Debates of 12 Nov 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! Order! Hon. Members, correction of Votes and Proceedings of Tuesday, 11th November, 2008.
Alhaji Mubarak 10:35 a.m.
Mr. Speaker, I want your guidance on this. If you refer to our Standing Order 13 --
Mr. First Deputy Speaker 10:35 a.m.
You are out of order. Wait, at the appropriate time you can raise what you want to raise. Let us first go by what has been laid down in our Standing Orders. At the moment we are handling corrections of Votes and Proceedings. Pages 1, 2, 3, 4 and 5.
Nana Abu-Bonsra 10:35 a.m.
Mr. Speaker, I just realised that in yesterday's Votes and Proceedings I was listed as being absent with permission for Monday, 10th November, 2008 but I was here during the Prayers and everything. So I just want to draw attention to that.
Mr. First Deputy Speaker 10:35 a.m.
Very well, the Clerk's Office to correct that. But you spoke of Monday, is that what you said? We are correcting the Votes and Proceedings of yesterday, Tuesday, 11th November, 2008.
Nana Abu-Bonsra 10:35 a.m.
Mr. Speaker, yes,

I was seeking your indulgence to ask the Clerk's Department to do the necessary corrections.
Mr. First Deputy Speaker 10:35 a.m.
I do not have the Votes and Proceedings for Monday, 10th November, 2008 in my hand. You should have been here yesterday to correct it.
Nana Abu-Bonsra 10:35 a.m.
Mr. Speaker, I was.
Mr. First Deputy Speaker 10:35 a.m.
And you could not correct it?
Nana Abu-Bonsra 10:35 a.m.
Mr. Speaker, I did not take notice of that.
Mr. First Deputy Speaker 10:35 a.m.
Un- fortunately the train has missed you so you could go to -- We cannot use today's proceedings to correct what happened yesterday. Pages 6, 7, 8, . . . 29.
Alhaji Mubarak 10:35 a.m.
Mr. Speaker, I earlier on was on my feet; you have said it was not the appropriate time. If you look at our Standing Order 13 (2), it states categorically that and with your permission, I quote:
“Whenever the House is informed by the Clerk at the Table of the unavoidable absence of Mr. Speaker, the First Deputy Speaker shall perform the duties and exercise the authority of Mr. Speaker in relation to all proceedings of the House until Mr. Speaker resumes the Chair, without any further communication to the House.”
Mr. Speaker, a number of times Mr. Speaker has been absent and we are not told anything; the next morning comes, all we see is that one of the deputies takes over. I would want your guidance on this and to seek, with all due respect,
the presence or absence of Mr. Speaker. We want to know, is Mr. Speaker around or Mr. Speaker has travelled, what is it? Why are you in the Chair?
Mr. First Deputy Speaker 10:35 a.m.
Very well, I think it is an oversight and a minor oversight.
Mr. Ossei Aidooh 10:35 a.m.
Mr. Speaker, I do not know the import of what he read but it does not mean that you cannot act without that notification. You are properly in the Seat and so I urge you to continue without any formal announcement.
Alhaji Mubarak 10:35 a.m.
Mr. Speaker, I am not challenging your authority to preside over the House, but we have our rules and the rule says that anytime Mr. Speaker is not around we need to be informed of the whereabouts of Mr. Speaker and then you take over.
I am not challenging your authority to preside, but I am asking where does this Order of ours stand when we are not informed of the whereabouts of Mr. Speaker and all we see is the Deputy taking over.
Mr. First Deputy Speaker 10:35 a.m.
Well, as I said it was an omission, the Clerk will do that before I continue. Mr. Clerk of Parliament, could you inform us?
Mr. Aidooh 10:35 a.m.
Mr. Speaker, as I have said earlier, the rule does not say that Members must know where the Speaker is; it does not say so. The Speaker can be absent from the Chamber for many reasons. There is no need to assume that Mr. Speaker has gone outside or has not gone outside the country. As I have said, the rule does not also say that you cannot act as Speaker if we have not been informed about where the Speaker is; it does not say so. It says whenever that
information is made available to us, he may act. It is not exclusive so I submit that you are properly in the Seat and you must proceed without any formal announcement to the House.
Mr. First Deputy Speaker 10:35 a.m.
Hon. Members, in all fairness to you, the Speaker has travelled on official assignment. He has travelled to Brazil and for that matter, I am in the Chair acting as a Speaker. [Hear! Hear!]
Hon. Members, at the Commencement of Public Business, item 4 - Presentation and First Reading of Bills.
BILLS -- FIRST READING 10:35 a.m.
PAPERS 10:35 a.m.
Mr. First Deputy Speaker 10:35 a.m.
Yes, next
Paper, hon. Minister?
Dr. A. Akoto Osei 10:35 a.m.
Mr. Speaker, before I do that I am not aware of any language that talks about “Vote on Account”. I want to be advised. I do not know whether it is a House tradition or not but when I looked at the Constitution, I did not see those terms. I actually did not submit this with those words so I just need to be advised if it is just a House tradition.
Mr. First Deputy Speaker 10:35 a.m.
Laying it for expenditure on account. Is that not it?
Dr. Osei 10:35 a.m.
Mr. Speaker, no, the Constitution does not say that, so I was wondering where it came from.
Mr. First Deputy Speaker 10:35 a.m.
The tradition is that you lay it and that it will be referred to a committee.
Dr. Osei 10:35 a.m.
Mr. Speaker, but it says that
expenditure in advance of Appropriation.
Mr. First Deputy Speaker 10:35 a.m.
Every report or every Paper of this nature could be laid and be referred to the appropriate committee depending on how urgent and then of course instructions will be given. But I want to hear from the --
Dr. Osei 10:35 a.m.
Mr. Speaker, I am not doubting that. What I am saying is that the terminology “Vote on Account”, I do not see it in the Constitution so it is conventional, I did not take note of it. Thank you very much.
By the Minister of State at the Ministry of Finance and Economic Planning (on behalf of the Minister for Finance and Economic Planning) --
Expenditure in advance of Appro- priation (Vote on Account), January to March 2009.
Referred to the Committee on Finance.
Mr. Aidooh 10:35 a.m.
Mr. Speaker, the Paper is
very urgent therefore, the Committee must look at it immediately.
Mr. First Deputy Speaker 10:45 a.m.
The Committee must look at it and advise the House accordingly.

By the Minister of State, Ministry of Finance and Economic Planning (on behalf of) the Minister for Finance and Economic Planning -

Loan Facility between the govern- ment of the Republic of ghana and the EXIM Bank of China and Societe general, Beijing for an amount of US$30.00 million for the development of the National e-government Infrastructure Project.

Loan Agreement between the government of the Republic of ghana and the OPEC Fund for International Development (OFID) for an amount of US$8.5 million for Primary Schools Project in the Central and Western Regions of ghana.

Credi t Faci l i ty between the government of the Republic of ghana and EXIM Bank of China for an amount of US$150.00 million to finance the electrification projects under the Five-Plus (5+) Communi- ties Per District Electrification Programme.

Referred to the Finance Committee.

By Mr. F. A. Agbotse (Chairman of the Subsidiary Legislation Committee) --

Report of the Committee on Subsidiary Legislation on the Lottery Regulations, 2008 (L.I.

1984).
Mr. Aidooh 10:45 a.m.
Mr. Speaker, I beg to seek your leave and the House's indulgence to allow the hon. Deputy Minister for Fisheries to lay before the House the International Convention for the Regulation of Whaling for ratification.
Mr. First Deputy Speaker 10:45 a.m.
Very well.
By the Deputy Minister of Fisheries (Mr. I. K. Poku-Adusei) (on behalf of Minister for Fisheries) --
International Convention for the Regulation of Whaling and joining of the International Whaling Commission (I.W.C) of the United Nations.
Referred to the Committee on Food and Agriculture.
MOTIONS 10:45 a.m.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 10:45 a.m.
Thank

you, Mr. Speaker, for giving me this opportunity to second this motion.

Mr. Speaker, it is universally acknow- ledged that the first three basic necessities of life are air, water and food. Air is provided by god and water is supposed to be provided by the government for the people and this is exactly what the government is trying to do for the people of Koforidua. They have been thirsty for a long time and it is the duty of the government to provide them with facilities that would quench their thirst. It is for this reason that the government is going for this facility to make water available for the people in that community.

The amount is €17.156 amillion nd is broken into two -- €7.8 million which has a tenure of 30 years, 10 years moratorium period and 20 years repayment period. It is eventually free because it attracts a zero per cent interest; it is a gift. The other balance which is €9.3 million is with a grace period of two years and a repayment period of 10 years. This one attracts interest of 9.75 per cent which is substantial, very heavy, but what can we do? We need the money to provide water without which the people in that community would die of thirst.

Mr. Speaker, since it is a basic necessity of life which must be provided by the government, and the government is going for facilities for this, we owe a duty to the government to give approval immediately, so that the money can be accessed by the government for the purpose for which the government needs the money. So I call on all hon. Members here to give approval in order that the government can discharge its civic responsibility to the people of this area.

Question proposed.

10. 55 a.m.
Mr. Hackman Owusu-Agyemang (NPP -- New Juaben North) 10:45 a.m.
Mr. Speaker, basically this represents an extension of the facility that has been put up at Otekpelu, which is almost ready for commissioning. It was realized that the capacity of the treatment plant was so large that we could continue the extension to New Tafo, without causing a bit of distress vis-à-vis the transmission process. So really, it is one of the things that should be automatically approved. If we have produced the water and there are other communities which cannot have access to it, then it stands to reason that we should do that.
Mr. Speaker, allow me to comment on the issue of the interest rates. As the hon. Member for Asikuma/Odoben/Brakwa (P. C. Appiah-Ofori) indicated, I think it is about time we weaned ourselves of this philosophy, concept practice that, to provide water for your people, somebody needs to give you a grant on it as a nation. Water is a necessity, there are so many things in this country that we spend fully- fledged funds on.
We have passed the stage where we insist that in order to provide water and sanitation to our people, somebody somewhere must come and give you a grant. I cannot subscribe to that. good and clean water is life; therefore this nation should understand that we have to provide this basic necessity for our people and I do not think that it lies in our mouth to request our development partners or anybody else to come and give us a grant to the extent that it becomes “concessionary”.
I thought we have weaned ourselves out of the International Monetary Fund (IMF) conditionalities. Sunyani water has been kept on the books for more than two years, simply because every time the proposal is put on the table, it is not concessionary.
Mr. Speaker, if we spend money on all manner of things, why should it be concessionary? When we were building the stadium, did it have to be conces-sionary? Why should water be concessionary? I think that we must take a bold decision, that if the people need the water we must extend the water to them, if we get concessionary facilities, fine. It was the Dutch government funding 50 per cent of urban water developmental projects but we have reached the limit, so they are not giving us any more and until they decide to resume this facility; I believe that it is important that water is made available to people.
In this instance, fortunately, there are other aspects of the loan which makes it concessionary. For me, it was not concessionary, it would have commended itself to this House that we approve this facility to extend water to the people of New Tafo and beyond our constituency.
So Mr. Speaker, I would like to support this with all the force at my disposal and to wish that the hon. Minister of State at the Ministry of Finance and Economic Planning does not come and tell me that if I want water it needs to be concessionary. He has to make sure that he finds water for the people so that water-borne and other diseases that we acquire as a result of lack of potable water, is reduced to the minimum so that his health budget goes down.
I know he wants to get up, but I want to prevent him by saying that he should not tell me that the next time round we need concessionary facilities. This is because 98 per cent of rural water for example, is funded by the donors. The people in the rural areas also need water.
Mr. Speaker, I am becoming a great
advocate and a passionate advocate for water in this instance and it is important for us to approve without much rancour and debate.
Minister of State at the Ministry of Finance and Economic Planning (Dr. A. A. Osei) 10:45 a.m.
Mr. Speaker, I rise to support the motion on the floor. Mr. Speaker, for the purposes of the records, let me remind this House that we have already approved of this facility back on 18th July 2008. It turned out that the documentation that came from the Clerk to Parliament to us indicated some terms which were not the actual ones, so we wanted the records to be straight, and we have approved of that.
Mr. Speaker, the second point is that my hon. senior Colleague here used to be a Minister of Water Resources, Works and Housing. He sat in Cabinet when Cabinet approved of this facility. So for him to say that I have said that it has to be concessionary, is false and I think he needs to withdraw that statement. I have never on this floor stated that for us to get a loan for water it has to be conces-sionary.
Mr. Owusu-Agyemang 10:45 a.m.
Mr. Speaker, the point that I was making was not ad persona to the distinguished Minister of State at the Ministry of Finance and Economic Planning. Maybe our departed brother and the whole psyche of the Minister for Finance and Economic Planning, I made the point precisely because I was the former Minister for Water Resources, Works and Housing and many a time projects were sent back to us because they were not concessionary; so I took the opportunity now that he may
Mr. Owusu-Agyemang 10:45 a.m.


Mr. Speaker, the explanation is that because it has been done in the past, I am saying I have the opportunity to say it and I am repeating it that, I am very happy of the distinguished Minister of State now saying that there is no need for us to have concessionary loans and that so long as the water is good, it will go on. I thank him very much for becoming part of my advocacy group for water for the people of this nation. I thank him very much but there is nothing to withdraw because it was not ad persona.
Dr. Osei 11:05 a.m.
Mr. Speaker, my senior Colleague just said and I want to quote him that I am now saying “I am in favour” which implies that I have said it before so he cannot contradict himself.
Mr. Speaker, the point he has to note is that when we were highly indebted and we had not passed the completion point, for us to be able to get an opportunity to get some more savings, we needed to discipline ourselves.
The reason why we got to that point was because we went on the rampage and were borrowing left and right and it got us to be highly indebted. But once we got out of it, he is aware that in September 2007 we went out to the market and borrowed commercially at 8.5 per cent. Since he knows that information, how could he not understand that we have passed that and I have never stated that, so we are way beyond that.

In fact, if he looks at the credit facility that we are approving, we have not said that we must do that. Earlier we have said if it is strategic enough and he as the sector Minister can make a case to his colleagues

at Cabinet, it would go through and this is how we have done all the borrowing.

We have not said that if it is not concessional we would not approve it. If government considers it strategic enough, then we ought to be able to make a case and it is incumbent upon a particular sector Minister to sit with his Colleagues and convince them with powerful arguments as to the reason why we could go otherwise.

So I am in favour of strategically borrowing for such projects. Having said that I think I support the motion that is on the floor by the Chairman of the Committee and I urge all my hon. Colleagues to support it since we have already voted for it.

Question put and motion agreed to.
RESOLUTIONS 11:05 a.m.
THIS HONOURABLE HOUSE 11:05 a.m.
H E R E B Y R E S O LV E A S 11:05 a.m.
Chairman of the Committee (Nii A. D. Mante) 11:05 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 Bank of Hapoalim of Israel for an amount of US$120.00 million for the
implementation of Kwahu, Konongo and Kumawu Water Supply Projects.
Mr. Speaker, in so doing, may I present your Committee's Report.
1.0 Introduction
The Mixed Credit Facility between the government of the Republic of ghana and Bank of Hapoalim of Israel for an amount of one hundred and twenty million United States dollars (US$120,000,000.00) for the implementation of the Kwahu, Konongo and Kumawu Water Supply Projects was laid in the House on Wednesday, 5th November, 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 Agreement with the Minister for Water Resources, Works and Housing, hon. Abubakar Saddique Boniface, 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 technical teams from the Ministries of Finance and Economic Planning and Water Resources, Works and Housing and presents this report.
2.0 Background
Mr. Speaker, the Kwahu Ridge is characterized by very great differences in elevation. It rises from 91m altitude at the Volta Lake to 608 m and falls steeply to 182 m at Nkawkaw. It covers an area of approximately 512 sq km and the population is concentrated in relatively large towns along the main road area. There are a number of large industrial and commercial activities mainly in and around Nkawkaw.
The existing water treatment plant was built in 1978 and is located at Kotoso.
Chairman of the Committee (Nii A. D. Mante) 11:05 a.m.
It has an installed capacity of 3,600 m3/ day. However, due to deterioration of the system, daily production of water has currently shrunk to 900 m3/day resulting in acute water shortage in the area.
Konongo is a surface water scheme based on the abstraction of raw water from River Anunu. A weir and screened intake have been constructed across the river which provides storage for the nearby water treatment plant. The river is reported to dry up four months in a year from February to April. The current production by the system is about 1,338 m3/day.
The Kumawu water system supply on its part relied on the Ongwam River as its source of supply. Over the last decade, the river virtually dries up every year, making water supply very unreliable. The citizens are then compelled to look for water from whatever source is available with its
attendant health problems.
3.0 Purpose of the Loan
The purpose of the facility is to finance the implementation of the Kwahu, Konongo and Kumawu water supply projects.
4.0 Terms and Conditions
The terms and conditions of the mixed credit facility are as follows:
Contract Amount US$120 Million
A. grant Amount US$5 million (4.2% of project cost) B. Loan Amount US$48 million (40% of project cost)
grace Period 5 years
Repayment Period 20 years
Maturity Period 25 years
Interest Rate 0.20 per cent
Management Fee 0.50 per cent
Commitment Fee 0.20 per cent
grant Element (A only) 58.53 per cent C. Loan Amount US$67 million (55.8% of project cost)
grace Period 3 years
Repayment Period 9 years
Maturity Period 11 years
Interest Rate Libor+0.5 (3.22+0.5=3.72 per cent)
Commitment Fee 0.25 per cent
Management Fee 0.50 per cent
grant Element (B only) 14.46 per cent Weighted grant Element (A, B and C) 35.68 per cent
5.0 Observations
The Committee observed that the weighted concessionality rate of 35.68 per cent meets the country's concessionlity policy of 35 per cent.
The Committee was informed that due to the varied complexity of the three projects, project completion period will vary from 18 to 24 months from time of commencement.
The Committee noted that the projected peak daily water demand for the existing water supply area in the Kwahu Ridge area (as at 2005) was 5,900 m3/day and projected to be 12,000 m3/day if Nkawkaw is included.
The beneficiary towns under the Kwahu project would include Abene, Abetifi, Asakraka Kwahu, Aduamoah, Atibie, Bepong, Bokuruwa, Kwahu Tafo, Mpraeso, Nkwatia, Nteso, Obo, Obomeng, Pepease, Tweneduase, Kotoso, Asempanaye, Nkawkaw, Hweehwee, Akwasseho, Afi, Suminakese and surrounding villages.
The Konongo project would benefit residents of Konongo and surrounding communities.
Beneficiaries of the Kumawu project would include Kumawu, Besoro, Abotanso, Bodomase, Worase, Sekyere, Banko, Wuoso, Awonga, Asuafo, Nsuta, Timate, Amaansu, Kyebi, Atonsu, Kwaman and other settlements along the transmission pipelines.
The Committee observed that the projects would help provide improved access to reliable water supply to the beneficiary communities throughout the year and reduce the levels of non-revenue water. The projects would maximize the social and health benefits of clean, safe and reliable water supply and also help promote food, palm oil processing and other agro industries.
As to how much each project would cost, the Minister of State at the Ministry of Finance and Economic Planning, hon. Dr. Akoto Osei informed the Committee that the costs of the projects would be as follows:
Kwahu -- US$59,977,931.00
Konongo -- US$29,896,475.00
Kumawu -- US$30,125,594.00
TOTAL -- US$120,000,000.00
The Committee observed that the scope of works would include the following:
Kwahu
The scope of works of the Kwahu project includes the following:
Rehabilitation of existing plant;
Expansion of water treatment plant (15,600 m3);
Raw water source development, treatment plant and high level pumping station, supply and installation of electro-mechanical equipment;
Transmission and distribution network (81.9 km);
4 no. booster pump stations at Kwahu Tafo, Mpraeso and Nkwatia;
Rehabi l i ta t ion of Nkawkaw existing boreholes and extension of distribution pipelines;
Provision of boreholes to some communities in the western part of the Ridge;
Supply and installation of 170 kW micro-hydro electric unit;
Supply and installation of domestic and standpipes;
Storage reservoirs.
Konongo

The scope of works of the Konongo project is in two parts and involves the rehabilitation and expansion of the system to meet the population demand up to the year 2020.

Rehabilitation works would include the following:

Water source rehabilitation

Treatment plant

Staff accommodation

Transmission mains

Water storage

Distribution; and

Booster station

The expansion aspect of the works would include the following:

Water source development

Water treatment plant

Transmission mains

Water storage facility

Distribution system -- 46km

House connections 2,791; and 97 standpipes.

Kumawu

The Kumawu project would involve the construction of a completely new system to serve Kumawu and 26 other communities. Scope of works would include the following:

Site installation

Earth works

Concrete works

Intake structure

Storage reservoir

Conventional treatment plant

Electro-mechanical equipment

Pipe works and other miscellaneous facilities.

A water treatment site would be installed at Aframso. The treated water will be pumped to Kwaman. From Kwaman, the water will be pumped through two transmission mains, one to feed a tank at Kumawu and the other to feed a tank at Kyebi. The Kumawu tank will serve water to Kumawu, Abotanso, Bodomase, Timate, Woraso and Besoro whilst the Kyebi tank serves the population south- west of Kyebi.

Members commended the Ministry of Finance and Economic Planning for successfully negotiating this facility for the country. They advised the Ministry to endeavour to secure funds to provide water to all parts of the country. 6.0 Conclusion

The Committee recommends to the House to take note of the grant Amount of US$5 million included in the mixed facility and approve by Resolution, the Loan Amount of US$115 million between the government of the Republic of ghana and Bank of Hapoalim of Israel for the implementation of the Kwahu, Konongo and Kumawu Water Supply Projects in accordance with article 181 of the Constitution, sections 3 and 7 of the Loans Act, 1970 (Act 335) and the Standing

Orders of the House.

Respectfully submitted.
Minister of State at the Ministry of Finance and Economic Planning (Dr. Osei) 11:05 a.m.
Mr. Speaker, I crave the indulgence of the House and the Chairman to second the motion but to amend the amount. Mr. Speaker, the loan itself is $115 million and there is a grant element of $5 million. So if it pleases the Chairman, the motion should be for a loan amount of $115 million.
Question proposed.
Mr. First Deputy Speaker 11:05 a.m.
Chairman of the Committee, do you have any comment to make because the hon. Minister said it is stated in your own report that there is a grant element of $5 million but in the motion paper, it is recorded as $120 million. Have you agreed to that?
Nii Mante: Mr. Speaker, it is already captured in the conclusion of the Report, which states that there is a grant element of $5 million and the loan itself is $115 million. So that is what we have captured there.
Mr. First Deputy Speaker 11:05 a.m.
Chairman
of the Committee, the hon. Minister of State is saying that you moved this motion without the correction and he is craving the indulgence of the House to have it corrected. I think it is appropriate and we have agreed to that.
Mr. E. K. D. Adjaho 11:05 a.m.
Mr. Speaker, on a point of order.
Mr. Speaker, I believe what the
Chairman of the Committee ought to have done is to amend the amount as captured before he goes to move the motion. As contained in his Committee's Report, this cannot be cured by the person seconding
Mr. First Deputy Speaker 11:05 a.m.
Hon. Adjaho, I have already commented on it, and as I said any correction of any document that are presented here can be effected either by the one who moved it or by any member subject to the agreement of the House itself, and I believe that is exactly what has been done.
The hon. Minister of State at the Ministry of Finance and Economic Planning has already drawn our attention that indeed, that is the case and the hon. Chairman himself has already brought our attention to the fact that in the Report itself it is $120 million. So I think we have agreed, it would go into the Hansard that the motion which he had moved has been corrected before being seconded and that the figure of the loan amount be changed from $120 million to $115 million, allowing room for $5 million grant element.
Mr. Adjaho 11:05 a.m.
Mr. Speaker, the point that I am raising is that all that we are doing is an oversight function of this honourable House. It is the hon. Minister of State who has brought this matter before this House, the Finance Committee went into their deliberation and it would be dangerous, in my view, for us that after all the deliberations at the committee level and coming back to the floor of the House, to be taking figures from the hon. Minister of State at the Ministry of Finance and Economic Planning, whom we are oversighting in this matter.
So what I expect and especially so, when it is clear from the Committee's Report that the amount is $115 million
rose
Mr. First Deputy Speaker 11:05 a.m.
Hon. Member, are you on a point of order?
Dr. Osei 11:05 a.m.
Mr. Speaker, on a point
of order. Mr. Speaker, I craved the indulgence of the Chairman to amend it and the Chairman got up and agreed to the amendment that the hon. Member on the floor is proposing. The Chairman has already agreed to amend it.
Mr. J. B. Aidoo 11:05 a.m.
Mr. Speaker, I find the position taken by the Minister of State at the Ministry of Finance and Economic Planning a bit strange. This is because if you look at the facility that we have just approved at motion number 9, it comes in the same form. It is a mixed credit facility and once it is a mixed credit facility, then it means that it is composed of a loan and then a grant element -- [Interruptions.]
Mr. Speaker, my point is that we do not need to amend this motion, the motion has come in its right form.
Mr. First Deputy Speaker 11:05 a.m.
It has been amended.
Dr. Osei 11:05 a.m.
Mr. Speaker, on a point of order. Mr. Speaker, the hon. Member on the floor is misleading this House. When we use the term “mixed credit facility” it does not mean that there is a grant element. In fact the previous ones are both loans; there is no grant element there. Mr. Speaker, in the previous ones, we are actually contracting the amount indicated; they are both different.
Mr. Speaker, with this facility, it is a
specific grant element and it is not a loan and that is why my position is not strange.
Prof. G. Y. Gyan-Baffour 11:15 a.m.
Mr. Speaker, what usually comes before the House is a loan and not a grant. In this particular case, we have US$115 million as a loan and then US$5 million as a grant. The grant does not have to come to the House for approval under the Loans Act, we just only inform the House. So in actual fact what is before the House to approve now, is the US$115 million -- [Interruption.] -- But I agree that the motion has to be amended to US$115 million.
Several hon. Members -- rose --
Mr. First Deputy Speaker 11:15 a.m.
Do you
want to make any comments on that again?
Mr. Kyei-Mensah-Bonsu 11:15 a.m.
Mr. Speaker, what is right is right and what is wrong is wrong. The motion was moved and the Minister of State at the Ministry of Finance and Economic Planning has drawn our attention to the composition of this figure that we have before us, which is US$115 million as loan and US$5 million as the grant component. What is needed to be done is for the Chairman of the Committee to re-move the motion by amending it, it is as simple as that.
Mr. First Deputy Speaker 11:15 a.m.
Hon.
Deputy Majority Leader, we have passed that stage.
Mr. Hackman Owusu-Agyemang 11:15 a.m.
(NPP -- New Juaben North): Mr. Speaker, I thank you for yet the opportunity again to comment on the water project which is dear to the hearts of all of us. Having agreed on the figures that we are dealing with, I would like to say that these projects, the three of them combined, are long overdue and that indeed, it is
rose
Mr. First Deputy Speaker 11:15 a.m.
Hon.
Deputy Minority Leader, are you on a point of order?
Mr. Adjaho 11:15 a.m.
Mr. Speaker, with the
greatest respect, the motion which is the subject matter of the current discussion, who moved it, and who seconded it?
Mr. First Deputy Speaker 11:15 a.m.
Hon. Doe
Adjaho, you are out of order.
Mr. Adjaho 11:15 a.m.
Who moved this motion
and who seconded the motion?
Mr. First Deputy Speaker 11:15 a.m.
Are you
asking the question of the Chair?
Mr. Adjaho 11:15 a.m.
No, Mr. Speaker, we
Mr. First Deputy Speaker 11:15 a.m.
This is not
Question time, hon. Doe Adjaho.
Mr. Adjaho 11:15 a.m.
Mr. Speaker --
Mr. First Deputy Speaker 11:15 a.m.
Please,
please, hon. Doe Adjaho, could you take your seat and let me make a point. Take your seat.
Mr. Adjaho 11:15 a.m.
Mr. Speaker, let me
finish --
Mr. First Deputy Speaker 11:15 a.m.
I am saying take your seat and let me make a point. It is obvious that the Chairman of the Committee moved the motion and it was seconded by the -- [Interruption.] -- Please, hold on. The hon. Chairman of the Finance Committee moved the motion, the hon. Minister of State seconded it.
And in seconding it -- and this is done everywhere -- when there is any motion paper in front of this House it can be corrected by anybody, the House is seized with it.
Any individual who is a Member of this House can seek the permission of the one who is moving the motion to correct it and that is what has been done. I do not understand why we should be haggling over it unnecessarily. Please, continue.
Mr. Owusu-Agyemang 11:15 a.m.
Yes, Mr.
Speaker, thank you very much. So Mr. Speaker, the people of Kwahu, of Konongo and Kumawu should now be jubilating that finally after all the efforts to get the water flowing for them, we have at least secured the facility that we should be able to provide water to these very important communities.
The process of giving water to Kwahu mountains, for example, is a very complicated engineering process and for the longest while we were not finding the necessary resources and the expertise to do it. Now that we have, I think the people of Kwahu deserve this water which had also been promised to them by many a government. So finally, we are delivering them, we will be delivering to them the water for Kwahu.
As far as Kumawu is concerned, Mr.
Speaker, it has a history which again is long and winding, but the bottom line is that again, Kumawu is also getting water. What I wanted really to do at the time that I had the privilege of serving there, was to have made water available to the people of Konongo which has now come to pass, or is coming to pass because we have the money.
I am only too sorry that our dear hon. Colleague is not here, is gone, but he was very instrumental in making sure -- but even when it was his own constituency he insisted that others should take precedence
rose
Mr. First Deputy Speaker 11:15 a.m.
Hon. Doe
Adjaho, do you have any problem?
Mr. Adjaho 11:15 a.m.
Yes.
Mr. First Deputy Speaker 11:15 a.m.
What is
your problem?
Mr. Adjaho 11:15 a.m.
Mr. Speaker, my problem
is that people are getting up from this side of the House and they are not able to catch
your eye.
Mr. First Deputy Speaker 11:15 a.m.
Who
got up? Who got up and did not catch my eye?
Mr. Adjaho 11:15 a.m.
Hon. Agbotse.
Mr. First Deputy Speaker 11:15 a.m.
You want
Mr. Adjaho 11:15 a.m.
Mr. Speaker, you asked
me my problem and I am telling you my problem. You asked me and I am responding, how can I share the Chair with you? I am very comfortable with this chair.
Mr. First Deputy Speaker 11:15 a.m.
Do you
want to make any comments on that?
Mr. Kyei-Mensah-Bonsu 11:25 a.m.
Mr. Speaker, the hon. Deputy Minority Leader has indicated to you and indeed to the House that he is very comfortable with the chair he is sitting on. May he remain there forever.
Mr. Adjaho 11:25 a.m.
Mr. Speaker, I think
the hon. Deputy Majority Leader is scared. But I want to assure him that in January, roles and positions will change -- [Laughter.] And then, after January, I will be looking for Mr. Speaker's seat. [Uproar.]
Mr. Kan-Dapaah 11:25 a.m.
Mr. Speaker, does
he intend to move forward then?
Mr. First Deputy Speaker 11:25 a.m.
Did I hear
the hon. Minister for Defence (Mr. Albert Kan-Dapaah) speak? I never gave you the floor.
Mr. Kan-Dapaah 11:25 a.m.
Mr. Speaker, I
Mr. First Deputy Speaker 11:25 a.m.
It is not
Question time. But I thought that the hon. Member would want to offer an answer.
Mr. Francis Agbotse 11:25 a.m.
Mr. Speaker,
I will like to contribute to the motion on the floor.
Mr. First Deputy Speaker 11:25 a.m.
What do
you want to do?
Mr. Agbotse 11:25 a.m.
I want to support the
motion on the floor.
Mr. First Deputy Speaker 11:25 a.m.
I would
give you the opportunity but wait a little. The hon. Member for Abetifi was on his feet.
Mr. E. A. Agyepong (NPP -- Abetifi) 11:25 a.m.
Mr. Speaker, I would like to support the motion on the floor.
rose
Mr. First Deputy Speaker 11:25 a.m.
Hon. Deputy Majority Leader, I believe it is a point of order.
Mr. Kyei-Mensah-Bonsu 11:25 a.m.
Mr.
Speaker, the hon. Deputy Minority Leader has made a very serious statement on the floor of the House.
Mr. First Deputy Speaker 11:25 a.m.
What did
he say?
Mr. Kyei-Mensah-Bonsu 11:25 a.m.
He said,
come January, roles will change. The operative word is “will'. Mr. Speaker, he did not say “roles ‘may” change”. So it means that they are minded by fair or foul means to change roles.
Mr. First Deputy Speaker 11:25 a.m.
You are
out of order. Hon. Member, continue.
Mr. E. A. Agyepong 11:25 a.m.
Mr. Speaker, it
is interesting that during our debate on the loan for Kwahu, Konongo and Kumawu water supply projects, there are that lively exchanges.
Mr. Speaker, I would like to say that
such mixed credit facilities are important in the lives of people because that is the only way we can provide some of these important facilities to the people. The water system, especially with Kwahu -- I remember the Kwahus made a con- tribution, gave it to the government to assist them to get water in the 1960s and 1970s but the water never came. So this is a very good opportunity for us to get water. If we look at page 4 of the Report, the towns that will be benefiting from it are all listed there when we talk about the Kwahu water supply project.
Then when we come to the other side, there is the rehabilitation side and then there is the extension side which are very, very necessary. So we are saying that it is important that the water supply system for Kwahu, Konongo and Kumawu is done. If for nothing else it must be completed fully as a memorial for the late hon. Minister for Finance and Economic Planning and the late hon. Chairman of the Committee on Finance (late hon. Basoah). They all served in the Committee on Finance processes of Parliament and it is only befitting that these facilities are done for the two departed colleagues.
As far as the Kwahu one is concerned, the present hon. Chairman of the Committee on Finance is still alive but is retiring honourably at the end of this Parliament. But I would also like to say that such facilities should be obtained from whatever sources to expand the water
system in the whole country because it is vital for the lives of all of us.
Mr. Speaker, with these few words, I say we are grateful for the project.
Mr. Yaw Baah (NPP -- Kumawu) 11:25 a.m.
Mr. Speaker, thank you for the opportunity offered me.
Mr. Speaker, scientists say that the human body contains more water than even blood. Therefore, he who gives water gives life. Those familiar with the water problem of Kumawu would bear me out that today, searching for water within Kumawu and its environs is like searching for snails on the desert.
Apart from Kumasi which is the capital of Ashanti Region that enjoyed pipe-borne water in the 1940s, the other towns that enjoyed pipe-borne water during the colonial time were Bekwai and Kumawu, that is dating back to 1953. But today, what do we speak of the Kumawu water situation. This water problem has impacted on economic activities, education, et cetera. There was a time that when civil and public servants are being transferred to Kumawu, because of the notoriety that Kumawu has earned when it comes to the issue of water problem, officers refused to be transferred to Kumawu.
Therefore, on my own behalf and on behalf of the people of Kumawu, that is my constituency -- today is a historic day, and that we thank the New Patriotic Party (NPP) government that after all these years, dating back to 1953 --
Mr. Speaker, it is true that there were attempts for some interventions in the form of small community water projects, boreholes, et cetera. But the topography of Kumawu - those who know there very well - and its environment forming
part of the Kintampo Bisa range is quite undulating and therefore any attempt with regard to boreholes and community water projects have yielded nothing.
Mr. Speaker, this project is very dear not to the people of my constituency alone but to my senior brother sitting on my left (Mr. Kwame Osei-Prempeh). This is because almost all the towns within these two-sister constituencies will be enjoying pipe-borne water. And it will also be, perhaps the second largest dam after Barekese project in Kumasi because the other constituencies stand to benefit once we get to the next phase of this project.
Mr. Speaker, apart from this, auxiliary to this project will be the provision of short-term jobs, especially for the youth because this project will be carried out within the period of three to four years.
Mr. Speaker, in conclusion, may I
caution that many a time, the funfair and euphoria that greet such loans is a complete departure when it comes to the execution of the project and I pray that this major project will not suffer the usual fate that has been besieging the other beneficiary communities of similar loans. And I hope this very project being sole- sourcing will not be suffering such a fate.
With these few words, Mr. Speaker, I thank you, and once again say that the people of Kumawu and its environs are very grateful to the government.
Mr. Francis Agbotse (NDC -- Ho West) 11:35 a.m.
Mr. Speaker, I rise to support the motion on the floor and to draw attention to what the hon. Member for New Juaben North (Mr. Hackman Owusu-Agyemang) said. He said water is life and it is dear to everybody's heart.
I did ask him a Question when he was the hon. Minister for Water Resources,
Works and Housing here about the second phase of the Ho Water Project and he said he needed $5 million to have that project done. That is taking water from Sokorde to Abutia and from Dambai to Awudome and Dedo area. Up till today, I have not heard anything about that promise he made.
He says water is dear; I know those areas are suffering from water-borne diseases and they need attention. And I am hoping that next time they are looking for funds, they will look for only $5 million to get water to these areas in the Ho-Kpeve phase II project.
Thank you, Mr. Speaker. With that I support the motion.

Mr. E. K. D. Adjaho (NDC -- Avenor/

Ave): Mr. Speaker, the point has been made; when it comes to approving loan facilities to provide water and social services, the attitude of this House is to support it provided the facility is genuine. And I have reason to believe that this facility is genuine.

However, Mr. Speaker, if you look

at page 5 of the Committee's report, we have detailed there the scope of work of the Kwahu project; they have given us the details. I have been going through them and they have given us the scope of work at the Konongo end and the scope of work at the Kumawu end. Mr. Speaker, what is missing in this Committee's report is when work would actually start.

Mr. Speaker, approving the loan facility

and the work starting are two different things and I thought that the Committee in its report would have given us an indication as to when work would start, because it is a very important facility -- we want to give water to our people. But when is that water going to flow? When is work going to start? I think that the
Mr. Francis Agbotse (NDC -- Ho West) 11:35 a.m.


Committee that worked on it would have been able to tell this honourable House when work would start.

I want to say that when it comes to winding up or when the hon. Minister for Water Resources, Works and Housing comes to the House, he should be able to tell us when work would start. This is because at the end of the day, it is not the approval that is important; even though the approval is important, that is not sufficient to make us happy or to make us smile. We want to know when work would start so that people from these communities can get work.

Mr. Speaker, with these few comments, I support the motion.

Minister for Water Resources, Works

and Housing (Alhaji A. S. Boniface): Mr. Speaker, I rise to commend my hon. Colleagues for supporting this motion. First of all, I just want to say that Barekese is not in Kumasi, because the Member of Parliament (MP) is here; he is attacking me from behind. But I want to assure him that it was just a slip of tongue from my hon. Colleague.

Apart from that, I want to mention that, as we said, water is life. Currently, if the project comes on stream it is going to cover over 700,000 people and then about 70 to 80 communities; 23 in Kwahu area, 26 in Kumawu and about 20 in Konongo area.

Mr. Speaker, at the end of the day what we realize is that we are gradually trying to fulfil the intentions and the vision that we intend and the targets we have set for ourselves that by 2015 this country should at least cover not less than 74 per cent of the population in the urban areas and between 56 and 60 per cent in the

rural area.

Now, what this facility intends to do; the benefits we are going to gain in the supply of water is that at least at the end of the day, it would enable us maximize social and health benefits of clean, safe and reliable water. At the same time, it would help to boost businesses or business opportunities in those areas with growth in productivity, because at the end of the day drinking clean, safe and potable water would enable the people having access to water, get to work early and there would be increase in output and productivity of the people.

So at least, at the end of the day, there would also be improved access to water supply throughout the year and I think this project, the three ‘Ks”; that is Kwahu, Konongo and Kumawu should be named after my good friend the late Baah-Wiredu because this is something he cherished so much and I was always talking to him about it; we had always discussed it. My hon. Colleague the State Minister, Ms. Cecilia Abena Dapaah and my Deputy Minister were all very serious about this particular project.

At least at the end of the day we have seen the light of the day and this shows and signifies that we are really moving forward and the people in these three constituencies or districts or areas would be very, very happy that hon. Colleagues in this House have accepted to honour Baah-Wiredu with this particular project.

On this note I thank you Mr. Speaker, and thank my hon. Colleagues for supporting the approval of this facility. In any case I want to assure my hon. Colleague about the Ho project, that as soon as he brings a reminder or a question I am prepared to take it up and assure that we go search for the $5 million.

Question put and motion agreed to.
RESOLUTIONS 11:35 a.m.
Minister of State (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 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 Mixed Credit Facility between the government of the Republic of ghana and Bank of Hapoalim of Israel for an amount of US$120.00 million for the im-plementation of Kwahu, Konongo and Kumawu Water Supply Pro-jects.
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.
Dr. Osei 11:35 a.m.
Mr. Speaker, I thought that
the figure, the change was consequential; that was why I did not amend the motion because we had amended it earlier. The Clerk just drew my attention to that. I hope that it is amended appropriately.
Mr. First Deputy Speaker 11:35 a.m.
It is
consequential; I agree with you.
Credit Agreement between GOG and Euroget De-Invest SA of Egypt
Nii Mante: Mr. Speaker, I beg to
move, that this honourable House adopts the Report of the Finance Committee on the Credit Agreement between the government of the Republic of ghana and Euroget De-Invest SA of Egypt for an amount of US$339,000,000 for the construction and equipping of two regional and six district hospitals.
Mr. Speaker, I present your Commit-
tee's report.
1.0 Introduction
The above Credit Agreement was laid in the House on Wednesday, 5th November 2008 and referred to the Finance Committee for consideration and report in accordance with article 181 of the 1992 Constitution of ghana and the Standing Orders of the House.
Mr. First Deputy Speaker 11:35 a.m.


To consider the Agreement, 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 of Economic Planning, hon. Prof. george gyan-Baffour and the technical team from the Ministries of Finance and Economic Planning and Health and reports as follows:

2.0 Background

The country recognizes the need to improve health status indicators including maternal health, child health, nutrition, coverage of clinical services, public health and reproductive health services.

Non-communicable diseases and road traffic accidents are becoming major causes of morbidity and mortality in the country.

The Northern and Upper West regions are in the deprived areas of the country. There is evidence that physical access to health care is a great challenge. There are huge service provision gaps due to the absence of health facilities at the proposed sites. This situation poses a great danger since people would have to travel long distances to access health care.

Despite these challenges, the health sector has made progress in meeting people's expectations and promoting effective clinical service delivery. With the operation of health insurance, people are now having easy access to health care.

However, the population in these areas has also grown phenomenally putting a strain on the existing health facilities.

This situation has become increasingly critical that there is the need to construct these hospitals in the selected areas to respond to the emerging health needs of

the people.

It is in response to this need that Euroget De-Invest, S. A. of Egypt has agreed to provide a concessionary credit facility to help finance this project.

3.0 Objectives of the Project

The objectives for carrying out this project are:

To provide access to quality health care for the people of the proposed sites.

To supply and install equipment upon completion of the civil works.

To provide training for the Medical staff and Medical Technicians to assist operate the facility efficiently upon completion.

4.0 Project Location and Estimated Cost

The project involves the construction of two regional hospitals and six district hospitals as follows:

Hospital /Region Estimates (Million $)

Wa Regional Hospital (U/E)

61

Kumasi Regional Hospital (Ashanti)

64

Wenchi District Hospital (Brong Ahafo) 35

Salaga District Hospital (Northern)

35

Tepa District Hospital (Ashanti)

34

Twifo Praso Dis t r ic t Hospi ta l (Central)

34

Adenta/Madina Hospital (greater Accra) 33 Konongo Odumase District Hospital (Ashanti) 33

Project Monitoring and Supervision, et cetera 4 Management and Financing Fees 6 Total 339

4.1 Project Components

The major components of the project include:

(1) Civil works and this covers the following:

Administration,

Adjunct Clinical Services

Out-patient Department

Theatre

Standard Wards

Maternity/Pediatrics

Kitchen/Staff Dining CSSD/Laundry

Plant/Engineering/Stores

Mortuary

Mothers Hostel

(2) Housing Project involving the construction of 105 Housing units.

(3 Installation of Medical Equipment and this includes the supply and installation of equipment needed to carry out the services expected to be performed as stated above.

(4) Training aimed at medical staff and other medical technicians/en-gineers of the

ghana Health Service/Ministry of Health. In addition there is also a one-year maintenance programme for the Service/Ministry of Health with respect to equipment.

5.0 Terms and Conditions of the Loan

Loan Amount -- US$ 339 million

Interest Rate -- 1. 6 per cent per annum

grace Period -- 4 years

Repayment Period -- 14 years

Maturity Period -- 18 years

Lender's Emission -- 2.0 per cent (flat on loan amount)

Management Fee -- 0.5 per cent (flat on the loan amount)

Underwriting

Charges -- 18.0 per cent (for 18 years -- 3 per cent per 3 years)

6.0 Observations

The Committee was informed that the project would involve the construction and rehabilitation of two regional hospitals and six district hospitals in the country.

The technical team informed the Committee that the project is to be completed within two years involving civil works, installation of equipment and training.

The Committee was further informed that in addition to the civil works and installation of equipment, there is a 1 year maintenance programme for the medical equipment that would be installed as part of the project cost.

The Committee observed that these health facilities would contribute significantly to achieving some of the Millennium Development goals as follows:

a. High Impact, Rapid Delivery programme

b. Nutrition including breastfeeding and complementary feeding

c. Expanded programme of Immuniza- tion (EPI)

d. Integrated Management of Child- hood illnesses (IMIC) involves the management of severely sick children and antibiotics of diarrhea and enteric fevers at the clinical level.

The Minister of State at the Ministry of

Finance and Economic Planning informed the Committee that the credit facility has a grant element of 37.5 per cent and that this funding satisfies government of ghana's conditions for concessionary financing.

The technical team informed the Committee that under the project, the equipment in these hospitals would be upgraded to enable the hospitals treat more complex and serious ailments.

Members requested the detailed list of equipment to be supplied and installed in these hospitals. The technical team assured the Committee that this list would be made available to the Committee.

The Committee observed that the project, when completed, would help provide quality health care to the people of Kumasi South, Wa, Wenchi, Adenta/ Madina, Konongo/Odumasi, Tepa, Twifo Praso and Salaga and their environs.

The Committee was informed that the payment of taxes, charges and duties which will be incurred under this Agreement are to be waived. The Deputy Minister assured the Committee that a formal request would be presented to Parliament for approval.

7.0 Conclusion

The Committee recommends to the House to adopt this report and approve by Resolution, the Credit Agreement between the government of ghana and Euroget De-Invest SA of Egypt for an amount of US$339,000,000 for the construction and equipping of two regional and six district hospitals in accordance with article 181 of the 1992 Constitution and section 7 of the Loans Act 1970 (Act 335).

Respectfully submitted.
Dr. Osei 11:45 a.m.
Mr. Speaker, I rise to second the motion and in so doing I want to make a few remarks. Mr. Speaker, I
was trying to go through the records to find out whether the Ministry of Health had done any upgrading on the Regional Hospital in Kumasi, for that matter Ashanti Region for a longest time. Mr. Speaker, it turned out that for a over 17 to 20 years no such project had ever come to the Ashanti Region and so I commend the Ministry for curing this rather serious defect and ensuring that the people in those communities finally get access to a regional hospital.

Mr. Speaker, in my constituency, Old Tafo Pankrono, the number of patients that troop to what looks like a hospital is second only to Komfo Anokye Hospital. In fact, I suspect it may even match the number of patients who even attend 37 Military Hospital.

Mr. Speaker, there are only six beds catering for, I do not know how many millions of people. The psychiatric room complements the consulting room for the physicians. Mr. Speaker, I was able to get some people to donate some wheel chairs and beds to the hospital. As I speak, because of lack of appropriate space, these things are still locked up. So I think it is commendable that finally the Ministry is curing this rather unfortunate defect and taking steps to make sure that a regional hospital is put in place in the Ashanti Region.

Mr. Speaker, but having said that, it is

also true that just over the weekend His Excellency the President commissioned a 75-million Euro facility with a helipad that is called the Komfo Anokye Accident and Emergency Centre which is the state of the art facility that is going to serve the entire nation. I do not think we have that type of facility in this country yet.

So Mr. Speaker, I commend the Ministry for taking these steps and I wish to encourage all my hon. Colleagues to adopt the motion in particular since they are also upgrading -- aside from the two regional hospitals, six other district hospitals all going towards improving the health status of our dear population.

Mr. Speaker, with these few words, I

second the motion.

Question proposed.
Mr. J.B. Aidoo (NPP -- Amenfi East) 11:45 a.m.
Mr. Speaker, I am rising to make just a very brief remark on the motion before us. Mr. Speaker, with the introduction of the National Health Insurance Scheme, a lot of challenges have been brought to bear on the Health Sector, especially with the health delivery services. Mr. Speaker, there is also pressure on existing infrastructure and this runs across the entire country.
Mr. Speaker, reports we are getting are that we have attendance ratio rising day by day. People who were previously not attending hospitals are now going to the hospitals, for which reason we need to expand existing facilities and also to improve upon both infrastructure, equipment and then the services of our health sector.
It is therefore gratifying to note that the Ministry has taken steps to improve the district hospitals as indicated in the report and also to construct two regional hospitals.
But Mr. Speaker, while supporting this
motion, I will also urge the Ministry to look across the whole country because the problem is a nationwide problem. When we go to the Western Region, for example Effia-Nkwanta Hospital, there is the need to improve the situation at that hospital.

So we should look for more facilities to upgrade more of our district hospitals and also improve our regional hospitals.

With this I am urging hon. Members

to support this motion. It is a very good facility and we must not hesitate to approve of it.

Minister of State/Deputy Majority

Leader (Mr. Osei Kyei-Mensah-Bonsu): Mr. Speaker, I also rise to lend my support to the approval of this loan placed before us by the Finance Committee. Mr. Speaker, the health situation of our country which is being taken on by government is really improving, and the fact of the introduction of the Health Insurance Scheme has put access at a very good position and the citizenry now can generally access health facilities.

But Mr. Speaker, looking at this, my concern and particularly taking a cue from what the hon. Minister of State at the Ministry of Finance and Economic Planning has said, relating to conditions in his constituency which I have no cause to doubt, I would want to remind him that in Kumasi, of the former six constituencies, it is only Suame which does not have a government health facility.

Mr. Speaker, i t is only Suame constituency which does not have -- and may I remind the hon. Minister of State that the population of Suame is far higher than the population of Tafo. So if he is talking about people who have been trooping to the polyclinic, now a hospital for Tafo, Mr. Speaker, he may well be reminded that those who are crying for such a facility in my constituency far outnumber those of them in Tafo. And so I would want to appeal that if it comes to an objective consideration of the location of a regional hospital, Suame cons-tituency may have to be considered.

Mr. Speaker, may I also remind hon.
Dr. Osei 11:45 a.m.
On a point of order. Mr.
Speaker, my senior hon. Colleague was the Member of Parliament for the entire area before it was split. Mr. Speaker, the location of the hospital is closer to his constituency than to mine. So I thought that he was instrumental in the location of where it is now, since he was the Member of Parliament at that time. So if he wants that to be relocated to Suame, I would not have any objection at all since I am a junior Colleague. But he was also instrumental in ensuring that, that facility kept on.
So I am surprised that he is giving the impression that there is nothing that -- his constituents use that facility more than my constituents because of the proximity. But if he wants the Ministry of Health to put another one there, I think then he should be going to request that from the Ministry of Health and his constituency but not from the Ministry of Finance and Economic Planning. But I am glad that we can always share that facility with his constituents.
Mr. Kyei-Mensah-Bonsu 11:45 a.m.
Mr. Speaker,
Papa Owusu-Ankomah 11:45 a.m.
On a point
of order. Mr. Speaker, I am wondering. In terms of development, it seems to me the hon. Deputy Majority Leader and Minister of State is misleading the House. When it comes to location of hospitals, schools, et cetera it is based on districts and metropolitan areas and not constituencies.
Mr. First Deputy Speaker 11:45 a.m.
That is for
your benefit, hon. Deputy Majority Leader.
Mr. Kyei-Mensah-Bonsu 11:55 a.m.
Mr.
Speaker, clearly I do not know what the beef of the Minister responsible for Trade, Industry Private Sector Development and PSI is in this matter. The advocacy came from the Minister of State at the Ministry of Finance and Economic Planning and I am only reminding that whereas the facts that he churned out are true -- yes, it is my constituency, of all the constituencies in Kumasi which does not have a government health facility.
Mr. Speaker, that is the point I am making and the Minister alluded to population and I am saying that if population is an index, the population in my constituency outnumber the population in his constituency. That is all that I have said.

Mr. Speaker, the other issue that I want to raise in respect of the agreement is this: I do know that for project monitoring, supervision, management and financing fees, it normally comes as a percentage of the total quantum. My worry, though is that for the project monitoring and supervision, we have US$4 million, management and financing fees, we have US$6 million that makes it US$10 million which is still below the post contract percentages which are charged.

Mr. Speaker, however, what I noticed is that there is another management fee of 0.5 per cent flat on the loan amount elsewhere, and I wanted better clarification from the hon. Minister what it means and what it translates to. If one asks, even that one - the 0.5 per cent plus the US$4 million and US$6 million it is still below the 0.5 per cent post-contract manage-ment and finance fees which are charged.

But I am wondering why they could not be put at the same place but we have project monitoring and supervision, et cetera US$4 million, management and financing fees US$6 million and then elsewhere at another place, we have management fee 0.5 per cent flat on the loan amount. If the hon. Minister could offer some clarification on that.

Mr. Speaker, subject to that I associate

my support fully with the motion on the floor.
Mr. F. A. Agbotse (NDC -- Ho West) 11:55 a.m.
Mr. Speaker, I support the motion and the distribution of the money according to the district hospitals. My only concern is that Kumasi or the Ashanti Region has Komfo Anokye Teaching Hospital (KATH) to which had just been added a modern accident centre. If that money (US$61 million) could be sent to Wa for a Regional Hospital -- [Interruption] -- I say Upper East, that is Bolgatanga because the regional hospitals are supposed to be referral hospitals.
The KATH is a first class referral hospital, why do we put another one there? Just like Korle- Bu, are we building another one for greater-Accra? So my concern is that what has been given to Kumasi for Ashanti Region should be referred to another region. Mr. Speaker, thank you.
Mr. First Deputy Speaker 11:55 a.m.
Hon.
Members, is there any Minister to wind up over this issue? Hon. Minister for Finance and Economic Planning, are you winding up?
Dr. Osei 11:55 a.m.
Mr. Speaker, I thought I saw
RESOLUTIONS 11:55 a.m.
THIS HONOURABLE HOUSE 11:55 a.m.
H E R E B Y R E S O LV E A S 11:55 a.m.
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 Loan Agreement between the government of the Republic of ghana and Project Development International/Exim Bank of the United States of America for an amount of US$49,062,541 for the procurement of additional fire tenders for the ghana National Fire Service.
Mr. Speaker, in so doing, may I present to you the Committee's report.
1.0 Introduction
The above Loan Agreement was laid in the House on Wednesday, 5th November 2008 and referred to the
Finance Committee for consideration and report in accordance with article 181 of the 1992 Constitution of ghana and the Standing Orders of the House.
To consider the Agreement, 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 of Economic Planning, Prof. george gyan-Baffour and the technical team from the Ministries of Finance and Economic Planning and Interior and reports as follows:
2.0 Background
The ghana National Fire Service (gNFS) is currently faced with major challenges in the prevention and management of fire in the country. Their equipment and working tools are inadequate, obsolete and not very useful when it comes to the prevention and management of fire.
Due to this, government decided to modernize the gNFS through the acquisition of modern fire engines and equipment to reinforce its fire fighting capacity.
Members would recall that in July 2008, the House approved a credit facility between the government of ghana and ECOWAS Bank for Investment and Development (EBID) amounting to US$15,013,250 to help acquire additional equipment and related tools for the Service.
Unfortunately, the EBID facility was not enough to meet the needs of the existing fire stations. The credit facility did not also cover the provision of turntable ladders needed to put out fire in high rise buildings which are now springing up in
major cities.
In view of the inadequacy of the EBID facility and the urgent need to modernize the ghana National Fire Service, government of ghana sought for funding from the Commerzbank of New York and the US EXIM Bank to help procure additional fire tenders and other equipment for the Service (gNFS).
The Commerzbank of New York and the US EXIM Bank have accepted to provide a credit facility to fund the project and it is this agreement that is currently before the House.
3.0 Purpose of the Project
The purpose of the project is to procure additional fire tenders, turntable ladders, rescue vehicles and other related equipment for the ghana National Fire Service (gNFS).
4.0 Financing Details
The project is to be financed as follows:
U. S. Exim Bank -- US$42,462,252
Commerzbank, New York -- US$6,600,289
Total Amount -- US$49,062,541
4.1 Terms and Conditions of the Credit Facility
The terms and conditions for the credit facility are as follows:
U. S. EXIM Bank
Loan Amount --
US$42,462,252
Interest Rate
-- 6 month US Libor + 0.65 per cent per
annum
Chairman of the Committee (Nii Adu Daku Mante) 11:55 a.m.


Repayment Period -- maximum repayment period of up to

8

years or otherwise approved by Eximbank

Arrangement Fee -- 0.5 per cent

Exposure Fees -- 13.05 per cent (flat on loan amount)

Eximbank Commitment Fee -- 0.125 per cent

Commerzbank Commitment Fee -- 0.0625 per cent

Commerzbank, New York

Loan Amount --

US$6,600,289

Structure -- sight letter of Credit to be issued by an acceptable local ghana Bank on behalf of the Borrower,confirmed by the

Lender and refinanced for a period to be agreed.

Availability Period -- up to 6 months from the date of confirmation

Refinanced Period -- up to 24 months from the L/C confirmation date

L/C Fees -- depends on the local bank that is identified to handle the transaction. Pricing will range as follows:

1. L/C Confirmation Commission: between 1.5 per cent and 1.75 per cent per annum

2. L/C Negotiation Commission: 0.2 per cent flat on amounts negotiated

3. other L/C charges at standard costs

Refinancing Interest Rate -- US$ Libor + 1.85 per cent per annum (depending on the identification of the local bank obligor)

Repayment Period -- one time payment at final maturity

Final Maturity -- 24 months from the L/C/ confirmation date or the first loan disbursement date.

5.0 Observations

The Committee was informed that the EBID facility was secured to finance seventy four fire tenders, related equip-ment and training. Unfortunately, this facility is not enough to meet the short-term requirements of gNFS which includes a minimum of 160 fire tenders.

The Committee observed that under the project additional equipment would be procured for the Service and these include the provision of:

1. additional 90 fire tenders

2. 4 turntable ladders

3. 15 water tankers

4. 500 fire fighters' Breathing and Safety Apparatus

5. 24 Breathing Air System station plants

The Deputy Minister for Finance and Economic Planning informed the Committee that vehicles to be procured under the project would be fitted with caterpillar engines. Furthermore the vehicles would also be fitted with additional reinforced chassis to make them suitable for rugged terrain.

The technical team also informed the Committee that the manufacturers of the fire- fighting vehicles would be supplying spare parts to the gNFS to ensure that the vehicles

are properly maintained.

The Committee noted that under the project, fire fighters' protective clothing and extensive fire fighters training amounting to US$1,627,000 is being offered free of charge to the government of ghana.

Members noted that maintenance is vital with respect to the durability of the logistics. They therefore recommended that the Service should ensure that the equipment and other logistics to be procured are properly maintained so that they do not wear and tear in a short time.

The Minister of State at the Ministry of Finance and Economic Planning, Dr. Akoto Osei informed the Committee that the grant element of the Loan is below the gog threshold of 35 per cent and therefore not concessional. He however explained to the Committee that the Loan was contracted in view of the importance government attaches to equipping the gNFS and that government is ensuring

that gNFS is strategically positioned in the Multi-Agency Emergency Services System.

The Minister of State further informed the Committee that US Exim Bank is contributing US$42,462,252 which is 85 per cent of the Credit facility whilst the Com-merzbank is contributing US$6,600,289 representing 15 per cent.

The Committee observed that this facility is part of efforts by government to ensure that the gNFS is properly equipped and to bring the Service in line with international practices.

6.0 Conclusion

After careful deliberations, the Committee recommends to the House to adopt this report and approve by resolution the Loan Agreement between the government of ghana and Com- merzbank, New York and EXIM Bank of the United States of America for an amount

[NII MANTE] [NII MANTE]

of US$49,062,541 for the procurement of additional fire tenders for the ghana National Fire Service in accordance with article 181 of the Constitution and section 7 of the Loans Act, 1970 (Act 335).

Respectfully submitted.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben Brakwa) 12:05 p.m.
Mr. Speaker, I rise to second the motion, and in so doing, I would like to make a brief intervention. Mr. Speaker, the loan is being sought from two main sources - US Exim Bank is US$42.4 million and with a repayment period of up to 8 years. The remaining US$6.6 million is coming from a bank also in New York and is payable within two years or thereabout.

Mr. Speaker, the loan as he said is intended to make equipment available to the ghana National Fire Service for the organization to protect lives and property. You are aware that if the Fire Service is not well equipped and there is fire outbreak anywhere in this country, you will look on helplessly for lives and property to be destroyed. So if you want to protect lives and property, then this institution that plays an important role in the lives of human beings in ghana must be well- equipped.

Therefore, I wish to urge everyone here not to shudder at the thought of giving approval to this loan.
Mr. First Deputy Speaker 12:05 p.m.
Hon. Members, it is a very simple loan agreement and for that matter I will put the Question on the motion.
Question put and motion agreed to.
RESOLUTIONS 12:05 p.m.
Dr. A. A. Osei 12:05 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 govern-ment 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 Loan Agreement between the government of the Republic of ghana and Project Development International/Exim Bank of the United States of America for an amount of US$49,062,541 for the procurement of additional fire tenders for the ghana National Fire Service.
THIS HONOURABLE HOUSE 12:05 p.m.
H E R E B Y R E S O LV E A S 12:05 p.m.
Prof. Gyan-Baffuor 12:05 p.m.
Mr. Speaker, I rise to second the motion.
Question put and motion agreed to.
Resolved accordingly.
Request for Waiver of Tax Liability on Equipment/Materials
Chairman of the Committee (Nii Adu Mante) 12:05 p.m.
Mr. Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Request for waiver of tax liability on equipment/materials to be imported or purchased locally, corporate tax and other taxes totalling €1,347,842.00 in respect of the construction and equipping of five (5) polyclinics namely Karaga, Kpandai, Tatale, Janya and Chereponi in the Northern Region.
Mr. Speaker, in so doing, may I present to you your Committee's report. Mr. Speaker, attached to the Report is the assessment of the taxes which we are seeking this honourable House to waive.
1.0 Introduction
The above request for tax waiver was laid in the House on 24th October 2008 and referred to the Finance Committee for consideration and report in line with article 174 of the 1992 Constitution and
the Standing Orders of the House.
To consider the request, the Committee met with the 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 officials from the Ministry of Finance and Economic Planning and reports as follows:
2.0 Background
Hon. Members would recall that on Tuesday, 12th August 2008, Parliament approved by resolution a Loan Facility between the government of ghana and the government of Austria through Bank Austria Creditanstalt Ag for an amount of €7,650,000.00 for the construction and equipping of five polyclinics namely: Karaga, Kpandai, Tatali, Janya and Chereponi in the Northern Region.
As part of the conditions precedent to the loan, all goods and services procured under the loan facility shall be exempted from the payment of taxes, duties and levies imposed in the country.
During the consideration of the loan agreement, the Committee was assured that a formal request for tax waiver would be brought to the House in line with article 174 (2) of the 1992 Constitution.
This request has been laid in the House and is now before the Committee.
3.0 Purpose of the Request
The purpose of this request is to seek a waiver from the payment of taxes,
APPENDIX 12:05 p.m.
I 12:05 p.m.
Mr. P. C. Appiah-Ofori (NPP -- Asikuma/Odoben/Brakwa) 12:05 p.m.
Mr. Speaker, I beg to second the motion. I have said time without number that waivers of tax do not constitute cash flow to the government or any cash loss to the State. The reason is this, Mr. Speaker, if we say we are not going to waive it, the cost will be increased by the same amount. So it will go out of the Consolidated Fund and when you collect, it goes back into the Consolidated Fund. It is the same amount, no loss. So why do we waste our time? Therefore, when we are confronted with such requests, we should do so with alacrity. So I urge the whole House to give approval without let or hindrance. Thank you.
Question put and motion agreed to.
RESOLUTIONS 12:05 p.m.
Dr. Osei 12:05 p.m.
Mr. Speaker, I beg to move, that
THIS HONOURABLE HOUSE IS RESPECTFULLY REQUESTED TO ADOPT 12:05 p.m.
Mr. First Deputy Speaker 12:05 p.m.
Yes, Leader of the House, where do we move on to?
Mr. Kyei-Mensah-Bonsu 12:05 p.m.
Mr. Speaker, item number 19.
CONSIDERATION STAGE 12:05 p.m.
  • [Resumption of Consideration from 11/11/08]
    • Mr. First Deputy Speaker 12:05 p.m.
    We were at clause 14 as at yesterday. What is the position, Chairman, referring to the handling of the Schedules? Will it be possible to go on with clause 14? Have you made any progress?
    Nii Mante: That is so, Mr. Speaker. Mr. Speaker, clause 14, we have come to an agreement that in place of subclauses 3 to 8 as contained in the Bill -- [Pause]-- Mr. Speaker, in place of the entire clause 14, we should have a new rendition. Mr. Speaker, part of the new rendition is captured at pages 10 and 11 of the Order Paper. But Mr. Speaker, the first sub

    Respectfully submitted.

    paragraph, that is 14 (1) and 14 (2) be retained.
    Mr. First Deputy Speaker 12:05 p.m.
    Which part are you referring to now?
    Nii Mante: It is the advertised amendment. Mr. Speaker, you will notice that at pages 10 and 11 we have an advertised amendment.
    But Mr. Speaker, the 3 and 4 of the advertised amendment are being dropped.
    Mr. First Deputy Speaker 12:25 p.m.
    Is being what?

    Nii Mante: It is being dropped. And in its place, Mr. Speaker, we propose a new provision.
    Mr. First Deputy Speaker 12:25 p.m.
    Which you have in your hand or you do not have?
    Nii Mante: Mr. Speaker, I have it in hand.
    Mr. First Deputy Speaker 12:25 p.m.
    Read it out and let us hear.
    Nii Mante:
    “Where a mortgagee is unable to enforce a right of possession in a peaceable manner the mortgagee may use the services of the police to evict the mortgagor or other person in possession pursuant to a warrant issued by a court.”
    Mr. First Deputy Speaker 12:25 p.m.
    go over it again for the benefit of hon. Members.
    Nii Mante:
    “Where a mortgagee is unable to enforce a right of possession in a peaceable manner the mortgagee may use the services of the police to evict the mortgagor or other person
    in possession pursuant to a warrant issued by a court.”
    Mr. First Deputy Speaker 12:25 p.m.
    Is that the agreed position?
    Nii Mante: Mr. Speaker, that is so.
    Mr. First Deputy Speaker 12:25 p.m.
    Does that mean you are dropping subclauses (3) and (4)?
    Nii Mante: Mr. Speaker, in that case, subclause 3 and 4 as proposed in the Order Paper will be dropped and in their place we capture the 14 (1) and 14 (2) as they appear at page 10 of the Order Paper and read as I have just read out.
    Mr. First Deputy Speaker 12:25 p.m.
    So that there will be only three subclauses?
    Nii Mante: Mr. Speaker, that is so, there will only be three subclauses. I beg to move, clause 14, delete and insert the following:
    “Mortgagee's right to possession
    14. (1) Where a mortgagor fails to perform an act or acts secured by the mortgage, the mortgagee is