to target those loans at projects that have very high rate of return and are very productive.
Mr. Speaker, I am surprised that our Colleagues on the other side were finding faults with this good loan facility.
Mr. Speaker, as a budget support, this would also come as a supplementary budget. We noticed that a lot of the Ministries, Departments and Agencies (MDAs), when they came for the budget hearing, they were all saying the amount given to them would not be able to finance their projects.
This is now a good opportunity with this three hundred million dollars, for Government to be able to improve upon the budget requirement of the MDAs. As a result, part of the loan will be used to target the Ministry for Water Resources, Works and Housing to provide potable water to our rural communities.
The loan facility too would be used to improve sanitation in Ghana. Not only that, in education, it is the intention of Government to apply this loan to improve the infrastructure of senior high schools to meet the new Government policies and also increase the intake in senior high schools. Also part of this loan would be used to support the incentives that will be given to teachers who will be in the rural areas. Also, we want to provide not just quantitative education in increasing enrolment in schools but we also want to improve the quality of education in Ghana.
Mr. Speaker, for all these, what else did our Colleagues on the other side want this loan facility to do? I believe that Ghanaians are very enthused that this loan is not going to be misapplied like it used to be in previous times, when loans collected
and targeted at certain MDAs and they turn out that they did not go down to the beneficiaries.
Mr. Speaker, one of our Colleagues on the other side was talking about the financial recovery plan for the energy sector and alluded to the fact that the only way that the financial recovery plan can be successful will be to increase tariffs in electricity, water, et cetera. I think he got it all wrong.
The idea is that, if we get the loans, we are rather going to provide new equipment to some of the energy sector corporations like Electricity Company of Ghana, Volta River Authority (VRA) and GRIDCO to improve their efficiency. It is through the improvement of their efficiencies that they will be able to resolve the recovery plan for their present financial state which is nothing to write home about.
But Mr. Speaker, if you look at the task that Ghana Government has set itself, you will see that this loan agreement would also be used in the energy sector and we are going to provide rural electrification to most of the rural areas. That is in buying low tension poles, in providing cables, and providing street lights to most of the towns in Ghana. So I find this loan to be a very useful loan contrary to other people's views.
But I must also make a point that, for Ghana to be able to sustain its economic development, the first oil target of the last quarter of 2010 should be met, because expectation of Ghanaians is very high. The Minister for Finance and Economic Planning had always told Ghanaians that we will be able to manage the economy in a seemingly difficult times because of the funding that we need but he is assuring Ghanaians that by 2010, when there is complementary resources from the oil and gas, Government will be able to do a lot
more for Ghanaians.
But the only way this can happen is for Parliament to be able to pass the Ghana Petroleum Regulatory Authority Bill which is yet to come back to Parliament. I am therefore, appealing to the Ministry of Energy, that this is very urgent if we have to meet first oil in September, 2010.
I also think that the oil and gas policy, the draft which was shown to Parliament, we need to deepen it and again, the Ministry of Energy must work very hard to make sure that we complete this document policy which would be the policy to guide our oil industry.
Finally, Mr. Speaker, I think if the Hon Minister for Finance and Economic Planning is talking about oil resources, to be able to use to support future budgets, I think oil revenue management will become very important.
Therefore, if oil revenue management is important, we need to legislate an oil fund, we need to also legislate the future or generation fund and again, the Ministry of Energy and Ministry of Finance and Economic Planning should be seen working together.
As we sit right now, the plan of development for the Jubilee Fields is ongoing. The question we need to ask is, how is the Ministry of Finance and Economic Planning involved in this? What kind of information are they giving to the Hon Minister for Finance and Economic Planning so that he would also be in a position to prepare his staff on petroleum taxation and other revenue measures that will make sure that the revenue to Ghana will be optimised?
On this note, I urge all Hon Members to support this loan facility and to also let the Hon Minister for Finance and Economic Planning make sure that the disbursement will not be delayed. Immediately we approve this loan facility, we should see them hitting the ground running with the World Bank to make sure that the disbursements are effected.