Planning and Roads and Highways and presents this Report.
2.0 Background
Ten years ago (thus in 1999), the Ministry of Roads and Highways launched the “Road Sub-Sector Development Programme (RSDP)” to improve the condition mix of road network throughout the country. Under the RSDP, the Department of Feeder Roads (DFR) launched a strategic plan to replace weak or broken log bridges with short and medium-span steel composite bridges and the construction of major box culverts over water crossings to reduce traffic bottlenecks on our feeder roads.
Currently Ghana has a feeder road network of 42,000 kilometres, out of which 26,000 kilometres or 64 per cent is engineered. The remaining 36 per cent is either un-engineered earth roads or are partly engineered feeder roads with lots of broken or weak log bridges and water crossings not spanned. The country also has a large population living in rural areas, where employment does not match population growth.
The major employment in these areas is mostly smallholder subsistence farming, resulting in high levels of poverty and high rate of unemployment. Further to this, the rains cause extensive damage almost every year to road structures such as pavement and old wooden bridges, making many feeder roads impassable during the rainy reason.
The aim of the facility is therefore to improve the daily life of rural people and to properly support the socio-economic
development of rural areas by constructing permanent steel bridges to remove these transport bottlenecks.
3.0 Approval of the Credit Facility
Parliament on Thursday, 30th October, 2008 approved by Resolution the Mixed Credit Facility between the Government of the Republic of Ghana, Societé Generale, New York Branch and World for World Organisation for an amount of US$37,219,072.00 for the design, supply and installation of permanent steel modula bridges in the country.
4.0 Required Waiver
The total amount of taxes and duties required to be waived is seven million, one hundred and ninety-five thousand, six hundred and eighty-five United States Dollars (USD7,195,685.00).
Attached as Appendices 1 - 4, are assessments conducted by the Customs, Excise and Preventive Service (CEPS) on the tax liability required to be waived.
5.0 Observations
The Committee noted that the taxes and duties required to be waived, as assessed by the Customs, Excise and Preventive Service (CEPS) are as follows:
109 PCS Acrow Panel Steel Bridges and Tools -- US$7,062,889.00
Two (2) Units of Low Bed 20 Tonne Truck with Hydraulic Crane
-- US$16,169.00
Three (3) Units of Toyota Station Wagon Vehicle
-- US$76,260.00
Five (5) Units of Toyota Double Cabin Pick-ups - -
US$40,376.00
T o t a l T a x L i a b i l i t y - -
US$7,195,694.00
The Committee observed that the construction of 100 modular steel bridges throughout Ghana under the Acrow bridges programme involves the design and supply of steel components and all sub-structure works and approach road works.
The project is expected to take a period of four (4) years to complete.
The Committee further noted that restricted transport access at bridge sites does not only hamper potentially vibrant economic activities but also affects access to social services and facilities such as schools, hospitals and markets, resulting in low educational standard and greater prevalence of poverty in the rural areas.
The technical team informed the Committee that the Department of Feeder Roads (DFR) has identified 5,000 water crossing points which hamper basic access to rural dwellers in Ghana. One thousand two hundred (1,200) sites, out of the five thousand (5,000) water crossings have been prioritized based on urgent request made by communities and the DFR's own assessment as being in dire need of financing to construct.
The Committee observed that the project is aimed at improving the daily life of people in rural areas and to support the socio-economic development of the rural areas by removing transport bottlenecks.
6.0 Conclusion
The Committee recommends to the House to approve by Resolution, the waiver of tax liability totalling US$7,195,694.00 on equipment/materials to be imported or purchased locally in respect of the design, supply and installation of Acrow Permanent Steel Bridges in the Republic of Ghana in accordance with article 174(2) of the Constitution.
Respectfully submitted.