State.

Mr. Speaker, anybody at all can call you to search you, anybody at all can call you and ask you questions and when you challenge them, they may or may not remove their identification cards and they may just embarrass you.

So Mr. Speaker, I would like to call on the Government to give uniform to those other officials. Apart from the Customs, Excise and Preventive and Immigration officers, other officials who work there should be in uniform so that travellers will know those who are officials and those who are not.

Also, Mr. Speaker, when you are
Mr. Gershon K. B. Gbediame (NDC - Nkwanta South) 11:15 a.m.
Mr. Speaker, I also rise to contribute to the Statement or associate myself with the Statement on the floor, and to also say that it is not only on the Aflao trunk road that these armed robbers carry out their nefarious activities. Mr. Speaker, hitherto, those of us who are living in the northern part of the Volta Region thought that we were safe as far as this armed robbery is concerned, but in recent times, especially on the Worawora-Dambai road, there have been about four armed-robbery cases, some of them resulting in the death of some of the drivers and the passengers.
Mr. Speaker, they operate on special days when they know that market women will be coming to Accra to do their purchases and such women normally carry money on them. So they lay ambush and attack, or maybe, mount unauthorized barriers and at gun-point take money from these passengers.
Mr. Speaker, I have at some time travelled in the night along that route and you come to a point and you see a police patrol vehicle parked at one place. The question I ask myself is that if they were parked at a particular place and you are being attacked at the other end, without
any communication facility to get to these people, how would they know that there is an incident of that nature taking place?
Mr. Speaker, I would like to suggest therefore that as much as we appreciate these vehicles coming on night duty and park at vantage points on the roads, it would be better if they begin to patrol between certain points so that anybody who has any mind of carrying out this activity would know that at any point in time there may be a police patrol vehicle coming and would be scared from doing that.
Apart from that, I would also want to suggest that communication gadgets or certain facilities may be put along our main roads so that in the event of such situation, the police can easily be contacted. I know that with the cellular phones the coverage area extends not to all places and for that matter you cannot rely mainly on some of these cellular phones. So I would want to really suggest that a system must be put in place whereby we can easily have access to these police officers on patrol to check this armed robbery.
With these, I also associate myself with the Statement.
Deputy Minister for the Interior (Capt. Nkrabeah Effah-Dartey (retd)): Mr. Speaker, I thank you very much for giving me the opportunity to comment on the Statement that has been made by my very good Friend who is the Member of Parliament for Aflao.
Mr. Speaker, any time we talk about Aflao border security, the first factor that should come to mind is that the people who live in Aflao and the people who live on the other side of the border, are all the same and one people; it is only the border which separates them. They all respond
Mr. Francis A. Agbotse 11:25 a.m.
Mr. Speaker, on a point of order. I would like to know from my hon. Colleague who is the Member of Parliament for Aflao. Who is he? There is no constituency like Aflao.
Capt. Effah-Dartey(retd): Mr. Speaker, I do not know if he is correcting me that there is nothing called Aflao. Well, I did not say “Aflao constituency”, I only said that my good Friend who is the Member of Parliament for Aflao area - [Laughter.] So Mr. Speaker, our first problem in dealing with security at the border is the ethnic grouping there; it is difficult isolating those who are strangers and those who are locals. But that notwithstanding, there is also the problem of the border itself.

Mr. Speaker, I have been to the Aflao border on, at least, three occasions since becoming the Deputy Minister for the Interior. And I have noticed that the Togolese have dug a big trench separating Togo from Ghana and this goes as far as to almost Pillar 13 or 16, so it is difficult for people to cross unless through specially approved areas. But notwithstanding that the locals manage to circumvent this barrier and find themselves in Ghana.

Mr. Speaker, this creates a security problem. I was at the beach and I saw that the very beach itself is just a very broad area, and so it is very difficult to patrol those areas. But Mr. Speaker, I must say that I am happy that my hon. Colleague, in making his Statement, commended the security agencies for the efforts they are putting in to contain the situation, in spite

of the pressures that they are operating under.

Mr. Speaker, I visited the Aflao Police

Station and I was shocked to see how previous governments completely ignored that police station. [Laughter.] In fact, I could not even believe that it was a police station. And when I entered and saw the way the station has been run down -- In fact, as my hon. Colleague just said, since 1960, the Aflao Police Station has not seen even the slightest point of renovation works; the place looks very run-down. But Mr. Speaker, with all respect - [Interruption.]
rose
Mr. E. T. Mensah 11:25 a.m.
Mr. Speaker, the
hon. Member is misleading the House. He has not gone out there to find out about what he is talking about and this Government has also been around for the past six years -- almost six years -- and I do not think it is right for him to talk as if nothing has happened in this country until he became the Deputy Minister for the Interior.
Mr. Speaker 11:25 a.m.
Hon. Deputy Minority
Whip?
Mr. E. T. Mensah 11:25 a.m.
Mr. Speaker, I want my hon.Colleague to withdraw some statements that he made about either Old Ningo or South Ningo or whatever - As the Deputy Minister for the Interior, he does not even know - 30 kilometres away from here, he does not know that we have Old or New Ningo, the difference between Prampram and -- Should I tell him something? Should I? [Laughter.] Should I tell them? All right, thank you very much, Mr. Speaker.
Capt. Effah-Dartey (retd): So Mr.
Speaker, the Government of President John Agyekum Kufuor has decided to pay special attention to the renovation works in the various police stations. And I can assure my hon. Colleague that we will not leave out the Aflao Police Station in our reconstruction efforts.
Apart from that, Mr. Speaker, the President has also directed that in order to deal with the staffing problems of the police, we should recruit two thousand policemen every year; and that exercise is going on. So I can assure my hon. Colleague that within a short time we will reinforce the capacity of the police in the Aflao area to deal with the problems that come up.
Mr. Speaker, having said this, I want
Mr. Speaker 11:25 a.m.
At the Commencement
of Public Business -- Item 5. Laying of Papers.
PAPERS 11:25 a.m.
Mr. Speaker 11:25 a.m.
Item 6, motions,
Chairman of the Committee on Subsidiary Legislation?
MOTIONS 11:25 a.m.
Chairman of the Committee (Mr. Francis A. Agbotse) 11:25 a.m.
Mr. Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the report of the Committee on Subsidiary Legislation on the Civil Aviation Regulations, 2005 (L.I. 1818) may be moved today.
Mr. Kojo Armah 11:25 a.m.
Mr. Speaker, I beg to second motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 11:25 a.m.
Item 7, Chairman of the Subsidiary Legislation?
Report of the Subsidiary Legislation Committee on the Civil Aviation
Regulations 2005, L.I. 1818
Mr. F. A. Agbotse 11:25 a.m.
Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Committee on Subsidiary Legislation on the Civil Aviation Regulations 2005 (L. I. 1818). And in so moving I present the Report of the Committee.
1.0 Introduction
In accordance with article 11(7) of the 1992 Constitution, the Civil Aviation Regulations, 2005, L.I. 1818 was laid before Parliament on Tuesday, 8 th February 2006. The Speaker subsequently referred the Instrument to the Subsidiary Legislation Committee for consideration and report pursuant to Standing Order 166 of the House.
2.0 Reference Documents
The Committee in considering the Instrument availed itself of the:
a) 1992 Constitution of the Republic of Ghana
b) Ghana Civil Aviation Act 2004, Act 678
c) Civil Aviation Regulations 1996, L.I. 1617; and
d) Standing Orders of Parliament
and reports as follows:
3.0 Background
Under section 21 (1) and (4) of the Civil Aviation Act 2004, Act 678, the Director- General of the Authority is empowered to make, in consultation with the Minister responsible for Aviation, regulations to provide inter alia for:
t h e a d o p t i o n o f o p e r a t i o n directives, rules and regulations of the International Civil Aviation Organisation;
the requirement that commercial air transport operations be conducted in accordance with regulations issued thereunder, in the interest of safety and in accordance with the relevant international agreement ratified by Parliament under article 75 of the Constitution.
Article 75 of the Consti tut ion authorizes the President to execute or cause to be executed treaties, international agreements and conventions in the name of the Republic, and further provides for the incorporation of such international agreements to which Ghana is a party in the laws of the State, either through
an Act of Parliament or by resolution of Parliament.
The Schedule to the L.I. 1818 was made pursuant to the Convention on International Civil Aviation adopted in Chicago on 7th December 1944, with Ghana as a contracting state party. Under articles 37 and 38 of the Chicago Convention, Ghana, being a Member of the International Aviation Organisation agreed to conform to standards and recommended practices presented by the International Civil Aviation Organisation (ICAO) in a series of ICAO Annexes. Article 12 of the Convention also enjoins Ghana to adopt measures to ensure safety through conformity with international standards in its safety oversight obligations.
Ghana is therefore required under article 75 of the Constitution to incorporate the safety standards and recommended practices of the International Civil Aviation Organisation in Regulations issued pursuant to the Civil Aviation Act 2004, Act 678 to govern the operations of the aviation industry in the country.
4.0 Deliberations
The Committee in accordance with its established practice for considering all referrals met with officials of the Ghana Civil Aviation Authority led by the Deputy Director-General, Mr. Simon Allotey to examine the Schedule to the Regulations. The Committee is grateful to the officials of the Authority for their attendance and valuable input in its deliberations on the Regulations.
5.0 Object of the Instrument
The L.I. 1818 seeks to provide for the adoption of international safety standards and recommended practices contained in the Schedule as regulatory requirements for the effective and efficient operation
Mr. K. A. Okerchiri 11:35 a.m.
Mr. Speaker, I beg to second the motion.
Question proposed.
Alhaji Sumani Abukari (NDC - Tamale North) 11:35 a.m.
Mr. Speaker, I am on my feet to support the motion on the floor. Mr. Speaker, even though the document submitted to the Committee was a very bulky one we went through
it and compared it with earlier ones we had done last year in Akosombo. Mr. Speaker, what we realized was that all the rules governing Aviation and ensuring the safety of air passengers were updated in line with the regulations by ICAO. We are happy about this but furthermore, the Civil Aviation Authorities included regulations and requirements that are in line with the Aviation Authorities of the United States of America. So apart from enriching our rules with the current one by ICAO, they also included regulations that are prescribed by the Civil Aviation Authorities of the United States of America and that is even making it more stringent for airline operators.
Mr. Speaker, we are quite pleased with this and we thought that the Civil Aviation Authorities of this country need to be highly commended because they want to ensure that airline passengers are as safe as possible and we do not experience the type of things that have occurred recently in our sister country - Nigeria. Mr. Speaker, I think that they have done a good job and they need our commendation; and we should all support the Regulations as presented.
Question put and motion agreed to.
Suspension of Standing Order 80 (1)
Chairman of the Committee (Mrs.
Gifty E. Kusi): Mr. Speaker I beg to move, that notwithstanding the provisions of Standing Order 80 (1) which require that no motion shall be debated until at least forty-eight hours have elapsed between the date on which notice of the motion is given and the date on which the motion is moved, the motion for the adoption of the report of the Committee on Mines and Energy on the Petroleum Agreement amongst the Republic of Ghana, Ghana National Petroleum Corporation (GNPC) and Heliconia Energy Ghana Limited in respect of Blocks Offshore Cape Three
Dr. K. Ampofo 11:35 a.m.
Mr. Speaker, I rise
to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Report of the Committee on Mines and Energy on Petroleum Agreement between GOG, GNPC and Heliconia
Mrs. Kusi 11:35 a.m.
Mr. Speaker, I beg to move, that this honourahle House adopts the Report of the Committee on Mines and Energy on the Petroleum Agreement amongst the Republic of Ghana, Ghana National Petroleum Corporation (GNPC) and Heliconia Energy Ghana Limited in respect of Blocks Offshore Cape Three Points Basin, Ghana.
In doing so, I present the Report of the Committee. Mr. Speaker, I beg to read the observations and conclusions, but crave your indulgence to have the Hansard Department capture the entire Report.
1.0 Introduction
The Agreement was laid before Parliament on Tuesday, 7th March 2006, by the hon. Minister for Women and Children's Affairs, Hajia Alima Mahama, on behalf of the Minister for Energy, and was subsequently referred to the Committee on Mines and Energy for consideration and report in accordance with article 103 (2) of the 1992 Constitution and Standing Orders 188 of the House.
2.0 Reference Documents
The Committee made reference to the following documents in the course of its deliberations:
i. The 1992 Republican Consti- tution of Ghana;
ii . The Standing Orders of the House;
iii. PNDCL 64 of 1983;
iv. The Petroleum (Exploration and Production) Law, 1984
(PNDCL 84);
v. PNDCL 188.
3.0 Background Information
The Agreement was negotiated within the framework of the Petroleum (Exploration and Production) Law 1984, PNDCL 84, and the model Petroleum Agreement which has served as the main guide for several Petroleum Agreements entered into with companies interested in undertaking Petroleum Exploration and Production Operations in Ghana. The acreage applied for is offshore, and covers an area of about 2,080 sq. km.
4.0 Terms of Agreement
a. Work Programme
1. Under the terms of the Agreement, Heliconia, in association with GNPC shall undertake a programme of exploration in the designated area. Heliconia will be responsible for 100 per cent of the investments. GNPC will have 10 per cent carried interest with Heliconia having a 90 per cent equity interest.
The exploration period consists of a total of seven (7) years, and is divided into an initial period of three (3) years (the “Initial Exploration Period”); a first extension period of two (2) years (the “First Extension Period”); and a second extension period of two (2) years (the “Second Extension Period”).
The Work Programme and minimum financial obligation are as follows:
Initial Exploration Period
Acquire, process and interpret at least eight hundred (800) square kilometres of 3D seismic data;
Drill one (1) exploration well to a depth of about ten thousand (10,000) feet.
The Contractor's estimated expendi- ture for the work in the Initial Exploration Period will be USD$17,000,000.00.
First Extension Period
The contractor may at the end of the initial exploration period elect for an extension. This extension period shall not exceed two years. During the extended period the contractor shall drill one (1) exploration well to a depth of ten thousand (10,000) feet.
The Contractor's estimated expendi- ture for the work in the First Extension Period shall be USD$10,000,000.00. To qualify for the extension, the contractor will be required to surrender twenty-five per cent (25 per cent) of the original contract area.
Second Extension Period
Depending on the prospects, the contractor may elect for another extended contract period. This second extension shall also not exceed two years. Again, during this period, the contractor shall drill one (1) exploration well to a depth of about ten thousand (10,000) feet.
Before the commencement of the second extension, the contractor will be required to relinquish up to seventy-five per cent (75%) of the original contract area.
During this period, the contractor's estimated expenditure for work shall be about US$10,000,000.00.
b. Fiscal Terms
The following is the agreed fiscal package between GNPC and the Contractor in the event of a commercial discovery.
1. General Terms
Royalty 10 per cent
7 . 5
per cent for water depths exceeding 400 metres
GNPC Carried Interest 1 0 per cent
GNPC Addition Interest 5 per cent
Corporate Income Tax 3 . 5 per cent
2. Additional Oil Entitlements
The State receives Additional Oil Entitlements upon the attainment of specified rates of return as follows:
3. Surface Rental (US Dollars)/sq. km/ year
Surface rentals due to the state as follows:

P. 4

4. Observation and Recommendation

In the course of its deliberations the Committee made the following Observations:

The Committee was informed that Heliconia Energy Ghana Ltd. is a subsidiary of Atlantic Bermuda and the latter is a wholly-owned subsidiary of VITOL SARL.

Vitol therefore provided Guarantee for the operation of Heliconia Energy Ghana Ltd. in Ghana. However, Vitol's Guarantee was not made part of the Agreement.

The Committee therefore recom-mended that the Guarantee should be attached to the Agreement as an Appendix and the parties agreed to the recom-mendation.

The Committee enquired about the registration of Heliconia in Ghana and all the relevant documents were submitted to the satisfaction of the Committee.
Dr. Kwame Ampofo (NDC -- South Dayi) 11:45 a.m.
Mr. Spealer I rise to second the motion and in doing so, I wish to take advanage of this opportunity to make a few comments on the work and the Report. Mr. Speaker, it is very clear that the Agreement before us is one that will benefit this country tremendously if we strike some luck and oil is found in the area. The Cape Three Points area is not a virgin area. In fact, it has been explored before and therefore there have been data and information that indicate the possibility of striking oil in the area. This is why such agreements are very important and we must look at them from the economic point of view as to the benefits that they will bring.
Also, I wish to observe that the Agreement is actually based on the model agreement which means that it is in a standard format with only slight changes in the wording according
to the individual corporate bodies that we are dealing with. Therefore, there is nothing too new about this Agreement. Several previous agreements such as with Ghana and other companies have been based on this very model.
So Mr. Speaker, at the committee level when we considered the document, we made it clear to the Ministry and the technical people, GNPC, who go into such agreements that the model agreement having been used over some time should not be taken as foolproof but that the observations and comments that we make at the committee level ought to be used to improve upon the model agreements so that future agreements will even be more crisp and more beneficial to the country. But all in all, I think there is not much to say against this Agreement and I will seek the support of the full House to ratify this Agreement.
Question proposed.
Mr. E. K. D. Adjaho (NDC - Avenor/
Ave): Mr. Speaker, as indicated by the Ranking Member, I rise to support the motion for the adoption of the Committee's Report. But Mr. Speaker, it is important to make one or two observations.
Mr. Speaker, at page 5 of the Report, the Committee recommended that the guarantee should be attached to the Agreement as an appendix, and the parties agreed to the recommendation. Mr. Speaker, it is my view that when Parliament is being called upon to ratify an agreement, my understanding is that everything should be put together, everything in the agreement should be so perfect, because we do not have the power to do any amendment; we are only ratifying the document.
But we have seen in the course of the Committee's deliberations that certain
documents that would make the whole document complete were rather missing. For example, the portion that I have read out which should be attached as an appendix, and the fact that the document was not dated.
Mr. Speaker, I would want to take this opportunity to say that in future, when the Executive is bringing Agreements in order to evoke the powers conferred on Parliament, under article 268 (1) of the Constitution, they should make sure that they do their homework well because if we had pushed further, it would have meant that they would have had to withdraw the document and bring it back to the House in order for it to be ratified. But once it is in the national interest that we push some of these agreements, with the expectation that in future we would make commercial discovery of crude oil in this country, we thought that we should let it go for now. But Mr. Speaker, in future, I do not think that some of us will go that way.
Mr. Speaker, it is also important to
point out that the Model Petroleum Agreement has been used extensively in formulating this agreement, which is the subject matter of this Report. And it is also important that whilst we condemn people, where people have to take credit, we have to give them credit; and that these model standing orders were prepared by the GNPC under the former Chief Executive, Mr. Tsatsu Tsikata. It is important to put this on record.
Mr. Speaker, I believe that we should all support this agreement, but in future, the Executive should make sure that they make our work easier by making sure that the documents are correct.
Mr. Osei Kyei-Mensah-Bonsu (NPP
- Suame): Mr. Speaker, I also rise to associate myself with the motion and indeed to support it.
P.4
Mr. Haruna Iddrisu (NDC - Wa Central) 11:55 a.m.
Thank you, Mr. Speaker, for the opportunity to associate myself with the motion in ratifying this Agreement between GNPC and Heliconia Energy Ghana Ltd., and in doing so to raise a few pertinent issues.
Mr. Speaker, it is true that we need to
open up the country's hydrocarbon sites for minerals exploration, in particular for the purpose of discovering oil which undoubtedly, if found, may help in reducing our foreign exchange burden. Mr. Speaker, as you are aware, in the last few days, our heavy dependence on the imports of crude oil have not only affected the attainment of our budgetary objectives, but quite clearly Government has had to divert a lot of resources to ensure that we remain solid in terms of meeting our domestic needs as far as petroleum products are concerned.
Mr. Speaker, in doing so, I would like to
refer to page 5 of the Committee's Report and to take this opportunity, Mr. Speaker, to recommend strongly to the Ministry of Energy and to the hon. Minister in particular, that they should endeavour to conduct due diligence on many of these
foreign entities that we work with, due diligence that deals with their economic, financial and technical status. I think that is very important. Mr. Speaker, I am saying so in respect of page 5. If you read the second paragraph and with your permission, I quote:
“The Committee was informed that Heliconia Energy Ghana Ltd. is a subsidiary of Atlantic Bermuda . . .”
Mr. Speaker, the emphasis is mine and I am saying this again referring to the Order Paper of today, page 11, where the hon. Minister himself said, and I quote again, under the fourth paragraph:
“Heliconia Energy Ghana Limited, is a subsidiary of Vitol Oil from Far Switzerland.”
rose
Mr. Speaker 11:55 a.m.
Hon. Member, do you
have a point to raise?
Mr. Armah 11:55 a.m.
That is so, Mr. Speaker.
Mr. Speaker, I am following this very interesting line of argument by my hon.
Friend on the other side, but in reading paragraph 2 of page 5, he conveniently left the last bit of the sentence. I do not know whether if you put the two together it would answer his anxiety -- that the “Committee was informed that Heliconia Energy Ghana Ltd. is a subsidiary of Atlantic Bermuda and the latter is a wholly-owned subsidiary of Vitol . . .” I believe that if you put them together that would ease everybody's mind. I do not know whether that would help him.
Mr. H. Iddrisu 11:55 a.m.
Mr. Speaker, I appreciate his concern but whether read together or not, it does not reconcile the two different statements that the hon. Minister himself has made. In this Order Paper, he referred to a subsidiary of Vitol and in the Agreement he still maintained Atlantic Energy Bermuda. In rectifying this, Mr. Speaker, tomorrow we may want to know - [Interruption.]
rose
Mr. Speaker 11:55 a.m.
Hon. Deputy Minister,
are you on your feet?
Mr. Hammond 11:55 a.m.
Yes, Mr. Speaker. Mr.
Speaker, I am on my feet but I am in two minds, I am not sure if I should wait for him to finish or I do it now.
Mr. Speaker 11:55 a.m.
Do you have a point of
order to raise?
Mr. Hammond 11:55 a.m.
I want to respond to
Mr. H. Iddrisu 11:55 a.m.
Mr. Speaker, the
essence of the issue I am raising is for the hon. Minister and the Ministry of Energy to be mindful and to do proper due diligence on the foreign entities that we are dealing with. I am just pointing to an inconsistency, where on one the hand they are referring to Vitol as the subsidiary and on the other hand they are referring to Bermuda Energy yet in the
Mr. H. Iddrisu 11:55 a.m.


new Agreement reference is made only to Bermuda Energy.

In actual sense, if you are entering into a lawful agreement, the names of the parties, the doctrine of privity of contract, we should know who tomorrow would be held liable; so by that doctrine it is important that we know. If we are dealing with Energy Bermuda, this House should know that we are dealing with Energy Bermuda. If we bring in Vitol, Vitol is only coming in to give a letter of assurance, which letter, Mr. Speaker, with your permission, I may want to read.

If you read after page 25 of the document, what Vitol does here is not to give an indication that they are a subsidiary of Atlantic Bermuda Energy, no. What they are doing here is to give a guarantee and I am saying that let us not confuse the status of a guarantee with that of being a subsidiary of a parent company. That is what I am trying to point out so that the hon. Minister may as well be able to respond.

With these few comments, Mr. Speaker,

I urge hon. Members to support and ratify this Agreement. But again, Mr. Speaker, if you look at the contents of the Agreement, we are talking about an investment of about thirty-seven million United States dollars over a period of seven years, three years renewable for an extra two, two-year terms. The GNPC is assured of only ten per cent in the event of any discoveries being made.

I rather think that, next time, even though it is based on the model we should begin to adjust what may accrue to the State through GNPC, maybe to fifteen or twenty-five per cent. I do know that this Agreement is largely based on the Model Petroleum Agreement but I think that we must safeguard the interest of the

State, because if we are able to make a discovery of one billion dollars worth of oil tomorrow, our interest there would only be ten per cent notwithstanding even the investment of the people which may as well be only thirty-seven million dollars.

With these few comments, I urge hon. Members to support and ratify this Agreement.

Deputy Minister for Energy (Mr.

K. T. Hammond): Mr. Speaker, first, I take account of all the very pertinent and relevant observations which have been made. We are very grateful for them. Frankly, some of them, particularly the one about the date was a very unfortunate oversight on the part of GNPC, even though I had noted it and alerted them to the fact that there was an error in respect of that.

Mr. Speaker, let me quickly deal with

the matter that my hon. Friend took up by way of contradictions between what the hon. Minister presented this morning and what is in the Committee's Report. Mr. Speaker, there is no such discrepancy. Mr. Speaker, I invite you to just have a look at the observations he talks about at page 5 of the Report presented. It says that the Heliconia Company under consideration is a subsidiary of Atlantic Bermuda.
Mr. E. K. D. Adjaho 11:55 a.m.
Mr. Speaker,
I think it is better for the hon. Deputy
Minister to concede that fact. He is absolutely correct to say that Bermuda itself is a subsidiary of Vitol; but it is factually incorrect to say that Heliconia is a subsidiary of Vitol and that is the point the hon. Member for Tamale South is making. Even though it is true that Bermuda Energy itself is a subsidiary of Vitol, it is factually incorrect to say that Heliconia is a subsidiary of Vitol. That is not it. In all the documents that have been put before the Committee, that is not the fact of the matter.
Mr. Hammond 11:55 a.m.
Mr. Speaker, I see
the point that he has made but in any event, if there is what he perceives to be an inaccuracy in this, there is no such inaccuracy in the document that has been presented to the House and for that matter the whole Agreement that the House has. So I would want to invite the House to read what is here in the context of what has been presented in the Report and to the entire Agreement.
Mr. Speaker, there is another point
that he made which is fundamentally inaccurate. He says that all that GNPC gets out of this contract is about 10 per cent. Mr. Speaker, that is not right. In any event, the 10 per cent that he talks about is not to be paid for. The company Heliconia is going to use its own money to do all the necessary work and in the end, give equity share of 10 per cent, free of charge to GNPC. Mr. Speaker, along the line if there is discovery, GNPC then has the right to an entitlement of another 10 per cent of the production.
That i s a lso in addi t ion to - [Interruption.] [An hon. Member - rose --] He is getting up; when we discussed this one, an additional oil entitlement, he did not take account of that. There is something in this Agreement called “additional oil entitlement” that at the end of the day, if there is production, GNPC,
if it has the money to buy the share, is entitled to that much -- 10 per cent.
Alhaji Amadu B. Sorogho 11:55 a.m.
Mr.
Speaker, I think the hon. Deputy Minister misled the House -- not misleading, but misled the House -- and I think perhaps it was a slip and I want him to correct himself. He said the 10 per cent is free. In our meeting, it was agreed that because of the initial works that GNPC had already done, exploration works, data collection and so many other things, GNPC was given 10 per cent. So it could not have been free of charge. It was because there was initial work done and Heliconia was coming to use such data to continue with the job. So it could not have been free of charge and that was what I just wanted him to correct.
Mr. Hammond 12:05 p.m.
Mr. Speaker, maybe for the benefit of the House we need to clarify this so that everybody understands. Mr. Speaker, when you have that whole expanse of the sea, you do not just tell outsiders that this is the sea, come and do exploration in there, we do not do that. GNPC of necessity would have had to do something which we extend to the world to come and have a look at.
Mr. Haruna Iddrisu 12:05 p.m.
Mr. Speaker, I
am rising on a point of order. Ordinarily, I would not have done so but for the Deputy Minister wanting to provoke extra discussion on this matter. Mr. Speaker, I would like to refer you and hon. Members
Mr. Haruna Iddrisu 12:05 p.m.


to page 8 and in particular to paragraphs 2.4 and 2.5 so that the Minister appreciates that our argument of 10 per cent is rooted in law. The title there is scope of the agreement, and with your permission, Mr. Speaker, I read paragraph 2.4.

“GNPC shall have a 10 per cent initial interest in all petroleum operations under this Agreement. With respect to oil exploration and development operations, GNPC's initial interest shall be a carried interest.”

So Mr. Speaker, it is not a matter which

he should contest. Even if you look at the paragraph following, under 2.5, GNPC can only adjust its interests on the basis of some investment in the share which he must state and not just say that GNPC's 10 per cent is free. It is going to be a share in equity so they should be guided by it. Let us ratify this Agreement rather than dismiss something that signature has been appended to as being the entitlement of GNPC.
Mr. Speaker 12:05 p.m.
Deputy Minister, you
may wish to wind up.
Mr. Hammond 12:05 p.m.
Mr. Speaker, with
respect, I did not derive enough assistance from that but I move on, he does not quite appreciate the point. Mr. Speaker, I move on, with respect.
Mr. Speaker, so that is all I make, that
there is a further 10 per cent entitlement and of course the country is also entitled, Mr. Speaker, to royalties. So it is not just the 10 per cent that he talks about. Mr. Speaker, that is just the explanation that I wanted to make.
Question put and motion agreed to.
RESOLUTIONS 12:05 p.m.
Mr. Haruna Iddrisu 12:05 p.m.
Mr. Speaker, I beg to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Mr. Speaker 12:05 p.m.
Hon. Members, as we wait for the Report in respect of the other matter, may I have any indication? We want to suspend Sitting for some few minutes.
Mr. E. T. Mensah 12:05 p.m.
Mr. Speaker, we
have conferred and decided that in view of the importance of the subject matter of item 11, we were going to step it down for the Report to be circulated for study so that we take it tomorrow.
Mr. A. O. Aidooh 12:05 p.m.
Mr. Speaker, yes,
that indeed is the agreement we have come to.
Mr. Speaker 12:05 p.m.
You want to defer items
11 and 12?
Mr. A. O. Aidooh 12:05 p.m.
Yes, sir, for
tomorrow and then conclude it on Friday.
Mr. Speaker 12:05 p.m.
Any indications at this
juncture?
Mr. A. O. Aidooh 12:05 p.m.
Mr. Speaker, in
the circumstances, I beg to move, that we adjourn proceedings to tomorrow morning at 10 o'clock.
Mr. E. T. Mensah 12:05 p.m.
Mr. Speaker, I beg
to second the motion.
Question put and motion agreed to.
ADJOURNMENT 12:05 p.m.