Debates of 30 Oct 2008

MR. FIRST DEPUTY SPEAKER
PRAYERS 10:35 a.m.

VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:35 a.m.

Mr. First Deputy Speaker 10:35 a.m.
Order! Correction of Votes and Proceedings. Pages 1, 2 . . . 5.
Mr. Simon Osei-Mensah 10:35 a.m.
Mr.
Speaker, at page 5, yesterday, I was present and even attended a meeting of the Committee on Food and Agriculture at the Speaker's Conference Room. Unfortunately, my name has been included as those absent with permission. I want it to be corrected.
Mr. First Deputy Speaker 10:35 a.m.
The

We also have the Official Report for Tuesday, 28th October, 2008 in our hands. Any corrections for that as well? [Pause.] [No corrections were made.]

Business for today. We have a few

Questions here for the hon. Minister for Energy. The first Question stands in the name of hon. Paul Evans Aidoo of Sefwi Wiawso.
rose
Mr. First Deputy Speaker 10:35 a.m.
Hon. Lee
Ocran to ask the Question for and on his behalf.
ORAL ANSWERS TO QUESTIONS 10:35 a.m.

Mr. Ocran 10:35 a.m.
Mr. Speaker, the hon.
Minister seems to put the blame of power outages on the forest. I consider this a not-very-convincing Answer. Will he tell us, if it is just a matter of clearing of bush, why can the Electricity Company of ghana not frequently clear the thicket
around the transmission lines?
Mr. Owusu-Adjapong 10:35 a.m.
Mr. Speaker,
permit me to read the last sentence which adequately responds to his question -- “To reduce the frequent power outages, the ECg has put in a mechanism to intensify the frequency of bush clearing in a year.” They are doing two now; they are going to increase it.
Mr. First Deputy Speaker 10:35 a.m.
The
next Question on the Order Paper - hon. Haruna Iddrisu, Tamale South?
rose
Mr. First Deputy Speaker 10:35 a.m.
You
want to ask the Question for hon. Haruna Iddrisu as well?
Mr. Ocran 10:35 a.m.
Yes, Mr. Speaker. Hon.
Haruna Iddrisu has called me.
Mr. First Deputy Speaker 10:35 a.m.
go ahead.
National Rural Electrification Projects for 2007
(List of Beneficiary Communities)
Q. 1052. Mr. Ocran (on behalf of Mr. Haruna Iddrisu) asked the Minister for Energy when the Ministry would make available the list of beneficiary communities of the National Rural Electrification Projects for 2007.
Mr. Owusu-Adjapong 10:35 a.m.
Mr. Speaker,
the list of the beneficiary communities of the National Electrification Scheme for 2007 is available. A total of 210 communities were connected to the national electricity grid as indicated in the list.
Table 1 Page 4

Table 2 Page 5 Table 3 Page 6
Mr. Ocran 10:35 a.m.
Mr. Speaker, I am happy the hon. Minister has been able to provide a comprehensive list but some of the names of the communities are placed in the wrong districts. For example, Twenen is placed in Nzema East whilst it is in Jomoro. May I know whether there is any special reason for the misplacement?
Mr. Owusu-Adjapong 10:35 a.m.
Mr. Speaker,
the list was compiled by my people and if there are these errors, I would be happy to meet my hon. Colleague and do the corrections because in some of these things we do have some of these errors being made by some of our public servants and I would not want to argue with him.
Mr. Ocran 10:35 a.m.
Mr. Speaker, I would
have wished to ask another supplementary question but the hon. Minister has told me in advance that he would not answer. So I would end here since he is a friend of mine. I wish to thank him for his efforts.
Mr. First Deputy Speaker 10:45 a.m.
He said, he will not ask any more questions. So I have not asked you to come and answer it.
Mr. Owusu-Adjapong 10:45 a.m.
Mr. Speaker, I want to crave your indulgence to allow me to make a comment since this is a serious indictment.
Mr. Speaker, he said he was going to ask a supplementary question as regards the total cost and I said definitely, this will require notice; for him not to indicate the question and conclude like that, I think, is not fair to me. I wish he withdraws such a comment that I refused to answer a question from an hon. Member like hon. Lee Ocran.
Mr. Bagbin 10:45 a.m.
Mr. Speaker, well the hon. Minister has asked the question and answered it himself but our hon. Colleague
Mr. First Deputy Speaker 10:45 a.m.
Well, you wanted to find out whether there was a Busia in the -- [Interruption.]
Mr. Owusu-Adjapong 10:45 a.m.
Mr. Speaker, the hon. Minority Leader is aware that about two or three weeks ago, I spent a lot of time in his office, trying to get the correct spelling of some of the towns in the constituencies he knows of. These are some of the errors we do have, either that our officers send us wrong spelling or wrong names. That is why I am saying that let me apologise on behalf of my officers, but we would wish that when we come face to face with such situations, we give opportunity for the Ministry to correct it and make progress.
Mr. First Deputy Speaker 10:45 a.m.
The next Question is in the name of Emmanuel Owusu Mainu, Member for Atebubu Amanting.
Hon. Members, there are individuals who have posed Questions and are not here to ask those Questions and have not even arranged for people to ask the Questions
on their behalf. I think this kind of conduct should be discouraged.
Mr. Emmanuel Owusu-Mainu, is he here or not? [Pause.] We pass on.
The other Question is in the name of Ernest K. Yakah, New Adubiase.
Hon. Minority Leader, it appears that there are quite a number of individuals on your side who have asked Questions and are not here to ask them and they have made no arrangements for the Questions to be asked.
Mr. Lee Ocran 10:45 a.m.
Mr. Speaker, I will do so on their behalf.
Mr. First Deputy Speaker 10:45 a.m.
Well you have done that in a couple of cases, but it is not very interesting.
rose
Mr. First Deputy Speaker 10:45 a.m.
Are you --
Mr. Pelpuo 10:45 a.m.
Yes, Mr. Speaker, I would like to do so on behalf of Mr. E. Owusu-Mainu.
Abamba, Kumfa and Watro Electrification Project
(Commencement)
Q. 1057. Mr. A. Pelpuo (on behalf of Mr. E. Owusu-Mainu) asked the Minister for Energy when electrification project for the following communities would commence:
(i) Abamba,
(ii) Kumfa,
(iii) Watro.
Mr. OwusuAdjapong 10:45 a.m.
Mr. Speaker,
the Kumfa and Watro communities form
part of the SHEP-4 but are not part of the ongoing projects. The projects. In these communities will be considered under the subsequent phases of the 5+ Communities Per District Electrification Programme in line with the implementation schedule and the availability of funding.
The Abamba community however does not form part of any of the ongoing electrification projects being undertaken by the Ministry of Energy. The community may be considered under the subsequent phases of the 5+ Communities Per District Electrification Programme in line with implementation schedule and the availability of funding.
Mr. First Deputy Speaker 10:45 a.m.
The next Question is in the name of Mr. Ernest K. Yakah, Member for New Adubiase.
rose
Mr. First Deputy Speaker 10:45 a.m.
Yes, hon. Member for Ashaiman?
Mr. Agbesi 10:45 a.m.
Mr. Speaker, I ask per- mission to ask the Question on hon. Yakah's behalf.
Obunsu, Nkrakese, Hwidiem, et cetera (Electricity)
Q. 1060. Mr. A. K. Agbesi (on behalf of Mr. Ernest Kofi Yakah) asked the Minister for Energy when the following communities would be connected to the national electricity grid:
(i) Obunsu
(ii) Nkrankese
(iii) Hwidiem
(iv) Subin Camp (v) Asarekrom
(vi) Edwinase
(vii) Kotwea.
Mr. Owusu-Adjapong 10:45 a.m.
Mr. Speaker, the above-mentioned communities do not form part of any of the ongoing electri- fication projects being carried out by the Ministry of Energy. The communities may be considered under the subsequent phases of the 5+ Communities Per District Electrification Programme in line with the implementation schedule and the availability of funding.
Mr. First Deputy Speaker 10:45 a.m.
Hon. Members, we move on to Question number 1090 in the name of Ms. Akua Sena Dansua.
Procurement of Low Voltage Poles with HIPC Funds
Q. 1090. Ms. Akua Sena Dansua
asked the Minister for Energy, when the Ministry would implement its decision to use HIPC funds to procure low voltage poles for communities that are unable to purchase low voltage poles by them- selves.
Mr. Owusu-Adjapong 10:45 a.m.
Mr. Speaker, between 2004 and 2006, the Ministry of Energy used part of the HIPC funds to procure Low Voltage (LV) poles to assist communities where for specific social and economic reasons, electricity had to be extended.
Currently, HIPC funds are no longer available for the purpose. However, under the 5+ Communities Per District Electrification Programme, the Ministry of Energy is making arrangements in connection with the District, Municipal and Metropolitan Assemblies to procure
Ms. Dansua 10:45 a.m.
Mr. Speaker, I rise to ask the hon. Minister what he means by “HIPC funds are no longer available for this purpose”. Is he saying that HIPC funds are no longer available or are they available but not to be used to procure low voltage poles?
Mr. Owusu-Adjapong 10:55 a.m.
Mr. Speaker,
as regards whether HIPC funds are available or not, I believe the hon. Minister for Finance and Economic Planning would be in a better position to respond. What I am saying is that for my purpose, I have not been given any HIPC funds to do the exercise.
Ms. Dansua 10:55 a.m.
Mr. Speaker, the hon.
Minister is supposed to have consulted with his colleague to find out whether HIPC funds are available for the purchase of poles or not, and the answer he has given me is not convincing enough. So I would want him to consult his colleague and then come back later to tell us exactly what the situation is.
Mr. Speaker, my other supplementary question is this, if the Ministry is making arrangements with the Municipal and District Assemblies to procure the poles, is the Ministry giving them additional funds to procure or are they using their already constrained funds to procure the poles?
Mr. Owusu-Adjapong 10:55 a.m.
Mr. Speaker,
I would have been happy if there had been a ruling as to whether when hon. Ministers have Questions to answer they are supposed to go to other Ministries to secure Answers. I am not too convinced about that, and that is why occasionally
when one sends the wrong Question to the wrong Ministry, the person comes back to tell you that this is not for his Ministry.
Mr. Speaker, as regards the second limb of his supplementary question, I have indicated that the Ministry itself, when we are convinced that for social reasons, like when there is a school building and there is the need for connection of electricity to the area and the community cannot afford, the Ministry does extend electricity to that area. When there are clinics and things like that we do the same thing.
We are also aware that the Ministry of Local government, Rural Development and Environment occasionally works out schemes with the various Assemblies and as a result they would procure electricity poles and tell us that they have got the poles so we should come and assist them to get the poles installed and electricity extended. I am speaking in this vein and I believe that my hon. Colleague is aware that this has been working beautifully.
Mr. First Deputy Speaker 10:55 a.m.
Hon.
Members, the next Question stands in the name of hon. Stephen Kunsu, Member of Parliament for Kintampo North.
Ms. Dansua 10:55 a.m.
Mr. Speaker, please, can
I seek your permission to ask the Question on his behalf?
Mr. First Deputy Speaker 10:55 a.m.
Fair enough.
Kadelso Abodwesekrom, Porter, etc. Electrification Project
(Completion)
Q. 1094. Ms. Akua Sena Dansua (on behalf of Mr. Stephen Kunsu) asked the Minister for Energy when the electri-fication project for the underlisted communities in the Kintampo North Constituency would be completed:
(i) Kadelso Abodwesekrom
(ii) Porter
(iii) gulumpe
(iv) Kawompe
(v) Dawadawa No. 1
(vi) Dawadawa No. 2.
Mr. Owusu-Adjapong 10:55 a.m.
Mr. Speaker,
the Kadelso/Abodwesekrom, Porter, gulumpe, Kawampe, Dawadawa No. 1 and Dawadawa No. 2 communities form part of the Ministry's electrification programme. Although installation works for the High Voltage and Low Voltage networks have been comple-ted, the communities are yet to be connec-ted to the shieldwire system. The Ministry of Energy, in consultation with the Volta River Authority (VRA), is working to ensure that the outstanding works of connecting the communities are completed as early as possible.
The hon. Deputy Minister for Energy has visited the area, he has had dis- cussions on the challenges with the chiefs and people of area.
Mr. First Deputy Speaker 10:55 a.m.
We move
Ms. Dansua 10:55 a.m.
Mr. Speaker, I have
supplementary questions, please.
Mr. First Deputy Speaker 10:55 a.m.
No, I
would not admit that. Hon. Members, the next Question stands in the name of Mr. Baba Abdul-Rahman Masoud, Member of Parliament for Pru.
Mr. Abdul-Rashid Pelpuo 10:55 a.m.
Mr.
Speaker, the hon. Colleague has asked
me to ask the Question on his behalf, with your permission.
Mr. First Deputy Speaker 10:55 a.m.
go ahead.
Abease, Zabrama, Kamanpa, etc. (Electricity)
Mr. Abdul-Rashid Pelpuo (on behalf of Mr. Baba Abdul-Rahman Masoud) asked the Minister for Energy what plans the Ministry had for the electrification of the following towns in the Pru Constituency:
(i) Abease
(ii) Zabrama
(iii) Kamanpa
(iv) Kyerembo
(v) Krobo
(vi) Ajarja.
Mr. Owusu-Adjapong 10:55 a.m.
Mr. Speaker,
the Abease and Zambrama communities form part of the Ministry's 5+ Communities Per District Electrification Programme.
We note that the distance from the
source point at Prang through Abease to Zambrama is 65.2 km.
Owing to the distance from the source
point, this project will not normally have been part of the SHEP Programme. However, due to the priority given to these communities by the District Assembly, the project has been included in the 5+ Communities Per District Electrification Programme.
Mr. Speaker, work is currently in
progress on the Prang-Abease route,
Mr. Owusu-Adjapong 10:55 a.m.


a distance of 38.3 km. The Abease- Zambrama component, a distance of 26.9 km will be carried out after completion of the Prang-Abease section.

The remaining communties namely,

Kamanpa, Kyerembo, Krobo and Ajarja have not been listed under any of the on- going electrification projects being carried out by the Ministry. The communities may be considered under the subsequent phases of the 5+ Communities Per District Electrification Programme in line with the implementation schedule and the availability of funding.
Mr. First Deputy Speaker 10:55 a.m.
Hon.
Members, we move on to the next Question and that stands in the name of Mr. Alfred Kwame Agbesi, Member of Parliament for Ashaiman.
Mr. Alfred Kwame Agbesi 10:55 a.m.
Mr.
Speaker, this Question was asked about one year ago and its value is no more necessary. I therefore, would no longer ask the Question.
Mr. First Deputy Speaker 10:55 a.m.
Fair
enough. The Answer has already been given although. The next Question stands in the name of hon. Haruna Iddrisu.
Caterpillar Generator Sets (Total Cost)
Q. 1132. Mr. Haruna Iddrisu asked the Minister for Energy what was the total cost of the caterpillar generator sets, model C32 Power Modules imported recently into the country to respond to the energy crisis.
Mr. Owusu-Adjapong 10:55 a.m.
Mr. Speaker, the total cost of all the plant and equipment comprising 125 units of caterpillar generating sets and auxiliaries is US$97.9
million.
Mr. H. Iddrisu 10:55 a.m.
Mr. Speaker, may I know from the hon. Minister what was the unit cost for each one of them.
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker, if he can permit me, I can use a calculator just to divide and give him the answer.
Mr. First Deputy Speaker 11:05 a.m.
Hon.
Minister, if you do not have the answer ready, you could ask for notice.
M r. O w u s u - A d j a p o n g : M r.
Speaker, my attention has been drawn to this document which contains all the transaction records, so I just need time to go through it and give it to you.
Mr. First Deputy Speaker 11:05 a.m.
Fair
enough. Hon. Haruna Iddrisu, do you have any other supplementary question?
Mr. H. Iddrisu 11:05 a.m.
Rightly so, Mr.
Speaker, but it would be based on his answer to the unit cost. I have in my possession an invoice covering one of it and therefore, if he gave me an answer which was varied from my invoice, then I could urge him to conduct some investigation into the acquisition.
Mr. First Deputy Speaker 11:05 a.m.
There
would be some other time for you to ask this.
Mr. Lee Ocran 11:05 a.m.
Mr. Speaker, I would
like to know from the hon. Minister whether these generators are still in use since the Akosombo Dam has reached its maximum level of water.
Mr. First Deputy Speaker 11:05 a.m.
Hon.
Minister, the hon. Member wants to know whether the generators are still in use; that is his question.
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker, before that, in order that we clear the records, why I need to have notice on some of these matters is that, in Standing Order 67 (h), “A Question shall not be asked the answer to which is readily available in official publications.” And since he says he has the invoice, I believe he has got the answer; he could have -- [Interruption.]
Mr. First Deputy Speaker 11:05 a.m.
Official
publications, it is not official.
Mr. Owusu-Adjapong 11:05 a.m.
This is
official, it is official invoice.
Mr. First Deputy Speaker 11:05 a.m.
Could
you react to the question that the hon. Member for Jomoro, Mr. Lee Ocran has asked, that are the generators still in use?
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker,
happily, with the rise in the water level at Akosombo and all the 6 units in operation, we are using this equipment as standby most of the time.
Mr. First Deputy Speaker 11:05 a.m.
Very
well. Next Question, hon. Peter Abum Sarkodie.
Mr. D. H. Yeboah 11:05 a.m.
Mr. Speaker, the
hon. Colleague is out of town and has asked me to ask the Question on his behalf.
Mr. First Deputy Speaker 11:05 a.m.
go ahead,
hon. Member.
Pataase-Sesease-Kokobeng, etc (Electricity)
Q. 1162. Mr. D. H. Yeboah (on behalf of Mr. Peter Abum Sarkodie) asked the Minister for Energy when the following communties in the Mampong Consti- tuency would be connected to the national electricity grid:
(i) Pataase-Sesease-Kokobeng
( i i ) N k w a n t a - A b o n t e m - Bosom- kyekye-Woraso-Brengo
( i i i ) N k u b e t a - B r e s u a - Brofoyedru- Dadiase
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker,
before that, I promised that I was checking through the records to give him the breakdown of the cost and I now have them.
Mr. First Deputy Speaker 11:05 a.m.
You
answer the other Question then I will give you the opportunity to react to that.
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker,
the electrification projects in the above- mentioned communities are ongoing. The projects have been scheduled for completion by the end of the year.
Mr. First Deputy Speaker 11:05 a.m.
Now you
want to react to the other question?
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker,
there was a question as to the breakdown of the US$97.9 million and I now have the figures and with your permission, I can read:
Rainpower Lot I --
Mr. First Deputy Speaker 11:05 a.m.
Hon.
Haruna Iddrisu, I believe you are listening?
M r . O w u s u - A d j a p o n g :
US$39,618,600; Lot 2 -- US$16,905,441, that is on the Ringpower Lot 1 & 2. Then we have the Ontrack International Lot 1 which is US$13,584,000; then the Ontrack International Lot 2, which is 15,300,000 and then the Ontrack International Lot 3 which is 12,500,000.
Mr. First Deputy Speaker 11:05 a.m.
That is for your benefit, hon. Haruna Iddrisu. I will give you the opportunity if you want to ask a further supplementary question and that should be only one question.
Mr. H. Iddrisu 11:05 a.m.
Thank you, Mr.
Speaker. Mr. Speaker, my question was specifically about the unit cost -- you purchased 125 at US$97.9, how much did each one of them cost, not the lot cost?
Mr. First Deputy Speaker 11:05 a.m.
Hon. Iddrisu, I did not follow your question. Could you repeat?
Mr. H. Iddrisu 11:05 a.m.
Mr. Speaker, the Minister in his answer to my question has given various figures - 39 million, 16, 13, 15 and 12.5 covering lots. My question is specifically, what was the per unit cost of each generator that was purchased by the Ministry of Energy? Not the lot, but unit cost.
Mr. First Deputy Speaker 11:05 a.m.
Well, hon. Minister, can you react to this?
Mr. Owusu-Adjapong 11:05 a.m.
Mr. Speaker, perhaps we need to talk about how we do bidding. When we do bidding and you have a lots they become one composite figure, that is why occasionally we can have that Lot 1, it may consist of 10 houses of various sizes and the person would then bid for the total. You do not go back and say that you are going to divide the figure by 10 because they may be of various sizes.
I am told the information is that they
were different capacities but they were grouped as one Lot. So if you now want to have the cost of each of the Lot, then definitely I need a notice.
Mr. First Deputy Speaker 11:05 a.m.
Now we
go back to Questions that we are asking.
MINISTRY OF TRANSPORTATION 11:15 a.m.

Minister for Transportation (Dr. Richard W. Anane) 11:15 a.m.
Mr. Speaker, the Ntonso-Anum-Amadu Nkwanta feeder road is 16.8 km long. The road is partially engineered and is located in the Asunafo South District of the Brong- Ahafo Region. The road which serves the cocoa growing area is in poor condition and has low vehicle traffic.
Mr. Speaker, the road has been earmarked for further engineering studies which would be carried out in 2009. The engineering studies will cover sub-base and the provision of additional culverts. The outcome of the studies will advise the necessary intervention to be carried out.
With respect to the Sankore-Abuom- Nakatey feeder road, it is 28 km long. The road is engineered and is located in the Asunafo South District of the Brong Ahafo Region.
The Sankore-Abuom-Nakatey feeder road has been programmed for tarring
in two phases under the Cocoa Roads Improvement Programme.
Three contracts for 14.5 km under the first phase were awarded in July, 2008 at a total contract sum of gH¢1.946 million.
Mr. Speaker, the contract for Lot 1 involves the surfacing of km 0-4. This contract is being executed by Messrs Jalexbert Limited at a contract sum of gH¢586,000. Works commenced in August 2008 and are expected to be completed in August, 2009. The contractor has completed clearing of vegetation, constructed three (3) culverts and 500 m concrete U-drains.
An advance mobilization amount of gH¢71,960 was paid to the contractor in August, 2008.
The contract for Lot 2 covers the section from km 4 to km 8. The project is being executed by Messrs Dangiba Limited at a contract sum of gH¢559,000. Works commenced this month (October 2008) and are expected to be completed in September, 2009. Currently, clearing of vegetation is in progress.
Mr. Speaker, an advance mobilization amount of gH¢70,607 was paid to the contractor in September 2008.
The contract for Lot 3 covers the section from km 8 to 14.5 and is being executed by Messrs Freedom Fields Company Limited at a contract sum of gH¢801,000. Works commenced this month (October 2008) and are expected to be completed in September, 2009. Currently clearing of vegetation is in progress.
An advance mobilization amount of gH¢98,838 was paid to the contractor in September 2008.
The phase two project involves tarring of the remaining section from km 14.5 to km 28. The project will be funded under the Cocoa Roads Improvement Pro- gramme in two (2) lots as follows:
Lot 1: km 14.523.5
Lot 2: km 23.528.
Mr. Speaker, bids in respect of the two lots have been received and are being evaluated. It is expected that contracts will be awarded this month for works to commence before the end of November
2008.
Ada-Foah Town Roads, etc. (Surfacing Works)
Q. 1364. Mr. Alex Narh Tettey-Enyo asked the Minister for Transportation when the following road surfacing works would be completed:
(i) Ada-Foah Town Roads
(ii) Ada Senior High School
(iii) Ada-Foah-Totope.
Dr. Anane 11:15 a.m.
Mr. Speaker, Ada-Foah is the district capital of the Dangme East District of the greater-Accra Region.
A contract for the surfacing of three (3) kilometres of Ada-Foah town roads was awarded in April 2005 at a contract sum of gH¢140,200.
The project which commenced in June 2005 should have been completed in February 2006. Due to non-performance of the contractor, Messrs Credo Limited, the contract was terminated in October
Dr. Anane 11:15 a.m.


2007.

At the time of termination, 56 per cent of works involving 1.7 km of primer seal was completed. The amount paid to the contractor for the work done was gH¢75,100.

The project has been repackaged for reaward as part of the Department of Feeder Road's 2009 work programme.

Ada Senior High School

Ada Senior High School is located in the Dangme East District of the greater Accra Region.

A contract for the surfacing of 3.4 km of roads in the Ada Senior High School was awarded in June 2005. Work was completed in June 2008 at a cost of gH¢61,700.

The project was executed by Messrs Kamsad Construction Limited.

Ada-Foah-Totope

The Ada-Foah-Totope feeder road is 8 km long and is located in the Dangme East District of the greater-Accra Region. Km 0-4 of the Ada-Foah-Totope road is tarred and is in good condition while the remaining section from km 4-8 is gravelled.

The Ada-Foah-Totope road was reshaped under the contract.

A total amount of gH¢8,400 has been paid to date and works executed to date are clearing and reshaping of 16.8 km. The remaining 4 km gravelled section and other roads totalling 17.8 km was awarded on contract for reshaping and the construction of 2 culverts in April 2007 at

a contract sum of gH¢18,000.

The project which should have been completed in December 2007 was abandoned by the contractor, Messrs Everyman Ventures Limited. The project has accordingly been recommended to the Regional Tender Review Board for termination.

After the termination, the contract will be repackaged for reaward. The km 0-4 section of the Ada-Foah-Totope will be considered for surfacing under the re- packaged contract.
rose
Mr. First Deputy Speaker 11:15 a.m.
The next Question also stands in the name of the hon. Member of Ada (Mr. A. N. Tettey- Enyo).
Mr. Tettey-Enyo 11:15 a.m.
Mr. Speaker, I have a supplementary question.
Mr. First Deputy Speaker 11:15 a.m.
Well, I am giving you the opportunity to ask your next main Question. We are already running behind time, please.
Mr. Tettey-Enyo 11:15 a.m.
Thank you, Mr. Speaker.
Amlakpo-Gbanave, Atortorkope- Adonorkope Feeder Roads
Q. 1365. Mr. Alex Narh Tettey-Enyo asked the Minister for Transportation when the following spot improvement works would be completed:
(i) Amlakpo-gbanave
( i i ) Ator torkope-Adonorkope feeder roads.
Dr. Anane 11:15 a.m.
Mr. Speaker, the Amlakpo-
gbanave feeder road is 3 km long. The road is located in the Dangme East District of the greater- Accra Region.
The road was awarded on contract in February, 2007 for spot improvement works at a contract sum of gH¢68,300.
The contractor, Messrs Cevotek Limited, who was the sole bidder for the project failed to provide the necessary documents for the signing of the contract. Therefore, the contract was not signed to enable the works to commence as programmed.
The Ministry has directed the Department of Feeder Roads to arrange for the award of the contract for works to commence by the end of November 2008.
Atortorkope-Adonorkope
The Atortorkope-Adonorkope feeder road is 3.5 km long. The road is located in the Dangme East District of the greater Accra Region.
It was awarded for spot improvement in April 2007 at a contract sum of gH¢62,100 for completion in December
2007.
Due to the delay in the commencement of the project by the contractor, Messrs Sosykes Limited, the project has been recommended for termination by the Regional Tender Review Board.
The Ministry on its part has directed the Department of Feeder Roads to arrange the award of a contract for works to commence by the end of November 2008.
Mr. First Deputy Speaker 11:25 a.m.
Hon. Members, the next Question stands in the name of the hon. Member for Ejura Sekyeredumasi (Alhaji Issifu Pangabu Mohammed).

Ejura-Oku Road (Construction)

Q. 1368. Dr. Ahmed Yakubu Alhassan

(on behalf of Alhaji Issifu Pangabu Mohammed) asked the Minister for Transportation when the Ejura-Oku road would be constructed.
Dr. Anane 11:25 a.m.
Mr. Speaker, the Ejura- Oku road is 40 km long. It forms part of the Ejura-Oku-Anyinofi-Sabuso-Bondaso road (Route IR7) which is about 149 km. The road links the Ashanti and Eastern Regions through the Afram Basin.
Mr. Speaker, the greater part of the Ejura-Anyinofi-Sabuso-Bondaso road is undeveloped.
Since 2003, this road has been under routine maintenance grading works geared towards the opening up of the road through clearing and cutting of ditches and patching of soft spots.
During 2004-2006, the Department of Feeder Roads and the ghana Highway Authority executed gravelling works and construction of 7 critical culverts on the stretch between km 22 and km 40.
Current Situation
The road is under a 2-year (2007- 2008) routine maintenance grading works to make it motorable all year round. These routine maintenance activities
Dr. Anane 11:25 a.m.


include clearing of neglected road side vegetation and excavation of side ditches and grading of the gravel surface. Messrs SAT Engineering has since July, 2008 commenced work on the Sabuso-Bondaso section. Similar works are scheduled to be undertaken between the Ejura-Oku sections by the end of October 2008.

Future Programme

Detailed engineering design from Ejura- Bondaso (149 km) is being undertaken by the Millennium Development Authority as part of the Afram Basin development programme under the MCC, ghana programme, for its future development. Mr. Speaker, MDA in collaboration with the ghana Highway Authority will programme the construction of this corridor after the completion of the detailed engineering studies.

Sekyeredumasi-Anyinasu Road (Completion)

Q. 1371. Dr. Ahmed Yakubu Alhassan

(on behalf of Alhaji Issifu Pangabu Mohammed) asked the Minister for Transportation when the Sekyeredumasi- Anyinasu road would be completed.
Dr. Anane 11:25 a.m.
Mr. Speaker, the Sekyeredumasi-Anyinasu road (Route R47) which is in the Ejura-Sekyeredumasi District of the Ashanti Region is about 10.2 km.
In November 2004, phase 1 of the project from km (0.0-2.0) was awarded to Messrs Modernway (gH) Limited for upgrading to be completed in six (6) months at a contract sum of gH¢500,073.30. To date an amount of gH¢194,726.00 was paid to the contractor.
An addendum contract, phase 2 from km (2.0-5.0) was awarded to the same contractor in May 2006 to be completed in 12 months at a contract sum of gH¢1,027,366.40. To date an amount of gH¢278,894.00 was paid to the contractor.
Mr. Speaker, the contractor could not deliver and both contracts were terminated in August, 2008 after reaching 39 per cent and 62 per cent completion respectively.
Current Situation
The works have been repackaged for reaward. Tenders were received for the upgrading of the entire section from Sekyeredumasi-Anyinasu on the 16th of September, 2008. The evaluation of the tenders has been submitted to the ghana Highway Authority office for adjudication by the Entity Committee for onward transmission to the Regional Tender Board.
Tumu Road in Kanda (Construction)
Q. 1383. Maj. (Dr.) (Alhaji) Mustapha Ahmed (retd) asked the Minister for Transportation when the construction of Tumu Road in Kanda would be completed.
Dr. Anane 11:25 a.m.
Mr. Speaker, in 2005, the Department of Urban Roads programmed to undertake sectional repairs and sealing of the following roads in Kanda using direct labour:
i. Tumu Road -1 km
ii. Ablade Road - 1 km.
After constructing the above two roads up to primer seal level, the programme was expanded to include other roads in the area which were also in poor condition.
This delayed the final sealing of the Tumu Road.
With the increased scope of work, the Department of Urban Roads decided to contract out the outstanding work under its 2009 programme instead of doing it from its own labour.
Maj. (Dr.) (Alhaji) Ahmed (retd): Mr. Speaker, I would like to ask the hon. Minister what has become of the obstacle, that is the lone building that stands in the middle of Tumu road.
Mr. First Deputy Speaker 11:25 a.m.
Hon.
Minister, if you are aware.
Dr. Anane 11:25 a.m.
Mr. Speaker, I may need some more time on this. But I believe that it is part of the reasons why, instead of the department taking upon itself to do the work itself, it has to add some other roads in order to outsource it to some contractors. Earlier, the department was doing it from its own labour; now it is outsourcing it for a bigger contractor to take it up.
Maj. (Dr.) (Alhaji) Ahmed (retd): Mr. Speaker, if you would permit me, probably, I could give a brief description of the road to make it easy for the hon. Minister. Tumu road is the road that runs from the Kanda Post Office, in front of the Senior Minister's House and it is supposed to run through the space behind the national mosque and now under construction and then the Kawo Kudi park, then the Accra Metropolitan Assembly (AMA) Sub-Metro and joins the the Olusegun Obansanjo Way, just behind the 37 Military Hospital fence wall. That is Tumu road and there is a building standing right in the middle of that road and until it is cleared, the road will not be completed.
Nima West Residential Area
(Tarring)
Q. 1385. Maj. (Dr.) (Alhaji) Mustapha Ahmed (retd) asked the Minister for Transportation when the roads in Nima West Residential Area would be tarred.
Dr. Anane 11:35 a.m.
Mr. Speaker, Nima West is the area bounded by the Ring Road, Nima Highway, Hill Street and the Nima Drain in the East Ayawaso Sub-Metropolitan Area.
The Nima West residential area roads were originally awarded to Messrs Deltrex Limitedd on 5th November, 2003 for completion in ten (10) months. However, the works were terminated by the Tender Board for non-performance. The termination letter was issued on the 7th December, 2007.
The works were reawarded on 25th May 2008 to Messrs Terriwhite Limited at a contract sum of gH¢356,628.09 to be completed by 23rd March, 2009.
The roads under the project are:
i. Palm Street
ii. Mahogany Street
iii. Onyaa Crescent
iv. Hill Crescent. At the moment 70 per cent of the
drainage works have been completed. The works are on schedule for completion in March, 2009.

Maj. (Dr.) (Alhaji) Ahmed (retd):

Mr. Speaker, I would like to follow up by asking the hon. Minister whether he is satisfied with the pace of work and whether in his opinion work can actually be completed in March, 2009 which is just four months away.
Mr. First Deputy Speaker 11:35 a.m.
Hon.
Member, you are asking for opinions. It offends the rules of this House but maybe, he is in charge, so he could react to that.
Dr. Anane 11:35 a.m.
Mr. Speaker, I believe the
main limiting steps in construction activity tend to be concrete works. Currently 70 per cent of the works have been done by way of drainage and others. We believe that with the amount of works done, it is possible the contractor should be able to finish within the time.
The other limiting steps have been partly due to the weather. When it rains, not much could be done by way of concrete works. Now, we are going out of the rainy period, so we believe that the contractor will get more time to execute the works and we believe he should be able to complete by the schedule.
Mr. First Deputy Speaker 11:35 a.m.
Hon.
Member, I am still giving you the opportunity. I thought you will also slot in my road.
Maj. (Dr.) (Alhaji) Ahmed (retd.):
Mr. Speaker, I would like to know from the hon. Minister the level of importance he attaches to the construction of these roads bearing in mind that this is an area that houses the First Deputy Speaker of this august House. It is the area that has housed in the past the Head of State, Lt.- gen. Ankrah. It is the same area that houses the former President of ghana, Mr. Akufo-Addo. I would like to know the level of important he attaches to the construction of these roads.
Dr. Anane 11:35 a.m.
Mr. Speaker, my hon.
Colleague would notice that as far back as 2003 the Ministry thought it fit to have the roads in the area rehabilitated. That is an indication of the level of importance that we attach to it. If the roads were in good
Dr. Anane 11:35 a.m.


condition before that time we would not have had to go there to intervene.

Maj. (Dr.) (Alhaji) Ahmed (retd.):

Mr. Speaker, would the hon. Minister be able to give this House an assurance that this construction works will indeed be completed by March 2009 and whether he will recommend the capture of his answer by the House Assurances Committee.
Dr. Anane 11:35 a.m.
Mr. Speaker, I have
indicated to the august House that with the pace of works, we are hopeful the contractor should be able to complete the works on schedule and I would wish that we hold it as such. But I want my hon. Colleague to be assured that we attach a lot of importance to the area and therefore, we would ensure that the works are done.
Mr. First Deputy Speaker 11:35 a.m.
Thank
you very much, hon. Minister for coming to answer Questions from hon. Members of this august House.
We will now move on to Public
Business.
PAPERS 11:35 a.m.

MOTIONS 11:35 a.m.

Mr. First Deputy Speaker 11:35 a.m.
Hon.
Chireh, which loan are you referring to? In respect of which work are you talking about? Let us be very specific, speak to the motion and to the facts that you have in the Order Paper.
Mr. Chireh 11:35 a.m.
Mr. Speaker, I am
Mr. First Deputy Speaker 11:35 a.m.
Hon.
Ministers for Finance and Economic Planning and Energy, I believe you are all ears. The hon. Member is saying that there had been loans that had been taken specifically in respect of the same subject matter. And he said, he did not know what had been done to that, and you had not briefed the House as it were.
Mr. Chireh 11:35 a.m.
Mr. Speaker, on this note,
I want to suggest that in future, we should be updated on some of the implemen- tations that they have done with loans that we have approved here. Thank you.
rose
Mr. First Deputy Speaker 11:35 a.m.
Hon.
Member, will you like to sum up so that I put the Question?
Mr. Owusu-Adjapong 11:35 a.m.
Mr. Speaker, thank you. I was wondering whether the hon. Minister of State at the Ministry of Finance and Economic Planning would wind up. But just to explain one or two issues, then the hon. Minister of State at the Ministry of Finance and Economic Planning would wind up.
Mr. Speaker, as regards who will be supervising, we have a core of professionals at ECg, who is also the client, and they have a unit that does project management, I am told. They will be monitoring and supervising the works of these Norwegians. So there should be no problem with that.
Mr. Speaker, as regards whether it is not
a repetitive work or we are not collecting two moneys for one job, I want to assure my hon. Colleague that this cannot be the case. Because as I indicated, we need almost $1 billion, we are nowhere near even 40 per cent of that. And you may think that once we say we have borrowed money for Accra-Kumasi, then that should be the end. That is not the position. If there is a problem on the national transmission lines, we tend to resolve it quickly because we have these modern gadgets, the Scada that tells where events are occurring.
We are now only at the primary level in the case of ECg, and I would want to see a day where even the small transformer in my area, there would be a Scada connection so that when there is a fault, we do not need to go on the line. But if my hon. Colleagues would want to be briefed further as to what the money we have so far collected have been used for, I will be happy to come and do that.
Mr. First Deputy Speaker 11:35 a.m.
And
finally, the hon. Minister, do you have anything else to add?
Dr. Osei 11:35 a.m.
Mr. Speaker, a minor point. Mr. Speaker, on this particular loan, there is a specific allocation for the upgrading of ECg Training School to develop the capacity of our staff there. And as the Minister for Energy has already said, we will be able to come back at a different time.
Question put and motion agreed to.
RESOLUTIONS 11:35 a.m.

Minister of State at the Ministry of Finance and Economic Planning (Dr. A. A. Osei) 11:35 a.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the government of ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution suppor-ted by the votes of a majority of all Members of Parliament;
PURSUANT to the provisions of the said article 181 of the Consti-tution and section 7 of the Loans Act, 1970 (Act 335) and at the request of the government of ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Loan Agreement between the government of the Republic of ghana and the Institute for Export Credit (gIEK) of Norway for an amount of €54,328,287 for the rehabilitation and upgrading of the Electricity Company Limited Dis- tribution System in Accra, Tema
Minister of State at the Ministry of Finance and Economic Planning (Dr. A. A. Osei) 11:35 a.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the government of ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parlia- ment by a Resolution supported by the votes of a majority of all Mem-
bers of Parliament;
PURSUANT to the provisions of the said article 181 of the Consti-tution and section 7 of the Loans Act, 1970 (Act 335) and at the request of the government of ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Loan Agreement between the government of the Republic of ghana and the Fortis Bank of The Netherlands for an amount of €10,851,668 for the rehabilitation and upgrading of the Electricity Company Limited Distribution System in Accra, Tema and Kumasi.
THIS HONOURABLE HOUSE 11:35 a.m.

H E R E B Y R E S O LV E A S 11:35 a.m.

Mr. First Deputy Speaker 11:55 a.m.
Item 9 -- Chairman of Finance Committee?
GOG/Societe Generale Mixed Credit Facility
Chairman of the Committee (Nii Adu Daku Mante) 11:55 a.m.
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 the Republic of ghana and Societe generale, New York Branch and World for World Organisation for an amount of US$37,219,072.00 for the design, supply and installation of permanent steel modular bridges in the country.
Mr. Speaker, in so doing, may I present to you your Committee's Report.
1.0 Introduction
The above credit facility was first laid in the House on Wednesday, 22nd October 2008 and referred to the Finance Committee for consideration and report in accordance with article 181 of the Constitution and the Standing Orders of the House.
To consider the above facility, the Committee met with the Minister of State at the Ministry of Finance and Economic Planning, hon. Dr. Anthony Akoto Osei, the Deputy Minister for Finance and Economic Planning, hon. Prof. george gyan-Baffour and Officials from the Ministries of Transportation and Finance and Economic Planning and reports as follows:
2.0 Background
ghana is located along the West Coast of Africa in the tropical forest belt. About 70 per cent of its population lives in rural areas, where employment avenues do not match with population growth.
The principal employment in these
areas is small holder subsistence farming. This has resulted in high levels of poverty and high rate of unemployment.
The feeder road network in the country covers about 42,000 km. Out of this, only 26,900 m (64 per cent) is engineered. The remaining 36 per cent are either un-engineered earth roads or are partially engineered feeder roads with lots of broken/weak log bridges and water crossings not spanned.
Furthermore rains cause extensive damage almost every year to road structures such as pavement and old wooden bridges making many roads impassable during the rainy season.
This has resulted in a constraint to rural development. Aiming at reduction of rural poverty, the government of ghana has been implementing various infrastructure projects such as roads, bridges and culverts to connect poverty stricken areas to municipalities in ghana.
The transport bottlenecks at bridge sites do not only hamper potentially vibrant economic activities but also affects access to social activities such as schools, hospitals, etc. resulting in low educational standard and greater influence of poverty in the rural areas.
Due to these challenges, the Ministry of Transportation launched the “Road Sub-Sector Development Programme (RSDP)” to improve the condition mix of road network throughout ghana in 1999. Under the RSDP, the Department of Feeder Roads (DRP) launched its own strategic plan. One of the main components of the strategic plan is the replacement of weak/broken log bridges with short and medium span steel composite bridges and the construction of major box culverts over water crossing to reduce traffic bottlenecks on our feeder roads.
Dr. A. A. Osei 11:55 a.m.
Mr. Speaker, I beg
to second the motion. In seconding the motion I want to crave the indulgence of the Chair, if the motion on the Order Paper can be amended. Mr. Speaker, the loan that we are approving itself is not US$47,719,072.00 and your Committee's Report captures it adequately. The motion just talks about the entire sum. If that can be amended as we have in the Report -
US$37, 219,072.00.
The Report is correct but somehow in putting it on the Order Paper, we have put the total amount. There is a US$10,000,000.00 which is a grant. So I want to crave your indulgence to amend it.
Mr. First Deputy Speaker 11:55 a.m.
The loan itself is US$37,2l9,072.00 and a portion of US$10.5 is the grant and for that matter the motion properly captures both the loan and the grant?
Dr. Osei 11:55 a.m.
Yes, Mr. Speaker.
Mr. First Deputy Speaker 11:55 a.m.
So we
should amend that figure on the Order Paper to reflect what the Report is saying. Fair enough. Chairman of the Committee, are you with us?
Nii Mante: That is so, Mr. Speaker, and I so accept that position.
Mr. First Deputy Speaker 11:55 a.m.
Fair enough. I will put the Question.
rose
Mr. First Deputy Speaker 11:55 a.m.
Hon. E.T. Mensah, you want to make a contribu- tion? go ahead.
Question proposed.
Mr. E.T. Mensah (NDC -- Ningo/ Prampram) 11:55 a.m.
Mr. Speaker, I rise to associate myself with the motion but in

grant Element on Loan Facility -- 10.01 per cent. 5.0 Observations

The Committee was informed that under the project, 100 modular steel bridges would be constructed through out the country and this project would be implemented within a period of four (4) years.

The Minister of State at the Ministry of Finance and Economic Planning informed the Committee that the credit facility amounting to US$37,219,072.00 would be used to finance the steel component of the bridges whilst the grant element of US$10,500,000.00 will be used to finance part of the concrete cost of the bridges.

The technical team informed the Committee that the bridges would have a span of 20 m 45 m.
Mr. Hackman Owusu-Agyemang 11:55 a.m.
Mr. Speaker, hon. E. T. Mensah made a request which I think is very valid and I think that the Minister for Transportation is not here. I was wondering whether somebody is taking notes about providing us the list of the bridges that are to be constructed.
It is important we know and so I am supporting hon. E. T. Mensah in his request and that it should be recorded for answer by the Minister.
Mr. First Deputy Speaker 11:55 a.m.
Hon. E. T. Mensah, you are in agreement because you requested that the locations and the particular bridges to be constructed - I thought your bridge had already been constructed.
Mr. E. T. Mensah 11:55 a.m.
He was not listening Mr. Speaker. I was just supporting that we should now get a commitment from the Minister for Transportation to bring us the list.
Question put and motion agreed to.
RESOLUTIONS 11:55 a.m.

Dr. Osei 11:55 a.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of
article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the government of ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution suppor-ted by the votes of a majority of all Members of Parliament;
PURSUANT to the provisions of the said article 181 of the Constitu- tion and section 7 of the Loans Act, 1970 (Act 335) and at the request of the government of ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Mixed Credit Facility between the government of the Republic of ghana, Societe generale, New York Branch and World for World Organisation for an amount of US$37,219,072.00 for the Design, Supply and Installation of Permanent Steel Modular Bridges in the Country.
THIS HONOURABLE HOUSE 11:55 a.m.

H E R E B Y R E S O LV E S A S 11:55 a.m.

Mr. First Deputy Speaker 12:05 p.m.
Motion 11, Chairman of the Committee?
GOG/GK Airport Company Limited Suppliers Credit Facility
Nii Adu Daku Mante: Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Suppliers Credit Facility between the government of the Republic of ghana and gK Airport Company Limited of ghana for an amount of one hundred and twenty-two million United States dollars (US$122.0 million) for the rehabilitation of three (3) Regional Airports in Kumasi, Sunyani and Takoradi.
Mr. Speaker, in so doing, may I read your Committee's Report. 1.0 Introduction
The Suppliers Credit Facility between the government of the Republic of ghana and gK Airports Company Limited of ghana for an amount of one hundred and twenty-two million United States dollars (US$122,000,000.00) for the rehabilitation of three (3) Regional Airports in Kumasi, Sunyani and Takoradi was laid in the House on Wednesday, 22nd October, 2008 and referred to the Finance Committee for consideration and report in accordance with article 103 of the Constitution and Order 171 (1) of the Standing Orders of the House.
The Committee met and considered the facility with the Minister for Aviation, hon. Joe Baidoe-Ansah, Minister of State at the Ministry of Finance and Economic Planning, hon. Dr. Anthony Akoto Osei, Deputy Minister for Finance and Economic Planning, hon. Prof. george
gyan-Baffour and a technical team from the Ministries of Aviation and Finance and Economic Planning and presents this report.
2.0 Background
ghana has twelve airports with seven paved runways of which Kotoka International Airport (KIA) in Accra is the largest and only airport with international operations. As at the end of the year 2007, passenger traffic at the Kotoka International Airport had reached over one million.
ghana's economic growth is supple- mented by governments approach to increase growth and diversification of the economy and to attract foreign investments. This leads to increase traffic at ghana's airports.
The development agenda of the country provides a strong base for increased air traffic. As part of the national air traffic and airport infrastructure development plan, there is a focus on the development of regional airports.
3.0 Purpose of the Facility
The purpose of the suppliers credit facility is to rehabilitate and expand three regional Airports in Kumasi, Sunyani and Takoradi.
4.0 Terms and Conditions
Suppliers Credit Amount -- US$122 million
Interest Rate - - 7 . 0 p e r cent
Local Bank guarante -- 2.0 per cent per annum
Commitment Fee -- 0 per cent
Mr. First Deputy Speaker 12:05 p.m.


grace Period -- 2 years

Repayment Period -- 10 years

Maturity -- 12 years

Repayment -- Receivable backed (67 per cent of APSC due government)

Security -- Demand and Time Notes

5.0 Observations

The Commit tee observed that government is required under the Agreement to execute and deliver to the Developer, a Demand Note (DN) and Time Note (TN) evidencing its indebtedness to the Developer prior to the commencement of the project.

The Minister of State at the Ministry of Finance and Economic Planning, hon. Akoto Osei informed the Committee that the government has agreed to assign twenty dollars (US$20.00) per person out of the Airport Passenger Service Charge (APSC) amount levied upon international passengers utilizing the Kotoka Inter- national Airport (KIA) as a primary means for the repayment of the credit.

The Committee noted that article 18 of the Agreement provides that all disputes arising between the parties in respect or in connection with the Agreement shall in the first instance be referred to arbitration and be determined in accordance with the Arbitration Act, 1965 (Act 38) of ghana.

Kumasi Airport

The technical team from the Ministry of Aviation informed the Committee that

the project would entail the following scope of works:

Extension of the runway from 2320m to 3000m to accommodate bigger aircraft in the category of B737(with expected load restric- tions);

Rehabilitation of the existing apron (330m x 150m) and an extension to the existing apron to accommodate two more additional aircraft (B737 category);

Provision of runway and apron lighting for night operations (extension part only) and the provision of additional emergency runway lighting kit;

Upgrade of power generation systems; Construction of new terminal building and installation of new passenger bridges, construction of a new VIP Lounge, a new control tower and a new rescue and fire fighting equipment.

Sunyani Airport

Works at the Sunyani Airport would include the following:

Rehabilitation of the existing 1402m x 45m runway;

Rehabilitation of existing apron;

Provision of runway and apron lighting for night operations and provision for emergency runway lighting kit;

Construction of a new VIP Lounge using the Accra Airforce VIP model;

Re-modelling of a new terminal building;

Refurbishment of control tower and fire station;

Installation of stand-by generator, fire hydrant and water storage systems.

Takoradi Airport

The scope of works at the Takoradi Airport will include the following:

Extension of the runway from 1750m to 2000m;

Rehabilitation of the existing apron 150m x 200m;

Provision of runway and apron lighting for night operations; Provision of emergency runway lighting kit; and

Installation of a CVOR as landing aid.

The technical team explained that these would be a continuation of the works that were carried out for the Cup of African Nations (CAN 2008) tournament that was hosted in ghana.

The Committee noted that the Local Bank guarantee of 2 per cent will be provided by the Standard Chartered Bank (ghana) Ltd.

The technical team from the Ministry of Aviation further informed the Committee that the extension of the Kumasi Airport runway to 3000 meters is to enable the Kumasi Airport serve as a back up to international operations in case of emergency at the Kotoka International Airport.

The expansion of the Takoradi airport runway is to facilitate and boost transportation in the Western Region, especially in the event of crude oil production in the near future, whilst the Sunyani airport rehabilitation would facilitate operations at the Bui Dam.

Tax Waiver

The agreement requires that the project be waived of all taxes, duties and fees applicable to the project in ghana.

The Committee advised the Minister to present an appropriate formal request in that regard to the House for consideration.

6.0 Conclusion

The Committee appreciates the immense benefits the country would derive from the implementation of the project and therefore recommends to the House to adopt this report and approve by resolution, the suppliers credit facility between the government of the Republic of ghana and gK Airports Company Limited of ghana for an amount of one hundred and twenty-two million United States dollars (US$122,000,000.00) for the rehabilitation of three (3) Regional Airports in Kumasi, Sunyani and Takoradi in accordance with article 181 of the 1992 Constitution, sections 3 and 7 of the Loans Act, 1970 (Act 335) and the Standing Orders of the House.

Respectfully submitted.
Dr. Osei 12:05 p.m.
Mr. Speaker, I rise to second the motion and in so doing, I want to crave the indulgence of the Chairman to see if I can clarify one or two things that may not have been captured fully in the report.
The first one relates to the intro- duction. The suppliers credit facility is between the Worri Bank of South Korea which is financing gK Airport Company,

and is in a joint venture with Daewoo. So the financing facility will come from the Worri Bank of South Korea. gK Airport Company we know is a joint venture company and it is by itself not the institution that is supplying the credit. The appropriate institution will be the Worri Bank of South Korea.

In addition, on page 3, I want to

clarify -- There exists a current Airport Passenger Service Charge (APSC) of US$20.00. What we are proposing is that of that amount this US$20.00 is not additional. Of that amount the US$20.00 will be used to service the debt and Mr. Speaker, even though the --
Mr. First Deputy Speaker 12:05 p.m.
Hon.
Minister, you are mentioning US$20.00, US$30.00, is it in millions or?
Dr. Osei 12:05 p.m.
US$20.00 out of the US$50.00 Airport Passenger Service Charge that we currently charge, Mr. Speaker, it is not in the records but as hon. E. T. Mensah requested for and we have provided the Committee with a copy of the cashflow flowing out of this and we can confirm that the cashflow is robust enough to be able to service this debt by the year 2012 that the loan is from.
Mr. Speaker, with those two clarifica- tions I second the motion.
Question proposed.
Mr. H. Iddrisu (NDC -- Tamale
South): Mr. Speaker, I rise to object to the approval of this Agreement and in doing so --
Mr. First Deputy Speaker 12:05 p.m.
You are
opposed to it?
Mr. H. Iddrisu 12:05 p.m.
I am opposed to it
and I think that we will need some further particulars. I am not against the principle
of wanting to rehabilitate those airports and I am not against government seeking money to support it but Mr. Speaker, if you take a look at the attached documents there is a letter from the Office of the President and then an accompanying letter also coming from gK Airport Company Limited. Indeed, Mr. Speaker, the terms and details of the loan are coming from gK Airport Company Limited.
Under the Loans Act, we are required to give details of the lender and the borrower and I think that these commitments must not be coming from gK Airport Company Limited; it should be coming from Worri Bank Korea Export Insurance Corporation. So we should get some information from Worri Bank and not necessarily from gK Airport Company Limited.
If you see the letter following the Cabinet letter, it is gK Airport Company Limited which is defining for us the terms. These terms must be defined for us by the Worri Bank Korea Export Insurance Corporation and I think that I have a difficulty supporting the approval of this particular motion. We cannot just take the letter head of gK Airport Company Limited. US$122 million is a colossal sum of money to which we are seeking approval.
Nii Mante -- rose --
Mr. First Deputy Speaker 12:05 p.m.
Hon. Chairman, are you on a point of order or you want to react to that? If you want to react then wait, let him finish before, unless of course it is a point of order.
Nii Mante: Yes, Mr. Speaker, I thought
I was coming to assist you in the sense that --
Mr. First Deputy Speaker 12:05 p.m.
You are
not assisting me.
Nii Mante: Mr. Speaker, you are being
referred to a document which is not before you and the report has no attachment as you are being referred to. That is why I thought it is inappropriate for him to refer to a document which is not before you. That is all that I have to say.
Mr. First Deputy Speaker 12:05 p.m.
Which
document are you talking about? He is only referring to a document that has -
Nii Mante: My report has no attach-
ment; he referred to an attachment which the report does not have and which I am saying is not before you.
Mr. First Deputy Speaker 12:05 p.m.
Which
report are you referring to? Nii Mante: My Report has no
attachment and he was referring to an attachment and I think that attachment is not before you. This is all that I am saying, except that you have it, Mr. Speaker.
Mr. First Deputy Speaker 12:05 p.m.
There are
two attachments that he is referring to, one from the Office of the President and the other from gK Airport Company Limited. Is that so, hon. Iddrisu?
Mr. H. Iddrisu 12:05 p.m.
Rightly so, Mr.
Speaker. In bringing this facility there is a Memorandum to Parliament by the hon. Minister of State, Ministry of Finance and Economic Planning on receivable backed Tenky Agreement between the government of the Republic of ghana and gK Airport Company Limited and that is my difficulty.
Mr. Speaker, even in the preamble, this
Agreement is not between the government of ghana and gK. Airport Company Limited. This Agreement as we are being told is between the government of ghana and Worri Bank Korea Export Insurance Corporation. So let the details of the Agreement reflect the parties -- the parties to this Agreement in my view cannot be government of ghana and
gK Airport Company Limited. We are sourcing this money maybe to support gK Airport Company Limited as an executing agency. They will execute it but by the provisions of the Loans Act who is the lender?
I am not convinced that it is gK Airport Company Limited. And I am saying that I have referred to the memorandum, we have just a letter head from gK Airport Company Limited which is defining the terms. Let this be defined by Worri Bank Korea Export Insurance Corporation and we know that we are committing the government of ghana to this relationship.
Mr. First Deputy Speaker 12:05 p.m.
Hon.
Member, you have made your point. Hon. Minister, you want to react to that?
Mr. Owusu-Agyemang 12:15 p.m.
Mr. Speaker, we would like to try and understand issues here. I believe that gK Company Limited has indicated the amount. So the amount is being lent from Woori Bank to gK and not to ghana government. To gK in the first instance and then the agreement is between us and gK. Now I think we have approved many a loan in this place where the bank which is providing the resources is not the one that is entering into the agreement with government.
If the hon. Minister can confirm that indeed the agreement is between ghana and gK, it is in order, but if the agreement is between ghana and Woori then maybe my dear friend from Tamale South Haruna Iddrisu is right. We ought to have that clarification first before we can move on.
Mr. E. T. Mensah 12:15 p.m.
Mr. Speaker, I think my senior brother is begging the point. This issue raised by hon. Haruna Iddrisu was raised at the committee level and I thought the Minister was going to explain it. The issue was raised and that it should not be between gK Company Limited. And he explained it and I am surprised that it is not even part of the Committee's report; so I think we should allow the Minister to --
Mr. First Deputy Speaker 12:15 p.m.
Hon. Hackman Owusu-Agyemang, have you finished with your contribution, because you were on your feet before I asked the hon. Member to -- If you have finished let the Minister -- [Interruption.]
Dr. Osei 12:15 p.m.
Mr. Speaker, in Suppliers
Credit Agreements, it is between the supplier of the service and the clients. In this case, the supplier of the service of the construction of the airport is gK Company for which an agreement between government and gK Airport Company Limited has been signed. The gK Company is in an arrangement with Daewoo Engineering of Korea but it is the two groups that have gone to see Woori Bank to provide them with this facility to be able to on-lend to us.
Mr. First Deputy Speaker 12:15 p.m.
So essentially the agreement is between the government of ghana and gK?
Dr. Osei 12:15 p.m.
Mr. Speaker, what we have to confirm is to assure ourselves - which we did - that Woori Bank is not any bank that is not good. We have done the due diligence and Woori Bank is one of the biggest banks in South Korea. So we were sure before we advised the Ministry to sign the contract that this is forthcoming.
That is what we do with the Suppliers Credit Agreement because we did not go directly to Woori Bank. We asked them to assure us that they can find the financing and that has been offered to them by Woori Bank. That is how typically we bring suppliers credit here; we have not signed any agreement with Woori Bank but we know from due diligence that Woori Bank can supply that amount.
Mr. E. T. Mensah 12:15 p.m.
Mr. Speaker, I rise to speak to --
rose
Mr. First Deputy Speaker 12:15 p.m.
You have not yet finished? I thought you were all right.
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, no, I just raised my first preliminary issue so if you will indulge me to continue.
Mr. First Deputy Speaker 12:15 p.m.
This is not the Consideration Stage; we are debating and you have made contributions already but I will allow you. Is there anything else?
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, I am continuing my contribution.
Mr. First Deputy Speaker 12:15 p.m.
I thought you have finished.
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, no, I did not. I just raised one issue and they were trying to --
Mr. First Deputy Speaker 12:15 p.m.
Then continue.
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, if you look at even the interest rate, 7 per cent per annum, I think that our attitude to some of these non-concessional facilities must be informed by the national economy interest. I think that 7 per cent is on the high side for a suppliers credit agreement of US$120.0 million, I do not want to belabour the point. If you read the letter from the Office of the President dated 16th October, 2008, the second paragraph -- and that is the concern I was raising - Mr. Speaker, with your permission I quote:
“Approval has been given for the assignment and escrowing of US$20 out of the US$30 of the Airport Passengers Service Charge due government for the redemption of the Suppliers Credit Facility of US$122.0 million proposed to be obtained from Woori Bank of South Korea.”
We are still being told that this money is to be obtained from the Woori Bank. I am not satisfied with the kind of documentation this House has obtained from Woori Bank, as a person, the borrower who will be giving out this facility.
Mr. First Deputy Speaker 12:15 p.m.
Hon. Member, be a little more specific. What exactly are you looking for in this case?
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, if they can make available to us the due diligence
they have done on Woori Bank of South Korea. We need to know and we need to know their capacity.
Mr. First Deputy Speaker 12:15 p.m.
I thought he had explained that they are not taking any money directly from Woori Bank.
Mr. H. Iddrisu 12:15 p.m.
Mr. Speaker, no, but the Cabinet letter is saying that it is being taken from Woori Bank. That is what I referred you to. That is what the Cabinet letter is saying. Paragraph 2 -- “to be obtained from Woori Bank”. So if they can give us the information; the particulars of Woori Bank.
My final comment has to do with whether it is procedurally appropriate when this House is approving such facilities, we determine how redemption is going to be taken -- if there is an airport charge of US$30, you want to take US$20 of it, will not that affect the capacity of some other institution at the airport relying on this revenue? I am sure it is going to affect their financial capacity. Because you are taking twenty out of thirty which is more that 50 per cent, about 75 per cent of the money which is obtained -- 60 per cent of what is obtained.
May I refer you to the Committee's Report, paragraph 5: “Observation”. Paragraph 5, the second paragraph of page 3 of the report, and then also let me further refer you to page 2, paragraph 2. With your permission I quote:
“Further, Parliament is being requested to consider and approve the assignment and escrowing of
US$20.”
I am just asking, procedurally is that how we do it? If we want to redeem a loan, is it by saying that Parliament, in giving this approval is again giving some approval that these deductions can be made.
So I want to object to the approval of this particular motion.
Mr. Owusu-Agyemang 12:15 p.m.
Mr. Speaker, I am on a point of order. I believe that what is being done is even more transparent, going beyond what is required of us. The
government is saying that if you give me this money, this is how I am going to pay for it and providing that detail assures this House that indeed, there will be a source of funding to repay the loan. And that it will not be a burden on the exchequer.
I think it is appropriate that we get to know in this House as lawmakers that this is how this fund is going to be amortized. It is even better now, and in fact maybe in future we should even ask the govern- ment, how are you going to repay and whether it is a charge on the exchequer, a burden on the economy or not. And they are telling you that he has taken US$50 from every passenger out of which the escrow amount then will be used.
I think if anything at all the government must be congratulated for coming openly and telling us how it is going to pay for it rather than to say that they are overburdening us with the details of payment. We have to know because we are the people's representatives. So what they have done is absolutely in order.
Mr. First Deputy Speaker 12:15 p.m.
No, the hon. Member never said that you were burdening us with the details. I do not think that that was what he meant.
Mr. E. T. Mensah (NDC -- Ningo/ Prampram) 12:25 p.m.
Mr. Speaker, I rise to speak to this motion and repeat something that I have said here over and over again. The reporting -- I happen to be at the committee and all the concerns raised by hon. Haruna Iddrisu (Member for Tamale South) were raised there. The hon. ranking Member, Dr. Benjamin Kunbuor was there. I raised some of the issue and all the issues were addressed .
Even in the response by the hon. Minister to some of the issues raised by hon. Haruna Iddrisu, the points that he made here, he made those points there. If all these had been captured, we would have cleared this earlier on. So I want to reiterate that it does not matter how big the Report is going to be. We even raised some of the issues and said that if they did not capture these issues well and they bring it to the whole House, it is going
Mr. First Deputy Speaker 12:25 p.m.
Are you raising a point of order against what hon. E. T. Mensah said? Hon. E. T. Mensah said the issues -- [Interruption.]
Nii Mante: Mr. Speaker, I am only saying that those issues were addressed at the committee level.
Mr. First Deputy Speaker 12:25 p.m.
No, please, hold on. Hon. E. T. Mensah is saying that the issues being raised by hon. Haruna Iddrisu had been raised at the committee level but he had thought that maybe, if they had been included in the Report somehow, it might not have been necessary for this to be raised. Unless of course you have some other reason or you are against the idea of including in that Report some of these thorny issues that have been raised and which have been answered fully. Maybe, we would be saving ourselves a little more time. I believe that is what you are saying, hon. E. T. Mensah?
Mr. E. T. Mensah 12:25 p.m.
Yes, Mr. Speaker. If I had not attended that meeting, I would have raised the issues here because not all hon. Members have the agreement that he is talking about. That is why I have had problems with our mode of reporting. If they had captured the Executive Summary, touched on the salient points -- We need to touch on the salient points. These are points that people would definitely raise. We would save the hon. Minister and everybody the ordeal of having to repeat what has been repeated over and over again. The meeting took about three, four hours that day.
Mr. Speaker, my last point is that the rehabilitation that we are doing -- the
Mr. E. T. Mensah 12:25 p.m.


expansion is long overdue. When you look at page 2, paragraph 2.0 -- the Background - line 3, “As at the end of the year 2007, passenger traffic at the Kotoka International Airport had reached over one million”. This was something that many years ago was envisaged and so there was a decision even during Dr. Kwame Nkrumah's last days that the current airport be relocated -- taken out.

There was something that some governments had looked at -- Busia government all through to Acheampong government, to the Provisional National Defence Council (PNDC) and the National Democratic Congress (NDC) -- and to relocate and we have not taken the first step yet.

Prampram plains was identified for the

airport to be moved there because of the environmental hazards. Look at where people live -- the airport residential area -- the problems, the noise, air pollution, the nuisance and what have you?

I want to recommend to government that we should open that page again and think about it. The money that would be spent next time on the Kotoka Inter- national Airport should rather be spent on a bigger airport outside. In most countries these days, airports are not in the city centres; they are in the periphery.

With these few comments, I support

the motion.
Dr. Osei 12:25 p.m.
Mr. Speaker, I have taken note of hon. Haruna Iddrisu's concerns. I think hon. Hackman Owusu-Agyemang explained what is the proper position.
First of all, I think the letter from the President misquoted the amount of $30 and he pointed out. It is US$50. We are currently charging US$50. So it is not 67 per cent. It is US$20 out of US$50, and when I got up, that was where I tried to clarify. It is US$20 out of the current US$50 that is being charged, not the US$30-- [Interruption.] No, if it is US$20 out of US$30, it is 67 per cent but it is US$20 out of US$50 so it is 40 per cent.
Mr. Speaker, the other thing is that as
hon. Hackman Owusu-Agyemang tried to say, it is easier for us at the Ministry of Finance and Economic Planning if we are able to find this type of innovative way to really recover expenditure then we can say, “This loan, this is how we are going to pay”. Normally, what we say is that we would find money from general budgetary resources and so when there is a shortfall then there is a difficulty in managing the expenditures. This way, we are sure that that sum can be escrowed and that payment can be made in the 12-year period that we have.
Mr. Speaker, I do not know if I may
Mr. E. T. Mensah 12:25 p.m.
Mr. Speaker, at the committee meeting I demanded that we should have a cash flow statement and that it should be made part of the Report.
Mr. First Deputy Speaker 12:25 p.m.
The Committee's Report; you cannot place it here.
Mr. E. T. Mensah 12:25 p.m.
It should be made part of the Committee's Report to settle it.
Mr. First Deputy Speaker 12:25 p.m.
Mr. Chairman, the impression being given here is that it was agreed amongst you that a copy of the cash flow provided by the hon. Minister should be attached to your report but it does not appear to be the case.
Nii Mante: Mr. Speaker, unfortunately, we thought the distribution was enough because hon. Members were to be given copies. So what we did was to photocopy and distribute same to hon. Members. This should be the last time that such an important document would not be part of the Report.
Mr. First Deputy Speaker 12:25 p.m.
I do not
know how to go about it. Any sugges- tion?
Dr. Osei 12:25 p.m.
Mr. Speaker, with your permission, may I formally request that this cash flow document be captured by the Hansard so that, at least -- [Inter- ruption.]
Mr. First Deputy Speaker 12:25 p.m.
At least captured by the Hansard, maybe, yes. It was meant to be part of the Committee Report but it was not there and for that matter you are reading it and you are submitting it so that Hansard would capture it in full as part of the records submitted.
Dr. Osei 12:25 p.m.
Mr. Speaker, finally, hon. Haruna Iddrisu had a second question. I would be glad to make that available to him -- our work on Woori Bank of South Korea.
Mr. First Deputy Speaker 12:25 p.m.
Hon. Bagbin, what do you say to that?
Mr. A. S. K. Bagbin 12:25 p.m.
Mr. Speaker, really, all these issues that are raised with regard to the Report are valid. In fact, yesterday I had the opportunity to raise and discuss them with the hon. Minister of State at the Ministry of Finance and Economic Planning and what is even more critical is that the Committee should have had sight of the agreement between gK Airport and the bank because gK Airport went in for the loan from the bank and they are now going to execute the project which government wants to execute and government is using the Private Sector Finance Initiative Programme.
Mr. First Deputy Speaker 12:25 p.m.
You think that is what should have been part of the Report?
Mr. Bagbin 12:35 p.m.
Yes, Mr. Speaker, to let us know. The hon. Minister said they did the feasibility studies, which is good. The feasibility studies is due diligence - whether the bank is capable of raising that money for the work to be done. They have done that one but, at least, as I said, there are a number of agreements and gK Airport, which a lot of us know is the one leading in getting the money. They are not going to execute. It is Daewoo Engineering. They are going to do the actual work and they have attached some reports on Daewoo and some work they have done in some countries.
So it is important that the Committee should look at all those documents and assure us that definitely, we would not be short-changed. So they are very genuine issues that are raised. In fact, yesterday we discussed them and we thought that even before moving the motion, the Chairman would have sought your permission to make those amendments to his Report before moving it so that they would all be captured.

But because he did not do that, some of these things have come in and the hon. Minister tried making a lot of inputs early enough to prevent many of these issues being raised. Because he seconded, he added these information but we should insist that these things are properly done for us all to be properly guided and for the interest of the nation to be well protected.

Mr. Speaker, yes, the issue of relocation of the airport, I remember raising it with the Director-general of the Civil Aviation, looking at the possibility of us moving away. If we say we are the gateway of
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Minister for Aviation (Mr. Joe Baidoe-Ansah) 12:35 p.m.
Mr. Speaker, the project that is being discussed is a very important project for this country. Mr. Speaker, it is a project that government envisaged, could have been done before the CAN 2008 but because of the fact that government wanted to be very sure and do proper due diligence about the companies and the moneys involved, that is why it delayed.
However, government carried out some rehabilitation works before the CAN 2008. We had one in Takoradi, in Kumasi and Tamale which were all the venue sites. Mr. Speaker, currently the Tamale one is quite better than the rest and we have it on record that for the first time a South
African team landed in Tamale. The one in Takoradi and Kumasi are quiet short in terms of the runway; so this is going to address those factors.
We envisaged that we would also re-look at the Tamale one again. We are discussing with the Military as to how we can improve on the civil part of the Tamale Airport.
In the case of Takoradi, we are preparing and this is to help us really prepare for the future oil find. We antici-pate that it is going to be a very busy airport; we have to extend the runway and create a new terminal area that the civilian planes can use.
We also know that since we are looking at oil we are looking at security as well. So it is not only the civil part but we are also looking at how to enhance the military preparedness, that is the preparedness of the Air Force to be able to monitor and secure our oil wells. This is really going to take care of the future as we envisage.
Mr. Speaker, we also believe the Kumasi Airport could be a place for emergency. Currently the situation is such that when there is an emergency, our planes could land either in Abidjan or Lome. And we think that when people are boarding international planes to ghana, in case of emergency they should land in ghana, and this is being taken care of. Tamale, we believe could be used for the Saharan region. It will be a gateway and a place for emergency.
Mr. Speaker, this is a very important project that would change the face of the Aviation industry in our country.
Deputy Majority Leader/Minister
of State, Ministry for Parliamentary Affairs (Mr. Osei Kyei-Mensah- Bonsu): Thank you, Mr. Speaker, for the opportunity to also associate myself with
Minister for Aviation (Mr. Joe Baidoe-Ansah) 12:45 p.m.


this motion. Mr. Speaker, I believe the work involved in these projects should be appreciated by all, particularly considering the fact that these are airports which are strategically located at various places in the country, Kumasi, in the mid-portion of the country, Takoradi and Sunyani and as we have heard, the Tamale ones.

Mr. Speaker, in respect of the one in Tamale which is not covered directly by this, we were told that it was to be refurbished to help particularly in Hajj operations. Fortunately as we speak now, it is not at that level yet. So apart from the fact that it may help to provide emergency services for the planes destined for Burkina Faso, Mali and so on, I think the ultimate consideration as we were informed, was to help that airport, bring it up to enable Hajj operations to commence from that destination and also the return of people who use that airport to the Holy sites could return safely to their destina- tions.

Mr. Speaker, the question which was posed to the Finance Committee and which was clarified by the hon. Minister of State at the Ministry of Finance and Economic Planning is still very relevant. I think that what the various committees do, rather unfortunately, is normally to produce standard report. In a particular case of the Committee for Finance, because their task and responsibility is very herculean, we would plead with them to be very scrutinous and very diligent and let that scrutiny and diligence reflect in the reports that they submit to this House.

Mr. Speaker, the Committee on Finance is the only one which is permitted under our rules to commit expenditure of this nation as per Standing Order 170 (1). With your indulgence, I may want to quote:

“Whenever the Committee on

Finance is satisfied that there has arisen an urgent or unforeseen need for expenditure for which no other provision exists it shall authorise advances from the Contingency Fund to meet the need and report to Parliament.”

Mr. Speaker, the Finance Committee has a very herculean responsibility insofar as they could even do this on behalf of Parliament before a report is made to us. So it is important that they take their responsibility very seriously and be very diligent and scrutinous in their report to Parliament so that we do not miss anything out as we have seen on the floor of this House.

We are told that certain pertinent questions were raised at the committee level and it was found necessary to relate to these questions and give very comprehensive answers to them. If we got to know this and at the time we were duly informed, these things would not come up in the first place.

So we would want to plead with the Chairman to exercise maximum super- vision over the reports that ensue from his committee so that the House plenary would be accordingly informed of every detail of whatever transaction ensues at the committee level.

Mr. Speaker, the final thing that I want

to raise is in respect to the commitment of this amount to these airports. May we have an indication about how long these airports may ultimately be relocated, because I do know that in the case of the Kumasi Airport, a design has already been made for the relocation of the Airport.

So how long are we expected to continue the use of this airport which we are going to rehabilitate? I believe it is a good endeavour, however we need to have a fair indication that, yes, beyond five years we would be moving from this airport to another place. Maybe we could still leave it there to serve as a domestic airport whereas the new ones could be used for some other purposes as we have been told.

Mr. Speaker, if you go to Abuja, the Abuja Airport is located some 22 kilometres from the township and the security of the people, the flights and of the residences is thus insured. So if we can have some indication from the Minister responsible for aviation as to how long after the application of these funds, these facilities would continue to be used, I think I would be very pleased with the answer.

In the meantime Mr. Speaker, I believe this is an effort worth pursuing, I associate myself fully with the motion.
rose
Mr. First Deputy Speaker 12:45 p.m.
Do you want to react to that? I would give you a minute to react to that.
Mr. Baidoe-Ansah 12:45 p.m.
Mr. Speaker, on the issue of international airport, that is developing a new international airport, what we have here is that the Kotoka International Airport can still be used for the next 20 years. And so within that period, we could start building a new airport because it can still be useful - The equipment and everything that are being upgraded can still be useful -- [Interruptions.]
So Mr. Speaker, we can still use it for 20 years then build another one but we can still have two international airports because planes could be landing at the same time in two different places and that is when the traffic is very good.
Mr. Baidoe-Ansah 12:45 p.m.


Question put and motion agreed to.
RESOLUTIONS 12:45 p.m.

Dr. A. A. Osei (on behalf of the Minister for Finance and Economic Planning) 12:45 p.m.
Mr. Speaker, I beg to move, that
WHEREAS by the provisions of article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the government of ghana on behalf of itself or any public institution or authority shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
PURSUANT to the provisions of the said article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335) and at the request of the government of ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Suppliers Credit Facility between the government of the Republic of ghana and gK Airport Company Limited of ghana for an amount of one hundred and twenty-two million United States dollars (US$122.0 million) for the Rehabilitation of three (3) Regional Airports in Kumasi, Sunyani and Takoradi.
THIS HONOURABLE HOUSE 12:45 p.m.

HEREBY RESOLVES AS 12:45 p.m.

Mr. First Deputy Speaker 12:45 p.m.
Deputy
Majority Leader, what do we do?
Mr. Kyei-Mensah-Bonsu 12:45 p.m.
Mr. Speaker, we could go to item number 13.
BILLS -- SECOND READING 12:45 p.m.

Chairman of the Committee (Nii Adu Daku Mante) 12:45 p.m.
Mr. Speaker, I rise to present to you your Committee's Report, which is in seven pages.
1.0 Introduction
The Northern Development Fund Bill was presented and read the First time in the House on Thursday, 16th October, 2008 and subsequently referred to the Finance Committee for consideration and report in accordance with the Consti-tution and Standing Orders of the House.
To consider the Bill, the Committee met
with the Minister of State at the Ministry of Finance and Economic Planning, hon. Dr. Anthony Akoto Osei, Deputy Minister of Finance and Economic Planning, hon. Professor george gyan-Baffour, officials from the Ministry of Finance and Economic Planning and consultants on the Northern Development Fund Project and hereby submits this report.
2.0 Background
The State is enjoined in the Directive Principles of State Policy under article 36 (2) of the 1992 Constitution to take the necessary steps to establish a sound and healthy economy through the undertaking of an even and balanced development of all regions and improvement of conditions of life in the rural areas.
Furthermore, imbalances in the development between the rural and urban areas should be addressed to ensure balanced development.
Slow growth in the Northern sector has delayed and reduced ghana's achieve- ment of the Millennium Development goals and middle income status. It is necessary to create a growth pole linking Northern ghana and neighboring sahelian countries to contribute to the overall development of ghana.
It is predicted that with the global climatic change, the frequency of droughts and sporadic floods in the North will increase. Such persistent climate change phenomenon is already affecting the recharge of ghana's water bodies, while causing destruction of lives and livelihoods in most parts of the north.
Honourable Members would recall that the Budget and Economic Policy State-ment of government for the year 2008 made provision of a seed money of twenty five million ghana cedis
Chairman of the Committee (Nii Adu Daku Mante) 12:45 p.m.


(gH¢25,000,000.00) for the establishment of a Northern Development Fund to address the development gap and help alleviate the chronic poverty in the North.

3.0 Purpose of the Bill

The purpose of the Bill is to establish the Northern Development Fund to provide additional resources to support accelerated economic growth and sustainable development in the North.

4.0 Contents of the Bill

The Bill contains a total of twenty- seven (27) clauses.

Clauses 1to 4 deal with the establish- ment of the fund. They provide for the objects of the Fund and its relationship with the Northern Development Strategy. The strategy is government's approved policy to develop the Upper East,Upper West and Northern Regions.

Clauses 5 to 14 cover issues concer- ning management of the Fund.

A Board of Trustees is established for the management of the Fund and the attendant initiatives of the Northern Development Strategy. Membership of the Board is outlined to include the designated members of the National Development Planning Commission from the three northern regions. Other matter provided for include functions of the Board, tenure of office of members, meetings, disclosure of interest, among other things.

Clauses 15 to 25 deal with adminis- trative and financial matters. These include the appointment of an Executive Director of the Fund and the functions of his office.

They also provide for the secretariat of the Board which is to be located in the north. Other matters covered in these clauses include expenses of the Board,

internally-generated funds, tax exemption, accounts and audit, and annual reports.

Clause 26 provides for the Minister responsible for Finance, on the advice of the Board, to make regulations by legislative instrument for the effective implementation of the Act, when passed.

Clause 27 provides interpretation of the key terms used in the Bill.

5.0 Observations

The Committee observed that the Fund being created is not meant to be a substitute for existing and traditional government funding towards the three Northern Regions.

The technical team informed the Committee that in formulating the Bill, wide ranging consultations were held with civil society organizations, faith-based organizations, and individual members of the public including Northerners who live in the south.

Again, Chiefs and traditional authorities of the North were engaged to review the strategic proposals prior to the finalization of the Bill.

The Committee noted that the intent of the Northern Development Strategy is to reduce poverty in the three Northern Regions to about 20 per cent within 15 years.

The Committee observed that the components of the Strategy include:

Community-driven development actions, focusing on smallholder agriculture and off-farm investments to create opportunities for the poor

Private sector development to stimulate investments in the north and complement ongoing pro-

ductive investments in the south

Funding to implement strategic infrastructure in roads, energy and water resources

Flood mitigation and environmental renewal investments

Food, livelihood security and peace initiatives; and

Institutional capacity building to make institutions deliver effectively on their mandate.

As part of measures to compre- hensively develop the North, two new hydro-electricity dams would be built in the North to ensure adequate, consistent and reliable power supply to that part of the country. Negotiations are currently ongoing to raise an amount of US$500 million from Brazil to undertake this project as part of the overall strategy.

6.0 Amendments Proposed

After extensive deliberations on the Bill, the Committee proposes the following amendments to the Bill:

i. Clause 2 -- amendment proposed -- subclause (1), line 2, delete “three northern regions” and insert “north”.

ii. Clause 2 -- amendment proposed -- subclause (2) (a), line 1, after “potentials” insert “in the north and”.

iii. Clause 4 -- amendment proposed -- subclause (3), line 2, delete “fifteen days” and insert “the next working day”.

iv. Clause 6 -- amendment proposed -- subclause (1) (a), delete “who is an eminent person”.

v. Clause 6 -- amendment proposed -- subclause (1) (d), add a new paragraph as follows:

“(viii) law”.

vi. Clause 8 -- amendment proposed -- subclause (2), at end add “and those members appointed under section 6 (1) (c)”.

vii. Clause 9 -- amendment proposed -- subclause (3), line 1, delete “three” and insert “five” and after “members” delete all words.

viii. Clause 12 -- amendment proposed -- subclause (2) (e), delete and insert the following:

“(e) two persons from each region of the north, representing District Assemblies in that region, one of whom is a Presiding Member and the other a District Chief Executive nominated by the regional grouping of District Assemblies.”

ix. Clause 12 -- amendment proposed -- subclause (2) (f), delete “two” and insert “three”.

x. Clause 12 -- amendment proposed -- subclause (2) (g), line 2, after “member” insert “as and when required”.

xi. Clause 12 -- amendment proposed -- subclause (2), add a new paragraph as follows: “(i) three persons from the north

representing elected Members of Parliament, selected by the Northern Parliamentary Caucus and reflecting majority and minority representations on the caucus.”

xii. Clause 12 -- amendment proposed

-- subclause (3), line 2, delete “thirty” and insert “thirty-one”.

xiii. Clause 22 -- amendment proposed -- line 3, after “Minister” delete “of Finance”.

7.0 Conclusion

The Committee's examination of the Bill has established that the Bill will help to provide additional funds needed to accelerate the economic development of the three northern regions of the country.

The Committee therefore recommends to the House to adopt this report and pass the Northern Development Fund Bill subject to the amendments proposed.

Respectfully submitted.
Mr. Abdul-Rashid Pelpuo (NDC - Wa Central) 12:55 p.m.
Mr. Speaker, I rise to support the motion and to say that this is a very unique opportunity for us to put in place a legislative framework that will tackle the long-standing problem about the division between the North and the South and the need for us to have a targeted policy addressing the many problems that are pulling the North behind in ghana's development.
Mr. Speaker, even before I go ahead to say anything, let me say that it is very commendable that at this very moment the government has thought it wise to do what they are doing, and the very objective is captured in the memorandum itself in paragraph (3) which was also recognised by the Committee Report that there is a recognition of the wide disparity between the North and the South, and that disparity is causing a delay and is reducing ghana's capacity to meet the Millennium Development goals (MDgs).
Mr. Speaker, importantly is the fact that the spirit and the intent of this Bill will be lost if we try to look at the Committee's Report and to accept it with the proposed amendment. Mr. Speaker, for example in clause (2) we have been very specific, or the policy has been very specific and the proposed law has also been very specific about referring to the North as the three northern regions.
Dr. Osei 12:55 p.m.
Mr. Speaker, with all due respect, I think my good Friend was not at the committee to understand why this change was made. In the Interpretation of the Bill, “the north” with the small “n” is defined and the Committee wants to make sure that that definition is what was in there. So the amendment is not “the North” with the big “N”, rather it is “the north” with the small “n”. And in the Interpretation, it means the Upper West, Upper East and Northern Regions.
There was some discussion as to whether or not it should be extended to other areas and we did not want any doubt as to the objective of the Executive with regard to the initial definition. This is why the amendment refers to the small “n” as defined in the Bill to avoid people trying to change the definition that was intended by the Executive. That was the reason why that amendment was made; that is the objective of the Executive, to define it as it is in the Interpretation, page 12.
Mr. Pelpuo 12:55 p.m.
Mr. Speaker, I do acknowledge what the hon. Member is talking about. The point is that even though it is necessary to give that definition so as to cite a broad geogra-
phical area as differentiated from the three northern regions, it is still important that we give vent to the fact that the Bill is addressing an issue about the three northern regions, which is specific to the extent that we want to see how we can use that legislative framework to address the endemic problem of underdevelop-ment so as to help the North catch up with the rest of the country. And I am saying that this is a good opportunity and we want to support it.
Again, we want to make it very clear that it will be a mistake if we try to think the way I was thinking, if that is the impression, that instead of the three northern regions you are referring to a geographical area. So we want to thank you very much and I want to register my support and we hope that the rest of us would support it.
Alhaji M. M. Mubarak (NDC - Asawase) 12:55 p.m.
Mr. Speaker, I rise to support the motion, that this House adopts the Report of the Finance Committee on the Northern Development Fund Bill.
Mr. Speaker, this has been long overdue. If you look at the challenges that we have as a country, where one part of us is far away from the other in terms of education, health, infrastructure and many, many, more, it would not be misleading to say it is partly the result of so many conflicts that we have there. Sorry to say, when you have nothing to lose, most of the time, upon the least provocation all you can do is to go around just burning and burning.
Mr. Speaker, I am saying this with emphasis, with regard to what is happening even in the health sector. Mr. Speaker, if you check the statistics at the ghana Health Service, it tells you that 56.7 per cent of the country has access to health within 30 minutes if they want to get. But
when you go into the details, it shows that 87 per cent of people in greater Accra can access health within 30 minutes, 69 per cent of people in Ashanti Region can access health within 30 minutes. Mr. Speaker, coincidentally, only 20 per cent of the population in Upper West can access health within that 30 minutes.
Mr. First Deputy Speaker 12:55 p.m.
Access what, what word did you use?
Alhaji Mubarak 12:55 p.m.
Accessing of health. If you want to access health services in Upper West, it is only 20 per cent of the population that can access health within 30 minutes. It is 30 per cent with Upper East and 35 per cent with Northern Region.
Mr. Speaker, when you look at the doctor to patient ratio, the whole country, the average is 15,000 to one doctor. But greater Accra has 5,600 patients to one doctor; Kumasi, Central Region, Eastern Region have an average of about 20,000 to a doctor. When you come to Northern Region it is terribly alarming - 64,000 to one doctor. So when you look at these disparities you would believe that this Bill has been long overdue.
My worry seems to have been captured by your Committee's “Observation”. Mr. Speaker, if you would permit me to read page 4, paragraph 5.0 - “Observations -
“The Committee observed that the Fund being created is not meant to be a substitute for existing and traditional government funding towards the three Northern regions..
. .”
Mr. Speaker, this I want to emphasize; we should not pretend that with the coming into effect of this development fund, almost every other thing that needs to be done up north would be channelled
Alhaji Mubarak 1:05 p.m.


through this Fund. This is supposed to be an additional funding and that is something that I believe all of us should guard and ensure that this comes to fruition.

Mr. Speaker, the other thing that I would want to emphasise when we come to the Consideration Stage and that many of us need to pay much attention to is how much of this Fund will be going into administration. If we are not careful -- We have had the experience of NORREP, even though that was not properly put like this particular Bill -- the adminis-trative cost would be taking almost all the money, leaving very little.

So it was like some kind of window dressing. We claimed to have a fund but most of the funds were used for monitoring and evaluation, building, procurement, desk, office renting and what have you.

I want to emphasise that when we come to the Consideration Stage, we should emphasise and probably even state a percentage, and I believe that not more than five per cent of the total funds that will be going there should be allowed to be used for administration purposes. That way we would ensure that at least, 95 per cent of the Fund will be going directly into activities that will truly reduce poverty, not auxiliary things that will not reduce poverty.

Lastly Mr. Speaker, I must say that, yes, I have my ancestral backing from the North but I was born in Kumasi, bred in Kumasi and dwelled in Kumasi all my life. I am a true Kumasi person. My father died and was buried in Kumasi. My grandfather died and was buried in Kumasi. You may see me and say I am a Northerner but I

am not.

I am somebody from Kumasi and both of us equally have some of these challenging communities. We cannot close the gap between the poor and the rich only - [Interruptions] --geogra-phical location - [Interruption.]
Dr. Osei 1:05 p.m.
Mr. Speaker, on a point of
order. I do not know if anybody is from Kumasi. People are from different villages in Kumasi. But for him to say that he is from Kumasi surprises me because on the birth certificate, nobody can say that they are from Kumasi. So he should be more specific. Kumasi is a second capital but there is a part that we are from which is defined on our birth certificates. I cannot say I am from Kumasi.
Alhaji Mubarak 1:05 p.m.
Mr. Speaker, on a lighter note, my hon. Colleague is claiming that one cannot come from Kumasi but I am telling him that I am from Kumasi. He should go and find out from the Oxford dictionary or whichever dictionary, the meaning of “hometown”. One's hometown is where one is given birth to - [Interruptions] - Yes, is it not a town. He is from a village.
So, if my hon. Colleague, the hon. Member for Tafo cares to know, that is why the Asantehene is our chief, the Kumasihene because we are from Kumasi. So we are from Kumasi and not from the village that he is coming. He comes from a village. His ancestors came from the village and settled in Kumasi; but we are from Kumasi.
Dr. Osei 1:05 p.m.
Mr. Speaker, my hon. Colleague has to be very careful. The Asantehene is more than the chief of Kumasi. He is the Asantehene; not Kumasihene.
Alhaji Mubarak 1:05 p.m.
Mr. Speaker, this clearly shows that my hon. Colleague is not from Kumasi. Those of us will tell him that before the Asantehene is enstooled
as Otumfuo, he is first enstooled as the Kumasihene. I am from Kumasi and I am telling him this history - [Hear! Hear!] That he is first enstooled as Kumasihene before moving on to become the Asantehene.
rose
Mr. First Deputy Speaker 1:05 p.m.
Hon.
Member for Jomoro, are you challenging him?
Mr. Ocran 1:05 p.m.
Mr. Speaker, on a point of order. I am sorry that the hon. Member for Tafo should sit down for this Hausa man - because he is Hausa but settled in Kumasi - teaching him the history of Ashanti.
An hon. Member: He is a Dagomba man.
Mr. Ocran 1:05 p.m.
Yes, he is a Dagomba man. Here is a Dagomba teaching the hon. Member for Tafo his own custom. For this alone, he should sit down.
Mr. First Deputy Speaker 1:05 p.m.
Hon. Minister of State, do you want to react to that?
Dr. Osei 1:05 p.m.
Mr. Speaker, it is obvious that he does not know the historic relations between the Asantehene and the Hausa people. There is a very rich experience going way back. So he cannot say that “this Hausa man”. The Ashantis have a particular affinity - [Interruption.]
Alhaji Boniface 1:05 p.m.
Mr. Speaker, I am on a point of order. The hon. Member for Jomoro said that the hon. Minister of State should sit down for the Hausa man -- Before the Asantehene is enstooled, he has an Imam in his palace. We write the history. The Hausa people, the zongo people wrote the history. So why should he talk about we Hausas sitting somewhere?
Mr. Bagbin 1:05 p.m.
Mr. Speaker, let me just
correct my hon. Colleagues. The Ashantis have a relationship with the Dagombas. They are not Hausas, they are Dagombas. That is the relationship and the word Bantama is from Nba ntima, so that is how it came out. “Nba ntima”. So the Dagombas are different from the Hausas.
Mr. First Deputy Speaker 1:05 p.m.
Hon. Minority Leader, what do you mean by Nba ntima?
Mr. Bagbin 1:05 p.m.
Nba ntima, that is the word meaning “my father gave it to me”. While they struggled to pronounce it, they said “bantama”.
Mr. S. K. B. Manu 1:05 p.m.
Mr. Speaker, the hon. Minority Leader is misleading this House into thinking that the name “Bantama” is Nba ntima. If one reads Ashanti history one will find many explanations given to that word Bantama. In fact, I have - [Interruptions] - No, let me tell him, I just did a course at gIMPA and I wrote the history of Ashanti -
An hon. Member: So, you are the historian?
Mr. Manu 1:05 p.m.
In researching, I came across many explanations given to the name “Bantama” including what he has said. But it cannot be authoritatively said that that is the meaning. To say “Bantama”
- 1:05 p.m.

Mr. First Deputy Speaker 1:05 p.m.
Hon. Member for Ahafo Ano South, you are out of order.
Mr. Manu 1:05 p.m.
Please, in my own language - [Interruption.]
Mr. First Deputy Speaker 1:05 p.m.
Hon. Member, I am ruling you out of order.
Hon. Member for Asawase, continue.
Alhaji Mubarak 1:05 p.m.
Thank you very much, Mr. Speaker. I must commend all hon. Members for their inputs in teaching the hon. Minister of State at the Ministry of Finance and Economic Planning the history of his ancestors.

So in drawing the details, we should have in mind - one goes to a place like Nima, Mamobi, or Aboabo in my constituency, indeed, so many other communities across the country. Mr. Speaker, the moment one gets there, one does not need to be told that these are truly very poor communities.

I believe that in our efforts to close the gap between the rich and the poor, we should not only restrict it to geographical location but look at all these areas to see what could be done; so that we will be able to close the gap truly across the country.

With these few words, I support the motion and I hope my other hon. Colleagues would do same so that when we come to the Consideration Stage, we will pay much attention to the details and make sure that we have a very good Bill that will help close the gap between the rich and the poor in this country.
Mr. Joe Baidoe-Ansah 1:05 p.m.
Mr. Speaker, I support the motion. Mr. Speaker, this Bill is long overdue. But I believe that it is a step in the right direction. That disparity between the North and the South is really sharp. It is something very noticeable as
you move from the south to the north of the country.
What is more disturbing is that it is also the place where a lot of non-governmental organisations (NgOs) from Europe and America have also said that they have been sending monies to.
Dr. A. Y. Alhassan 1:15 p.m.
Mr. Speaker, on a point or order. The hon. Minister just mentioned that since the 1970s, a lot of dollars have been pumped into the North and into the wrong ventures. I do not think that statement is correct. I do not think that dollars put into Northern Regional Rural Integration Programme (NORRIP), dollars put into Upper Regional Agricultural Development Programme (URADEP), dollars put into Upper West Regional Development Programme (UWADEP) that have built several irrigation dams, asphalted roads, many bridges, steel bridges and extended electricity to the North, et cetera are dollars pumped wrongly. He should be careful about what he says.
Mr. Baidoe-Ansah 1:15 p.m.
Mr. Speaker, I think he was not listening to me. NORRIP and others that he mentioned
were not NgOs; they are governmental organizations. I specifically spoke about moneys that have been brought in by non-governmental organizations. He is quoting wrong organizations; these are governmental organizations. A lot of non- governmental organizations like I said -
Maybe my hon. Colleague could be right; maybe they were putting the money into administration. But a lot of NgOs have brought money into this country purportedly to be sent to the North but we do not really see the effect of such moneys. So what I am saying here is that it is important that this fund is coming with a development strategy, that a lot of research and a lot of work would be going -
Mr. Bagbin 1:15 p.m.
Mr. Speaker, I thought with the prompting from the hon. Member for Mion, Dr. Alhassan, the hon. Member would have moved from that area because it is actually not the case that the non- governmental organizations pumped money in the wrong direction in the North. I know Plan International, ghana; I know World Vision; I know a lot of NgOs in the North that have actually tried filling the gap and they have done a lot, tremendously well.
Such a sweeping statement, it is definitely not something that we should consider as parliamentary because it would go to irritate the NgOs that are doing a lot for northern ghana and in fact, the country. So please, it is my advice that he should move away from that area.
Mr. First Deputy Speaker 1:15 p.m.
Hon. Member, I believe that is still an opinion that is expressed; maybe he is right, maybe he is wrong, but let him continue.
Mr. Baidoe-Ansah 1:15 p.m.
Mr. Speaker, like you said, it is a question of opinion. I believe that on the contrary, this rather
should be an advice to the NgOs that when they bring money into this country, more should go into development. The research work we have seen is that a lot of NgOs pay themselves more than what goes into projects.
It is true that somebody doing a particular work for an NgO takes about ten times more than somebody who is doing a similar work within the government circle. And what I am saying is that if these moneys are channelled into real development, we would see more accelerated development than we are seeing and it is a fact.
Mr. Speaker, it is important that when
funds are being created they are created to fund specific projects. In the case of the Northern Development Fund, this is a fund that is being set up not for people to just access; it is to fund a strategy for development. So we could see and evaluate what they have put in.
Other than that, we have a situation where people would just go into the fund, people would apply for the funds and use them not according to the strategy; and I am saying that this is an innovation. I believe that maybe it could be the first time in our country that we are having a whole area demarcated for that purpose, where a Fund is set up purposely to ensure that an area in our country or a territory in our country is developed.
This is the first time that we are seeing such a thing in our country, if my memory would serve me right. So it is something that we should take seriously. I believe that from experiences that we are going to acquire from this Fund, we could look at other areas as well. If it works in the North then we could replicate it in other parts of our country on specific projects; look at particular areas and where they fall short
Mr. First Deputy Speaker 1:15 p.m.
We would continue. Hon. Lee Ocran before hon. Christine Churcher; I think all of you would have your chance.
Mr. Lee Ocran (NDC - Jomoro) 1:15 p.m.
Mr. Speaker, this legislation is a very important one because I have lived in the North. I spent my first years, working and living in the North - 1971 to 1973 - and the first thing that I saw when I entered the place was that it has been a deprived area - [Interruptions.]
It is not their fault that they find themselves in that geographical area; that is what happened and we must assist them to improve the place. You get these kayayei or whatever they call them, coming down here, not because they do not want to stay there. When the rice industry was moving they stayed there and worked. But now that the industry has collapsed, they have nothing to do but to move down here to look for jobs, jobs that are non-existent.
I went to Bawku area and I saw that the soil was so bad, it is rocky and you cannot cultivate it. Even when rice was a booming business in the northern part -- I was at that time working with the Agricultural Development Bank and I used to go on project tours -- one could realize that within three years, the soil was depleted despite the fact that fertilizers were being used.
So they have specific problems and we must try to assist them. But in assisting them they must also try to assist themselves because irrespective of whatever money you put in there, if the people are not going
to use the money judiciously, but they are going to create another bureaucracy and people are driving flashy cars then they would still remain as they are.
I think that there should be a monitoring mechanism to make sure that whatever moneys are voted every year for developing certain specific areas, these moneys are used for that purpose. That Committee must report to this House how far we are moving in the area so that more money can then be given. We do not want to throw good money after bad projects.
We have had URADEP, we have had NORRIP, we did not see any significant results and I do not think we should repeat that mistake. Otherwise, I support this project; I support this legislation; it is a good one, we must help the people, but the people too must try to help themselves. They should live in peace and make sure that whatever money is put in there is used for good purposes.
Ms. Christine Churcher (NPP - Cape Coast) 1:25 p.m.
Mr. Speaker, I support this Bill for two main reasons.
The first reason is the impact of such a fund on the development of the girl child. Mr. Speaker, over and over again, we have mourned and been unhappy with the number of girls who come to the South, particularly to Accra and Kumasi to work as kayayei. Mr. Speaker, some of these girls should be in school but poverty in the North drives them, even when they should be in the classroom and when they should be developing themselves elsewhere.
My own opinion is that this Fund which is to develop the North the more, which is to bridge the inequities that exist, which is to ensure that life there becomes more memorable in that sense will lure these girls back to the North.
Mr. Speaker, the problem about kayayei
and the girls is really serious. When we go round, we see where they sleep, we see where they are, we see the sadness in their eyes and we see the health implications and it is my prayer that with the coming into force of this, they all will turn their attention back to their homes where they can develop themselves better.
Mr. Speaker, the second reason why I
support this Bill is that many a time when people are posted to the North, when transfers are done, many of them refuse to go. Many people lament that they are being sent there. There are certain parts which are so impenetrable that people say no, no. We think it is even a punishment that we are being posted from the South to the North.
Mr. Speaker, I believe that with the advent of a fund like that which is for development, the North will open up more. Therefore, they would have adequate supply of manpower to the place and when people are transferred there they would no longer lament but then it would be good for them.
Mr. Speaker, life is about development. Inequities exist everywhere and Mr. Speaker, it is true all these fingers are not equal, but the basic needs that every area needs to enjoy to ensure that life is good and that the people there have a fair share of the national cake becomes very crucial for the total development of the nation.
That is why I support wholeheartedly this Bill, and it is my prayer that from the North, we will go to the Central Region where poverty also abounds; where in certain parts we would not believe that that is part of Central Region.
I believe that all the other parts of the country which are also suffering endemic poverty which are also deemed to be prosperous areas but a clear look at the areas will show abject poverty should also
be looked at.
This is a very good Bill and I give it all my heart.
Dr. A.Y. Alhassan (NDC - Mion) 1:25 p.m.
Mr. Speaker, I rise to support the motion and to make a few comments.
I have always held the view that poverty in northern ghana is not because the people of the North have not received enough handouts from the rest of the country but because there is lack of investment in northern ghana. And it is good that this particular Bill has, as part of its thrust, investing in productive sectors of northern ghana so that the wealth generated can remain and enrich the people of northern ghana and they would not have to look for handouts from elsewhere, maybe in the next generation.
Definitely, this type of investment will be private and also public. Certainly, public money is going to create the environment for private people to invest. But the word of caution is that many a time, complete reliance on private investment also can result in export of capital out of poor areas so that when people do businesses they take the money out of the area into where they come from and in the process, the situation remains the same.
So I would like to say that this Bill
must highlight, and it is part of it, building indigenous capacity so that businesses can be established and wealth can be generated by northerners and remain in the North to service the people. So the capacity building of indigenous business entrepreneurs to sustain the wealth generation cycle in northern ghana would be extremely important and this Bill should look after that.
I also believe that the poverty situation in northern ghana has a historical dimension and this Bill should also afford an opportunity for our mindsets
Minister for Water Resources, Works and Housing (Alhaji A. S. Boniface) 1:35 p.m.
Mr. Speaker, I rise to support the Bill on the Northern Development Fund.
Mr. Speaker, I think this Bill has come timely. The disparity between the North and the South dates back to the colonial days or pre-colonial days where in fact, the North was seen as the labour pool and that sort of thing took all the strong people out of the place and that affected also the education of the North. And one could see that that has also engendered the poverty of the area. So when any young boy or girl grows up, he migrates to the South and that has encouraged more rural- urban migration and that has also affected the wealth of the people.

I am not surprised that my hon. Colleague talked about the Zongo. Most of the Zongos were created out of this situation. While migrating from the North, people when they get to a place, stay there. It is a transit point. That is the real meaning of “zongo”; it is a transit point. And once they get there, after some time they see that, no, there is no need going back.

This has also actually affected the development of the North where we have every opportunity; even in recent times we were talking about some of the industries, like the rice industry. When it was booming, people used to migrate from the South to the North to go and farm rice. Today, that industry has collapsed totally. Most of us even got our school fees from going to the rice farms; some of us were managers or farm managers and that was where we had our moneys to go to school. Today, all those industries have collapsed.

The North has a lot of potential but that depends on how we manage it. I believe with the emergence of this Bill and coming out with some funds, it would be able to identify key industries, or key productive areas where much of the investments could be made to generate employment and also generate income for people. Through that I believe it would arrest the movement and the depletion of the area that has a lot of benefit to us, and reduce the poverty.

I believe when calculating poverty in this country, the three northern regions as well as the Central Region are the most affected areas, and this particular Bill, when given the nod, and when funds are available, will help develop the North very fast. So I think we should thank the government for coming up with that idea.

Mr. Speaker, on that note, I thank you for giving me the opportunity.
Mr. J. B. Aidoo (NPP - Amenfi East) 1:35 p.m.
Mr. Speaker, I am also rising to give support to the motion relating to this Bill.
Mr. Speaker, the area we are talking about is approximately about a third of the total land size of ghana, and Mr. Speaker,
because of its peculiar nature, affected by climate and physical environment, this area has been lagging behind in terms of development. Mr. Speaker, if things are not done in the normal way and in the mainstream, certainly, it would take a long time for the northern part of the country to be developed.
Therefore, there is no gainsaying the fact that during the First Republic and during the time of the first President of the country some special intervention was made in the North. We all know of the free education that was introduced in the North. Mr. Speaker, following that, we know that not much had actually happened in terms of vigorously development of the North.
Mr. Speaker, I had the opportunity to do some research in 1999/2000 in the North and I noticed that even for the period of rainfall - within that time the rainfall pattern had changed and the number of months that the whole of the North was to have rainfall had shortened. And your Committee's Report, Mr. Speaker, clearly indicates that with the global climatic change this climatic situation of the North is likely to worsen.
Mr. Speaker, certainly, without a well- focused and special intervention for the North, it means that it would take so many years - it would take really a very long time for the North to develop. But we cannot afford to move forward without this large size of area in our development process. And therefore, this intervention which is coming at this time is very opportune and very, very important, and for which reason, we are all supporting it. We believe that the Fund that is being created would actually go to address the very problems we are talking about.
Mr. Speaker, the Fund is to provide the necessary impetus for development to
Mr. S. K. B. Manu (NPP - Ahafo Ano South) 1:35 p.m.
Mr. Speaker, I also rise to support the motion, and in doing so, I would like to observe that I agree with the Committee on their observations; one of which is that, a wide range of consultations were held with civil society organizations, faith- based organizations and individual members of the public, including northerners who live in the South. I am more particular about individual northerners who live in the South.
Mr. First Deputy Speaker 1:35 p.m.
Hon. Balado Manu, speak to the motion and stop attacking individual members for expressing an opinion. Please, do not go that way.
Mr. Balado Manu 1:45 p.m.
Mr. Speaker, your advice is well taken. But the point I am making is that if the North will get the necessary development, then people from the North must be passionate about seeing the North develop. And that should not be northerners who live in the northern territory alone but northerners in the diaspora.
Mr. Speaker, I am also happy to read
that among the initiatives and the strategies being outlined to help this Fund develop the North is food, livelihood security and peace initiatives.
Mr. Speaker, development and peace are bedfellows, and chaos and violence are bedfellows of non-development.

Mr. Speaker, I want to say it and to put it on record that this Fund is well decided upon to be set aside for the North. But if there is no peace, if we do not realize that we need peace and fight for peace in the North, the money will go there, the aims and objectives of the Fund will not be achieved because we are talking about setting up industries in the North with part of the Fund. Yes, if industries are set up and the place is not secured enough who will want to risk one's life in such an environment?

I am therefore praying that as we pray for development, we must see that there is need for us to have peace.

Recently, my people, the Basares had some flash clashes with our kinsmen, the Kokombas and the situation was quickly managed. So I do not think many ghanaians got to know about this. I want to say that if we do not stop violence in the North, the whole money in this country

can be sent there, the development we want to see will not be there.

Again, as the Fund goes there, just as we are saying that the South relatively is more developed than the North, within the North there are enclaves that are more developed than others. My area, the Basare area, Tatale Zabzugu area cannot be said to be as developed as Tamale, or Yendi or Wa-Tiegberi -- I enjoyed there very well, a place in Wa; when I am in Wa I am always there -- Tiegberi. The place is well developed but if we go to Zabzugu, Tatale district, there is less development.

What I am saying, in effect, is that as this Fund is going to develop the North, strategies should be adopted to develop the less-developed areas of the North so that together they will all be developing and together the North will be developing with the South. In that case, the Mellennium Development goals will be achieved in totality.

Without much ado, Mr. Speaker, and realizing that there are many other hon. Members who may want to bite the cherry, I will thank you for the opportunity and reiterate the need for peace in the North before any meaningful development can be achieved. I thank you, Mr. Speaker.

Mr. Haruna Iddrisu (NDC - Tamale
Dr. Osei 1:45 p.m.
Mr. Speaker, my motion was
not for the adoption of a Report.
Mr. H. Iddrisu 1:45 p.m.
Mr. Speaker, it is
the Second Reading of the Northern
Development Fund Bill, and Mr. Speaker, to urge hon. Members to support this worth initiative.
Indeed, it is important in very many respects, because if we want to achieve holistic development as a country, it will not be attainable if we do not carry the rest of the country, particularly the most deprived and underdeveloped areas of the country, on board.
It is also significant in another respect, Mr. Speaker, that the late Dr. Kwame Nkrumah was one of the most pragmatic and indeed, he had far-reaching policy plans in wanting to bridge the development gap. He had a fundamental understanding and appreciation of what the historical imbalances in terms of the consequences of colonialism and their attitude towards the North and therefore wanted to bridge that gap and this reflected in one or two of the major development plans between 1951 and 1961.
Post-independent governments have made their effort, but regrettably, we have not been able to close the development gap.
Mr. Speaker, even today, if you take the incidence of poverty, the high incidence of it even as we saw in the gPRS Review report - gPRS I, the incidence of poverty is still very high in the three northern regions of ghana, not to exclude that of the Central Region and then also to other areas of urban poverty.
If we take even the quality of education between the North and the South, there are wide disparities in the quality of education and also between rural ghana and southern ghana.
If we take even health indicators, in terms of maternal mortality, infant
Mr. H. Iddrisu 1:55 p.m.
mortality, children that are malnourished, there are wide disparities between children affected in the North as compared to those within southern ghana.
It is for this reason that I say that it is a worthy and appropriate intervention. But Mr. Speaker, I think that in looking at the Bill, it is important that one recommends very strongly for the establishment of a source of seed money. If you just establish a Fund and you compare it for instance to the gETFund, Road Fund, we know where the source is. You are charging a certain percentage on petroleum tax for purpose of supporting the tax. Two and a half per cent of value added tax, for purpose of supporting the gETFund.
With this we are being told it is not going to be normal appropriations but the source of funding will be approval given by Parliament. I think we should identify a secured sustainable source of funding to feed into this Fund because we should be talking about a sustainable fund regime, not just the establishment of a Fund.
But where are we looking up to? Are we going to say that one per cent of value added tax, or are we going to come with maybe an affirmative intervention tax obligation which will impose, maybe a hundred gh. cedi per litre of petrol, so that we know that there is a reliable source of funding for the Northern Development Fund? But to leave it to Parliament, donations and gifts and others, as compared to other existing funds, Mr. Speaker, I think that we should be talking about the availability of seed money.
I am aware that in the 2008 Budget, some mention was made of gH¢250 million but the intention there was to respond to the floods that happened in northern ghana at the time. We are now
talking about seed money for the purpose of the Northern Development Fund and I think that it is appropriate we look at it.
Mr. Speaker, other hon. Members have already emphasized it and I think it is important that as people from that part of the country, we take the bold initiative in ensuring that there is sustainable peace in their area.
Let me indicate quite strongly that the people of the North are very peaceful people. It has always taken the conduct of a few miscreants to create the scene of a violent people. The large mass of the people from northern ghana are very, very peaceful people and very tolerant indeed.
I hope the hon. Minister for Water Resources, Works and Housing will agree to this. The North is one particular area that if you were a traveller, you never got lost. Once you arrive and you identify yourself, our hospitality is so unique that we will offer you a place to sleep.
Indeed, there were times that even if you wanted a hand in marriage, you will be encouraged provided there was some evaluation of your character source, of which person you were just to define who the people of the North are and I agree with earlier calls that we need to be able to sustain the peace in that area.
Mr. Speaker, like hon. J. B. Aidoo said, if you travel to the North, about a third of the land mass of the country is concentrated in northern ghana. If you were travelling from Salaga, probably to Hamile, it may take you the whole day from morning, 6.00a.m. to 6.00 p.m. in the evening; you will just be traveling from one district in the Northern Region to another district in the Upper West Region.
Even within the Northern Region if
you are going to take a trip to Salaga from Tamale, a journey which should take you an hour, you are going to use 3 to 4 hours struggling to get to Salaga. If you are going to travel to Bunkpurugu/Yunyoo from Salaga or from Yendi you will go through the same difficulties.
If you came within Sandema and you wanted to travel from Tumu towards the Wa area, a journey that you probably could make within an hour or two, you may have to spend half a day or more, just trying to make the journey in that particular area.

Mr. Speaker, what the North needs

is not just the establishment of a fund; it needs massive investment in its infrastructure, whether it is road infrastructure, educational infrastructure or health infrastructure.

I think that those who would be responsible for the management of this Fund must also be persuaded to agree that, like the ghanaian economy, the Northern economy is largely agrarian- driven by a major economic activity which is agriculture. Indeed, when agriculture was booming in that area we did not witness this large scale of rural/urban migration.
Mr. First Deputy Speaker 1:55 p.m.
Hon.
Member, you should be landing.
Mr. H. Iddrisu 1:55 p.m.
I am doing so, Mr.
Speaker.
Mr. First Deputy Speaker 1:55 p.m.
But before
you even continue, let me inform the House that Leadership has decided that we extend the Sitting and for that reason we should recognize that.
Mr. H. Iddrisu 1:55 p.m.
I was asking for
increased investment because it has one of the worst road infrastructure whether
in the Upper East, Upper West, Northern Region linking up - If you were travelling from Bongo or from Tongo and you want to link up with another area in the Northern Region you were likely to go through the same difficulty and I think that, Mr. Speaker, we should also be calling for massive investment.
A Member, who spoke earlier on said there have been interventions. We had Upper Region Agricultural Development Programme (URADEP) which was focused on agriculture; we had the Farmers Services Company (FASCOM) which was focused on agriculture, and we had the Northern Region Integrated Development Programme (NORRIP). Despite all these interventions, Mr. Speaker, we are concerned that the incidence of poverty is still very high in that area and one is encouraged by the fact that this Fund, if properly managed, will launch an onslaught into the poverty in that particular area.
But Mr. Speaker, finally, we also must be concerned about areas of pockets of urban poverty where there are people settling from the North in those particular areas and what interventions we may be able to do up in the future.
Mr. Speaker, with these few comments, I urge hon. Members to support this Bill. I thank you for the opportunity.
Mr. First Deputy Speaker 1:55 p.m.
I thought I
should draw the curtain on this debate but I cannot ignore two people who are up. I will give you, Professor Fobih two or three minutes to make a little intervention then, lastly you, hon. J. H. Mensah as well. Two minutes each.
Minister for Education, Science and
Sports (Prof. Dominic K. Fobih): Mr. Speaker, I appreciate the opportunity given to me to associate myself with the Bill.
Mr. First Deputy Speaker 2:05 p.m.
Indeed, the object of the Bill is well intentioned because such initiatives have helped in other places with similar situations. Everyone knows that the Northern Region of ghana has a great potential for the economic development of the country. I have been amazed by the large tract of land that is available there and the other resources that it has for the potential development of the place. Indeed, what is lacking is that we as a nation have not taken advantage of the resources and the potential that the North has. So this Fund, I believe, will help address the problem if it is indeed taken seriously.
However, if the purpose of the Bill is going to be beneficial to the people of the North, certain precautions will need to be taken. For instance, we are talking about using the Fund to develop the North. From which perspective of development are we talking about? Is it from the bureaucrats or from the people of the North themselves? So one needs to get the involvement of the people in defining the basics of development that are required as a springboard to equity development as the South.
Furthermore, we need to consider what structures are really the basics for such a developmental agenda. And I believe that should well inform us even to think of how much is required in terms of creating seed money as an interventionist approach to solving the development problems of the North. Without that guidance I think we will all be wish-washing the issue rather than basically seeming to address the problem that is confronting the North as a whole.
So one needs, as a Colleague from Tamale South Constituency (Mr. Haruna Iddrisu) said, to ensure that there is
continuous inflow into this Fund otherwise it is just at the charity of some other authority to continue with the agenda that we are setting ourselves in the Bill.
We also need to ensure that there is increase in whatever goes into the Fund to make sure that the wide range of issues that need to be addressed in terms of not only the physical agenda that would be required, in terms of infrastructure, but there would also be social problems that need to be addressed in proposing and projecting that developmental agenda. All these will require a large amount of investment which needs to be considered in terms of the inflow and the amount that is required.
Mr. Speaker, I think you gave me just a few minutes so I will end here by saying that, yes, it is indeed a laudable idea but we need to also give a proper structure to the planning that we are putting in place to propel this wonderful agenda for the people of the North. Thank you.
Mr. J. H. Mensah (NPP - Sunyani
East): Mr. Speaker, if I may beg your indulgence to crave an old man's privilege, as Chairman of the National Development Planning Commission (NDPC), I have a duty to address myself to these matters perhaps in greater detail than other hon. Members and I will crave your indulgence to take a couple more minutes than the others.
Mr. Speaker, first of all, it is a good
thing that in our planning practice and policy-making, we are now beginning to give greater recognition to the fact that, in making development policy the one “size fits all” formula that is developed in Accra, is no longer an appropriate and sufficient way of dealing with the problems of the country. Even the ecological differences and climatic differences in the country alone suggest
that more attention to localize planning and to knowledge of local conditions, development possibilities is of the essence, getting the enterprise correctly tackled.
It is indeed a pity that in proposing a Bill, we are proposing a fund Bill; we are not proposing a development Bill. The difference between those two conceptions would be quite significant and I hope that when we set up a Board to pay particular attention to the developmental needs of the North, their concern will not be so much with administering funds as regarding the development of the North.
The two things are not the same because you can waste a lot of money achieving very little development if the planning, conception, knowledge and technology are not sufficient.
When we get to the Consideration Stage of this Bill, perhaps, we may try to do a little bit to redress the balance. Indeed, it is a pity and I have often advised this House that grave deficiency in our machinery is that we have no economic committee to look at such matters.
This is a Report from the Finance Committee and of course, they are dealing with the fund. The Northern problem of course, is not a fund problem, it is development problem. And therefore, I find it quite useless that in the press recently there has arisen a lot of unnecessary controversy about whether we should have one billion or two billion.
It just shows a total ignorance of what is required to be done. It is not required that the government shall set up a fund which in advance finances the develop- ment of the North. That is not how you do it. All that is required is that there shall be a planning authority with enough seed
money to call into operation the resources that are needed for the development of the North, both financial and other developmental resources. So that the emphasis should not be in our thinking whether we should allocate gH¢2 billion or gH¢1 billion as is being debated in less well informed circles.
Mr. Speaker, the seed money will call
forth investment funds in the same way that we have to go and find money to build the Cape Coast road, so we have to go and find money to fix that Salaga to Tamale road so that instead of three hours you can get there in an hour-and-half and that is the essence of the problem.
I see also, Mr. Speaker, that even though members of the Planning Commission will be elected from the northern areas, and are supposed members of this Trustee Board, there is very little recognition of what is a very important principle for the future planning and development of this country namely, that regional initiative shall be used to the fullest extent possible.

We are encouraging the Regional Development Committees, Regional Co-ordinating Councils and District Assemblies and the Municipalities and so on to get down to the job of thinking about their own development needs, fashioning plans and going out to even execute those plans.

In the field of education for instance, we have had as a matter of law for years, that the responsibility for developing the education of the district should belong to the District Assembly. And that is what we ought to encourage the District Assemblies to do and yet this Bill shows very little awareness of the pattern of machinery that we need to create to achieve successful
Mr. Chireh 2:05 p.m.
Mr. Speaker, I rise on
the point of order. The Bill does not talk about Authority, it is talking about setting up a fund and during the committee stage; it was emphasized that there was no intention to set up an Authority, it was just the Fund that they were going to set up.
Mr. J. H. Mensah 2:05 p.m.
Mr. Speaker, when you get to examine the Bill in detail, we talk about the Board. It is the Board that I am talking about and the hon. Member I hope will address himself to this matter. Because if the Board tries to become an
executive development Authority for the North, it will not succeed.
Finally, let me call your attention to a lesson of history. The proposition that educating the people is the first step towards achieving development, is now very much part of our development dogma. But let us use the experience of the North to determine this matter a bit further. Decades ago, we set up special facilities to encourage the education of people from the North over and above what is available to all people of the rest of the country. What has been the outcome of that initiative? And I think that in examining that kind of issue, this Board can usefully teach us lessons about where we should be going with our development policy. And let me end up.
The other day, there were floods in Pwalugu and the National Development Planning Commission was meeting in Tamale; we went there to talk to the tomato growers and so on and so forth. There has been in the books of the Volta River Authority since 1994, a project design prepared by a French Consulting group called Cohn and Bellier who are now also advising the Bui Development Authority. And that study identified a multi-purpose water project in Pwalugu as a central point for a very important development initiative in that part of the country.
It would supply nearly 50 megawatts of electricity for the northern grid, it would supply drinking water for the people and it would also supply irrigation including irrigation for a company that is already here trying to get water in order to produce a hundred thousand tonnes of sugar at Pwalugu. That kind of initiative should be sponsored.
Now, I brought this to the attention of various authorities because it requires
co-operation between agriculture, water and electricity. And that project has got nowhere for a long time; as I said, the study was done in 1994.
So the job of such an Authority as I see it would be to make sure that these projects are studied well and they see the light of day by the action of those who are supposed to be responsible for implementation of development policy.
So I support this Bill in its intentions, but without ignoring the limitations of those intentions, and I hope that the House will broaden its scope and ambit of the Act.
Mr. First Deputy Speaker 2:15 p.m.
I thought you were going to take two minutes but you also want to make -
Minority Leader (Mr. A. S. K.
Bagbin): Mr. Speaker, a lot has been said but it is important that I put on record that we try as much as possible to change our perception about the North. I always liken the perception of the North to that of Africa; how people internationally look at Africa. They think that Africa is a useless continent, it is only war, hunger. It is likened to that of the North but usually, that is not the situation.
As pointed out by many, it is just the conditions that are confronting the people there. And it was not for nothing that ghana was formally called gold Coast because gold could be found in almost all parts of the country. So gold was found in Nangode and other parts of the country and even as at now, in my district, my constituency there is gold and Azumah Resources Limited is prospecting for gold. So here was gold Coast but what happened; and we are all now confronted with this stark reality of the exacerbation
of underdevelopment, poverty, illiteracy and marginalization.
I think that various governments have tried to intervene and to quote hon. Nduom, we are where we are today and there is still the need for us to look at other interventions to see how we can expedite the development of the North.

Mr. Speaker, I am part of those who

are trying to put our ideas together to get the development strategy of the North properly compiled and I am happy that we are looking at the implementation already - the source of funding, because that is usually one of the very critical elements of implementation and many policies have not been successfully implemented because of the lack of funds.

Mr. Speaker, I would want us to

look at it a bit differently from what the memorandum stated. They are looking at what they term “Northern growth Pole.” I do not think that is what we are trying to do. I think what we are trying to do is a “growth pole for northern ghana,” not a “Northern growth Pole.” I do not know what that means but I think we are looking at a growth pole for northern ghana and it seems that is what has run through the memorandum. We need to look at that, and in fact, in the Bill itself, try as much as possible to rationalise some of the provisions.

So many people have always called for, not just sectoral budgeting, but also spatial, geographical and gender budgeting so that we can look at some of the special areas that seem not to be meeting or receiving enough attention. I am happy that we are trying to get this
rose
Mr. First Deputy Speaker 2:15 p.m.
Hon. Member, I believe that when we get to that stage you would take care of these things.
Mr. Kyei-Mensah-Bonsu 2:25 p.m.
That is so, Mr. Speaker.
Mr. Speaker, I believe we should learn very useful lessons from the operations of the Regional Development Cor-porations that we had across the length and breadth of the country. We may certainly need specialists in leading the implementation of the agenda set out by the trustees or
the Board. But we should ensure that bureaucracy does not take the better of this laudable idea. Some hon. Members who spoke before me have emphasised the need for us to have project specific funding and I think that is the way to go.

Mr. Speaker, the funds that may be set aside for this enterprise would only be set aside to assist develop the three northern regions, that is the North.

Mr. Speaker, it is worth emphasising

that only northerners can develop the North; real development does not thrive in conflict or conflict zones and hon. S.K.B. Manu alluded to this. Mr. Speaker, we must concede that some of the factors which contribute to impoverishing the North are rather self-inflicted. It is good that this Bill is talking about creating a forest zone for the North to allow, I believe agriculture to thrive and thrive soundly.

But Mr. Speaker, there is real

deforestation at the instance of charcoal burning, wild fires, overgrazing and the resort to archaic farming practices and I believe that some of these ones, education or even legislations could help.

Mr. Speaker, if one goes beyond

Paga to Burkina Faso, one realises that immediately you cross the border there is a forest reserve; and the place between Paga and Ouaga, much of it is greener than the region between Paga and Tamale for instance, and this, as I said, is self-inflicted and we must look at this.

Burkina Faso discourages the burning of charcoal. We burn our trees down south and carry them across the border to Burkina Faso which has outlawed the burning of charcoal.

So Mr. Speaker, as we have said, we must look at this holistically and position
Mr. First Deputy Speaker 2:25 p.m.
Hon. Members, we move on to item 14 -- National Communications Authority Bill at the Consideration Stage. [Pause] -- Chairman of the Committee?
BILLS - CONSIDERATION STAGE 2:25 p.m.

Mr. First Deputy Speaker 2:25 p.m.
Hon.
Member, I am not very sure that I am following what you are saying. What we have is that you would read clause 14, do you have any problem with that?
Mr. Armah 2:25 p.m.
Mr. Speaker, clause 14
says:
“The Board shall establish divisions of the Authority for the effective and efficient discharge of the functions of the Authority.”
But the office of the Director-general had not been established before then. So what we proposed at the last Consideration Stage was that we should establish the office of the Director-general and then go on with the rest so that there would be a new clause.
Mr. First Deputy Speaker 2:25 p.m.
Chairman
of the Committee, I believe this is a new clause that you are proposing and then you are proposing that the original clauses 14, 15 and 16 be replaced. Is that what you are saying?
Mr. Armah 2:25 p.m.
No, Mr. Speaker. Mr.
Speaker, we are proposing that we establish a new clause 14, that is, immediately after clause 14 a new clause should come, then we would go on with the other clauses.
Mr. First Deputy Speaker 2:25 p.m.
Chairman
of the Committee, then let us hear the new amendment that you are proposing so that we can leave the draftperson's office to do the placement and numbering.
Mr. Armah 2:25 p.m.
That is so, Mr. Speaker.
Mr. First Deputy Speaker 2:25 p.m.
But you
never advertised those new amendments?
Mr. Armah 2:25 p.m.
Mr. Speaker, it was advertised on Tuesday, 29th October. [Interruption.] So Mr. Speaker, the new amendment proposed is that after clause 14, add the following:
“establishment of the office of the Director-general and Deputy Director-general.”
Subclause (1), The Authority shall have a Director-general
who shall be the Chief Executive of the Authority.
( 2 ) T h e A u t h o r i t y s h a l l have Deputy Director-generals as are necessary for the perfor- mance of the functions of the Authority.
I beg to move, Mr. Speaker.
Mr. Kyei-Mensah-Bonsu 2:35 p.m.
Mr. Speaker, if my memory serves me right, I believe that we attended to those ones, that is clauses 14, 15 and 16 but it looks like the Questions were not put on them.
Mr. First Deputy Speaker 2:35 p.m.
Yes,
that is what I have already suggested that in that case leave the placements and so forth for the draftsperson.
So do you agree to the proposed
amendment, hon. Minister?
Dr. Benjamin Aggrey-Ntim 2:35 p.m.
Mr.
Speaker, on that part “the establishment of a Deputy Director-general.” In fact, there is room to create two Deputy Director- generals and I wanted to bring this to the attention of the Committee.
Mr. First Deputy Speaker 2:35 p.m.
No, but
we are doing it now; we are considering it now. So whatever new creation by way of bringing up new clauses and subclauses, it should be done now.
Chairman of the Committee, are you
with the Minister, he says they intend to create two Deputy Director-generals?
Mr. Armah 2:35 p.m.
Mr. Speaker, I agree. In subclause (2), we said “Deputy Director- generals” but to be specific, if we want to put two, we agree that we put two there to make it specific. So the new rendition should be:
“The Authority shall have two Deputy Director-generals.”
Mr. Armah 2:35 p.m.


Mr. Speaker, that is what we did not specify but the Minister wants us to specify.
Mr. Chireh 2:35 p.m.
Mr. Speaker, you see,
the way we are creating these positions, it would have been better normally to say “may have” and then you say a “Deputy Director-general.” When you fix a number, that may not be very good. If you want to have a Deputy Director- general, you say, “The Authority may have a Deputy Director-general.” But if you say, “shall have” - and I have always been arguing -- we are creating an institution and some of them - particularly when we were dealing with this National Pension Reform Bill, the issue was that sometimes when you have the Deputy Director-generals you have a problem with relationships.
Therefore, we should let it be something that it is not compulsory and it is when the organization sees that there is the need to appoint two or three or whatever. But if you now just fix the number and then you see that there is the need for more, you cannot do anything about it. If we want to limit and say “not exceeding a certain number” that is a different matter, but if we should fix a number for them it is not the best.
Also the language because we are making it look like at all cost we must have “shall have.” We should be very careful about it because we should give room for manoeuvre if there is the need to.
I support the idea of having a Deputy Director-general but the language and the way we fix the numbers, I am not too happy about.
Mr. First Deputy Speaker 2:35 p.m.
You know, I do not have it here.
Mr. Kyei- Mensah-Bonsu 2:35 p.m.
Yes, Mr.
Mr. First Deputy Speaker 2:35 p.m.
As I told
you, I do not have it here.
Mr. Kyei-Mensah-Bonsu 2:35 p.m.
Yes, but
this is part of our official record. The Question on this one was put and the motion was agreed to. So we have finished with that one. What we could do if we have to resurrect it, is to wait for the Second Consideration Stage in respect of that very one that he is talking about. But there are others which are outstanding in respect of clauses 14, 15, and 16 which were deferred and I thought we were going to look at those ones.
As for the one that he is raising now the Question has already been put on that and it has been agreed to. It can only be resurrected at the Second Consideration Stage, that is before the Third Reading.
Mr. First Deputy Speaker 2:35 p.m.
Mr.
Chairman, yes, I want to hear you.
Mr. Armah 2:35 p.m.
Mr. Speaker, what the
Deputy Majority Leader has said may be partially true. What happened was that we were a little confused about the establishment of the office of the two Director-generals. It was much later that my attention was drawn that the thing had been advertised, by that time the Speaker had already put the Question on the amendment to clause 14 but had deferred clauses 15 and 16 and he said that once clause 14 was a new clause which would give lead to clauses 14 and 15 then we would come back to it and first establish
the office and then the rest would follow.
Mr. First Deputy Speaker 2:35 p.m.
And then
you had already gone ahead to propose that there will be -- I think you introduced clause 14 which I said you should wait in terms of finding its placement. But the substance of your amendment itself was that there should be two Deputy Director- generals, and the hon. Chireh is even raising an objection. He says he would prefer you do not put a limitation on it or whatever it is. I thought that is what has brought a little confusion. Would you sort that one out? I want to hear you, hon. Haruna Iddrisu.
Mr. H. Iddrisu 2:35 p.m.
Mr. Speaker, I believe
that we should advert our minds to clause 16 (1) so that you could put the Question and we leave the rest to the draftpersons.
“The President shall in accordance with article 195 of the Constitution appoint a Deputy Director-general of the Authority.”
That is what is provided for in clause 16; so for consistency of language I think that we should put the Question on the earlier rendition which was provided by the Chairman so that it is administrative. If we want to have two Deputy Director- generals at least, there is a provision in the Act for the office of the Deputy Director-general.
Mr. First Deputy Speaker 2:35 p.m.
Do you
agree with what has been proposed, hon. Kojo Armah?
Mr. Armah 2:35 p.m.
Mr. Speaker, I do agree
with him.
rose
Mr. First Deputy Speaker 2:35 p.m.
In that
case, before I put the Question, maybe, hon. J. H. Mensah has some point he wants to make.
Mr. J. H. Mensah 2:35 p.m.
Mr. Speaker, just
to say that in the Committee's own Report at page 5, they did provide as follows:
“The Authority shall have Deputy Director-generals as are necessary for the performance of the functions of the Authority.”
This is in the Committee's own Report, I think the better way to put it is “Directors- general” rather than “Director-generals”. But in the Committee's Report, this is what they proposed which would satisfy what the Minister wants and what it is sought to do. So Mr. Speaker, unless the Deputy Majority Leader says that this suggestion has already been voted down then we should accept it. But if it has been voted down then maybe, we wait for the Second Consideration Stage as he says.
Mr. Chireh 2:35 p.m.
Mr. Speaker, I do not know
why we are labouring to be establishing offices when by this same law we have created the offices - Because if the President is to appoint a Deputy Director- general, why do we need to establish a position like that? It is by that appointment that the office has been created. Now, we belabour the point of inserting a clause; if it is a new clause then it should come well after we have finished with the rest of the clauses and not when there are outstanding ones.
The drafters would then decide where it is appropriate. But once we say that the President will in accordance with article 195 appoint the Director-general, that is the establishment of the office. I do not know why we should now say “it is hereby established an office of the Director- general.” It does not add anything to it. So really we are just making our law unnecessarily long and it does not add anything to it because that statement itself creates the office and I do not see why we are labouring to create another office.
Mr. First Deputy Speaker 2:45 p.m.
Hon. Members, I have been prompted by the Clerks-at-Table that it seems that it was only the three clauses that we are talking about that were merely deferred in consideration of some other amendment which was envisaged, which in any case was proposed and agreed to. In that case, it is a question of arrangement. So let me go ahead and put the Question on clauses 14, 15 and 16, which were deferred; that is all. Later on, these things would be sorted out. If there ought to be some other changes later on, they could come on board at the second Consideration Stage.
Clauses 14 to 16 ordered to stand part of the Bill.
Mr. First Deputy Speaker 2:45 p.m.
Hon. Members, this brings us to the end of the Consideration Stage of the National Communications Authority Bill.
Hon. Deputy Majority Leader, the hon. Minister for Communications had intimidated that there were some changes with regard to some report that we had considered before and he wanted some amendments effected. I was wondering how it is going to be done and I thought you could put your heads together. Have you come to some conclusion on that?
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Mr. Speaker, I have seen it and I have had discussions with the hon. Minority Leader.
In the first place, I thought that it related to something that we had done today. Our attention has been drawn to the fact that it was done way back in July. What it then means is that we should have a motion of recession on that decision that Parliament took in July and then do the proper thing. I have confirmed with the Table Office
Mr. First Deputy Speaker 2:45 p.m.
So do further consultation on the matter so that by tomorrow you could bring it up again and let us see what could be done about that.
In that case, I think we have done a little work for today. It is left with the Electronic Communications Bill; I think we should stop here and maybe continue with that tomorrow.
Leadership, if you are here with me, I think that at this stage, it will be appropriate for me to adjourn for tomorrow.
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Mr. Speaker, with your indulgence and of course, subject to the approval of the House, we could begin the consideration and when we get to some place - we have the hon. Chairman of the Committee here, the hon. Ranking Member here and the versatile hon. Member for Wa West (Mr. Chireh) and the hon. Minister is here. The hon. Minister travelled, he has come and he is now here with us.
Mr. First Deputy Speaker 2:45 p.m.
He will be with us tomorrow?
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
And there are venerable hon. Members of Parliament including the redoubtable hon. Member for Sunyani East, Mr. J. H. Mensah. Mr. Speaker, we can attend to it. We can start and when we get to the point that we can no longer continue, we may adjourn.
Mr. Chireh 2:45 p.m.
Mr. Speaker, the hon. Member wants to flatter us by using superlatives that are not necessary here - [Laughter] - In any case, we should just start but if you look at the numbers -
Mr. H. Iddrisu 2:45 p.m.
Mr. Speaker, I would suggest that we just take the first two clauses, clauses 1 and 2 as a beginning and continue tomorrow.
Mr. First Deputy Speaker 2:45 p.m.
Very well, we have the consideration of the Electronic Communications Bill.
BILLS - CONSIDERATION STAGE 2:45 p.m.

Chairman of the Committee (Mr. Kojo Armah) 2:45 p.m.
Mr. Speaker, I beg to move, clause 1, subclause (2), paragraph (c), line 3, delete “line”.
Mr. Speaker, the new rendition will be 2:45 p.m.
“This Act does not apply to
(a) the military and other security agencies,
(b) ins ta l la t ions of o ther branches of government except as expressly provided in this Act,
(c) the operation by a person for that person's own use or solely for the purpose of that person's business of an electronic communications system . . .”
Question put and amendment agreed to.
Clause 1 as amended ordered to stand part of the Bill.
Clause 2 - Broadcasting services
Mr. Armah 2:45 p.m.
Mr. Speaker, I beg to
move, clause 2, subclause (1), line 1, delete “control and”.
The new rendition will therefore be:
“The National Communications Authority shall regulate the radio spectrum …”
Instead of “control and regulate” we remove the words “control and”.
Mr. Kyei-Mensah-Bonsu 2:45 p.m.
Mr. Speaker, in referring to the two Bills that we have just gone through, I think the terminology that we used was “regulate and super-vise”. I do not know whether we cannot repeat same here. I adverted my mind to this one very well but I am just flashing back. And I am asking if that could be done - “regulate and supervise.”
Mr. H. Iddrisu 2:45 p.m.
Mr. Speaker, the focus of the National Communications Authority (NCA) is to regulate. Now, why we are deleting the words “control and” because it goes to the area of broadcasting and the National Media Commission also has some role it plays. So I think that if we use “regulate” it is consistent with the mandate that we have given the NCA under the Bill that we have just exhausted at the Consideration Stage.
Question put and amendment agreed
to.
Mr. Armah 2:45 p.m.
Mr. Speaker, I beg to move, clause 2, subclause (6), paragraph (e), delete and insert the following:
“for the determination of breaches of the Regulations or conditions of the frequency authorization and the nature of sanctions and impositions, warnings and other penalties in respect of the breaches”.
That one will replace paragraph (c) of subclause (6) of clause 2.
Question put and amendment agreed to.
Clause 2 as amended ordered to stand part of the Bill.
Clauses 3 and 4 ordered to stand part of the Bill.
Mr. Armah 2:55 p.m.
We are abandoning the amendment that was proposed to delete clause 5. After consultations with the technical people, we will take clause 5, but add a new subclause -- (e) giving right of appeal to aggrieved persons on the decisions of the -
Mr. First Deputy Speaker 2:55 p.m.
Can you be louder; I cannot hear you.
Mr. Armah 2:55 p.m.
Mr. Speaker, the new sub- clause (e); that persons aggrieved by decisions of the Authority can appeal to the arbitration tribunal.
Mr. H. Iddrisu 2:55 p.m.
Mr. Speaker, I
beg to support the Chairman, that it is appropriate that we withdraw the earlier proposed amendment. Indeed, yesterday the Committee in discussions with the hon. Minister, I shared with them the Nigerian National Communications Authority Act and once we have given the NCA the Act to regulate, we must also clothe them with authority to be able to suspend or revoke a licence, particularly when the service provider fails to live up to expectation.
That is why this amendment must be abandoned. But in order that we do justice to whoever may be affected by the decision, we think that a new additional clause of (e); to provide for recourse, if you are not satisfied with it, you can appeal to the tribunal which is also an establishment of this Bill under clause 84 - Dispute Resolution Committee.
Mr. First Deputy Speaker 2:55 p.m.
Hon. Chireh, are you opposed to that?
Mr. Chireh 2:55 p.m.
Mr. Speaker, I am not
opposed to it, but if you see subclause (1) (c) --
“the Authority has provided the licensee with a reasonable opportunity to make represen- tations concerning the proposed revocation or suspension.”
Is it an appeal they are making? Is it after the revocation or - I just want an explanation to it.
Mr. H. Iddrisu 2:55 p.m.
What clause 5 (c) does is that before the Authority can take such a decision consistent with the principle of natural justice, they must hear from the other side. That is why it is provided for the presentation. The new clause we are adding is for recourse to an appeal. Your licence has been revoked; it has been suspended on reasonable grounds; you may want to appeal giving reasons why you should not suffer the kind of sanctions that should be given, so the intentions are different.
Mr. First Deputy Speaker 2:55 p.m.
On that score, I would put the Question -
Mr. Kyei-Mensah-Bonsu 2:55 p.m.
Mr. Speaker?
Mr. First Deputy Speaker 2:55 p.m.
Are you arresting the -
Mr. Kyei-Mensah-Bonsu 2:55 p.m.
Firmly, Mr. Speaker. Mr. Speaker, whilst I agree with the principle, I think the location is not where they are proposing; it cannot be (e). Maybe, we could have a new (ii); that is clause 5, subclause (ii); it cannot certainly be at (e).
Mr. First Deputy Speaker 2:55 p.m.
I believe what you said is appropriate. There should be a new subclause 5 (iv), is that not it? So the Clerk's office should see to it that the draftsperson places it.
Mr. Aidooh 2:55 p.m.
Mr. Speaker, there is a small correction. The hon. Member said “A person who is aggrieved can appeal; it
should be “may” appeal. Question put and amendment agreed
to.
Clause 5 as amended ordered to stand part of the Bill.
Clause 6 ordered to stand part of the Bill.
Clause 7 - Obligations of individual licensees.
Mr. Armah 2:55 p.m.
Mr. Speaker, I beg to move, clause 7, subclause (1), paragraph (a), delete “that concerns” and insert “that relates to”.
The new rendition therefore would be:
“A network operator or service provider shall (a) submit to the Authority any information that relates to the modification of its network or service,”
instead of “that concerns”.
Question put and amendment agreed to.
Clause 7 as amended ordered to stand part of the Bill.
Clause 8 - Class l icences or authorizations.
Mr. Armah 2:55 p.m.
Mr. Speaker, I beg to
move, clause 8, subclause (2), lines 2 and 3, delete “and registration requirement under subsection (4).” So the sentence would simply end at “Licence”.
“A Class Licence gives a person the right to carry on the activities subject to the conditions specified in the Licence”.
Question put and amendment agreed
to.
Mr. Armah 2:55 p.m.
Mr. Speaker, I beg to move, clause 8, subclauses (4) and (5) delete.
Mr. Speaker, the reason is that once a person has been granted a Class Licence with conditions attached, it is expected that those conditions would be specified; which therefore, means that the clauses (4) and (5) that continue to elaborate those specifications seem to be just overloading the Bill for no apparent good reason.
So we think that once the conditions specified in the licence have been accepted, then there is no need in going further to elaborate as in subclause (4) or (5).
Mr. Manu 2:55 p.m.
Mr. Speaker, I beg to differ from the Chairman's view. Mr. Speaker, it has been said that more meat does not spoil soup. So if it has been implied and it is being elaborated, I think it makes it clearer and therefore, should not be frowned upon. I therefore oppose the amendment.
Mr. Chireh 3:05 p.m.
Mr. Speaker, we cannot think well now so I really would ask that we stand this down and start tomorrow with it.
Mr. First Deputy Speaker 3:05 p.m.
You propose that we stand that one down?
Mr. Chireh 3:05 p.m.
Mr. Speaker, maybe, for you too to adjourn the House so that we can start on a fresh note. We are no longer thinking properly.
Mr. Yaw Baah 3:05 p.m.
Mr. Speaker, I think I could clarify the deletion by the Chairman.
Mr. Speaker, if we read clause 8 (1),

it says:

“The Authority may grant a Class Licence.”

So once you are granted a Class Licence you do not need to go back; and if we go to subclauses (4 ) and (5 ) they are saying that a person who has a class licence shall register. Once you are granted you need not go back and register again. That is why it makes subclauses 4 and 5 redundant. That is all.

Question put and amendment agreed to.

Clause 8 as amended ordered to stand part of the Bill.

Clause 9 -- Obligations of operations of electronic communications networks and telecommunications service.
Mr. Armah 3:05 p.m.
Mr. Speaker, I beg to move, clause 9, headnote, delete “telecommunicat ions” and insert “communication”.
Mr. Speaker, this flows from the earlier amendments that were made even in the National Communications Authority (NCA) Bill, so all consequentially telecommunications will now become communications.
Question put and amendment agreed to.
Clause 9 as amended ordered to stand part of the Bill.
Clause 10 - Requirement for a frequency authorization.
Mr. Armah 3:05 p.m.
Mr. Speaker, I beg to move, clause 10, subclause (1), delete “Except as may be provided under this Act or directed by the Minister”.
Question put and amendment agreed to.
Clause 10 as amended ordered to stand part of the Bill.
Clause 11 - Obligations regarding frequency authorization.
Mr. Armah 3:05 p.m.
Mr. Speaker, I beg to move, clause 11, subclause (1), paragraph (d), line 3, delete “internal” and insert “national”.
Question put and amendment agreed to.
Clause 11 as amended ordered to stand part of the Bill.
Clauses 12 and 13 ordered to stand part of the Bill.
Mr. First Deputy Speaker 3:05 p.m.
Hon. Members, we have stopped here. I thank you for your endurance, patience and contribution towards the business of the day. The House in the circumstance, will stand adjourned till tomorrow at 10 o'clock before noon. Have a pleasant day.
ADJOURNMENT 3:05 p.m.

  • The House was adjourned at 3.11 p.m. till 31st October, 2008 at 10.00 a.m.