ii. That Government should clear all road arrears. (This has been done, except for one contractor who has been dragged to court by a third party.)
The technical team further informed the Committee that the original designs and costing of the road were done in 1999, and that from that time till now, the costs have increased significantly, thus necessitating the need for supplementary funding to ensure the successful implementation of the project.
Members advised the Ministry of Roads and Highways to endeavour to create exits on our roads, highways and motorways so as to minimize traffic congestion at the ends of the roads.
It was also suggested that rest and truck stop facilities be provided on major highways to make their use more convenient and reduce fatigue to prevent accidents on our roads.
The Committee was informed that bigger capacity bridges and culverts have been provided between Afife and Weta Junction as part of the Tema-Aflao project to cater for situations of heavy rains and attendant flooding in that section.
The Committee noted that article VI section 6.02 of the Supplementary Loan Agreement provides the deadline for final disbursement of the facility as 31 December 2012 or such later date as shall be agreed between the Borrower (GoG) and the Fund.
As to what the “Unallocated” figure of UA5.59 million (Equivalent to US$8.385 million) would be used for, the Deputy Minister for Roads and Highways
explained to the Committee that this would be applied towards contingencies and other unforeseen variations and events that may occur in the course of the project.
Tax Waiver
In accordance with article 50 of the Agreement establishing the African Development Bank, dated 14th August 1963, the goods, services and other items imported for the use of the project shall be exempt from all local (Ghanaian) taxes, VAT and customs Duties.
The Committee was informed that a formal request for the waiver of taxes, duties and levies connected with the project would be presented to the House at a later date for approval.
6.0 Conclusion
The Committee having critically examined the Supplementary Loan Agreement and considering the relatively high concessionality rate of the facility, respectfully recommends to the House to adopt this Report and approve by Resolution, the Supplementary Loan Agreement between the Government of Ghana and the African Development Fund (ADF) for an amount of twenty-five million, four hundred thousand Units of Account (UA25,400,000) (equivalent to US$38.10 million) for the implementation of the Tema-Aflao Road Rehabilitation Project (Lot 2: Agbozume-Aflao Section and Akatsi Bypass) in accordance with article 181 of the Constitution, section 7 of the Loans Act, 1970 (Act 335) and Standing Orders of the House.
Respectfully submitted.
Mr. I. B. Awuah (NPP - Sunyani
West): Mr. Speaker, I beg to second the motion on the floor that the House approves of a supplementary loan from ADF to the tune of UA25,400,000 for the Tema-Aflao Road Rehabilitation Project and specifically for the Agbozume-Aflao section, and a bypass at Akatsi.
Mr. Speaker, I must admit that the terms of the loan are very considerable and quite acceptable to us the members of the Committee. So we appreciate the negotiating teams for the work they have done in making sure that at least, they had very good terms for such a credit.
Mr. Speaker, I also want to look at the objectives of the loan itself. It is for works to be done on the Tema-Aflao road. By this, the Government is giving meaning to the integration of the West African countries; this road links Ghana to countries in the eastern part of the country, particularly Togo, Benin and Nigeria. So by this, we would also be enhancing trade on the west coast of Africa.
Mr. Speaker, I just want to say that many a time, our leaders meet at regional meetings to talk about harmonizing trade, to talk about harmonizing customs and what have you, but then little do they do to ensure that this is done. But this is to give practical meaning to some of these regional programmes that our leaders commit themselves to, and I must commend the NPP Government in particular for initiating this road project and also for this credit that we are approving today.
But as was said by my Colleague during the debate on the Mampong Credit Agreement, I do also give credit to the NDC Government for also pursuing a positive agenda which the NPP initiated.
But Mr. Speaker, the problem I have is the argument by the technical committee that studies were done earlier but never envisaged certain aspects of the work which are now being added. My problem
is that, these loans are quoted in foreign currencies and price variations may affect local pricing in terms of prices which are quoted in cedis because we know that our cedi is not very stable.
But Mr. Speaker, in terms of dollar- denominated prices, prices hardly do change over a short period of time. So I do not actually find that argument very convincing and I will want to say that, yes, if certain works need to be done, we are not saying that they do not need to be done, but then we should find a way of substantiating the need for additional money rather than perhaps, this argument that we are putting forward.
It is our hope that when completed, this project will enhance trade between Ghana and her neighbouring countries and also facilitate movement between Tema and Aflao.
Mr. Speaker, to conclude, I just want to add that contrary to beliefs that the NPP Government never cared for some parts of this country, this road project clearly demonstrates and shows that the NPP Government was a Government for all Ghanaians -- [Hear! Hear!] -- and never was a Government for only a section of the people of this country.
On this note, Mr. Speaker, I second the motion.
Question proposed.
Minister for Roads and Highways