Madam Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Credit Agreement
between the Government of Ghana and Raifeinsen Zentralbank Osterreich Aktiengesellschaft (Central Bank of Austria) for an amount of €7,495,000.00 for the upgrading and enhancement of Technical and Vocational Training Centres.
Madam Speaker, in doing so, I present your Committee's Report.
The Credit Agreement between the Government of Ghana and Raifeinsen Zentralbank Osterreich Aktiengesellschaft (Central Bank of Austria) for an amount of seven million, four hundred and ninety- five thousand euros (€7,495,000.00) for the upgrading and enhancement of technical and vocational training centres was laid in the House on Tuesday, 4th May, 2010 and referred to the Finance Committee for consideration and report in accordance with article 181 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 Education, Hon Alex Tettey-Enyo and his Deputy, Hon Dr Joseph Annan, Deputy Minister for Finance and Economic Planning, Hon Seth Terkpeh and technical teams from the Ministry of Finance and Economic Planning and the Ministry of Education and presents this Report.
The Government of Ghana places emphasis on teacher education and technical and vocational education as part of its enhanced human resource development efforts. In support of this vision and in a bid to support Govern-
ment's poverty reduction programme, the Ministry of Education has prioritized the upgrading of teacher education and enhancement of technical and vocational training centres in the country.
To this end, the Ministry of Education, in collaboration with the Ministry of Finance and Economic Planning, approached the Central Bank of Austria for funding to implement this project. The total cost of the project is estimated at twenty-five million euros (€25.0 million). Due to financing constraints, the project has been phased into two. This first phase costing €7,495,000 is for the upgrading and enhancement of selected technical training centres.
3.0 Purpose of the Loan
The purpose of the Agreement is to provide funds for the implementation of the first phase of the project to upgrade and enhance technical and vocational training centres in the country.
4.0 Terms of the Credit
The terms of the Agreement are as follows:
Loan Amount -- €7,495,000.00
Grace Period -- 5 years
Repayment Period -- 8.5 years
Maturity Period -- 13.5 years
Interest Rate -- 0 per cent
Management Fee -- 0 . 5 p e r cent (flat)
Commitment Fee -- 0 . 2 5 p e r cent per annum
Grant Element -- 36.08 per cent
The Committee was informed that technical institutions selected for upgrading under phase 1 are:
Tema Technical Institute
Takoradi Technical Institute
St. Paul's Technical School, Kukurantumi
Kumasi Technical Institute
Accra Technical Training Centre
The training fields and areas of study to be covered under this facility are:
Mechanical Engineering -- such as basic metal works, turning and milling, grinding, sheet metal works, forging and heat treatment for basic works, welding and pipe fitting.
Electrical Engineering with basic Electronic Engineering -- such as basic electric, domestic electric, industrial electric (including motors and controls) and basic electronics.
Automotive Engineering -- such as 2-stroke engine, 4-stroke engine (gasoline and diesel), electrical system, brake system, power transmission system, diagnostic and general servicing.
Computer Engineering -- such as servicing and maintenance of personal computer (PC) hardware, networking, software application for service and maintenance of PC and software application for PC networking.
Home Economics/Catering -- This programme is tailored to train professional staff to support the hotel and tourism industry with services such as catering, cooking and training of stewards.
It was also noted that as part of the project, several constructional works would be undertaken.
These include the construction of an automobile workshop at Tema Technical Institute, construction of a catering block with cooking and eating area at Tema Technical Institute, construction of catering block with cooking and eating area at Takoradi Technical Institute and construction of a computer laboratory at St. Paul's Technical School, Kukurantumi.
Again, all workshops in the beneficiary institutions are to be re-equipped and refurbished or expanded to take up the new equipment.
The Committee was informed that as part of the project, there shall be in-country training for teachers on the operation and maintenance of the equipment to be supplied. There shall also be a comparison study tour to Austria for a week.
It was explained to the Committee that catering facilities are being added to technical institutions to help cater for the growing demand of students for catering courses which were said to be outstripping the facilities and capacity of existing institutions like the polytechnics.
The Committee observed that the project would help provide well-trained technical middle level human resource with the requisite skills, which are critical for the industrial development of the economy.