Debates of 14 Jun 2007

MR. SPEAKER
PRAYERS 10 a.m.
COMMUNICATION FROM 10 a.m.
THE PRESIDENT 10 a.m.
Mr. Speaker 10 a.m.
Order! Order! Hon. Members, Communication from the President.
“12th June, 2007
Absence from Ghana
In accordance with Article 59 of the
Constitution, I John Agyekum Kufuor, President of the Republic, wish to notify you and Parliament that I shall be travelling to the Federal Republic of Nigeria to attend a Summit of ECOWAS Heads of State and Government.
I shall depart from Ghana on Thursday, 14th June and return on Friday, 15th June,
2007.
Pursuant to Article 60 (8) of the Constitution, the Vice President shall act in my absence.
(Sgd.) JOHN AGYEKUM KUFUOR
PRESIDENT OF THE REPUBLIC 10 a.m.
OF GHANA 10 a.m.
SPEAKER OF PARLIAMENT 10 a.m.
OFFICE OF PARLIAMENT 10 a.m.
PARLIAMENT HOUSE 10 a.m.
ACCRA 10 a.m.
OFFICE OF THE VICE PRESIDENT 10 a.m.
CASTLE 10 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10 a.m.
Majority Leader (Mr. Felix Owusu- Adjapong) 10 a.m.
Mr. Speaker, if I can crave your indulgence to take item 4 and move it on behalf of the Minister?
BILLS -- THIRD READING 10 a.m.
Mr. Speaker 10 a.m.
Leadership, the next item -- should we go to item 5?
Mr. Owusu-Adjapong 10 a.m.
Mr. Speaker, if we can take item 7 on page 9.
MOTIONS 10 a.m.
Chairman of the Committee (Nii Adu Daku Mante) 10:10 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 Finance Committee on the Development Financing Agreement between the Government of Ghana and the International Development Asso-ciation (IDA) for an amount of SDR72.70 million (US$110.00 million equivalent) for the Fifth Poverty Reduction Support Credit (PRSC-5) may be moved today.
Question put and motion agreed to.
Resolved accordingly.
Development Agreement between Government of Ghana and International Development
Association
Nii Adu Mante: Mr. Speaker, I beg to
move, that this honourable House adopts the Report of the Finance Committee on the Development Financing Agreement between the Government of Ghana and the International Development Asso-ciation (IDA) for an amount of SDR72.70 million (US$110.00 million equivalent) for the Fifth Poverty Reduction Support Credit
(PRSC-5).
Mr. Speaker, in so doing I crave your indulgence to present the Report of the Committee.
1.0 Introduction
The Development Financing Agree- ment between the Republic of Ghana and the International Development Asso- ciation (IDA) for an amount of SDR72.70 million (equivalent US$110.00 million) was laid in the House on Wednesday, 6th June 2007 and referred to the Finance Committee in accordance with article 181 of the Constitution and Order 171(1) of the Standing Orders of the House for consideration and report.
The Committee therefore met with the Deputy Minister for Finance and Economic Planning, hon. Dr. A. Akoto
Osei and a technical team from the Ministry of Finance and Economic Planning and reports as follows:
2.0 Background
Hon. Members may recall that the first Poverty Reduction Support Financing (PRSF) was laid in the House on Tuesday, 17th June 2003.
The Poverty Reduction Support Credit (PRSC) Programme is designed to build on recent reforms carried out by the Government of Ghana under the Ghana Growth and Poverty Reduction Strategy (GPRS II). The proposed PRSC-5, giving its cross-cutting focus, will harmonise policies and reforms aimed at improving the living conditions of Ghanaians by leveraging their poverty focus.
This is expected to be achieved through
ensuring appropriate expenditure allocation thereby promoting growth, incomes and employment,
improving the delivery of human services, and
strengthening governance and public sector management.
For the use of the credit, the Government has implemented various reform measures designed to grow the economy and reduce poverty.

Actions already implemented by Government include:

Increased share of investment assets of the Social Security and National Insurance Trust managed by regulated private financial institutions.

Earmarking in the 2006 Supple- mentary Budget, the funds necessary to compensate the Volta River Authority (VRA) for the difference

between the weighted average cost of electricity production in Ghana and the bulk power supply under the VRA interim power supply agreement with the Volta Aluminium Company (VALCO).

Reducing the share of teachers' vacancies in deprived districts.

Carrying out of an inventory of plantation forests, providing the needed information for at least on auction of timber utilization contracts in 2006.

To enable the disadvantaged to access basic educational and health services, Government --

established incentive schemes, including scholarships, to enable girls to complete primary schools in deprived districts;

extended the fee exemption policy on maternal deliveries to the four (4) underserved regions (Northern, Upper East, Upper West and Central).

To improve governance and public expenditure management, Government --

Is pursuing the implementation of the Public Procurement Act by establishing public procurement

[NII ADU MANTE] institutions (Public Procurement Board, Secretariat, Entity Tender Committees, and Tender Review Boards; and

Extended Budget and Public Expenditure Management Systems (BPEMS) to cover Accra sites of the Ministries of Education, Health, Roads and Transport.

3.0 Objectives

The proceeds of the loan will be used to finance the 2007 Budget in two ways --

the Bank of Ghana on behalf of the Government shall use the foreign exchange to shore up the country's foreign exchange reserves and also finance foreign expenditures on behalf of the country;

the Bank of Ghana shall credit the Consolidated Fund with the Cedi equivalent of the facility, which shall then be used to finance the local expenditures arising out of the 2007 Budget.

4.0 Terms of the Loan

Loan Amount -- SDR 72.70 Million (Equivalent

Term of Loan -- 30 years

Moratorium -- 10 years

Commitment Fee -- one-half of one per cent (½ of 1 per cent) per annum. This may be waived

of Executive Directors.

Service Charge -- Payable on the Withdrawn Credit Balance shall be equal to three-fourths of one

Repayment of Principal -- Semi-annual instalments at a rate of 1 per

cent commencing September 15, 2017

and

-- Each instalment thereafter shall attract a rate of 2 per cent up till 2047

Payment Dates -- May 15 and November 15 in each year.

Payment Currency -- US Dollars

5.0 Observations

The Committee observed that the credit has been designed to help finance the programmes and projects outlined in the 2007 Budget. It is expected to facilitate economic growth, create more jobs, provide income opportunities, and therefore reduce poverty.

The Deputy Minister of Finance and Economic Planning informed the Committee that discussions are far advanced on the negotiations for the Sixth Poverty Reduction Support Credit (PRSC-6) towards the preparation of the 2008 Budget and Economic

Policy Statement.

It was further observed that the proceeds of the facility shall not be used to pay for goods or services supplied under a contract with any national or international financing institution or agency other than what the Association or the Bank has financed or agreed to finance.

The Committee again noted that the country has met all the conditions necessary towards accessing the facility and therefore the funds would be made available to the country as soon as Parliamentary approval is secured. 6.0 Conclusion

The Committee noted that the terms of the facility are concessional and would be immensely beneficial towards the implementation of the 2007 Budget.

The Committee therefore recommends to the House to adopt this report and approve by Resolution the Development Financing Agreement of an amount of seventy-two million, seven hundred thousand Special Drawing Rights (SDR72.70 million) (equivalent US$110.00 million) for the

Fifth Poverty Reduction Support Credit (PRSC-5) in accordance with article 181 of the Constitution and Section 7 of the Loans Act 1970, Act 335.

Respectfully submitted.

Alhaj i Muntaka Mohammed Mubarak (NDC -- Asawase): Mr. Speaker, I rise to second the motion before the House. In doing so, Mr. Speaker, I want to draw your attention to some of the issues in the Committee's own Report.

Mr. Speaker, this is a loan of about $110 million that we are taking to enable us reduce poverty. And looking at the term, it says Fifth Poverty Reduction Support Credit. But Mr. Speaker, if you look at some of the items that we are going to use this money to finance, most especially where we are not indicating how much of that money is going to an area, it must raise concern for all of us. Mr. Speaker, if you look at page 2, the third paragraph, which says:

“ . . . earmarking the 2007 Supplementary Budget , the funds necessary to compensate the Volta River Authority (VRA) for the difference between the

ending 2027

per cent (3/4 of 1 per cent) per annum

at the discretion of IDA's Board

US$110.00 Million)

waited average cost of electricity production in Ghana and the bulk power supply under the VRA interim power supply agreement with Volta Aluminium Company

(VALCO).”

Mr. Speaker, I would want a clarification on this; are we saying that we are subsidizing the operation of VALCO? I want the Committee to confirm this. And how much of this money that we are taking to reduce poverty is going into that area? I would want the Committee to tell us how possible it is that by subsidizing the operation of VALCO we would enhance or reduce poverty.

Mr. Speaker, if you look at that the same paragraph, there is mention that there would be established incentive schemes, including scholarships, to enable girls to complete schools in deprived areas.

Mr. Speaker, you would agree with me with that this capitation grant that is supposed to be running across the country, if they mention this and they do not state the various districts for us to be able to monitor and ensure that at least the district mentioned would benefit from whatever package that they are talking about -- and they are not also mentioning how much of that money is going to be used in those areas -- it raises a lot of concern. Mr. Speaker, having said this I would want to urge this House to go on and approve this loan but emphasise that we need some clarification on some of these items that I have mentioned.

With these few words, Mr. Speaker, I support the motion before the House.
Mr. S. K. B. Manu (NPP -- Ahafo Ano South) 10:10 a.m.
Mr. Speaker, I rise to support the motion and in doing so, I want to say that if we are taking a loan that is
Alhaji Mubarak 10:10 a.m.
Mr. Speaker, on a point of order. My hon. Colleague on the floor is misleading this House. My emphasis was not on Volta River Authority; my emphasis was on subsidizing the operation of VALCO; that is where my emphasis is, and not VRA. And then also I wanted to know why we are using that money which is meant for poverty reduction to subsidize the operations of the Volta Aluminium Company (VALCO); that is where my emphasis is. And so he is misleading this House by creating the impression that I am talking about VRA; I am not talking about the operations of VRA, I am talking about VALCO.
Mr. Manu 10:10 a.m.
Mr. Speaker, VALCO is an industrial company and if the industry is booming, there is employment created; and when employment is created, poverty is combated. So if the hon. Member wants to know how the operations of VALCO can help in poverty alleviation, that is it. So with this I support -- [Interruption.]
Mr. Abdul-Rashid Pelpuo 10:20 a.m.
On a
point of order. Mr. Speaker, the hon. Member appears to have lost track and thereby misleading this House. He is not contributing to the motion on the floor
by projecting his own ideas about what should be done to help the motion but commenting on an issue which has been clarified already.
Mr. Speaker, I do not think he is the right person to try to explain things to the hon. Member. It must be perhaps the Chairman of the Committee or somebody else. So he should limit himself to his own contribution and not mislead the House by explaining an issue he does not have, we all know, adequate understanding of.
Mr. Speaker 10:20 a.m.
Hon. Member, I know you are about to conclude your contribution.
Mr. Manu 10:20 a.m.
Mr. Speaker, I can spare him because he is now learning the rudimentary work in Parliament.
Mr. Speaker, in conclusion, therefore, I support the motion in that when VALCO is subsidized, its operations can go far to alleviate the poverty that we are all suffering from in this country.
Mr. Alfred Kwame Agbesi (NDC -- Ashaiman) 10:20 a.m.
Mr. Speaker, I also rise in support of this motion and to say that the contents of this Report, at page two, indicate that for the use of the credit, the Government has implemented various reform measures designed to grow the economy and reduce poverty.
Mr. Speaker, we are told that the Government has implemented a lot of programmes to reduce poverty. I am concerned about that statement, that a lot of programmes have been implemented to reduce poverty in this country.
Mr. Speaker, this loan is welcome. It is welcome in the sense that it is going to reduce poverty. And if that is so, Mr. Speaker, I want to say that the loan should
Mr. Kofi Frimpong 10:20 a.m.
On a point of order. Mr. Speaker, the hon. Member on the other side is misleading the House and throwing dust into the eyes of the people of Ghana. Mr. Speaker, he is asserting
that poverty is rather growing. I challenge him to produce figures; because I know that poverty is reducing in Ghana. So if he is asserting that poverty is growing, I challenge him to produce figures to back his assertion with facts and figures.
Mr. Agbesi 10:20 a.m.
Mr. Speaker, poverty is not measured in terms of figures. Poverty is measured in terms of the living conditions of people. When his Government was coming to power, they told us to look at ourselves and vote. I am saying that today, the people's condition is getting worse and worse. There is no improvement in the lives of people under his Government; so he cannot tell me that I should produce figures.
Mrs. Eugenia Gifty Kusi 10:20 a.m.
On a point of order. Mr. Speaker, the hon. Member just said that today the poverty level is worsening. In this august House, Mr. Speaker, any statement that one makes, one should be able to substantiate it with facts and figures. Mr. Speaker, the hon. Member should withdraw the statement if he has not got any figures to substantiate what he is saying.
Mr. Agbesi 10:20 a.m.
Mr. Speaker, about a year ago a bag of cement was selling at forty-five thousand cedis, but today a bag of cement is selling at one hundred and twenty thousand cedis in my constituency. That is a sign of poverty increasing and increasing. Mr. Speaker, about a year ago we paid for electricity -- [Interruption.]
rose
Mr. Speaker 10:20 a.m.
Minister for Energy, do you have a point of order to raise?
Mr. Adda 10:20 a.m.
Yes, Mr. Speaker, I do have a point of order. My hon. Colleague is misleading this House by being selective in terms of the information that he is putting out there. When his party was in power, everybody was paying school fees; but today we are not paying school fees. There was no feeding programme -- We are thus reducing the poverty in the country, Mr. Speaker. He is misleading the House.
Mr. Agbesi 10:20 a.m.
Mr. Speaker, I still maintain that urban poverty is rising. If for some reason one can afford to buy a hotel, we at our side cannot buy a hotel and that is the reason why poverty in the city is rising -- [Interruption.]
Mr. Samuel K. Adu-Gyamfi 10:20 a.m.
On a point of order. Mr. Speaker, the hon. Member is misleading himself and the general public. The hon. Member said that poverty is not measured in figures. What is he saying? So when we say that poverty level has reduced from maybe forty per cent to thirty-two per cent, are they not figures? Mr. Speaker, again, he picked one item and said the price of cement had increased from this level to that level without even relating it to income levels. Mr. Speaker, again, if we want to measure price, we do not use a single item but a basket of items and then we weigh them to arrive at a common figure.
Mr. Speaker, if he does not know, he should not mislead the public and himself.
Mr. Agbesi 10:20 a.m.
Mr. Speaker, I know what poverty is. If they do not know, because they can afford to buy hotels, I cannot afford to buy a hotel -- [Interruptions.] They do not know that but I am telling them.
Mr. Speaker, I want to say finally that this is a good loan. It is being sought to reduce poverty and in the consequent years we hope that our poverty will actually be reduced by their Government.
Mrs. Eugenia Gifty Kusi (NPP -- Tarkwa-Nsuaem) 10:20 a.m.
Thank you, Mr. Speaker, for the opportunity to contribute to the motion on the floor.
Mr. Speaker, in the Committee's Report at page two it stated that this loan will enable the disadvantaged to access basic educational and health services and especially extend the fee exemption policy on maternal deliveries to the four under- served regions. Mr. Speaker, if this loan is going to the advantage of women and children, including scholarships to enable girls to complete primary schools in the deprived districts, then I want to urge all my hon. Colleagues to support this loan.
Mr. Speaker, maternal deliveries -- In these districts the rate of complications and deaths were on the rise and since this policy was introduced things have really gone on well. I think that we should all support this loan.
Women in Ghana and for that matter sub-Saharan Africa, have been suffering from high rate of maternal deaths or maternal morbidity. So if any loan is going into this area to ensure -- Who knows whether one of these girls that the loan is going to service is going to rise to become a President or Chief Justice as we have today.
So Mr. Speaker, I want to urge this House to support this motion and approve the loan so that our dear nation Ghana will also benefit from the skill and the expertise of the girl-child-if it is developed.
Mr. Eric Opoku (NDC -- Asunafo South) 10:30 a.m.
Mr. Speaker, I think in approving this loan Parliament is discharging one of its duties to ensure that poverty is reduced in this country. I think that this is very important; we do not have to politicize it. We need to approach it with a very clean mind.
Mr. Speaker, when you look at the Committee's Report at page 2, paragraph 6 they have stated, and with your permission I read:
“To enable the disadvantaged to access basic educational and health services, Government
established incentive schemes, including scholarships to enable girls to complete primary schools in deprived districts.”
Mr. Speaker, I think that Government is implementing the Free Compulsory Universal Basic Education (FCUBE), and I cannot understand how scholarships for girls in primary schools will be beneficial now that the FCUBE is being implemented in this country. I think that girls need scholarships to enable them to go to secondary schools and not primary schools. So that aspect of paragraph 2 needs further explanation.
Then, on the issue of the scholarships,
Mr. Simon Osei-Mensah 10:30 a.m.
On a
point of order. Mr. Speaker, the hon. Member said that the Committee should have placed emphasis on girls going to secondary schools. It is just like telling
Mr. Opoku 10:30 a.m.
Mr. Speaker, I think I was talking about the kind of scholarship that they are talking about in terms of primary education. Those in the primary schools no more pay school fees because of the implementation of the FCUBE so what kind of scholarships are they talking about? That is why I am saying that if the facility is there for our children to go through primary education without paying school fees then there is need for us to focus on secondary education, where they pay school fees. I think the hon. Member was not listening. Therefore, next time he should be listening to some of these contributions.
Mr. Speaker, I was talking about government hardship scholarship; this is awarded based upon the students' performance in secondary schools. But I think that the problem with secondary education lies at the beginning, when the child has completed JSS and he is entering secondary school. That is where most of the parents find it difficult in getting money to pay for their children's school fees and to buy the necessary items for them.
But the government hardsh ip scholarship is not awarded based on JSS results but upon senior secondary school performance. I think that this is depriving
most of our poor children of secondary education, and it is about time we used the JSS results to award government hardship scholarships, so that those poor parents who cannot pay for their children to have secondary education would have the opportunity to benefit from that hardship scholarship which has been created to help the poor access secondary education.
I think that in approving this loan, we also have to be very serious in monitoring what the loan is used for, because this is the fifth loan. The first one is gone, the second one is gone -- up to the fourth -- and the impact is not significantly felt in this country. We have a duty to approve and the duty to make sure that the good people of this country benefit from whatever has been approved.
So I think that Parliament must go a step further to ensure that we do not only approve loans, but also make sure that loans approved by this honourable House are utilized in the best interest of the good people of this country.
Mr. Kojo Armah (CPP -- Evalua- Gwira) 10:30 a.m.
Mr. Speaker, I also rise to support the motion that we approve this loan for the purpose of poverty reduction support in this country. Mr. Speaker, in doing so, I wish to refer to a few issues raised by the Committee in their Report.
On page 2, they have one of the issues as reducing the share of teachers' vacancies in deprived districts. Down there, we also have the same incentives that my hon. Colleagues are talking about. I realize also that there is an issue about pursuing the implementation of the Public Procurement Act by establishing certain intermediary institutions.
Mr. Speaker, taking the issue about the teachers' vacancy first, I want to say that we have recently approved the Millennium Challenge Account (MCA), which has been designed to assist certain deprived areas in some selected districts.
In that selection, the Western Region, for example, did not come in.
My contention is that if we are also sourcing loan to assist in further improving government progammes on reducing vacancies for teachers in deprived areas, we should look at those districts that do not benefit from the MCA facility. Because, if it comes to the Western Region, in today's newspapers, there is a report that the Western Region needs 3,771 teachers.
The main cause of teacher shortage
in the Western Region is that in most of the areas where the rainfall pattern is so high they do not even have teacher accommodation for the teachers, and because most of the teachers are not from the area they do not stay. So we must begin to look at the factors and look at the most needy areas so that we can assist them with teachers' accommodation. That is the reason why I believe this item brought by the Committee is very, very important.
It is also important to look at the scholarship schemes that are awarded and the information that must flow to educate the public that such quantum of scholarships are being awarded. As I stand now, I cannot tell how many of the scholarships that have come to the Western Region, or to my constituency or the district, favoured girls in the schools.
All I know is that there are a lot of girls who are either terminating their education midstream or not attending school at all. So if there is a scheme like this, we want to have information and the data as to who and who are benefiting, or how to source these facilities for the girls in our schools.
Mr. Speaker, finally, I am worried about this Procurement Act and the way it is being implemented. We were given letters assigning us to various procurement committees as members representing
Parliament on those committees. I have three of such representation but up to today, I have not been invited to any meeting. Mr. Speaker, the last meeting that I had a letter for was from the National Media Commission. The letter came when the meeting was already over.
So we do not know how the Procurement Act is being implemented, or whether our representation as Members of Parliament was only cosmetic. If it is not so then we call on the Procurement Board to ensure that our representation is made meaningful. Indeed, even at the district level, where we are supposed to be members of the procurement committee, we do not attend meetings. So if we are procuring loans and trying to strengthen the efficiency of this committee, it is important that Parliament is effectively represented on these procurement committees.
Mr. Speaker, I believe all of us would support this loan but it is important that we plug certain loopholes and make the implementation of these facilities to benefit this country.
Mr. Speaker, with these few words I support the motion.
Dr. Benjamin Kunbuor (NDC -- Lawra/Nandom) 10:30 a.m.
Mr. Speaker, thank you for giving me the opportunity to make a contribution to this motion.
Mr. Speaker, as Ranking Member for the Finance Committee, I guess that there has been so much misunderstanding of the Report, and I guess from the structuring of the loan itself, that the debate has shifted from the real essence of the loan to very specific activity that will be undertaken within the framework of the loan.
The broader understanding has been that this SDR facility is one that is supposed to be within the broader context of budgetary support, which is broken into two pieces for external reserves and what will be used for the domestic arrangements.

The issue of poverty reduction comes in and gets more confusing because the entire 2007 Budget was premised on GPRS II, which is also a poverty reduction strategy.

But we also have the broader policy of poverty reduction in this country. That is what is creating the difficulty for a number of people as to what exactly this loan facility is going to be used for. I think that that has been captured on page 3, and if we look at the objectives within that Report in that context, then we will see that issues that are specific activities will be coming under these two broad categories; and whatever the poverty reduction that the loan will seek to address will be one dealing with the amount, or the cedi equivalent which will be used to finance local expenditure. Mr. Speaker, I think we need to get this particular picture straightened up for the records.
Mr. Isaac K. Asiamah (NPP -- Atwima-Mponua) 10:40 a.m.
Thank you, Mr. Speaker, for the opportunity to contribute to this very important loan agreement.
Mr. Speaker, I think it is important to note that poverty is something each Ghanaian is concerned about. Improving the standards of living of Ghanaians is the concern of everybody, particularly Members of Parliament who have been elected.
Mr. Speaker, I think when you talk of business and investments it is important that in this country we do not see the successes of individuals as a crime. It is important to note that hotels offer jobs for Ghanaians. They provide numerous opportunities for Ghanaians. It is very important that in this august House we should be seen to be promoting businesses
in this country. Gone are the days when success was seen as a crime. Those days are gone forever. We will never visit those days again.
Mr. Speaker, it is important that we send a clear signal to Ghanaians that we in this country will support genuine businesses in this country so that we do not demonise people who have good intentions to promote business.
Mr. Speaker, we are talking of improvement of standards of living. Yesterday, there was a publication in the Daily Dispatch, “Pattern and Trends of Poverty in Ghana” and the source is the Ghana Living Standards Survey Report, 2005/2006. In the year 1998/99 television coverage in the urban areas was about 51.7 per cent. In 2006, Mr. Speaker, television coverage went to 68.9 per cent. If you talk of improvement it is not about making noise in this House; it is about being backed by real facts and figures.
We cannot come to this House as elected representatives of the people to just speak on motions. Whatever we say should be backed by facts and figures. That is the only way we will be able to educate Ghanaians. We make noise, yes, allegations of corruption, et cetera.
In this House we promote perceptions of all these things because we are not even allowed to educate Ghanaians on what value systems we should have. When a Member of Parliament stands in this House and talks about improvement in the living conditions of the people without respect to value, to practicable facts and figures, Mr. Speaker, where are we going? Education is there to serve us. Whether we like it or not, gone are the days when we used guns and ammunitions to determine all these things.
Mr. Speaker, today in modern Ghana it
Mr. Isaac K. Asiamah (NPP -- Atwima-Mponua) 10:40 a.m.


is only facts and figures that will determine what we are doing. If we do not do that, we will be causing more harm to this country.

Mr. Speaker, on the issue of the VALCO support, I come from Atwima Mponua; Nyinahini has vast bauxite deposits. Mr. Speaker, my constituents are waiting for such support to VALCO so that we can exploit the natural mineral deposits in Atwima Mponua. Mr. Speaker, there are added advantages -- industrialisation will boom and my people will have jobs -- [Hear! Hear!] These are the real facts on the ground. So the support to VALCO is not only an industrial support to this country but a support to the economy of this country and it is something we must not joke with. I think in all these things this House has a duty to tell Ghanaians nothing but the truth.

Mr. Speaker, another key point is about improving governance in this country. When you talk about improving governance, I think Members of Parliament (MPs) play a pivotal role in improving governance in this country and when governance is improved, we all know the added benefits in terms of public accountability and all these things.

Mr. Speaker, it is very ironical that in all these things we sometimes neglect how MPs function in our constituencies. Mr. Speaker, I am proposing that we should have a support from the Poverty Reduction Scheme. That will make sure that MPs have functional offices in their constituencies.

I am happy that your goodself -- A few days ago we all heard on air that Job 600, thanks to God and to this Government, is going to be refurbished so that Members of Parliament will have offices in Accra. Mr. Speaker, it should not end in Accra; our constituents too would want to have

access to their Members of Parliament. So it is important that we also look at the possibility of building constituency offices for Members of Parliament.

Mr. Speaker, in all these things, I am talking about improving governance at the local level -- [Hear! Hear!] -- so that we shall have a real, meaningful support for Members of Parliament in their respective constituencies.

Mr. Speaker, another issue is about this canker we have in this country -- [Interruptions.] Mr. Speaker, I want to end on that note. I think if you talk of improvement in living conditions, school enrolment is key. Mr. Speaker, when we came to power, enrolment figure in this country, from primary school to secondary school, was just about 53 per cent. As we speak now, school enrolment is about 80 per cent in this country.

Mr. Speaker, what at all will reduce poverty than quality education? It is only through education that we can reduce poverty. So clearly, improvement in education has gone up and that is one support from the Ghana Poverty Reduction Scheme.

So Mr. Speaker, from all indications it is clear that Ghana is really doing well with its Growth and Poverty Reduction Scheme.
Mr. Abdul-Rashid Pelpuo (NDC -- Wa Central) 10:40 a.m.
Thank you, Mr. Speaker, for this unique opportunity. Mr. Speaker, there are several reasons why I would kick against this loan agreement, the major reason being that I am not seeing very concrete, sustainable steps that will ensure that within the period of the implementation of this loan agreement there would be substantial reduction in poverty in this country.
Mr. Speaker, if you look at page 2, one of the reasons why they are taking the
Mr. Abdul-Rashid Pelpuo (NDC -- Wa Central) 10:50 a.m.


loan is to help girl-education in the most deprived areas -- Northern Region, Upper East Region, Upper West Region as well as the Central Region. I see several other priorities that will reduce poverty in these areas than this.

This is not to downplay the fact that girl education is important but to say that if we take money for the purpose of reducing poverty, there are very important projects to undertake which will have multiplying effect on the totality of the population, especially in locations where the poverty is acute, so that people by themselves can take care of their children. I cannot understand a situation where we go directly to support the child. It has a short-term effect and it will not have a sustainable long-term effect on development in the area. But there is a bigger issue than that.

Mr. Speaker, between 1970 and 2005, according to the World Bank Human Development Report, Africa alone managed to secure foreign aid to the tune of 400 hundred billion dollars. With this amount one expected that poverty would have been reduced by a certain figure. Mr. Speaker, development or growth moved in a different direction whilst loans from 1970 to 2005 increased substantially.

There have been an increase also in incidences of poverty in African countries and this is a very sad occurrence; and Ghana is not an exception. Poverty reduction in this country has not received enough attention. What receives enough attention is the loan we take but the other side of it, monitoring and providing oversight by Parliament, has always been lacking.

I want to say that even though these

grounds provide enough concrete reason for me to show dissent in this motion and to say I do not support it, I am going to support it only for the fact that they demonstrate enough calibre of under- standing the poverty situation and that whatever moneys we get will go to do whatever we want to do. In the end, we can say that we take money, foreign aid not because we take foreign aid, as a policy itself. Foreign aid is not a policy issue; it is a means to an end; it is a means to satisfying a policy objective.

But Mr. Speaker, all this while we see foreign aid as an end in itself. If you secure it by satisfying all the conditions that are required, in the end you use the money and the situation remains the same.

Mr. Speaker, I want to urge policy implementers and Parliament itself to see to it that the money we are taking and the reason we are taking it for are not lost on us. We should be able to respond to the challenges, the cry of our people. The dizzy height of the poor people in this country will need salvation. Loan agreements must not be yearly rituals, they must have concrete evidence of supporting the poor people of this country.

In future, we should target areas like agriculture. We can make irrigation available for example in the northern regions of this country where farmers can make use of it so that it can have multiplying effect instead of going to give money to their children to educate themselves.

Thank you, Mr. Speaker, for the opportunity.
Ms. Josephine Hilda Addoh (NPP -- Kwadaso) 10:50 a.m.
Thank you, Mr. Speaker, for the opportunity to contribute to this motion. Mr. Speaker, I support this motion and I urge all hon. Members to support it and indeed all such good moves that will
Ms. Josephine Hilda Addoh (NPP -- Kwadaso) 10:50 a.m.


be employed to bring down poverty in this country.

Mr. Speaker, I believe Ghanaians are not wallowing in poverty. I said it before that poverty can always be with us not because we are Ghanaians; every country has poverty problems. There are always pockets of poverty and we shall always have pockets of poverty in this country.

Mr. Speaker, this amount is going to support poverty reduction, try to bring down poverty, not to do away completely with poverty. I know Ghanaians appreciate the fact that we cannot do away with poverty but the amount will help bring down poverty in this country.

Mr. Speaker, when we go to the angle of education, the hon. Member, if I could understand him, said something like we should help the people to pay for their wards' school fees and so on. I do not think it would be a good idea at this point for the Government to withdraw the Northern Scholarship and other Schemes in place, like giving free education to the children. Parents really are appreciative of this fact that they are getting free education for their children.

I also appreciate the fact that not everybody is enjoying this facility because if you do not have a child in the primary school, you may not enjoy it. But look at the number of people in Ghana who are enjoying this facility, putting moneys back into people's pockets. People who should have paid their children's fees are now going without paying any school fees. Children are having free meals in schools. Interested persons should come and see what is going on in the Kwadaso constituency. I can talk about six or more schools with more than 4,000 pupils enjoying this facility and the facility will need more funds to operate.
rose
Mr. Speaker 10:50 a.m.
Hon. Member for Central Tongu, do you have a point of order?
Mr. J. K. Gidisu 10:50 a.m.
Mr. Speaker, my hon. Colleague is a mother and a mother speaking in terms of a child or two from a parent attending school and being fed once a day. I think as a mother she would be talking about empowering women and for that matter families to effectively feed the whole family instead of one. So some of these things are not interventions that are worth talking about.
Ms. Addoh 10:50 a.m.
Hon. Member, thank you very much. I think I have to explain that to him. They reserve the money for dinner. So it is still helping the family. In trying to alleviate poverty you reserve the money for school fees, you reserve the money for lunch and use the money maybe to feed other members of the family in the evening. So that is poverty alleviation.

Mr. Speaker, I will bring my contribution to an end by saying that when we have to borrow to help reduce poverty, say, in the direction of education, the direction of good governance which has brought Ghana so far, we all must support such a move. Thank you very much.
Ms. Addoh 11 a.m.


Deputy Minister for Finance and Economic Planning (Dr. Anthony A. Osei): Thank you, Mr. Speaker, for allowing me to contribute to this debate. Mr. Speaker, I was surprised when one of my Colleagues on the other side, hon. Abdul-Rashid Pelpuo said that we borrow. I think perhaps we need to bring some information to his attention so that he may realize that poverty in Ghana has declined from 51 per cent in 1992 to 28 per cent.

Mr. Speaker, as I speak, Ghana is one of the first countries that is very likely to achieve the Millennium Development Goal (MDG) of halving poverty ahead of time. Mr. Speaker, but the Ranking Member spoke about the need to separate the things he was talking about and the need to understand what budgetary support is about.

Mr. Speaker, for the last six years, we have been implementing Ghana Poverty Reduction Strategy I. Last year we started implementing GPRS II and it will continue until 2009. If he had been following these two frameworks for development he would have realized that there is a whole matrix of activities that are being implemented over a period of time. For the last six years, we have been on course in terms of implementing this whole matrix of activities.

The IDA or the World Bank, like all the partners under the multi-donor support, chooses a set of actions that they want to monitor. So what you see in this memorandum is one small set of a whole big agenda of developmental activities that are being implemented.

Unfortunately, I do not have the matrix here; it is a whole series of things. The fact, as he said, is that when these foreign accounts get into the system at the Bank of Ghana, the Bank of Ghana takes those

reserves and keeps them and in turn gives the Government of Ghana cedis for us to implement our local activities. But when you go into the accounts you will not be able to identify per se whether each dollar from the World Bank is going to teacher education or vacancies; you cannot. It becomes part of total revenue some of which would be used to pay him.

So looking at these activities in isolation from what is budgetary support he would be missing the boat. Probably, if he wants to see what this is all about he needs to understand the entire matrix of activities that are defined in the GPRS II Agenda. This is just a very small set. The Government's poverty reduction agenda now called the Growth Acceleration Agenda is intended to increase growth thereby reducing poverty.

As you are fully aware of, growth has gone from 3.5 per cent to 4.2 per cent to 5.5 per cent to 5.8 per cent to 6.2 per cent. The fact that you are getting increases in growth, by implication, suggests that poverty is being reduced. It is therefore not surprising that poverty count has gone down from 51 per cent to 28 as I speak.

In fact, if you look at the information put up by DLSS you will get all the information you need. But I think that those hon. Members who are looking at the specific issues will need to be a bit educated at an appropriate forum because the matrix is so big that it will take me five hours to explain each matrix here.

Some of my hon. Colleagues spoke about earmarking some money for the funds necessary to compensate VRA for the difference between the weighted- average-cost, et cetera. When VALCO came into operation, VALCO had to use electricity. As I speak, at the time that VALCO came into being, a minimum amount of ¢230 billion had to be paid to VRA for this subsidy that is in place.
rose
Mr. Speaker 11 a.m.
Do you have a point of order to raise?
Mr. Adjaho 11 a.m.
Mr. Speaker, the hon. Deputy Minister just indicated that all of us have been given subsidy by VRA. There is an independent public entity that is supposed to be fixing tariffs and that is the PURC. Is it the PURC that gave the subsidy or the Government that gave the subsidy? It is misleading because - [Interruption.]
Dr. A. A. Osei 11 a.m.
Mr. Speaker, my hon. Senior Colleague knows that there is PURC. There is a tariff setting body, the PURC but when the PURC increases tariffs, either you have to pay or somebody has to pay. You will recall that last year in May, when the tariff was announced by PURC, the Government made a statement that given the quality of electricity, it would support all consumers by a certain amount.
If my hon. Senior Colleague has been paying attention to the news, he would realize that the subsidies for the industrial and commercial users have been reversed since May 1. Very soon, the Government will take a position to reverse that decision for all of us consumers since people like my hon. Senior Colleague have now seen the value in getting VALCO into being.
rose
Mr. Speaker 11 a.m.
Hon. Member, do you have any point of order?
Mr. H. Iddrisu 11 a.m.
Rightly so. Mr.
Speaker, the hon. Deputy Minister of Finance is a respected economist. He has espoused some theories on this floor which, if we allow to pass -- He only can be misleading this House and the Ghanaian public.
The first of it was his theory of growth and poverty reduction. He knows that that correlation is not established anywhere in the world, where the link is that when there is growth, there is necessarily a reduction in poverty. He knows that. If he likes, he should go back to the statistics issued by the Ghana Statistical Service. From the 1990s up to the year 2000, there was no significant growth even in GDP growth rate yet poverty declined. So that is doubtful and he should not mislead this House.
The second issue has to do with VALCO. It is not a viable entity as at today. He should not mislead this House. If you go and pay a subsidy of ¢230 billion against a tax revenue of ¢73 billion, you are not doing this country any good by that arithmetical investment. He should be guided by it as he proceeds.
Dr. Akoto Osei 11 a.m.
Mr. Speaker, the younger hon. Member on the other side

Mr. Speaker, I want to thank all my hon. Colleagues on the other side for supporting this motion, particularly the Members of the Finance Committee who we met yesterday and who took us through this rather concessionary loan. Hon. Members will note that this is the 5th poverty reduction loan that we are contracting. As I told the Committee, we are very far advanced in negotiating the next loan, the 6th, to implement the growth and poverty reduction agenda. With the support of all the Members, we will be able to continue further.

With these few words, I urge all my hon. Colleagues to support this motion. We are scheduled to sign the loan as soon as it is passed some time tomorrow and disbursements, I can assure the House, will be coming as early as next week so that we can continue not only to pay Members of this House but to spend some of the money to make sure that the rent arrears that are due Members, we can continue to pay them. Thank you, Mr. Speaker.

Question put and motion agreed to.
RESOLUTION 11 a.m.
THIS HONOURABLE HOUSE 11 a.m.
H E R E B Y R E S O LV E S A S 11 a.m.
Mr. Haruna Iddrisu 11 a.m.
Mr. Speaker, I beg to second the motion.
Question proposed and motion agreed to.
Resolved accordingly.
Mr. Speaker 11 a.m.
Item 5.
BILLS - SECOND READING 11:10 a.m.
Minister for Energy (Mr. Joseph Kofi Adda) 11:10 a.m.
Mr. Speaker, I beg to move, that the Bui Authority Bill be now read a Second time.
Mr. Speaker, the implementation of
the US$600 million Bui Hydroelectric Power Plant on the Black Volta River is one of the key projects being undertaken by the Government to ensure the long- term delivery of power to support the Government's economic and social objective.
The Bill before us seeks to create the establishment of a Bui Power Authority which will have the responsibility of generating electricity through the construction of a dam and a power station at Bui, and also oversee the management of this vital asset and the operations of the entity.
The objective of creating the new Authority is to allow for the overall improvement in the corporate governance and efficiency of the management of the energy resources of the country.
The Bui Power Authority will be a corporate body and will have full autonomy in its operations. It is envisaged that the setting up of the Authority will result in competition with the existing utilities and endanger efficiency enhancement in the operations of the hydroelectric facility.
Minister for Energy (Mr. Joseph Kofi Adda) 11:10 a.m.


Mr. Speaker, the power station to be created at Bui is to be operated in tandem with the hydroelectric facilities at Akosombo and Kpong in order to optimize the generation from the entire Volta River basin. There will therefore, be technical operating rules for the joint operation of Bui of the Akosombo and Kpong systems. The Bui plant will not be operated in a manner, which will adversely affect any downstream hydropower plant. The Bui Power Authority will manage the operations of the lake to be impounded in a manner to ensure that the flow of water downstream of the dam is sufficiently regulated so as not to cause undesirable flooding or low inflows into the Akosombo Lake.

Mr. Speaker, in order to allay the fears of my hon. Colleagues who feel that the construction of the Bui Dam will negatively affect power generation at Akosombo, I wish to assure them that the impact of the construction of the Bui Dam has been assessed and the required strategies developed to address the situation.

On the basis of engineering studies, in the case of a worst scenario, which corresponds to low rainfall and low levels of the Volta Lake in 2009 and 2010, there will be the need to advance the construction of a future 100 MW thermal plant to be operational by 2010, which the Government is already doing. In the best scenario, average to above average rainfall and high levels of the Volta Lake, there will be no significant adverse impact.

Mr. Speaker, the Bill sets out the structure, functions and other operational requirements of the Authority to be. It has other details that are basic requirements for the normal running of an organization such as this Authority.

Mr. Speaker, the Bui project is one

of key projects to address the nation's long-term power needs and to meet our national, social and economic objectives. It is an important initiative that has been on the drawing board for over eighty years, since 1921. Today, we are on the verge of commencing its development, thanks to the Government of President Kufuor.

This Bill will therefore ensure good governance and the future operations of the assets will be well managed and also ensure that there is competition in the utility sector; will help for us to achieve adequate, reliable and regular power supply into the energy sector to enhance our nation's development.

Question proposed.
Chairman of the Committee (Mrs. Gifty Eugenia Kusi) 11:10 a.m.
Mr. Speaker, I rise to present the Report of the Committee.
Mr. Speaker, I would crave your indulgence that the Hansard captures the whole report and deem it as read in full whilst I read some portions of the report.
1.0 Introduction
The Bui Authority Bill was laid before the House on 23rd March 2007 by the Deputy Minister for Energy, hon. K T. Hammond, and was subsequently referred to the Committee on Mines and Energy for consideration and report in accordance with article 103 (3) of the 1992 Constitution of Ghana and Standing Order 188 of the House.
2.0 Background Information
The Government of Ghana has considered adequate supply of electricity critical if it is to meet its social and economic development objectives.
Also, as part of its poverty reduction strategy, Government intends to develop and procure significant additional power generation to augment the generation of power from existing sources at the Akosombo, Kpong and Takoradi power stations.
Among other competitive sources, the Bui site of the Black Volta River is currently considered as the most attractive hydropower site in Ghana.
The development of the site is estimated to generate about 400 MW to augment the existing supply in the country.
The Bill therefore seeks to create the establishment of an authority, which will have the responsibility of generating electricity through the construction of a dam and power station at Bui on the Black Volta River. The Authority will also have local government functions over the Bui Township and the city in future.
The Authority, when established will be a corporate body with the power to sue and be sued. It will also have the right to own moveable and immoveable property.
3.0 Reference Document
In considering the Bill, the Committee made reference to the fol lowing documents:
(i) The 1992 Constitution of the Republic of Ghana
(ii) The Standing Orders of Par- liament
(iii) The Volta River Authority Act, 1961 (Act 46)
( i v ) T h e N a t i o n a l Petroleum Authority Act, 2005 (Act 691).
4.0 Observation
The Committee observed that the construction of the additional hydro power station would enable the country meet part of its energy requirement for development.
The additional energy will also enable us meet the energy needs of industries to increase productivity and to expand avenues for the employment of our human resource.
The Committee is further of the view that the establishment of the Authority will accelerate the socio-economic and the industrial development of the people in the catchment area of the Authority thereby giving them improved standard of living.
Mr. Speaker, Minority Members of the Committee expressed their concern about the creation of a new bureaucracy to manage the Bui project.
They argued that considering the immense experience of the VRA in hydropower and the ultimate linkage of the Bui River to the Volta Lake, it would be cost-effective and much more easier to manage the flow of water from the Bui Dam if the VRA is allowed to manage the project.
Mr. Speaker, members of your Committee could not however arrive at consensus with respect to clause 11 of the Bill. Some members were of the view that the Authority could not be allowed to perform functions of a Minister without the approval of Parliament. They argued further that adequate provisions are made to the Local Government Act to take care of the local government needs of such communities.
Proponents of the provision argued that it should be allowed to stay so as to enable the President exercise the power when the need arises. They further argued that the President in exercising this power
would take the necessary steps to meet the requirement of the Constitution of the Republic. 5.0 Proposed Amendments
The following amendments were
proposed by members in the course of the Committee's deliberations:
Short Title: After “Bui” insert “Power”.
The amendment is to ensure that emphasis is put on the main object of the Bill.
Clause 1: line 2, after “functions” delete “and responsibilities”.
The amendment aims at ensuring simplicity and to avoid ambiguity.
Clause 2: Delete the whole of sub-
clauses 2, 3, 4, 5 and 6.
The amendment is to minimize the fusion of different subject matters.
Clause 3: Add a new clause 3 as
follows:
“Tenure of Office
3. (2) A member of the Board other than the Chief Executive may at any time resign by a letter addressed to the President through the Minister.
(1) A member of the Board other than the Chief Executive shall hold office for a period of four years and is eligible for reappointment but a member shall not be appointed for more that two terms in succession.
(2) A member of the Board who is absent from three consecutive meetings of the Board without sufficient cause shall cease to be a member.
(3) The Chairperson or other members of the Board may
Chairman of the Committee (Mrs. Gifty Eugenia Kusi) 11:10 a.m.


be removed from office by the President for inability to perform the functions of his office, for just cause or stated misbehaviour.”

The amendment is to ensure clarity and improvement on the earlier provision to meet modern standard.

Clause 4: Add a new clause 4 as follows:

“Filling of Vacancies

4. (1) When a member of the Board other than the Chief Executive is incapacitated by illness or any other cause from performing his/her functions of his office for more than 6 months, the President may appoint another person to perform the function of the member.

(2) Where a person is appointed to fill the vacancy, he shall hold office for the remainder of the term of the previous member and shall, subject to the provision of this Act, be eligible for reappointment.”

The amendment is to ensure that adequate provisions are made to meet unforeseeable human conditions.

Clause 5: Delete clause 5 and insert new clause 5 as follows:

“Condition for Appointment of Members

(4) Members of the Board shall be appointed on such other terms and conditions, as the President shall determine.”

Clause 6: Add new clause 6 as follows:

The amendment is to ensure that adequate provisions are made to guarantee orderly conduction of business.

The amendment is to ensure clarity and avoidance of ambiguity.

Clause 7: Subclause (1), line 1, delete “Execute” and insert “Construct”.

Clause 7: Subclause (1), line 1, delete “Dam” and insert “Hydro Electric Power Project”.

The amendment is to ensure that

authority remains within its core responsibility of generating power.

Clause 7: Subclause (1), paragraph (b), line 1, delete “distribution” and insert “evacuation”.

The amendment is to avoid doubt and ensure that the right technical term is used for clarity.

Clause 7: Subclause (1), paragraph (b), line 2, after dam, insert “to the national electricity grid”.

The Committee considers it necessary

to widen the net to include all forms of consumers.

Clause 7: Subclause (1), paragraph (c), sub-paragraph (i), line 1, delete “public”.

The amendment is to ensure that

facilities needed are provided to ease human suffering.

Clause 7: Subclause, (1), paragraph (c), sub-paragraph (1), line 2, after “the”, delete “supply” and insert “transmission of distribution of power to the public”.

Clause 7: Subclause (1), paragraph

(c), sub-paragraph (iii), line 3, delete “private”.

Clause 7: Subclause (1), paragraph (d), line 1, after “provision” delete “when and so far as practical”.

Clause 7: subclause (1), paragraph (d), line 3, after “uses” delete “such as fisheries and tourism and in any other manner”.

Clause 8: Heading, delete “flow” and insert “level”.

Clause 8: Subclause (1), line 1, delete “flow” and insert “level”.

Clause 8: Subclause (1), paragraph (a).

Clause 9: Subclause (1), paragraph (a), line 1, before “enter”, delete “to”.

Clause 9: Subclause (1), paragraph (b), line 1, before “survey” delete “to”.

T h e a m e n d m e n t c o r r e c t e d a grammatical error.

Clause 10: Delete the whole of sub- clause 2.

The Committee is of the considered

view that the subclause is likely to divert the Authority from its main objective of generating power.

Clause 11: delete the whole of clause

11.

It is the opinion of the Committee that the Authority should concentrate on its core business of power generation and leave local governance to the Ministry of Local Government and its agencies.

Clause 12: Delete the whole of clause

12.

The Committee is of the view that such additional powers are not necessary in view of the fact that the prevailing conditions at the time of the construction of the Volta Lake are different from current

circumstances.

Clause 14: Line 2, after “Cooperation” delete “Fully”.

Clause 17: Heading, delete “Aim at

making profit” and insert “Operate on commercial line”.

The amendment is to ensure conformity

with modern languages and usage.

Clause 17: Subclause (3), line 3, before “Fund” delete “Reserve”.

Clause 17: Subclause (1), lines 2, after “commercial lines” delete the rest.

Clause 18: Subclause (1), line 1, after “May”, insert “In consultation with the ‘'Minister”.

The Committee is of the view that the

minister should be consulted in such an important matters.

Clause 18: Subclause (1), line 1, after “Minister”, insert “of Finance”.

The amendment is to ensure clarity.

Clause 18: Subclause (1), Line 2, after “Of” delete “Over draft or otherwise”.

The Committee is of the view that it

should be within that capacity of the Board to take decisions on overdrafts.

Clause 19: Delete the whole of clause 19 and insert new clause 19 as follows:

19. (1) Fund of the Authority include:

(a) Money provided by Par- liament

(b) Any fee or charge determined by the Board in consultation with the Energy Minister and the Minister of Finance
Chairman of the Committee (Mrs. Gifty Eugenia Kusi) 11:10 a.m.


(c) Loans granted to the Authority by the Government or by any other person or body

(d) Donations, grants and gifts, and

( e ) A n y o t h e r m o n e y t h a t i s a p p r o v e d b y Parliament.

(2) Funds received by or on behalf of the Authority shall be deposited by the appropriate person or authority to the credit of the Authority in an account in a bank or banks approved by the Authority.

(3) Each payment from the Funds shall be signed by the:

(a) Chief Executive;

(b) The Officer responsible for financial matters designated by the Board.

(5) Revenue accruing from tariffs.

The amendment is to ensure that funding and financial process of the Authority is in line with the mordern accounting processes approved by the House.

Clause 20: Delete the whole of clause

20.

The Committee is of the view that

the authority should come to Parliament whenever the need arises for that exemption.

Clause 21: Line 2, after “11” delete “and 12”.

The amendment is consequential to the

deletion of clause 12. Clause 22: Delete the whole of clause

22 and substitute the following:

“Accounts Audit

22. (1) The Board shall keep proper books of account and records in relation to them in the form approved by the Auditor- General.

(2). The Board shall submit the accounts of the Authority to the Auditor-General for audit within three months after the end of the financial year.

(3). The Auditor-General shall, not later than six months after the receipt of the accounts, audit the accounts and submit a copy of the audit report to Parliament.

(4). The financial year of the Authority is the same as the financial year of the Gover- nment.”

The amendment is to ensure that the rendition conforms to earlier legislations passed by the House.

Clause 26: Line 2, delete “Gover- nment” and insert “Republic”.

The Committee is of the considered

view that it should be the responsibility of the Republic and not the Government.

Clause 27: Delete the whole of clause

27.

The Committee is of the opinion

that the provision is not necessary as it is within the power of Government to provide guarantees to state-owned companies when the need arises.

Clause 28: Delete the whole of clause 28 and substitute the following:

“Annual Report and Other Reports

28. (1). The Board shall within one month after the receipt of the

audit report, submit an annual report to the Minister covering the activities and the operations of the Authority for the year to which the report relates.

(2) The annual report shall include

the report of the Auditor- General.

(3) The Minister shall, within one month after the receipt of the annual report, submit the report to Parliament with a statement that the Minister considers necessary.

(4) The Board shall also submit to the Minister any other reports, which the Minister may require in writing.”

The amendment is to ensure that procedures for reporting conforms to earlier laws passed by the House.

Clause 31: Delete the whole of clause

31.

The Committee is of the considered view that the clause was derived from the Volta River Development Act of 1961 which caters for earlier agreements entered into prior to the construction of the dam and that the current situation at Bui is not the same.

Clause 32: Subclause 1, line 2, after “it” delete “expedient” and insert “necessary”.

Clause 33: Delete the whole of clause

33.

The amendment is consequential to the

deletion of clause 33.

Clause 32: Subclause (1), line 3, delete “do so”.

Clause 34: Add “Minister means Minister responsible for energy except where the contrary occurs.”

The amendment is to ensure clarity.

Clause 35: Add new clause 35 as follows:

“Repeals and Consequent ia l Amendments

Section 35 (1) of the Volta River Development Act 46 as amended is further amended by the deletion of ‘Black Volta' in the definition of ‘River Volta'.”

The amendment is to ensure that no conflict is created between the VRA and the Bui Authority in the management of the Dam.

Long Title: Line 3, after “poten- tial”delete “hydrolic”.

Long Title: Line 3, after “power” delete “sites” and insert , “sources”.

Long Title: Lines 3 and 4, delete “on the Black Volta River”.

Long Title: Line 10, after “matter” insert “enacted by President and Parliament”.

The amendments are to ensure that the power generation capability of the Authority is not limited to hydro, but other possible sources.

6.0 Conclusion

In conclusion, the Committee wishes to state that considering the need to provide a lasting solution to the energy situation in the country and the need to accelerate the socio-economic growth and development of our people, the Committee wishes to recommend to the House to adopt its report on the Bui Authority Bill.
Mr. Haruna Iddrisu (NDC - Tamale South) 11:20 a.m.
Mr. Speaker, thank you for the opportunity to associate myself with the motion on the floor.
Mr. Speaker, I wish to place on record that in principle, especially at a time that our country is reeling under an energy crisis which is suffocating industries and has almost paralysed social and economic life, it is important that Bui is brought on stream. But Mr. Speaker, it is important that we let the historical record stay.
Mr. Speaker, this project was identified in the 1920s as a potential major hydroelectric power project. Indeed, but for the violent overthrow of the Nkrumah regime -- Some studies were conducted by J. S. Zulk Hydro Project of USSR and I am sure that if President Nkrumah was allowed to stay a little longer, the dream of adding an additional hydro authority at Bui would have been realized and attained during that particular period.
Mr. Speaker, indeed, the studies continued to even 1976 when a feasibility study was conducted by Snow Mountains. Further, an updated feasibility study was conducted in 1995 by the then National Democratic Congress (NDC) Government. Undoubtedly, today, the ruling Government has the privilege to give meaning to this intention of creating a Bui hydro project.
But without mincing words, Mr. Speaker, we feel very strongly that we do not need a new bureaucracy called the Bui Authority to supervise it. Mr. Speaker may remember that after the Akosombo dam was created, we have had 160 MW of power being produced by Kpong yet no bureaucracy was set up for the purpose of managing Kpong. So we think that in coming out with an additional 140 MW
of power, necessarily, this can be done by the Volta River Authority. We think also that the Volta River Authority must take absolute control of the establishment of this particular project instead of creating an additional bureaucracy.
Mr. Speaker, in saying so, the hon. Minister, in his brief remarks, created the impression that all will be well if Bui was done. Mr. Speaker, I would like to crave your indulgence to refer to the Volta River Development Act, Act 46 of 1961, which properly defined the Volta River. For our purposes, I would need to use that to support my argument even though I am aware that there is a consequential amendment by virtue of what is being provided.

The Black Volta, as part of the creation of the Volta River Authority (VRA), was part of the Volta River. That reinforces our argument that the VRA ought to be the implementing agency over this project and not a new Authority. As already indicated, the 1961 Act defined the Volta River to include all streams leading to the Volta Lake, including the Bui itself.

Mr. Speaker, the hon. Minister in my view, did not give adequate information to this House. If you remember your own report that he presented to the Committee on Mines and Energy -- I refer to the fourth page -- it is stated that due to the impact of the project, the Akosombo Dam may suffer some loss; it estimates it at 30 gigawatts of power.
Mr. S. K. B. Manu 11:20 a.m.
On a point of
order. Mr. Speaker, it is to inform the
hon. Member that when he is on the floor of the House contributing, he should not address the other hon. Member directly; he should address you. When he uses words like “you”, “in your report”, then he is directing the address to the hon. Minister and not you -- He should use ‘in his report' not ‘in your report'. It is just to tell him how to speak on the floor of the House.
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, may I
Mr. E. A. Gyamfi 11:20 a.m.
On a point of order.
Mr. Speaker, I heard my hon. Colleague saying that the Bui Dam will provide 300 megawatts of power. It is not true. It is 400 megawatts when the dam becomes fully operational.
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, I will
take that on board. The memorandum indicates 400 megawatts of power -- [Inter-ruption.] Mr. Speaker, we are told that Bui is likely to generate 400 megawatts of electricity -- [Interruption.]
Mr. Kyei-Mensah-Bonsu 11:20 a.m.
Mr.
Speaker, I do not seem to understand the arguments that my hon. Colleague is making. It looks like it is much ado about nothing. He is saying that the Bui Dam would have a negative adverse effect on the Akosombo Dam. Mr. Speaker, negative adverse effect is positive effect -- [Laughter.] What is he talking about? Mr. Speaker, those precisely are the words he used. What is he talking about?
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, I hope that they will pay attention and to appreciate that Bui will negatively affect the generating capacity of Akosombo. That is the message that I am conveying and I stand strongly by it. They themselves have done an assessment of it and the hon. Minister indicated, even though he gives a consecutive estimates of about 30 gigawatts of generation.
I am saying that reinforces our point that the Volta River Authority ought to manage the Bui project in a manner that they will take decisions that would not adversely affect the Akosombo which is already generating about 1,060 megawatts of power as compared to 400 megawatts that is likely to be generated from Bui.
Dr. A. A. Osei 11:20 a.m.
On a point of order.
Mr. Speaker, he is grossly misleading the House. Mr. Speaker, he himself said that the hon. Minister said it might have a likely impact on generation at Akosombo. Now he is saying that if we put the VRA there, there would not be any negative impact. Mr. Speaker, I do not see how he can make that assertion. This is grossly misleading this House and he should withdraw that statement.
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, I have referred you to the Volta River Development Act of 1961 where “River Volta” is defined -- and with your permission, I quote:
“. . . includes the following rivers so far as they are within the Republic, that is to say, the Volta, the Black Volta, the White Volta. . . .”
Bui is on the Black Volta and I think
that we strengthen the hands of the Volta River Authority to be able to manage this instead of creating a new bureaucracy; that is my argument.
Mr. Speaker, the other related issue which is a major issue that this House is interested in hearing is that from a presentation made by the hon. Minister to the Committee on Mines and Energy, it appears that this Loan Agreement he is expecting from the Chinese Government estimated to be about US$600 million or conservatively 534 million, there was some barter arrangement in it.
Mr. Speaker, elementary students of economics know that “barter” means the exchange of goods for goods. This time, is the hon. Minister assuring this House and we would know that in securing this Loan Agreement they have gone to negotiate for the exchange of Ghana's cocoa? We would need information on that because I have a document here from the hon. Minister which says “Cocoa sales agreement negotiated between Ghana Cocoa Board and the Chinese Government nominated Company”.
Mr. A. O. Aidooh 11:20 a.m.
Mr. Speaker, this
document is not part of the Bill and I would advise him to hold his fire until we get there. This document is not before the
House and it is not part of the Bill. The mode of payment of the loan is not in the Bill. It is not part of the Bill.
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, the
Mr. A. O. Aidooh 11:20 a.m.
Mr. Speaker, that
Agreement which he claims contains the mode of repayment of the loan is not part of the Bill. It is as simple as that. Mr. Speaker, we will have time to debate the Agreement then he can make his point but as at now that bit is not part of this Bill.
rose
Mr. Speaker 11:20 a.m.
Hon. Member, you want
to yield to your Deputy?
Mr. H. Iddrisu 11:20 a.m.
Mr. Speaker, if my
Deputy will allow me to continue, I can respond to the Deputy Majority Leader.
Mr. Speaker 11:20 a.m.
Deputy Leader then.
Mr. Adjaho 11:30 a.m.
Mr. Speaker, this matter
raised by the hon. Member was extensively discussed at the committee level. Mr. Speaker, as part of the Bill, the issue of funding or sources of funding -- If one looks at the amendment proposed by the Committee, that is one of the sources of funding, the point being referred to by the hon. Member on the floor. That is why the hon. Minister for Energy provided that information to the Committee. To that extent, that information is very relevant.

Mr. Speaker, may I refer you to article 106 (6) of the Constitution and at the Second Reading you look at the memorandum, you look at the Committee's report and you would look at all other things that are equally relevant to the debate on this matter; and to the extent that the Ministry itself provided the information that they have gone to negotiate for the sale of Ghana's cocoa. To that extent, that information is very relevant -- [Interruptions.] It is very relevant to the debate on the floor of the House.
Mr. A. O. Aidooh 11:30 a.m.
Mr. Speaker, my hon. Colleague knows that that bit about the loan has in fact been deleted from the Bill. Mr. Speaker, there is no mention of a Chinese loan in the Bill any longer.
Mr. H. Iddrisu 11:30 a.m.
Mr. Speaker, we are discussing Bui; Bui is expected to generate 400 MW of power. The Bui project would be funded with a Chinese loan facility, which facility the Government of Ghana has negotiated to exchange cocoa for. Mr. Speaker, may I respectfully refer you to clause 19, page 10 of the Bill: Investment by the Republic -- and it reads:
“During the ten years' period of the commencement of this Act the Republic shall invest in the Bui Hydroelectric Power System Development the sums of money not exceeding US$600 million as the Authority may require.”
In trying to honour this particular clause, Government has gone to China. We are aware that His Excellency the President even led a delegation supported by his Attorney-General and Minister for Justice and it is a fact that they have gone to negotiate.
Mr. Kyei-Mensah-Bonsu 11:30 a.m.
Mr. Speaker, at the Second Reading of a Bill, indeed we discuss the principles of the Bill and indeed, if it is there, my hon. Colleague could raise it. But he knows that that bit has been deleted. Mr. Speaker, even if it is there, what really is wrong with it? Let anybody tell us -- in this country, if you take an outside loan, an external loan, is it not from the resources of this country that we pay? So how is it being made to appear as if Government had done anything wrong?
Mr. Speaker, this is pure mischief. We pay our loans from the resources of this country; as simple as that. So what wrong has this Government committed? What wrong has been committed?
Mr. H. Iddrisu 11:30 a.m.
Mr. Speaker, as you are rightly aware, a proposal by a committee to delete a particular clause does not operate as an automatic deletion. We have not reached the Consideration Stage; we are still at Second Reading. This House in its wisdom may decide that that particular clause be not deleted. In any case, Mr. Speaker, even the deletion and what is to be substituted -- it says: “loans to be approved”. Which loan? Go to what they are proposing as the deletion; you still say that loans granted to the Authority --
Mr. Speaker 11:30 a.m.
Hon. Member for Tamale South, do not address him.
Mr. H. Iddrisu 11:30 a.m.
Thank you, Mr. Speaker. I am just saying that our cocoa is being mortgaged for this Chinese -- [Interruptions.] Mr. Speaker, our cocoa is being mortgaged -- [Interruption.]
Mr. Speaker 11:30 a.m.
Order! Order!
Mr. H. Iddrisu 11:30 a.m.
Mr. Speaker, even though they do not grow cocoa, I am aware that the hon. Member for Suame, hon. Kyei-Mensah-Bonsu -- and he
Mr. Speaker 11:30 a.m.
Hon. Member for Tamale South, what are you doing?
Mr. Joe Ghartey 11:30 a.m.
Mr. Speaker, my
good Friend opposite enjoys mentioning my name from time to time and he just made an assertion that when the President led a delegation to China I was a party to that delegation. I have never travelled to China with the President; I have gone to China alone. I have never been part of a Presidential delegation to China and I wish to make that correction. I am sure that he would do the honourable thing and withdraw that statement.
Mr. Speaker 11:30 a.m.
Hon. Member for
Tamale South, you are concluding.
Mr. H. Iddrisu 11:40 a.m.
I am concluding.
His Excellency the President was in China specifically to secure this loan. As a lead person in Ghana he was followed subsequently by some Ministers of his Government to secure this loan facility and it is on record. That is the message I am conveying.
Mr. Speaker, because of the current energy crisis, the principle is that we will all support such interventions that assure the people of Ghana of another opportunity to generate electrical power. But Mr. Speaker, let it be said here that Bui -- Some Ghanaians listening to us today may think that within the next days or weeks or months or years Bui will bring 400 MW of power. The gestation period would be a minimum of, at least, seven to 10 years.
So it does not respond to the immediate energy crisis; it is only a medium and a long-term measure -- [Interruptions.] Mr. Speaker, it is with this that I cautiously

Minister for Water Resources, Works

and Housing (Mr. Hackman Owusu- Agyemang): Mr. Speaker, I thank you for the opportunity. A few correction to the submissions of my very good nephew and a Member of Parliament for Tamale South -- Mr. Speaker, the issue being discussed here is the desirability of eventually expanding the quantum of energy available to this nation.

The present circumstances dictate that we have emergency programme, a medium-term programme and a long- term programme. All the three can go simultaneously. Indeed, it would be imprudent to want to only tackle one aspect of it without due consideration of the other aspect that we must tackle. So it is in this vein that the Bui dam is being established.

Let me hasten to say that it is improper to argue on the floor of this House that there is something amiss with a project which for the longest while has been on the drawing board and for which exhaustive enquiries have been made on it.

Mr. Speaker, if one gets an Exim bank facility, it is the best one could get. Indeed, under normal circumstances power generation, which is a commercial business, normally does not benefit from grants by any government and for that matter I think this is a loan, a facility which would be very good for this nation.

Again, in the spirit of transparency, there is nothing amiss in indicating how the Government, the State is going to amortize the loan eventually that is given to it. Indeed, for the first time Government is being explicit, if that is the problem of hon. Haruna Iddrisu. He is showing how he can pay back the loan. And I do not believe that that must be a bone of contention.

Mr. Speaker, we do need assistance in

this country to be able to move this nation forward. We will be able to develop on our own, certainly; but when such facilities are coming on board, we should not attempt to indicate that there is something amiss.

I believe that our development partners would not be very comfortable with the submission of my dear Friend on the other side of the House. Suffice it to say that at the end of the day we are all convinced that Bui Dam needs to come into being, and it will come into being; and it will help us with our power generation. As far as the Authority is concerned, Mr. Speaker, I venture to say that the modern trend in governance is decentralization. Over- concentration tends to breed incom-petence, complacency and lack of efficiency. That is why this country and the Government before our Government decided that decentralization was the way forward for the development of this nation.

In that vein, we are trying to decentralize most of these hydra-headed organizations which need to be trimmed down on funds and move on. So I am surprised that my good Friend is now saying that it is perhaps imprudent to have the Bui Authority and rather to put it together with
Mr. Adjaho 11:40 a.m.
On a point of order. Mr.
Speaker, the hon. Minister is seriously misleading this House. He says that the creation of Bui Dam or the Bui Authority needs decentralization; that is completely off target.
Mr. Speaker, the Bui Authority Bill
which is before us, is not going to give Bui Authority to all the districts as we are talking about. Decentralization, which he is talking about, is about bringing governance to the local people. I do not want to believe that the decentralization that he is talking about shows that they are going to create the new Authority, which is going to be located in all the districts in Ghana.
Mr. Speaker, to make that submission is not proper; it is wrong and misleading and ought to be corrected for the records.
Mr. Owusu-Agyemang 11:40 a.m.
Mr. Speaker,
wilful deafness is sometimes a very distressing situation. Mr. Speaker, I never said what the distinguished Deputy Minority Leader is purporting that I said. If he had listened carefully, I said the way forward for most nations now is to decentralize, and I quoted the decen- tralization process as one of the ways of this Government and his own Government of moving this nation forward; and for that matter aggregation of hydra-headed organizations is not effective.
Mr. Speaker, the world is moving on with major corporations being broken down into components so that there can be efficiency. That was all the point that I was making and if he missed it, then I should suggest that next time he should pay attention. I never said that.
Mr. Owusu-Agyemang 11:40 a.m.


Mr. Speaker, the point that I am making is that VRA has its hands full and that is why efforts are being made to streamline it and indeed to separate the various aspects of it; and that is what is happening to Bui Dam.

Can you imagine a situation where we have -- At least, this Government, for consistency and for parity of reasoning, is saying that we are not going to keep VRA the way it is; we are going to break it down into power generation, distribution, management and various other sectors within the central power, eastern power; and then at the same time decide to give Bui Dam to an entity that we are decentralizing, that we are setting up. Does it make sense? It does not.

That is the point I am making so I want my dear Friend to listen. I am saying that the way forward, at least for this Government, is to make sure that we make VRA efficient. And the efficiency, at least, we are determined for the time being that this is the way to go. So to add Bui and Volta would be a contradiction and we are not used to contradictions; we move forward with consistency. That is the point I am making. And for that matter it is purely legitimate and proper that this Authority be established.

Furthermore, if you go to United States of America (USA) or most places such as the United Kingdom, you would see that most of all these power generating facilities are also separated for various places. So are other River Authorities; Tennesse Valley, Michigan -- all of them are separate because that makes for efficiency.

So Mr. Speaker, what we are doing is the norm; to move the nation forward.

Again, Mr. Speaker, I would like to
Mr. Chireh 11:40 a.m.
On a point of order. Mr.
Speaker, the hon. Minister and presidential aspirant is misleading this House -- [Interruptions] -- Now, he is giving the wrong comparison of the USA which is a Federal State, and Ghana. Apart from that the argument that we are making about Bui as against VRA is that VRA -- Only last two years, we decided to limit the activities of VRA by amending the Act for it to be generating -- and it has experience in this area.
Now, where are we going to get new set of people with experience to come and start this? When are we going to set up this bureaucracy and do we have the resources to resource these persons again, in addition to the difficulties VRA is facing? So he should not mislead us by making wrong comparisons.
Mr. Owusu-Agyemang 11:50 a.m.
Mr. Speaker, if I were to take hon. Yieleh Chireh on -- but I think I will spare him for the moment. It is his view, and our view is different. Otherwise, he will never ever replicate anything because of the existing one. The point that we are making here is that the Bui Dam will be leaner and more efficient. If we had built that capacity within the VRA, to answer him, we would then transfer some of the capacity and the capability and the competence to the Bui Dam.
Is he saying that because we have a core of expertise in the VRA, till thy kingdom come we should always be limited to that? That is not progress; that is myopic thinking. [Hear! Hear!] We have to move forward and the way forward is to make sure that we create entities that would be efficient. He better see that. Take the ICI, for example; the conglomerate
broke itself up into the pharmaceutical wing, the paint wing, and several works; this is the way forward. I have not seen people come together and make unwieldy bureaucracies and so I believe, Mr. Speaker, it is the proper thing to do.
Again, Mr. Speaker, in the power sector, IPPs are being invited to come in. They will produce the energy; we shall off-take that; we shall buy and the Public Utilities Regulatory Commission (PURC) would determine the price. And if the Bui Dam would produce 400 megawatts and that could be fed into the system then naturally we will have the means to pay, and this business of using the State asset -- only if we are not able to pay, then whatever would happen, would happen. And so, Mr. Speaker, I think that this House is being misled by the argument that is being canvassed on the other side of the House.
The important thing is that we are all agreeing that the Bui Dam would be useful in our scheme of things to provide power to our people. As to who manages it, I think, is something that we would take in detail. But I have absolutely no doubt -- I am sure that this day would be followed by night and so the Bui Dam would come to pass and the Authority would rise to the occasion.

We have the men and the women in this country who will do it. In this nation we have them and I do not think we should belittle the competence of our engineers and our technicians at all. We have the people; they will be able to do it and Bui Dam will come to pass. And posterity will judge that this Government had the courage, the audacity, and the conviction

to bring Bui into being.

After all, it is on record that another Government came in for eleven years, and another one came in for eight years and they did not do it. We are going to do it and it shall come to pass. [Hear! Hear!] And this nation will pay tribute to the current President of this nation and his Government for what we are doing.

We have a problem on our hands and we are solving it, and so let us now bury all partisan politics and make sure that we do not send the wrong message out there to those who are helping us, that we do not want this facility. This facility is welcome, it is God sent; and with God on our side, it shall come to pass and we shall reverse the problem of electricity in this country.
Dr. Kwame Ampofo (NDC -- South Dayi) 11:50 a.m.
Mr. Speaker, I rise to speak to the motion on the floor and in doing so, I would like to make these few comments.
The establishment of the Bui Authority to execute the Bui Hydro Project itself is not a bad idea because the mover of the motion, the hon. Minister himself has said that Governments preceding this Government had all agreed and identified this particular project as a useful one for this country. The differences have been the timing and perhaps the initial technical work that needed to be done before such a venture is undertaken.
For example, before such a project is undertaken, we need to do the pre- feasibility studies, the feasibility studies itself, the environmental impact assessment and indeed a lot of other studies, including the technical work itself, the design of the project and other related studies.
All these take time and it is gratifying to note that this Administration, at least, has the privilege of many, many studies that
Dr. Kwame Ampofo (NDC -- South Dayi) 11:50 a.m.


had been conducted by its predecessors; and it is only natural that the current Administration should take the previous work that had been done by moving it forward. In that respect, I commend them for not throwing away this project simply because previous governments had had something to do with it and had actually studied it.

I wish to put on record that if the NDC did not execute this project, even though it wanted to do so, it was because wisdom, wise thinking indicated that from the experiences that we had in the past with power generation in this country, the most prudent thing to have been done at that time was to rather diversify the energy resource base of this country. That time, we were generating power almost hundred per cent from hydro sources.

This approach to electricity production in this country had proved to be very risky. Past experiences had determined that, and if we did not do anything about it, then it meant that we had not learnt any lessons. Therefore, in the wisdom of the previous NDC Administration, it was thought that we needed to strategically suspend this project and move to do thermal complementation of the system so that in situations where we would have problems with water inflows into the lake then we would not be in total darkness.

Indeed, had it not been for the steps that the NDC Administration took by adding 550 megawatts of thermal power at Aboadze, this country would have been in total darkness by now; and even there would have been nothing to do load shedding with.

Therefore, I wish also to put on record that currently, the power that we are consuming now, which is being used to load shed and distribute to consumers --
Mr. Osei-Prempeh 11:50 a.m.
On a point of
order. Mr. Speaker, the hon. Member is giving us a lecture on thermal whatever- whatever. [Interruptions.] Mr. Speaker, what we are discussing are the general principles of the Bui Authority Dam and I believe he must restrict himself to that.
Dr. Ampofo 11:50 a.m.
Mr. Speaker, as I was
saying, currently, 52 per cent of the electricity being consumed under this unpleasant load shedding regime is coming from the thermal sources that the NDC left.
Mr. J. B Aidoo 11:50 a.m.
On a point of order.
Mr. Speaker, the hon. Member who just spoke said that the previous regime gave power, that is through the thermal power at Takoradi to the tune of 500 megawatts. Mr. Speaker, that is not so. [Inter- ruptions.] Mr. Speaker, the previous Government did not give this country 500 megawatts. The previous Government gave this country 300 megawatts and then the NPP Government came to power and topped it up by 250 megawatts, and so I want him to set the records straight.
Dr. Ampofo 11:50 a.m.
Mr. Speaker, I think
the hon. Member should be careful not to embarrass himself because these are hard facts. I do not want to go into that; I think it was a slip of tongue and maybe the hon. Minister has corrected him. I will move on. Iindeed, I did not say 500 megawatts, I said 550 megawatts -- there was an additional 50 to the 500 that he is talking about.
Mr. Speaker 11:50 a.m.
Hon. Member for
Asokwa, do you have a point of order?
Mr. M. K. Jumah noon
On a point of order. Mr. Speaker, the hon. Member is still misleading this House by saying that the previous Government gave this country 550 megawatts. This reminds me of a story my uncle told me. He said he inherited three cars only to find out that one of the three cars had a flat tyre; another one did not have an engine. Mr. Speaker, I am putting myself up to be embarrassed. Could the hon. Member embarrass me by telling me exactly how he came by the 550 megawatts?
Dr. Ampofo noon
Mr. Speaker, I really
would want to move on but I want to say that if they want the total installed capacity -- What I quoted as 550 megawatts is only available capacity. On top of this 550 megawatts, which is available capacity, you must also add installed capacity of 125 megawatts in the Osagyefo Barge. That is called installed capacity.
You have to also add 30 megawatts of thermal capacity, diesel at Tema that
Dr. A. A. Osei noon
Mr. Speaker, the senior hon. Member, a very dynamic person in the area of energy, is greatly misleading this House.
He just mentioned the Osagyefo Barge as an installed capacity. How can he call the Osagyefo Barge installed capacity? Mr. Speaker, he is fully aware that this barge was rotting somewhere in Europe; it was never put to use and he is calling that installed capacity? He is an engineer. Something that is even there that has never seen the light of day which we moved to Accra, he is now calling that as his party's installed capacity. That is grossly misleading this House.
Mr. Speaker, he knows that when they wrote the contract the condition was that they would use gas from Ghana; he knows that. Since that time they have never found gas in Ghana. So how could the barge be in place? It is only recently that we went to beg the Japanese to allow us to use the West African gas.
So never could they have produced that electricity. Mr. Speaker, he knows that. So even though the Japanese gave us over $100 million to get that thing produced they never brought it to Accra, neither did they have available gas. We are still looking for gas in Tano, even though the contract was signed that we would find gas there. He knows that they never found gas. So how could he call that installed capacity? He should withdraw.
Mr. Speaker noon
Hon. Member for South Dayi, you do not have much time.
Dr. Ampofo noon
Mr. Speaker, no doubt the hon. Member who just spoke is an economist and not an engineer. Installed capacity means that it has been built and available capacity is what can be used. In any case -- [Uproar.]
Dr. Ampofo noon
Mr. Speaker, what is the sense in bringing a rotten barge into Ghana at a cost? The barge was rotten! [Uproar.]
Mr. Speaker noon
Order.
Dr. Ampofo noon
Mr. Speaker, the barge was rotten. It means that nothing could be done with it and then a whole government thought it prudent to spend money to bring it -- And it is rotten. This is why this country under this Government will continue to reel under power curtailment.
Mr. Speaker, we have offered them an opportunity to come and debate.
Dr. A. A. Osei noon
On a point of order. Mr. Speaker, I did not want to go into an area my good Friend knows is dangerous. Even though he is an engineer, if he wants us to go into this area we would take him on.
Mr. Speaker noon
Order!
Dr. A. A. Osei noon
Mr. Speaker, I want him to know that the terms ‘installed capacity' and ‘available capacity' are not only unique to engineers. Economists use those words. My point was that when they went and signed the contract on condition that they would use gas from Tano, they
knew that there was no gas -- So he cannot call that ‘installed capacity' because he knew very well that nothing was going to come out of it, anyway.
Now, they have gone and negotiated a contract that, ‘Give me this barge because I would find gas', knowing very well that the gas is not there. It does not matter what they did. They deceived Ghanaians then and they still continue to deceive Ghanaians. We are still paying for some of the financial misdeeds that occurred there. That is the point I am making. So he should withdraw.
Mr. Speaker noon
Hon. Member for South Dayi, let us speak to the motion and make progress.
Dr. Ampofo noon
Mr. Speaker, they are not allowing me. Mr. Speaker, if anybody caused any financial misdeeds it is precisely his own Government and his own people. We found some during the strategic energy plant -- [Interruption.]
Mr. Speaker noon
Hon. Member for South Dayi, please let us speak to the motion and make progress.
Dr. Ampofo 12:10 p.m.
So, Mr. Speaker, all I want to say is that we need to collectively think through these projects. There are certain observations that would really hamper the future benefits of this project. It is a good project but a project which, if not well implemented, could cause more harm than it was intended to.
Mr. Speaker, there is going to be an effect of this construction on the existing hydro sources, that is Akosombo and Kpong. Therefore, it is important to carefully merge the projects so that they operate in tandem and this would minimise the negative impacts and optimise the benefits.
Optimisation has to be done in such a way that if we have one authority then
it is in their interest and the interest of the whole nation for this type of balance to be made; because sometimes in optimisation you may need to even curtail the production from one source while you maximise production from another source.
If we have different authorities doing this then there would be the likelihood that instead of working together they would try to compete, and such competition could be disastrous. It is important that we look at such scenario and we think that this is what could happen because each of them would be a different business entity and then the operation of the Volta River would then be in jeopardy.
Mr. Speaker, my final observation is that these authorities must not be converted into local administrations, that is, local authorities. During the time that perhaps Akosombo or the VRA was made an authority we did not have such elaborate local government system existing.
You would find out that the crafters of this Bill took most of the things, word for word, from the 1961 Act. So even things that were quoted there in miles, they are still maintained as miles, forgetting that we now use kilometres. So I am saying that local government responsibility for an Authority like this should be carefully made; and I think that that should not be part of their responsibility at all.

In addition, the Bill proposed that the Bui Authority establish its own transmission lines. Mr. Speaker, this is totally contrary to the power sector reform which is in process. Because of this reform, last year Parliament in its wisdom passed an Act that was to separate the transmission responsibilities of Volta River Authority (VRA) from its generation

responsibilities.

This is very necessary to give a level playing field to incoming Independent Power Producers (IPPs) because when the IPPs come, they would want to have what we call free access to the transmission line. This is because when they generate power they do not want to wait till another entity which owns the transmission line has finished evacuating its own power, even if it is more expensive than what the IPP has generated, before they put it into power.

So most IPPs do not want to come into the system until such time that they know that the transmission system is not being owned by a competitor who is a generator, but it is being owned by an independent utility; and Parliament and Government in their collective wisdom have passed this Act. So why do we want this new Authority to have its own transmission lines?

Mr. Speaker, I think other hon. Members

want to speak so with these few words, I would end by saying that I also cautiously support the motion.

Mr. J. H. Mensah (NPP - Sunyani

East): Mr. Speaker, for me as a Member of Parliament from Brong Ahafo, it is a good day in Parliament today. As some hon. Members have mentioned already, this project has been on the drawing board for the best part of the last century. Now Mr. Speaker, it is not important that somebody thought about it; it is important that somebody should build it, and today we are marking a step on the way to building it.

Mr. Speaker, the hon. Member for

Tamale South (Mr. Haruna Iddrisu) is a near neighbour to our former Director- General of the Ghana Education Service and I would recommend that he consults

him about some of the ways of bureaucracy in administration. Mr. Speaker, when you want a very, very important job done, it is often necessary to take it out of the routine and have special machinery for it, otherwise we could go on for years and years and years with this project on the drawing board but never getting it implemented.

We had promised the nation and the

people of Brong Ahafo that during our time in office we would get this project off the ground at last and so from the very beginning we had to think of the machinery that would deliver this promise most rapidly. Mr. Speaker, it was therefore necessary to create within the overall field of energy policy, a special body to focus on bringing this project to fruition.

Mr. Speaker, when we came into office,

we found that the VRA was at the height of its thermal mode. They had bought thermal generation and they were really not doing anything about advancing Bui. In this energy fields, perhaps more than any other field, it takes long range planning to get anything done. When we asked about Bui the answer we got from the top authorities in the VRA was that it was too expensive to build and it would take too long to build.

So they were in a hurry and they were concentrating on thermal generation. I do not want to say we told you so, but if we had started then, five years ago, six years ago, we would have had the facility to help us out now. But at that time the Authority was interested in a strategy of supple-menting the hydro resources with thermal resources.

Indeed, the philosophy of the Authority eventually evolved to the point where they were supplementing the thermal capability with the hydro capability because they
Dr. Ampofo 12:10 p.m.


had lost confidence in the ability of the hydro source. Everybody in energy knows that hydro source is by far cheaper than thermal source, and therefore it would have been a correct strategy earlier on to supplement our hydro capability with thermal capability, to cater precisely for the known variations in the water availability over the years.

Every five years or so, in a naturally- based facility like a dam-based hydro station, you would have variability that would mean that you are at a low level in some years and you would have to supplement it. So you supplement the hydro source with the thermal generating station, but if you focus your strategy on the thermal sources and use the hydro source as a supplement, then you are running a sub-optimal policy in your generation.
rose
Mr. Speaker 12:10 p.m.
Hon. Member for
Jomoro, do you have a point of order?
Mr. Ocran 12:10 p.m.
Yes, I have a point of order.
Mr. Speaker, the old man is misleading the House - [Interruption] - the hon. Old Man is misleading the House.
Mr. Speaker 12:10 p.m.
Hon. Member for
Jomoro, we do not have any old man in this House.
Mr. Ocran 12:10 p.m.
The hon. old comrade,
J. H. Mensah, as he was referred to yesterday, is misleading the House; the former Senior Minister is misleading the House. The policy, as he came to inherit, has never been that we should concentrate
more on thermal - hydro and thermal mixed. Of course, when there is no water, like today there is no water, you can build ten hydro dams and there would be no water in the dam. Therefore, you have to use more thermal. That is all.
Mr. J. H. Mensah 12:20 p.m.
Mr. Speaker,
the hon. Member was not listening very carefully. We are talking about supplementation, so you have your base source and you supplement it. Either you would use the hydro as your base source and supplement it with thermal, or you would use the thermal as your base source and supplement it with hydro.
Mr. Speaker, let me say this because
we had to take the decision. It was necessary to restore the position of Ghana as being mainly dependent upon cheap hydro sources and supplementing it with thermal. The Authority, however, was not interested even though somebody has quoted the Bill as setting out the Volta River Authority forty-something years ago, and saying that the total definition of the Volta Basin includes the Black Volta. But the fact is that operationally, the VRA was not working to promote the Bui Dam at that time; they were focused on building thermal stations.

So we took the job and gave it to a special committee, the Bui Development Committee and said, “you drive this”; and it is thanks to their work that today we have a Bui Bill before us and a lot of other preparatory works had been done.

Now Mr. Speaker, we have been this way before as a nation. In the early 1960s, as some hon. Members rightly pointed out when we wanted to drive the realization of the Volta Project, we set up the Volta
Dr. Benjamin Kunbuor 12:20 p.m.
Mr.
Mr. J. H. Mensah 12:20 p.m.
Mr. Speaker, I think that is a sad part of our history because our proposed partner went bust. That is the history of that initiative. Mr. Speaker, the Bui Authority therefore will focus its attention and all its energy on getting this project for us. And that was what we did in 1961 with the Volta River Authority. We set it up specially outside the planning machinery and general government machinery and they drove the implementation of the Volta River Project.
Mr. Speaker, therefore, it is an advantage and not a disadvantage to create, in the case of a major project like Bui, also a specialized authority to implement and manage it. That is the answer to that misgiving. And as I said, if the hon. Member wants some lessons on the ways of bureaucracy, he should ask the hon. Alex Tettey-Enyo and he will tell him this. When we wanted to reform education we had to form a special machinery to try and drive it; and that is the way of the world.
Mr. Speaker, let me go on to another
aspect of this project. Everybody is
Mr. E. K. D. Adjaho 12:20 p.m.
Mr. Speaker, on a point of order. Mr. Speaker, I heard the hon. Member on the floor saying that everybody is bandying some figures of 400 megawatts and $600 million. Mr. Speaker, the true position is that the $600 million is in the Bill and can be found at clause 19. So the $600 million is in the Bill and that is why the Committee has proposed that it should be deleted.
Mr. J. H. Mensah 12:20 p.m.
Mr. Speaker, I
am just saying to Parliament that at some stage, we have to concern ourselves with the final Bill and it depends, even today, upon the ultimate design of the dam. Mr. Speaker, there is not one unique design of dam; we must concern ourselves with the ultimate optimum design of this dam.
I myself have read a lot of literature about options already but to go back to the story of Akosombo and Agyina, Mr. Speaker, in those days our concern was to maximize the power potential and therefore we changed the site to Akosombo. But in changing the site to Akosombo, we had to sacrifice more land to be inundated under the lake. So the choice of what you do is a trading off between land and power.
Mr. Speaker, when we started talking about Bui, we were talking about 500
Mr. J. H. Mensah 12:30 p.m.


megawatts capacity. Today, everybody is talking about 400 megawatts capacity and the reason is this: at some stage, the environmental concerns became overwhelming and therefore the design specifications were changed to sacrifice generating capacity in favour of preserving more land.

I think today if you ask the same question, our concerns would be a bit different because now we are suffering from power shortage and perhaps our choices would not be the same. That is why I am saying that at a subsequent stage, Parliament must engage the Bui Authority in deciding this trade-off between energy and land. It is a political and social matter; it is not an engineering matter alone.

Mr. Speaker, again the type of dam will

determine the cost and although hydro is more expensive to build, as I said, it has zero fuel cost. Therefore, we balance the present cost against the future cost in these two cases. So to move your concentration onto thermal at the expense of hydro is a mistake; and we are now proceeding to correct it.

Mr. Speaker, the other aspect of this is that the Authority is going to have to send its power along the transmission companies' lines into the market and I think that somebody has suggested that that part of the Bill should be looked at carefully again.

But Mr. Speaker, the other thing is this, that in the Government today, all the departments, in all the regional administrations, in all the district administrations, we have created planning units and Bui will affect a certain geographical location. So we should look at the development of Bui as a zonal development exercise and we must involve more the planning authorities at the regional and district levels. I see that on the composition of the Board, not much

attention is paid to this aspect.

I think one of the issues on which I want to support hon. Hackman Owusu- Agyemang's proposal about decentra- lization is that the people on the ground must have more of a say in it. Also, Ghanaians must have more of a say. I am disturbed to hear things like “the Chinese are coming to do this for us” and “the Chinese are coming to do that”. Mr. Speaker, unless our people walk with the Chinese every step of the way, who would manage it for us when they are gone? So it is very, very important for the Authority to have as one of its cardinal working principles, the need to associate Ghanaian expertise at every stage of this. Then, we would have learnt how to do it and maybe next time when we go to do the dam at Pwalugu, our own engineers can do it all by themselves.

Mr. Speaker, it is natural that we should

develop the Bui area as a new urban settlement, so our planning authorities must be fully involved in that. The area is supposed to be developed into a township and somebody said he is doubtful whether the Authority should have in its power such functions. I think that there are advantages in having the two jobs done together but we would discuss that maybe at the Consideration Stage.

Mr. Speaker, let us view this also in the light of the general energy strategy of Ghana. These things take a long gestation period. Today, we must start planning for when Ghana would produce nuclear energy because unless we start now, in 10 years' time, we would still be saying, it takes too long. But as the Chinese say, the longest journey of a thousand miles must start with one step.

So we must take the first step now. When the Bui area is developed therefore, it must have enough of a national character;

it must envisage a range of economic activities that will change that part of our country which is largely uninhabited.

The other day I came across an example of how the Chinese have done this in one little place in their own country. There is a town called Zhen Zhen in southern China. They picked it as a village of thirty thousand people opposite Hong Kong. Today, that village has been developed into an industrial zone whose exports a year total seventy-seven billion dollars. From a village of thirty thousand people, that zone is now exporting to the world seventy-seven billion dollars worth of goods. That is the kind of developmental potential that you can gain if you focus on developing such zones.

Mr. Speaker, once more, let me congratulate the Government on moving us a further step forward; let Parliament concern itself with the further details of the cost, design and the trade-off between land and power so that the decisions that are taken will be optimal for the future of the nation.

I thank you very much.
Mr. E. K. D. Adjaho (NDC 12:30 p.m.
None

Ave): Mr. Speaker, I rise to contribute to the debate on the floor. Mr. Speaker, your Committee's Report at page 3 indicates that there was a division as to whether we needed an Authority at this time or not. Mr. Speaker, I have no doubt in my mind that this project is a project that must be supported by all hon. Members of this House and indeed all Ghanaians.

Mr. Speaker, however, my difficulty is whether at this time we need a new bureaucracy, we need a new authority for this purpose. Mr. Speaker, I have been with the Energy Committee for some time and my understanding of the power reform sector all these years is to the effect that VRA should concentrate and specialize in hydro while a different company should

specialize in thermal.

Mr. Speaker, only last year in our debate on the floor of the House, and I refer you to the Hansard dated Thursday, 14th December 2006 -- the contribution made by the former hon. Senior Minister and Member for Sunyani East, Mr. J.H. Mensah. This is what he had to say -- and with your permission I beg to quote -- Column 3345:

“Mr. Speaker, our intention in passing that Act, among other things, for instance, was to create in place of the present omnibus Volta River Authority (VRA), specialized companies to deal with hydro generation, to deal with thermal generation, to deal with transmission of power around the country, apart from Electricity Company of Ghana being the end- seller to the consumer.”

I can go on.

Mr. Speaker, I will also refer you to the Budget Statement of the Government for the Financial Year Ending 2005 which was presented to this House on Thursday, 24th February, 2005; and I am referring to page 94, paragraph 288 of this document. Again, Mr. Speaker, with your permission I beg to quote:

“In line with the Power Sector Reform Strategy, Cabinet decided on the following:

The Volta River Authority should be constituted into two Companies, a Hydro Company to be responsible for Hydro Generation and another Company to operate the Aboadze Thermal Power Complex.”

Mr. Speaker, there are other documents. We can refer to the Energy Commission
rose
Mr. Speaker 12:30 p.m.
Majority Chief Whip,
do you have a point of order?
Mr. Kyei-Mensah-Bonsu 12:30 p.m.
Mr.
Speaker, rightly so. Mr. Speaker, I fail to see the logic in what my hon. Colleague, the deputy Minority Leader is saying. Yes, clearly, it was said that VRA should concentrate on hydro. Mr. Speaker, nothing in what he has said makes it exclusive that any hydro generation anywhere in the country should be directed to VRA.
Mr. Speaker, the connection is not there, unless he is importing from somewhere. Clearly, he is misleading the country, this House and himself.
Mr. Adjaho 12:30 p.m.
Mr. Speaker, if a Senior
Mr. Kyei-Mensah-Bonsu 12:30 p.m.
On a point
of order. Mr. Speaker, I thought my hon. Colleague was going to disagree with me on what I had said. Clearly, what is the connection? If it is being said that they should specialize in hydro generation, Mr. Speaker, what he quoted suggests to him and to the entire nation that it is exclusive
to VRA, that they alone should do power generation.
Mr. Speaker, there is no connection and that is what I am asking him. There is no logic in what he is saying. Clearly, in his understanding of what has been said, he is misleading this House, misleading the entire nation and misleading himself.
Mr. Adjaho 12:40 p.m.
Mr. Speaker, I do not know why the Majority Chief Whip is so much worried about me referring to their own document. But I will ignore him and continue. If he has not seen the logic yet, he will see the logic by the time I end my submission on the floor.
Mr. Speaker, I refer you to a
memorandum submit ted to your Committee by the Volta River Authority. Mr. Speaker, I refer you to the comment on clauses 7 and 23 of the Bill which is the subject matter of the discussion. Mr. Speaker, with your permission, I will like to quote. This is from the Volta River Authority.
“With reference to clause 7 of the Bill which deals with the Primary functions of the Bui Authority, and clause 23 (1) which deals with the filling of the lake, during the period of impounding the Bui Dam, there is a very real likelihood of water from the Black Volta, one of the two major tributaries of the Volta River being cut off from the Volta Lake for several years which will adversely affect the output of the Akosombo and Kpong Generation Stations since the Bui Dam has a very high head. If one body is to manage the whole Volta River Development, it may be better placed to manage the impounding of the Lake in such a manner as not to reduce the output of the other generating stations, downstream, namely, Akosombo
and Kpong.”
Mr. Speaker, this is the memorandum your Committee received from the Volta River Authority. This memorandum has strengthened the conviction of some of us that while we support the Bui project, for now we can proceed with the construction because I do not want to believe that we need to put the Authority in place before construction can take place. So that at the level of generation, all those difficulties, the technical details and all those areas of fear of VRA can be reconciled in the interest of the people of this country.

Mr. Speaker, it is on that basis that the Minority members of the Committee on Mines and Energy have decided that it will be better for now, for the project to go on, whilst the issue of who manages the generation is considered at another time later.

Mr. Speaker, we have been told that we have the expertise in this country. Mr. Speaker, I do not know where the expertise are apart from the Volta River Authority (VRA), and this is an advice that has been given to the Committee by the experts in the management of the generation of our hydro capacity in this country.

Mr. Speaker, I believe that we should not create the impression that we wanted these authorities to be created for something else. In my candid opinion, I believe that the project can even start, whilst all the necessary technical details can be clarified and the issue of management can be a matter that should be looked at.

Mr. Speaker, if you look at the submission before the Committee, there is a real likelihood that competition is going to be created between the Bui Authority and the Volta River Authority. There is a real likelihood that we are going to create
Mr. Balado Manu 12:40 p.m.
On a point of
order. Mr. Speaker, the hon. Deputy Minority Leader is being fallacious and misleading this House. Mr. Speaker, all that he has been saying, I have been looking and listening to him critically. What he quoted, as hon. Kyei-Mensah- Bonsu pointed out to him -- specializing in something is different from monopoly of that thing.
He is arguing like, because we have Asante Kotoko, or Hearts of Oak, we should not have the other teams because there will be competition. But he must know that competition is a mark that ensures efficiency -- [ Laughter] -- If he read a little economics, he would know that competition calls for efficiency.
So what he must pray for, is healthy competition and not just condemn the competition for the sake of competition. If the competition is healthy it helps the nation and will not pose any problem. So he should call for healthy competition between the Volta River Authority and the Authority being created rather than saying that the other should not be made to come into existence because there will be competition.
Mr. Adjaho 12:40 p.m.
Mr. Speaker, I have
been in this business for some time and I know what he is trying to do, so I ignore him. Mr. Speaker, the point being made -- and that is why I have taken time to read all these to put this information on the floor. Mr. Speaker, this is not an ordinary competition. In fact, my position on this
matter would have been different, if a hydro was being put on Tano, which has no direct relationship with Volta River or Akosombo, and my attitude on this matter would have also been different. But if it is a tributary of the Volta, which will have a direct impact -- In fact, those before me have admitted that it will affect the flow of the water into the Volta Lake which will affect the generation capacities of Akosombo and Kpong. That is why I am asking, what happens in a situation where they have to impound the water to generate electricity, and then Akosombo is also suffering at the same time? What happens to that situation? That is the point that is being made.
Mr. J. H. Mensah 12:40 p.m.
On a point of
order. Mr. Speaker, I just wanted to draw the attention of my hon. Friend to this fact. Mr. Speaker, we will continue to have a Ministry of Energy and all these power businesses will also continue to operate under the authority of a regulatory authority; we have the Energy Com- mission and so forth. So it is not as if between Bui Authority and Volta River Authority, they are two unbridled, loose cannons fighting against each other.
Mr. Speaker, there is a Ministry, and it will remain there; and there is a Government, so that issues of conflict resolution have a home for resolution. I would like the hon. Member not to push a point which just is so impracticable. The world does not work with just one company doing everything for us. The world works with many, many companies, some of them doing identically the same thing and they coexist.
Mr. Adjaho 12:40 p.m.
Mr. Speaker, in the
course of our deliberation as a committee, the Nigerian experience was shared with your Committee; where two dams were built on the same river, and we learnt it created a problem. It is important to

share these experiences so that we do not make the mistakes those who trod that path before us made. That is why it is important for us to make these points on the floor for it to be on record. That is why it is important to listen to the advice of the Volta River Authority, that it is better for one body to manage it. That is the advice coming from the VRA; that is the advice coming from the experts. It is not the advice of only hon. Doe Adjaho.
Mr. Kyei-Mensah-Bonsu 12:40 p.m.
Mr.
Speaker, my hon. Colleague keeps misleading us. He is citing the case of Nigeria. We have the case of Liberia, Sierra Leone and Guinea, what we call the Manor River Union. Mr. Speaker, they have a dam and it is managed by three different companies on the Manor River, serving three countries.
Mr. Speaker, my hon. Colleague may have some strong reservation about the VRA's position, vis-a-viz the creation of the Bui Dam Authority. But he should not confuse us by just quoting from Nigeria. Let him tell us what happens in Nigeria. Mr. Speaker, it does not even conflict with what we are doing.
Mr. Adjaho 12:40 p.m.
Mr. Speaker, well, he is
not being paid as Chief Whip for nothing; he has to justify it. Mr. Speaker, but concerning the example that he has given, we are talking about the sovereignty of different countries. Like what happened in Burkina Faso, where the Volta River passes through their territory, they decided to dam it. So that is the example he is giving in terms of the Manor River area. These are rivers in different countries with their sovereignties being exercised, so that is a different example.
The Nigerian example I am giving is in the same country. Therefore, the example he has given is not very relevant.
Mr. Speaker, I would just make this point -- and I make it for the records and I leave it to the judgment of posterity, not necessarily for this House. As for the Bill itself, that is a lot of work that the Committee did on this Bill. Mr. Speaker, you will find out that, it is a 35-clause Bill, 28 clauses of the 35 clauses have suffered some sort of mutilation -- [Laughter] -- and clearly, the Bill that will come out of this House, definitely, will not be the Bill that had been introduced by the hon. Minister for Energy into this House.
rose
Mr. Adjaho 12:50 p.m.
Mr. Speaker, there are a whole lot of clauses in that Bill, but once the Committee of which I am an active member has taken steps to correct them, I do not want to refer to some of those ones. But if the hon. Member for Old Tafo wants me to give him an example, Mr. Speaker, I will be ready to point out one or two examples to him.
Mr. Speaker, there is this vexed area. I thought we deleted that clause but I found it in the Committee's report. And for the avoidance of doubt, I want to make this point. The kind of constitutional arrangements that we have in this country now will not allow a board to perform the functions of a Minister as we found in the Authority that is being asked to perform the functions of the Minister.

Mr. Speaker, that clause we have decided to delete but I have also found that it is not a settled matter at page 3 of the last paragraph and that is why I will want to raise it. The kind of local government system that we have, the kind of decentralisation that we have in this country, I believe that the necessary arrangements can be put in place to give
Mr. A. O. Aidooh 12:50 p.m.
Mr. Speaker, I know that my hon. Colleague knows about what we call pre-incorporation contracts. So he must be very careful of what he says.
Mr. Adjaho 12:50 p.m.
Mr. Speaker, information made available to the Committee is that negotiations have been completed in certain areas. Now we are creating the Authority -- [Interruption.]
Mr. A. O. Aidooh 12:50 p.m.
Mr. Speaker, even if contracts have already been signed before the Authority is formed, there is nothing wrong with it. I think he knows that as well.
Mr. Adjaho 12:50 p.m.
Mr. Speaker, I believe the hon. Member must be listening to what I am saying. I am saying it will be better for this Authority to be created when the negotiations started so that they will be part -- I am not saying it is illegal. I am saying it will be better and neater so that they are involved in the processes. You do not go and complete a negotiation, come and create an Authority and say the
Authority should go to China or wherever or in Ghana to go and ratify a contract -- what has already been fait accompli. I believe that this arrangement is not too neat -- If they were involved in the arrangement process from the beginning, it would have been better and it would have been in the interest of this country.
Mr. Speaker, these are some of the few comments I intend making on this Bill. When we come to the Consideration Stage, we will continue the process but Mr. Speaker, it is my personal conviction that this Bill -- The project is a good one; we all support the project. My problem, Mr. Speaker, is that we do not need an Authority now; it is not the best for the country. Thank you.
Mr. Speaker 12:50 p.m.
Minister for Energy, it is proper that you should wind up at this stage.
Minister for Energy (Mr. Kofi Adda) 12:50 p.m.
Mr. Speaker, I wish to express my appreciation to my hon. Colleagues for the various remarks and contributions that they have made. Mr. Speaker, I will like to start by correcting a wrong impression that was made by the hon. Deputy Minority Leader. It is not the intention of this Government to create an Authority from this Bill to go and sign a credit agreement.
Mr. Speaker, the credit is being negotiated jointly or collectively between the Ministry of Energy, Ministry of Finance as well as the Ministry of Justice and that the personalities involved in this negotiations will be the ones to sign the credit agreement. It has got nothing to do with the setting up of the Authority. The Authority is to be established to manage the enterprise when it is fully developed. I want to correct this impression before I move on.
Mr. Speaker, it has been said by some of my hon. Colleagues that indeed, this
Minister for Energy (Mr. Kofi Adda) 12:50 p.m.
project has been there for so long and if Kwame Nkrumah's Government had been left to be in power they might have completed it. That is very true, Mr. Speaker, it may well have occurred. But indeed, there were other governments in this country which stayed in power for nineteen years and could not execute it -- very much longer than when Kwame Nkrumah was in power and therefore I think this point is totally irrelevant to the points that we are discussing.

Mr. Speaker, one of the key issues raised was the issue of bureaucracy. It is indeed our intention to cut down the bureaucratic processes of the current VRA administration. It has led us to consider setting up a small, lean and compact organisation that can manage the dam that will be constructed and focus on its core business. That is why we are coming up with a separate Bill that will enable us to set up a separate Authority to undertake the management of this organisation.

Mr. Speaker, the Volta River Authority was set up in a different time and era. The history and the culture at the time is
Minister for Energy (Mr. Kofi Adda) 1 p.m.
Mr. Speaker, the existing VRA is rather big, unwieldy at this point in time and to add the Bui Authority to it will be asking too much. It will be to slow down the whole process and even create a longer bureaucratic process. This is exactly what we are trying to avoid, Mr. Speaker.
Mr. Speaker, we will like, in the spirit of good governance in this country, to get various entities of the private sector to focus on their core business and also to deliver results. If we do not implement or adopt this -- and pass this Bill, we will not be able to produce that objective.
Mr. Speaker, many studies have been undertaken and most recently, the feasibility study leading to the negotiations of the credit facility have been completed; the environmental social impact reports have been completed; resettlement plans have been developed.
All these are documents that were reviewed by our partners and considered to be documents that have put all the right things out there in terms of mitigating measures to deal with what will be adverse effects on the construction of this dam and therefore they are in agreement with us that the construction of this dam and the setting up of an Authority to handle it will help us achieve our national objectives.
Mr. Speaker, my hon. Colleague from Tamale Central (Mr. Haruna Iddrisu) talked about the VRA Act 46 making Bui part of the Volta. Indeed, nobody
is arguing against the fact that VRA hitherto had responsibility for the Volta Basin. Now the setting up of the Bui does not prevent water from running into the Akosombo Dam. The Black Volta is part of the Volta. We accept that. No one objects to that.
Mr. Speaker, the point we are making simply is that on different levels of the lake, there can be different entities that will manage different hydro power facilities. And at this point I will like to state for the records and to my hon. Colleagues in the House that what we are really doing is encouraging the private sector to come in and help develop 16 small and medium hydros that have been identified and various feasibility studies conducted on those sites.
This simply means that the private sector can now come in and develop one side of these potential hydro facilities and run it within the rules and regulations of the nation and that still would not adversely impact on the operations of the Volta and the Kpong lake.
Mr. Speaker, my hon. Colleague from Tamale South again tried to quote me about the 30 gigawatts of power which will be lost. Mr. Speaker, I will like to compare this to the 4,800 gigawatts an hour that is coming from the Akosombo and Kpong lakes. The 30 gigawatts compared with the 4,800 gigawatts is really insignificant.
Mr. Speaker, most of these losses would come out of evaporation not necessarily because the Bui Dam would be constructed and therefore would prevent water from going into the Akosombo Lake.

Mr. Speaker, again some comments were made on the credit facility that would support the development of this project.
Mr. A. O. Aidooh 1 p.m.
Mr. Speaker, before I move for adjournment, let me say that after adjournment there would be winnowing of the amendments in relation to the National Accreditation Board Bill at the Office of the Majority Leader and I will preside. So I will invite all hon. Members who are members to appear. On that note, I move that we adjourn proceedings to tomorrow morning at 10 o'clock.
Mr. Adjaho 1 p.m.
Mr. Speaker, the understanding this morning in your Lobby was that they can start taking the amendments and then after that they can look at it. That was the understanding in your Lobby but if that is the thinking of the Majority -- It is their Bill so we do not have any problem. They brought the Bill, so whatever they say -- but the under-standing in your office today was that we will start the amendment process and then if there is any controversial area we can meet to reconcile it. That was the understanding in your office. But it is Government Bill; so it is over to them.
Mr. A. O. Aidooh 1 p.m.
Mr. Speaker, I move for adjournment and what I said earlier still stands.
Mr. E. K. D. Adjaho 1 p.m.
Mr. Speaker, I realize that there is a problem of communication between the Majority Leader and his Deputy, but I second the motion.
Question put and motion agreed to.
ADJOURNMENT 1 p.m.
  • The House was accordingly adjourned at 1.12 p.m. till 15th June, 2007 at 10.00 a.m.