Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Mixed Credit Facility between the Government of Ghana and the Government of Belgium/KBC Bank NV of Belgium for an amount of €5,383,822.22 for the Second Phase of the Clinical Laboratory Improvement Project (CLIP) and a request for the Waiver of Tax
amounting to GH¢1,292,003.00 arising from Goods to be purchased under the Facility.
Mr. Speaker, by so doing, I would want to present the Report of the Finance Committee for the consideration of the House.
The above Mixed Credit Facility between the Government of Ghana and the Government of Belgium/ KBC Bank NV of Belgium was laid in the House on Wednesday, 4th June 2008 and referred to the Finance Committee for consideration and report.
In considering the above agreement, the Committee met with the Minister of State at the Ministry of Finance and Economic Planning, hon. Dr. Anthony Akoto Osei, and with officials from the Ministry of Finance and Economic Planning to consider the referred agreement and report as follows:
The genera l s ta te of Cl in ica l Laboratories in the public sector has been very deplorable, especially the state and availability of diagnostic equipment and technical facilities.
As a result, the reliability of test results is always questioned. Turn around time has also been very high for laboratory staff. This in turn has increased the cost of health care.
The Clinical Laboratory improvement Project (CLIP) was designed to help address this problem, and to improve the standards of public laboratories in the Country. A total of 68 district hospitals were targeted under this project.
Out of this, twenty-two (22) were catered for under Phase 1. Due to its success, the Belgium Government has obligated itself to support the Government of Ghana with a Mixed Credit Facility to support the second phase which would cover the remaining 46 district hospitals
left under the project.
The Credit Facility is in two parts. The first one is a soft loan from the Belgian Government amounting to €2,668,360.00 and the Second is a Commercial Loan from KBC which amounts to €2,715,462.22.
3.0 Purpose of the Credit
The purpose of the Credit is to fund the implementation of the Second Phase of the Clinical Laboratory Improvement Project (CLIP).
4.0 Terms and Conditions of the Credit
The terms and conditions of the Credit are as follows:
1) Soft Loan from the Belgian Government
Loan Amount -- €2,668,360.00
Interest Rate -- 0 per cent
Repayment Period -- 20 years
Grace Period -- 10 years
Maturity Period -- 30 years
2) Commercial Loan from KBC
Loan Amount -- €2,715,462.22
Interest Rate -- 4.49 per cent (fixed) Repayment Period -- 5 years
Grace Period -- 1.75 years
Maturity Period -- 6.75 years
Management fees -- 0.50 per cent
Commitment Fees -- 0.25
Overall Weighted Grant Element -- 39.10 per cent