Debates of 30 Nov 2010

MADAM SPEAKER
PRAYERS 10:30 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 10:30 a.m.
Madam Speaker 10:30 a.m.
Hon Members, Correction of Votes and Proceedings of Monday, 29th November, 2010.

In the absence of any corrections, the Votes and Proceedings of Monday, 29th November, 2010 is adopted as the true record of proceedings.

Now, we move on to the Official Report of Monday, 22nd November, 2010.

Mr First Deputy Speaker will continue.
10.39 A.M. -- MR FIRST DEPUTY SPEAKER
Mr First Deputy Speaker 10:30 a.m.
Hon Majority Leader?
Mr Cletus A. Avoka 10:30 a.m.
Mr Speaker, subject to your guidance, we will take Motion number 4 at the Commencement of Public Business.
Mr First Deputy Speaker 10:30 a.m.
Very well.
MOTIONS 10:40 a.m.
Chairman of the Committee (Mr James K. Avedzi) 10:40 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Export Credit Facility between the Government of the Republic of Ghana and Unicredit Bank Austria AG (Bank Austria Creditanstalt) for an amount of seven million, three hundred thousand euros (€7,300,000.00) for the supply of Steel Bridge Components for the construction of bridges on the Wa-Walewale network of roads and Twifo Praso.
1.0 Introduction
The Export Credit Facility Agreement between the Government of the Republic of Ghana and Unicredit Bank Austria AG (Bank Austria Creditanstalt) for an amount of seven million, three hundred thousand euros (€7,300,000.00) for the supply of steel bridge components for the construction of bridges on the Wa- Walewale network of roads and Twifo Praso was laid in the House on Wednesday, 10th November, 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 Deputy Minister for Finance and Economic Planning, Hon Fifi Kwetey and technical teams from the Ministry of Finance and Economic Planning and presents this Report.
2.0 Background
Road structures such as pavement and wooden bridges are damaged in a number of rural areas, making many roads impassable, especially during the rainy
The terms and conditions of the Credit Facility are as follows:
Loan amount -- €7,300,000.00
Grace period -- 4 years
Repayment period -- 12.5 years
Maturity period -- 16.5 years
Interest rate -- 0.40 per cent
Commitment fee -- 0.25 per cent
Management fee -- 0.50per cent
Grant element -- 40.8per cent
5.0 Observations
The Committee observed that the loan covers only the steel components of the bridges and that the Government of Ghana would finance all sub-structure works and approach road networks.
The Committee further observed that the construction of the Mishuo bridge will support the full utilisation of the Wa- Walewale network of roads by providing an all-weather safe road from Wa to Walewale.
The Committee noted that the Twifo Praso bridge connects Cape Coast with Dunkwa, Ayamfuri, Awaso and the Sefwi area in the Western Region. These are heavy cocoa growing areas. They are also areas of mining activities and centres of wood industries. The Twifo Praso Bridge will therefore, serve as a vital link between, the Port of Takoradi and these economically important areas of the country.
On the size of the bridges, the Committee was informed that the Mishuo bridge in the Northern Region would have a span of two hundred and ten metres (210m) while the Twifo Praso bridge in the Central Region would have a span of one hundred and fifty metres (150m).
The Committee again observed that the Export Credit Facility covers only the steel components for the construction of
season. This has had adverse effects on rural development.
In line with Government's aim of reducing rural poverty and to generally enhance socio-economic development, a number of road infrastructure projects are being implemented to connect districts to municipalities and municipalities to metropolitan areas.
In the year 2008, the Austrian Government through Oesterreicische Kontrollbank AG (OEKB) granted a mixed credit facility of €7.0 million to the Government of Ghana for the supply of bridge components and construction of steel bridges on the Wa-Walewale route in the Upper West and Northern Regions of Ghana. The rivers over which those bridges were constructed include Gyanwali, Kudage, Gongonwu (Tantali- Tuvuu), Gongonwu (Tuvuu-Izabisi) and Kulpawn. The contract came into force in October, 2009 on the signing of the Loan Agreement. The supply of the bridge components is almost completed.
The facility currently before the House is an extension of the above facility and would cover the construction of the Mishuo Bridge and Twifo Praso Bridge in the West Mamprusi District of the Northern Region and Twifo-Hemang Lower Denkyira District of the Central Region respectively.
3.0 Purpose of the Facility
The purpose of the Agreement is to obtain funds for the acquisition of steel bridge components for the construction of the Mishuo bridge in the Northern Region and Twifo Praso bridge in the Central Region.
4.0 Terms and Conditions
Dr Anthony A. Osei (NPP - Old Tafo) 10:40 a.m.
Mr Speaker, I beg to second the Motion number four on the Order Paper and to offer a few comments.
the specified bridges. The Government of Ghana would, therefore, finance all sub- structure works and approach roads.
It was noted that the steel components would be supplied by Waagner Biro Stahlbau AG (WB) of Austria and that as a condition precedent to the Credit Facility, a Supply Agreement has already been signed between the Ministry of Roads and Highways and the company (WB).
The Committee further observed that the construction of the two bridges would help to remove traffic bottlenecks at those river crossings, improve the movement of goods and people, increase accessibility to hospitals, schools and socio-cultural facilities and generally contribute to economic development and poverty alleviation in the project areas.
On the duration of the project, the Committee was informed that the project is estimated to be completed within a period of twenty-four (24) months from the date of commencement.
5.1 Taxes
In accordance with article 6(4) of the Loan Agreement, the Government of Ghana (Borrower) shall be responsible for the payment of all taxes, duties, withholdings and other charges that may be applicable to the implementation of the projects to be financed from the loan facility.
The House is, therefore, called upon to approve the waiver of the relevant taxes and duties associated with the implementation of the project totalling
€1,944,129.00
Attachment: Please find attached as APPENDIX, the official assessment of the relevant taxes and duties conducted by the Customs, Excise and Preventive Service (Customs Division of the Ghana Revenue Authority).
Members of the Committee expressed concern about the situation whereby equipment that are brought into the

10.40 a.m. -- Page 6
Dr Anthony A. Osei (NPP - Old Tafo) 10:40 a.m.


10.40 a.m. -- Page 7 10.40 a.m. -- Page 8

10.40 a.m. -- Page 9

First, to note that in the year 2008, as it is in the Committee's Report, an initial mixed credit facility of seven million euros was granted to the Government of Ghana to do other bridges. This, obviously, is a follow- up to the first project and I think it is good that the Ministry is pursuing the construction of such steel bridges.
Mr Speaker, two quick sense things 10:40 a.m.
None

I am sorry none of the people in the Ministry of Finance and Economic Planning is here; we are discussing the Bill that they brought - the Hon Colleague has just walked in. I will let him rest so that I will repeat this admonition.

We have serious difficulty with the issue of bringing a recommendation on the waiver of taxes. The Ministry tells us they are in the process of coming up with a policy on waiver of taxes and we want to urge the Ministry to strongly hasten to bring this. This is because you notice that for example, in this one, the contractor is bringing four pick-up vans with a value of about eighty thousand euros and we have to waive the tax.

The question is, legally, when the project is done, those trucks are supposed to be re-exported to Austria but invariably, they find their way either into some Ministry or some other agency in Ghana and the law would have been broken. It is incumbent upon the implementation Ministry to take note of that.

But the problem, Mr Speaker, is that, it is the implementation Ministry that sometimes is the beneficiary of the trucks or the cars, whichever comes in. So there is no incentive for them to apply

the law and this is creating the problem and we urge the Ministry to come up - In the past two years, we have been told that the exemptions policy is coming but this matter is very grave. As we said, we could decide on some flat rate of not more than 5 to l0 per cent of the value and then limit the type of exemptions that are being given.

The last thing, Mr Speaker, is that CEPS is quoting the tax waiver in euros, but the amount is not paid in euros, so we should note that here, it is meant that the cedi equivalent, so that at the time that it is paid, we will have the right exchange rate.

Mr Speaker, with those few words, I want to urge all Members of Parliament that this is a very important project. It helps in eradicating poverty and we should all support it.

Question proposed.
Mr Alfred W. G. Abayateye (NDC -- Sege) 10:40 a.m.
Mr Speaker, I rise to support the Motion and ask all Hon Members to do same.
Just as the earlier Hon Members said, it will be noted that in 2008, we had the same facility of 7 million euros to construct five bridges in the Wa- Walewale area. The other one is also to complete that project and then the Twifo-Praso one. Surprisingly, Mr Speaker, the first five bridges cost 7 million euros but they all span over a total of 315 metres. These two bridges cost 7.3 million euros but the interesting thing is, the two bridges span almost the same 3l5 metres.
In fact, with some of the things shown to us by the technical people, one of the steel bridges is going to be like the distance of the Sogakope bridge on the main Volta, hence the two bridges are costing even a little more than the previous
Mr Alfred W. G. Abayateye (NDC -- Sege) 10:50 a.m.
one. But the interesting thing I will like to bring out is that, the benefits which we are going to inherit from these bridges are so enormous -
There is going to be an all-year-round transport movement, so that if we are able to construct these bridges, then some other parts of the country will not be cut off. Again, more markets will be assessed because the bridges will serve as links for us to assess the other markets and trading activities will rise up, hence there will be generation of income for our brethren.
This project will also have the potential of creating, at least, jobs for the people. This is because, as the projects are going on, the indigenes will be employed in the areas. So the benefits to be derived from this project are going to be so enormous and beneficial to Ghanaians. Therefore, I would like to urge all Hon Members that we put our weight behind -- and allow the Government to access this money for the benefit of the country.
With this, I support the Motion.

Mr Godfrey T. Bayon (NPP - Wa

East): Mr Speaker, I want to thank the Ministry of Transport for bringing up this Motion. As you can see from the background, this project was initiated in 2008, that was the time when I was also a Minister of State at that same Ministry.

In fact, Mr Speaker, I come from the same area that this road covers. In fact, it is part of the anchor free zone area. It has very high potential in agriculture but for so many years, the people have lingered and wallowed in poverty as a result of these rivers.
Mr Joe K. Gidisu 10:50 a.m.
On a point of

order. Mr Speaker, the bridge the Hon Colleague is talking about has already been captured and supplied. As of now, we are even undergoing procurement processes for the construction of those five bridges. It is among the five bridges that are on that road.
Mr Bayon 10:50 a.m.
Mr Speaker, I am
surprised the Hon Minister is saying this. But well, I will verify -- [Interruptions.] Sincerely, as far as I know, the bridges that I mentioned run along the same lane with this particular one that I am talking of because we have to move from Wa, go through Kulun and Angbalaara before we pass through Kundungu and go into - One can see that most of these bridges are in the Northern Region. But if the Hon Minister has said that they have procured -- Well, I would want to verify and maybe, satisfy myself.
So let me then thank the Hon Minister if he has gone ahead in doing that; thank you very much.
Mr Joseph B. Aidoo (NPP - Amenfi East) 10:50 a.m.
Mr Speaker, this facility is important and looking at the grant element, there is about a little over 40 per cent; if we have a facility with a grant element of over 40 per cent, then that is very significant.
Mr Speaker, apart from that, I would want to particularly relate to the Twifo- Praso bridge.
Mr Speaker, this bridge is being used in one way as a pedestrian crossway; it is also being used for vehicular movement. It is also used by railway, that is the train -- the same bridge. So anytime a train is passing or a vehicle is about to cross the bridge, it means that pedestrians have to be held in abeyance. I do not know if this facility is going to create a bridge whereby, maybe, a vehicular traffic like
that of a train, that is, the railway will be separated; otherwise, the inconvenience that has been associated with the Twifo- Praso bridge will continue to remain.
Mr Speaker, the bridge is very, very strategic; it links not just the central and northern part of the Western Region, it also links the southern part of the Western Region because, when you use that bridge, you easily connect with Bogoso and then to Tarkwa, through Opon Valley. And because the bridge is in a very precarious state, these days, it is very difficult for vehicles to use this particular bridge.
So the coming into being of this facility is very timely and I urge all Hon Members to support it because it will help improve movement of goods and services, particularly export commodities in the western and central parts of the country.
With this, I urge Hon Members to support this Motion.
Mr Charles S. Hodogbey (NDC -
North Tongu): Mr Speaker, I want to comment briefly on the issue of the loan.
In the observation column of the Report, Mr Speaker, permit me to quote:
“ The Committee observed that . . .”
Mr First Deputy Speaker 10:50 a.m.
Hon Member, which page and paragraph are you quoting?
Mr Hodogbey 10:50 a.m.
Page 3 , the
“observation”.
“The Committee observed that the loan covers only the steel components of the bridges and that the Government of Ghana would finance all sub-structure works and approach road networks.”
Unfortunately, Mr Speaker, we do not know how much the Government of
Ghana is taking into this sub-structure works; it has not been stated in the Report.
Mr David T. Assumeng 10:50 a.m.
On a point of order. Mr Speaker, the bridge my Hon Friend is talking about has been captured in the Budget. It is in the Budget. I think he should avail himself to -- so that he can well inform the House. The bridge has been captured in the Budget.
Mr Hodogbey 10:50 a.m.
Thank you for the
Mr Stephen K. B. Manu 10:50 a.m.
On a point
of order. Mr Speaker, the Hon Member for Shai Osudoku got up and said the bridge that the Hon Member talked about had been captured in the Budget. However, the Hon Member just said and I quote:
“a bridge in my constituency needs to be done.”
He did not mention a particular bridge. How did the Shai Osudoku Member of Parliament know that the bridge is “X” bridge and therefore, had been captured in the Budget?
Mr First Deputy Speaker 11 a.m.
Hon Balado Manu, you are right but when he said it, the Hon Member on the floor did not complain which shows that there is a certain understanding between the two of them .
Hon Member, address the issue of relevance.
Mr Hodogbey 11 a.m.
Mr Speaker, it looks
as if my contribution is generating a lot of interest but I will appeal to my Hon Colleague, the Minister for Roads and Highways, as I said, to secure enough money for most of these bridges which needed to be attended to so that every part of this country would benefit from them.
Thank you very much.
Mr First Deputy Speaker 11 a.m.
Hon
Members, this Motion, so far, is not contentious; so I want to take only one or two, then I will put the Question.
Mr Kwabena Owusu-Aduomi (NPP - Ejisu-Juaben) 11 a.m.
Mr Speaker, there is no doubt at all that the construction of these bridges will enhance socio-economic development of these areas. Indeed, agriculture and services will be improved and that will go to reduce poverty.
Mr Speaker, we know that on these roads, whenever we are in the rainy season and the rivers over flow their banks, most areas are cut off from the other parts of the country, and we believe that when these bridges are constructed, they will have an all-weather road.
But Mr Speaker, the most difficult component of this project is the one that the Government of Ghana is going to finance, and that is the construction of the embankment walls and pillars and then the approach areas of these bridges. Mr Speaker, the problem that we had in this country on Government of Ghana financed projects is delays in honouring payment of

work done by contractor.

Mr Speaker, earlier this week, the Committee on Roads and Transport was in the Brong Ahafo Region and even bridges of lesser spans have their progress far behind schedule because of delay of the employer in honouring payment of work done by the contractors and other cause that we realised was selection of inexperienced contractors.

Mr Speaker, it is therefore, important that if these projects would be beneficial to the nation, then we entreat the Ministry of Roads and Highways to do very thorough procurement of contractors that are experienced, contractors that are competent, in order to construct these bridges.

Mr Speaker, we also need to pay for work done within the period stated in the conditions of contract. If payments are delayed, then obviously, the Ghana Government component could not be completed early to allow us -- use of these two bridges and we entreat the Ministry of Roads and Highways to ensure that payments are done within the stipulated period in the contract document.

Finally, Mr Speaker, we want to thank

the Government and people of Austria for this assistance to the nation. In fact, they have been assisting Ghana in putting up these steel bridges all over the country.

Thank you, Mr Speaker, for these few comments.
Alhaji Seidu Amadu (NDC - Yapei/ Kusawgu) 11 a.m.
Mr Speaker, if you look at the road network in Ghana, most of them run in the north-south direction. The east-west directions are very, very slow and that is why I see this particular project as very, very important. Besides, Mr Speaker, it offers an alternative route for the people of the Upper West Region. The main outlet is the one that runs from Hamile through Lawra, Wa, Sawla, Bole, Bamboi to
With these few words, Mr Speaker, I support the Motion.
Mr First Deputy Speaker 11 a.m.
Hon Members, this issue is not really contentious and we know we gave an assignment to the Finance Committee and I thought that - But let me just take one, one and then I put the Question.
Mr Benjamin Kofi Ayeh (NPP - Upper Denkyira West) 11:10 a.m.
Thank you, Mr Speaker, for the opportunity.
Mr Speaker, while urging my Hon Colleagues to support this facility, I have a little observation on page 3. Under the observations of the Committee, the Committee paints the picture that it is easier connecting Cape Coast and AyamfuriDunkwa and Sefwi areas to Takoradi, using this particular Twifo- Praso road.
Yes, while it is true that the Praso bridge, when completed, will ease traffic or make things easier for those that are travellilng to Cape Coast, I am of the view that rather, if the Ministry will pay attention to the route through Ayamfuri, Tarkwa, Bogoso to Takoradi, it will make the connection or movement of goods from Takoradi to the Sefwi areas far easier than thinking of going through Twifo Praso.
That is the reason I am wondering why about a year and a half, after this august House approved a facility of about US$65 million to construct the road from Ayamfuri to Diaso -- Again, there is also a facility that had been approved by this House for the construction of the road from Ayamfuri to Tarkwa, those two projects have not yet taken off.
The issue is , if we do not rely on this road and rather think that it would be easy conveying cocoa and other stocks, using this steel bridge at Twifo, Praso, then I am sorry that that will within the shortest possible time weaken the bridge and the State will once again have to find the resources to reconstruct it.
Wenchi and Techiman. That is the major route to the rest of the country, particularly those who deal with the South.
There is another one that runs through Tumu, Han to Chuchuliga, Navrongo and Bolgatanga. Because of this same problem of lack of drainage structures and the poor nature of the road, that road is not often utilised to the maximum. Now, this other alternative that runs from Wa through Walewale is indeed, very good. One, because it is going to open up that area which is highly inaccessible for forming activities.
Mr Speaker, it is actually a very short route from Daboya to Wa which people used to go to school many years ago but because of the game reserve, that road has been virtually abandoned. My major concern about this road construction is that, it is going to run parallel to the Mole National Park and there is the possibility that it is going to open up that area to poaching.
So I would want to urge the Ministries of Roads and Highways and Lands and Natural Resources to liaise effectively to make sure that the Wildlife Department under the Forestry Division is brought on board to be able to map up areas that are likely to fall into the hands of poachers. And because they have that possibility, it is going to make it easy for people to get access to the game reserve and it is a highly isolated area where people can enter the game reserve and poach much to the detriment of our natural resources.
So I want to plead that the two Ministries liaise with each other while this project gets on board and then the Forestry Department must make sure that they provide the necessary protection to our heritage at the game reserve.
I am therefore, urging the Hon Minister that whatsoever that is delaying the construction of the Diaso-Ayamfuri road, as well as the Ayamfuri-Bogoso-Tarkwa road, he should speed up and have this issue addressed or resolved to make transportation of goods from Takoradi Port to the Sefwi area through Ayamfuri rather easier than thinking we can use the Twifo-Praso road.
Thank you, Mr Speaker, for the opportunity and I once again, urge my Hon Colleagues to support the facility.

Minority Leader (Mr Osei Kyei-

Mensah-Bonsu): Mr Speaker, thank you for the opportunity. I also rise to support the Motion for the approval of this facility.

Mr Speaker, as has already been indicated by my Hon Colleague from Ejusu-Juaben Constituency, Mr K. Owusu-Aduomi, this loan covers only the steel components of the two bridges that we are talking about and noticeably, the involvement of Government in these areas, is where the problem is.

Mr Speaker, year in year out, it comes to the fore that with such facilities, normally, when you evaluate, the observation is that, every year, we have an average of about 80 per cent delivery of the external or donor components of such facilities.

The evaluation is that, for the discharge of their responsibility, Government on a yearly basis, their performance rating is less than 50 per cent. Normally, it is around 40 per cent and that does not facilitate the execution of such projects. So it is important that the Hon Minister uses all avenues to ensure that Government's own counterpart involvement is brought to the same level as the external involvement, otherwise we may not get the projects completed in due time. In particular with the construction of such bridges, if the steel works are done and the earth works
Mr First Deputy Speaker 11:10 a.m.
Which report are you referring to?
Mr Kyei-Mensah-Bonsu 11:10 a.m.
Finance, I am sorry. It was referred to the Finance Committee, because it is an export credit facility. Mr Speaker, their concern was just about the terms and conditions of the loans and they have reported appropriately to the House. But in this exercise, one would want to know more about whether or not we are going to have money, we are going to have value for the money that we are going to use. So we expected that the relevant information relating to whether or not this nation is going to have value for money, would be provided for us.
Unfortunately, the Finance Committee is not in a position to do that, which is why some of us have been recommending for joint referrals so that the Committee on Roads and Highways could have done that for us; otherwise, we may be engaging in an enterprise that we have scant information about. We approve the facility and would not know whether or not the nation is going to have benefits for the money that would be contracted or the money that would be involved, and we have to pay back.
So Mr Speaker, I think it is imperative that we engage some of our own in-house technical people to proffer useful advice so that we would know that we are doing the right thing, otherwise -- I do not think that we would be doing this House quality service if we go the route that we normally go.
Mr Speaker, with that, I thank you for the attention and your indulgence.
Minister for Roads and Highways (Mr Joe K. Gidisu) 11:10 a.m.
Mr Speaker, I would want to thank Hon Colleagues for the various comments and suggestions made. We, by this debate or contributions, have demonstrated the concerns of Hon Members for the road sector which they equally identify as very necessary for the development of the country.
Mr Speaker, the facility for which we are debating or contributing our various minds' suggestions on, is very fundamental for the Mishuo bridge in particular, which is the last of the six bridges that are needed for opening up the road between Walewale and Wa.
Mr Speaker, as we speak, the valuation is being completed on the award of contracts for the construction of those bridges, that is, the five other bridges and I want to intimate that the comments and concerns expressed about Government funding for the completion of, not only bridges, but other works that are related either to the road sector or to other sectors, is very vital.
I want to assure Hon Members that for the first time in this fiscal year, 2011 Budget, the Ministry of Finance and Economic Planning has made adequate arrangements for the counterpart funding for the road sector and other sectors that will be coming on board.
Mr Speaker, an Hon Colleague wanted to know whether the Twifo-Praso bridge is going to be combined with the rail services again. This is not going to be so. We are separating this bridge. It is a completely new bridge that will be for only vehicles and it will go a long way to alleviate the challenges that the Hon Colleague talked about.
Mr Speaker, in order also to improve that road network, the road between Twifo-Praso and Dunkwa-on-Offin has equally been awarded and I am very sure the contractor is mobilising to site. This would go a long way to give more effective economic value to the bridge when it is
Minister for Roads and Highways (Mr Joe K. Gidisu) 11:20 a.m.
constructed.

Mr Speaker, the other issues raised, especially, my Hon Brother who raised the issue of the Kulun bridge, I want to inform the House that the Kulun and Angbalaara bridges are part of the Danish bridges that we are establishing in the country and that bridge is effectively under construction.

Mr Speaker, on the issue of the Tarkwa- Bogoso-Ayamfuri road, this facility was brought before the House, but we need to go through the procurement process because it is on internationally-funded facility. I am very hopeful that by the first quarter of next year, that is, early January, we should be inaugurating the commencement of work of the Tarkwa- Bogoso-Ayamfuri road.

Meanwhile, tomorrow, I will be appearing before the House on an Urgent Question and may be explaining further what the situation is.

On the question of value for money -- Mr Speaker, my Hon Senior Leader of the House is talking about value for money. Yes, the value for money, I think, is with regard to the quality of work in terms of the amount that goes into ensuring that quality. I would be open to suggestions, especially from the Transport Committee when they come up after their rounds - just as the other Hon Colleague mentioned on their visit to the Brong Ahafo Region, those issues that they come into contact with and their suggestions would be taken on board to, at least, improve our monitoring and evaluation to ensure value for money.

On the whole, I want to thank Hon Members, hoping that when other
Minister for Roads and Highways (Mr Joe K. Gidisu) 11:20 a.m.


facilities for the road sector are brought before the House, the concern and support that this one has enjoyed would equally be extended to them.

Mr Speaker, I am grateful for the opportunity.

Question put and Motion agreed to.
Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 11:20 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 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 and Economic Planning, there has been laid before Parliament the terms and conditions of the Export Credit Facility between the Government of the Republic of Ghana and Unicredit Bank Austria AG (Bank Austria Creditanstalt) for an amount of seven million,
three hundred thousand euros (€7,300,000.00) for the supply of Steel Bridge Components for the construction of bridges on Wa- Walewale network of roads and Twifo-Praso.
THIS HONOURABLE HOUSE 11:20 a.m.
H E R E B Y R E S O LV E S A S 11:20 a.m.
Mr J. K. Avedzi 11:20 a.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
RESOLUTIONS 11:20 a.m.
Minister for Finance and Economic Planning (Dr Kwabena Duffuor) 11:20 a.m.
Mr Speaker, I beg to move, that
THIS HONOURABLE HOUSE IS 11:20 a.m.
RESPECTFULLY REQUESTED 11:20 a.m.
TO ADOPT THE FOLLOWING 11:20 a.m.
Mr J. K. Avedzi 11:20 a.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Dr A. A. Osei 11:20 a.m.
The Motion is on the tax waiver, not exemption.
Mr First Deputy Speaker 11:20 a.m.
Sorry, tax waiver. What is the difference between “waiver” and “exemption”?
Dr A. A. Osei 11:20 a.m.
Mr Speaker, with respect, I would come to your office and educate you on the matter.
Mr First Deputy Speaker 11:20 a.m.
Hon Members, the Resolution is accordingly adopted.
MOTIONS 11:20 a.m.
Chairman of the Committee (Mr James K. Avedzi) 11:20 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the request for waiver of taxes and duties amounting to the cedi equivalent of US$25,737,918 on materials, equipment and spares, as well as corporate taxes and personal income taxes amounting to GH¢2,093,925.60 in respect of the Kwahu Ridge Water Supply Project in the Eastern Region and Konongo and Kumawu Water Supply Projects in the Ashanti Region.
Mr Speaker, in doing so, I present the Committee's Report.
1.0 Introduction
The request for waiver of taxes and duties totalling thirty-eight million, six hundred and forty-one thousand, seven hundred and sixty-nine Ghana cedis and sixteen pesewas (GH¢38,641,769.16) on the materials, equipment, spare parts, corporate taxes and personal income taxes in respect of the Kwahu Ridge Water Supply Project in the Eastern Region and Konongo and Kumawu Water Supply Projects in the Ashanti Region
Chairman of the Committee (Mr James K. Avedzi) 11:20 a.m.


was laid in the House on Tuesday, 23rd November, 2010 and referred to the Finance Committee for consideration and report in accordance with Order 169 of the Standing Orders of the House.

In considering the request, the Committee met with the Deputy Minister for Finance and Economic Planning, Hon Fifi Fiavi Kwetey and officials from the Ministry of Finance and Economic Planning and hereby submits this Report.

2.0 Background

The rehabilitation and expansion of the Kwahu Ridge, Konongo and Kumawu water supply systems form part of the priority water supply projects in the urban water sector and managed by the Ghana Water Company Limited.

The Kwahu Ridge is characterized by very great differences in elevation. It rises from 91m altitude at the Volta Lake to 608m and falls steeply to 182m at Nkawkaw. It covers an area of approximately 512 sq kilometres 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. It has an installed capacity of 3,600m per day. However, due to deterioration of the system, daily production of water has currently shrunk to 900m per 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 has 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 1,338m per day.

The Kumawu water supply system 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.

These projects are therefore, being undertaken to provide reliable and all- year-round potable water supply to the people of the project areas.

3.0 Total Waiver Requested

The total amount of taxes and duties for which waiver is being sought is thirty -eight million, six hundred and forty-one thousand, seven hundred and sixty- nine Ghana cedis and sixteen pesewas

(GH¢38,641,769.16).

The breakdown is as follows:

Taxes on equipment and materials

(US$25,737,918

@ GH¢1.42 to a dollar)

-- GH¢36,547,843.56

Corporate and expatriate Income taxes -- GH¢2,093,925.60

TOTAL -- GH¢38,641,769.16

Attachment: Please find attached as APPENDIX, the official assessment of the relevant taxes and duties on the equipment and materials conducted by the Ghana Revenue Authority (Customs Division).

5.0 Observations

The Committee noted that Parliament on 12th November, 2008, approved a mixed
Chairman of the Committee (Mr James K. Avedzi) 11:20 a.m.
rehab i l i t a t ion o f 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 stand pipes; and
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; and

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, while the Kyebi tank serves the population south-west of Kyebi.

The Committee was informed that in accordance with the Contract Agreement signed between Ghana Water Company Limited (GWCL) and Messrs DDY Wing Aviation Limited of Israel, the contractors executing the projects, all expatriate personnel, shall not be liable for income tax levied in the country on
Chairman of the Committee (Mr James K. Avedzi) 11:20 a.m.


earnings paid in foreign currency, as well as all taxes, duties, levies and charges on equipment imported for the execution of the project. Messrs DDY Wing Aviation Limited of Israel has, by a letter dated 11th January, 2010, assigned and sub- contracted the entire contract to Tahal Consulting Engineers Limited.

Members of the Committee expressed concern about the situation whereby equipment that are brought into the country tax free for specific projects are sold or used for other projects upon the completion of the original project. The Committee advises Ministries, Departments and Agencies (MDAs) under whose purview projects are implemented to put in place strict monitoring mechanisms over such items, so that at the completion of the projects, the items are re-exported out of the country or the relevant taxes and duties paid on them.

The Committee noted that there is a tax exemption/waiver policy being developed by the Ministry of Finance and Economic Planning. The Committee encourages the Ministry to expedite action on the said policy to help streamline the regime of tax exemption/waiver to ensure optimum collection of revenue for development.

The Committee recommends to the Ministry of Finance and Economic Planning that whenever a loan is being contracted, the applicable taxes that would be required to be waived must be anticipated and assessed to enable Government and Parliament make informed decision on the loan vis-à-vis the amount of revenue that would be lost as a result of the waivers/exemption of taxes.

The Committee encourages the Ministries of Finance and Economic Planning and Water Resources, Works and Housing to endeavour to secure funds to provide water to all parts of the country.

6.0 Conclusion

The Committee recommends to the House to approve by resolution, the request for waiver of taxes and duties amounting to the cedi equivalent of twenty-five million, seven hundred and thirty-seven thousand, nine hundred and eighteen United States dollars (US$25,737,918.00) on the materials, equipment and spare parts, as well as corporate and personal income taxes amounting to two million, ninety-three thousand, nine hundred and twenty-five Ghana cedis and sixty pesewas (GH¢2,093,925.60) in respect of the Kwahu Ridge Water Supply Project in the Eastern Region and Konongo and Kumawu Water Supply Projects in the Ashanti Region in accordance with article 174 (2) of the 1992 Constitution of the Republic of Ghana.

Respectfully submitted.
Dr Anthony A. Osei (NPP - Old Tafo) 11:30 a.m.
Mr Speaker, I beg to second Motion number 7, page 4, on the Order Paper.
Mr Speaker, I want to start with the
observation on page 3 -- To know that this project was initiated in 2008 and at that time that Parliament -- Mr Speaker, at that time that Parliament helped approved it.
Now that the Hon Minister for Finance and Economic Planning is from that area, Hweehwe in Kwawu, we expect the project to be accelerated, otherwise, we may see a -- Konongo Kaya -- [Interruption] -- Mr Speaker, the Hon Minister is going.
Mr Speaker, this is a very important
project. As the Hon Chairman was reading out all the beneficiary communities, I know he was having a little difficulty with those in the Kwawu area like Hweehwee and so on and so forth. But these are communities that deserve to have clean
11.20 A.M. -- TAX ASSESSMENT FORM --
PAGE 15

11.20 A.M. -- TAX ASSESSMENT FORM --

PAGE 16 11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 17
Dr Anthony A. Osei (NPP - Old Tafo) 11:30 a.m.


11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 20 11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 21
Dr Anthony A. Osei (NPP - Old Tafo) 11:30 a.m.


11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 22 11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 23
Dr Anthony A. Osei (NPP - Old Tafo) 11:30 a.m.


11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 24 11.20 A.M. -- TAX ASSESSMENT FORM -- PAGE 25
rose
Mr First Deputy Speaker 11:30 a.m.
Hon Members, I am going to put the Question. This is really a consequential matter. The substantive Motion was approved in November, 2008. The other one was approved in July, 2009. This is only the tax component of the matter, so why are we going to waste time again on this issue? Hon Members, I should put the Question on this matter; it is a consequential matter?
Some Hon Members 11:30 a.m.
Yes.
Question put and Motion agreed to.
Mr First Deputy Speaker 11:30 a.m.
Item
number 8 - Minister for Finance and Economic Planning.
Mr Gershon K. B. Gbediame 11:30 a.m.
Mr
Speaker, the Hon Minister has been called out now for another assignment. May I crave your indulgence and the indulgence of the House to allow the Hon Deputy Minister, Hon Seth Terkpeh, to move the Motion on behalf of the Hon Minister?
Mr Ambrose P. Dery 11:30 a.m.
Mr Speaker, I
think that is all right. Hon Terkpeh can do so on behalf of the Hon Minister.
RESOLUTIONS 11:30 a.m.
Mr J. K. Avedzi 11:30 a.m.
Mr Speaker, I beg to second the motion.
Question put and Motion agreed to.
Resolved accordingly.
MOTIONS 11:30 a.m.
Chairman of the Committee (Mr James K. Avedzi) 11:40 a.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Agreement for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the request for Ghana to join and subscribe to shares in the Africa Finance Corporation for a minimum amount of fifty million United States dollars (US$50,000,000.00).
Mr Speaker, in doing so, I present your Committee's Report.

1.0 Introduction

The Agreement for the establishment of the Africa Finance Corporation (AFC), the Charter of the AFC and the request for Ghana to join and subscribe to shares in the Corporation for a minimum amount of fifty million United States dollars (US$50,000,000.00) were laid in the House on Wednesday, 24th November, 2010 and referred to the Committee on Finance for consideration and report in accordance with the 1992 Constitution of Ghana and Standing Orders of the House.

The Committee met and discussed the Agreement and the request with the Deputy Minister for Finance and

Economic Planning, Hon Fifi Fiavi Kwetey and a technical team from the Ministry of Finance and Economic Planning (MOFEP) and presents this Report.

2.0 Background

The AFC is a public private partnership (PPP) investment bank and development finance institution, majority of which is currently owned by the private sector.

The AFC has been established as a legal entity through an international agreement executed among African countries including Nigeria, Guinea Bissau, Sierra Leone, The Gambia, Liberia and Guinea. A shareholding Agreement has been executed for the various investments into the AFC. Additionally, the AFC has executed a headquarters agreement with Nigeria, where its headquarters is located.

The Federal Republic of Nigeria has ratified the Agreement for the establishment of the Africa Finance Corporation and the headquarters agreement and has subsequently accorded the Corporation diplomatic immunities and privileges.

The most critical needs facing infrastructural development projects in Africa are financial structuring to make projects bankable while delivering attractive returns and anchoring risk equity capital to boost market confidence. It is expected, therefore, that Ghana's membership of the AFC will serve as an additional source of vitally needed capital for the development of the country's infrastructure.

3.0 Object of AFC

Under article 2 of the Agreement for the establishment of the AFC,

“the Corporation is established

to foster economic growth and industrial development of African coun t r i e s , co l l ec t ive ly and individually, and more specifically, to --

(a) s u p p o r t a n d p r o m o t e infrastructural development in Africa through the provision of investment funds;

(b) facilitate African trade generally and export-oriented trade by African countries;

(c) contribute to the development of the energy and extractive industries in Africa;

(d) provide on-lending and re- financing facilities to African financial institutions; and

(e) generally engage in any kind of banking and financial business intended to promote investments in Africa.”

4.0 Observations

The Committee observed that the AFC was founded and promoted by Nigeria, Ghana, The Gambia and Guinea Bissau.

The Committee was informed that in addition to the headquarters in Nigeria, the AFC will enter Branch Office Agreements with the respective countries in which it will operate.

The AFC has an authorized share capital of two billion United States dollars (US$2 billion) divided into 2 billion shares of US$1 each. Out of this, US$1.09 billion has been successfully secured from the Central Bank of Nigeria, private banks and industrial businesses. Other private sector shareholders are insurance companies, pension firms and high net worth individuals. The private

sector currently holds 58 per cent of the capital. This is divided into 44 per cent for top African banks and 14 per cent for industrial groups, corporations and a few individuals.

The Central Bank of Nigeria owns the remaining 42 per cent, most of which is being warehoused for other potential African shareholders.

It was noted that the Charter of the AFC allows a maximum of twenty-one (21) members of the Board of Directors. There are currently fifteen (15) Board members with six (6) seats yet to be allocated. Ghana's subscription of a minimum amount of fifty million United States dollars (US$50,000,000.00), an equivalent of fifty million shares, would enable Ghana to have a seat on the Board.

To ensure good corporate governance, the AFC has developed key guiding corporate governance pr inciples benchmarked against global investment banking and multilateral development finance institutions, a disciplined cost structure and a lean organization designed along product, industry and advisory business groups and functions.

The Committee further observed that the structure of the AFC is designed to have its membership to confer international status on the AFC such that the AFC will have the status of an international organization like International Finance Corporation (IFC), African Development Bank (AfDB) and Afreximbank.

Again, signatory countries are required to confer on the AFC diplomatic privileges and legal immunities as applicable to multilateral financial institutions.

Article 12 of the Charter of theAFC stipulates that unless otherwise decided by the Board of Directors, and subject to
Chairman of the Committee (Mr James K. Avedzi) 11:40 a.m.


the restrictions and limitations set forth in the Charter, shares shall be transferrable by means of lodging with the Corporation, a duly signed and stamped instrument of transfer in any usual form or in any form prescribed by the Board of Directors.

Hon Members of the Committee wanted to know whether Government would buy the US$50 million shares directly or would do so in partnership with the Social Security and National Insurance Trust (SSNIT) as indicated in the Cabinet approval letter.

The Deputy Minister for Finance and Economic Planning, Hon Fifi Kwetey explained that current reforms in the pension sector and the liquidity situation of SSNIT, may not enable it to invest in the Corporation. Government would therefore, have to subscribe to the shares directly.

Some members, however, opined

that SSNIT could withdraw some of its funds from non-performing investments to subscribe to shares in the Corporation since the Corporation is proving to be a safe and promising vehicle for investment.

The AFC, since its formation, has been involved in some notable transactions, including the following:

Submarine fibre optic cable from Portugal to South Africa, landing in Ghana and Nigeria. It consists of 12,378 kilometre long cabling, with landing stations in key markets across Northern, Western and Southern Africa. The first phase of the project costs US$240.0 million and involves fibre optic cable from Portugal to Ghana and Nigeria. This phase has been completed. AFC is co-largest equity investor in the project with up to US$37.0 million committed. The project is expected

to dramatically improve regional connectivity, and significantly reduce broadband cost to local businesses and consumers.

Seven Energy: An indigenous oil and gas exploration and production company with proven reserves owned in Nigeria and managed by an internationally experienced team. The company is due to start the production of gas in 2011, having entered offtake arrangements with major industrial (power and heavy industry) customers in the sub-region. AFC has an equity investment of US$20 million in the company (representing 10 per cent of the company's total debt and equity capital of US$200 million).

Jubilee Field in Ghana: Jubilee is believed to be the largest deepwater petroleum find in West Africa over the last decade. Field size estimates range from 500m barrels to 1500m barrels of oil. Aim of transaction is to raise US$750.0 million in a seven-year debt for production, with the deal being arranged by International Finance Corporation (IFC). AFC's investment in the project totals US$50 million in various loans. Sponsors of the project are KOSMOS Energy backed by major private equity (PE) firms Blackstone and Warburg Pincus. Financing partners include IFC, Standard Chartered, BNP and Calyon. The project is expected to have a major impact on macro-economic profile of Ghana while expanding regional oil and gas industry.

Aviation: The AFC played a key role

in a US$100.0 million structured trade finance transaction for a fastest growing privately owned airline in Nigeria, serving eleven (11) domestic routes with a fleet of sixteen (16) airplanes. This innovative transaction was awarded the 2008 trade finance deal of the year for Africa by Euromoney. Other financing partners in the aircraft transaction are HSBC,

Afreximbank and Union Bank of Nigeria.

Greenfield IPP in Ghana: AFC

in conjunction with major local and international partners is working to develop a 340 MW combined cycle thermal power plant in Ghana to meet existing demand, and potentially utilize Ghana's discovered gas resources. Work concluded regarding necessary permits, agreements, approvals and licences. AFC's co-sponsors will include local entrepreneurs, international development finance institutions (DFIs) and international power companies.

Some members of the Committee were of the opinion that the AFC should do more to attract non-equity funds to expand its liquidity and ability to finance more developmental projects in member countries.

4.1 Tax Exemption

In accordance with article 15 (1) of the Agreement for the establishment of the AFC,

“the Corporation, its property, assets, income, operations and transactions shall be exempt from all taxation and customs duties. The Corporation, and its receiving, fiscal and paying agents, shall be exempt from any obligation relating to the payment, withholding or collection of any tax or duty out of funds owned by, or otherwise appertaining to the Corporation.”

Further in article 15 (2) and without prejudice to the generality of 15 (1) above,

“each member State shall take all necessary action to ensure that the property and assets of the Corporation, its capital, reserves and dividends, loans, credits, guarantees, securities, and other investments and transactions, interests, commissions, fees, profits, gains, proceeds of realization and other income, return and moneys of any kind, accruing,

appertaining or payable to the Corporation from any source shall be exempt from all forms of taxes, duties, charges, levies, and imposts of any kind whatsoever, including stamp duty and other documentary taxes, heretofore levied or hereafter imposed in its territory”.

The above provisions are, however, to be applied without prejudice to the right of member States to tax their residents in the manner each member State deems appropriate.

It was explained that due to its international status, AFC will be able to avoid tedious market entry formalities and regulatory requirements such as listing requirements. It will consequently make savings on business set-up and regulatory costs, such as incorporation fees and stamp duties, among others.

5.0 Conclusion

T h e C o m m i t t e e r e s p e c t f u l l y recommends to the House to adopt this Report and ratify by Resolution, the Agreement establishing the Africa Finance Corporation and the Charter of the Corporation in accordance with article 75(2)(b) of the 1992 Constitution of the Republic of Ghana.

Pursuant to art icle 181 of the Constitution, the Committee further recommends to the House to approve by Resolution, the request for Ghana to join and subscribe to shares in the Africa Finance Corporation for a minimum amount of fifty million United States dollars (US$50,000,000.00).

Respectfully submitted.
Dr Anthony A. Osei(NPP -- Old Tafo) 11:40 a.m.
Mr Speaker, I beg to second the Motion that this Honourable House adopts the Report of the Finance Committee on the Agreement for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the
Dr Anthony A. Osei(NPP -- Old Tafo) 11:50 a.m.
request for Ghana to join and subscribe to shares in the Africa Finance Corporation for a minimum amount of fifty million United States dollars ($50,000,000.00).
Mr Speaker, this is a very important Report that we are looking at. Those of us who know a bit about it, it did not just start today. I recall that when I was in the Ministry, discussions had started on this matter. And it is essential, an initiative that has arisen out of discussions held between particularly Ghana and Nigeria and the West African States on the need to get an African institution to support infrastructural development in Africa.
We know that groups like the African Development Bank (ADB) and others do this but there are very few strong investment firms or financial institutions in Africa that do this. So, the Nigerian Government, to complement the work of ADB and others, decided to strongly support this initiative and contributed immensely to the setting up.
Ghana has had the discussions, they have done the due diligence and now we are in a position, I believe that we can, at least, ratify the Charter Agreement and then subsequently, as the Committee is recommending, take steps to subscribe to the fifty million shares that are required.
Mr Speaker, if you look at the Committee's Report, you will notice that even though we have not ratified and therefore, not subscribed to the shares, Ghana is already a beneficiary of the efforts of the institution. I am talking particularly on the Greenfield, IPP in Ghana, as well as the Jubilee Fields that is about to be put into production and you will notice in the Committee's Report that other nations are benefiting. It is my considered opinion that if and when Ghana is able to subscribe to the shares, we are likely to benefit for more investment
projects in Ghana.
What is equally important is for Hon Members to note that maybe, it is not captured in the Committee's Report, at this particular juncture, some of the key personnel of that institution are Ghanaians. As a matter of fact, the Deputy Chief Executive Officer is a Ghanaian and the Vice-President and senior Counsel who happens to be in our midst today, Miss Naana Eshun is also a Ghanaian. So, already, even without subscribing, Ghana has at least, five senior officials.
I suspect that if we do subscribe, first and foremost, we will get, probably, a seat on the Board when we have paid up the fifty million, but maybe, other more important appointments can be made. Who knows, maybe, the CEO will then become a Ghanaian.
The House did not get all copies of the documentation that was given to us, but if you look at one of the documentations and you look at the corporate structure, you will realize that it is well structured. Very seasoned Africans from all over, predominantly an African-dominated management from all over Africa -- from South Africa, I have already mentioned Ghana, Mr Asamoah, Miss Eshun, et cetera.
I think that among the West African States, even the smaller ones, I mean those smaller than Ghana, have already ratified the Charter and the amendments. I am talking about Sierra Leone and Liberia; Ghana being so-called “big power player” in West Africa, I think we ought to, at least, ratify it and begin to see how much more benefits we can make.
Obviously, it will not be easy to get all the fifty million dollars upfront, but as was indicated in the Cabinet Memorandum, it is quite possible that a combination of
SSNIT and Government itself could be used for us to acquire these shares.
Clearly, it is a PPP profit making firm, it is not a non-profit organization, all the infrastructure is needed. We keep talking about oil money being used to do infrastructure. Well, if we are able to subscribe fifty million dollars, I think that we will be able to get much more than the fifty million dollars and we will also be earning decent profit from this investment.
With those few words, I urge Hon Members to first and foremost, adopt the Resolution to ratify, and strongly encourage the Government to quickly seek funds to subscribe to the fifty million dollar shares.
I thank you, Mr Speaker.

Mr Hackman Owusu-Agyemang

(NPP - New Juaben North): Mr Speaker, I think it is a very good initiative but I have a lot of difficulty in some of the aspects of it. It is good that they have decoupled the ratification and the subsequent subscription of fifty million dollars to the bank.

Mr Speaker, we are not told that this Bank will give concessionary loans or investment facilities. I do not see it anywhere and so I see absolutely no reason we should confer on it tax exemptions and all these exemptions. Ecobank was established as a West African institution; Ecobank has worked, has paid its taxes and has also made profits.

Mr Speaker, people on this continent especially in Ghana, are working for the banks; they are not working for themselves. Those who are in business will know that it is the banks who are
Mr Avedzi 11:50 a.m.
On a point of order. Mr
Speaker, I beg to differ with the Hon Member. He should read page 2 of the Report and read the object of the Corporation. He mentioned Ecobank. The objectives of Ecobank differ from what we have here. So, he should just read about why this bank or this corporation is given that status. He should not compare this Corporation with Ecobank. That is why I differ with him.
Mr Owusu-Agyemang 11:50 a.m.
Mr Speaker, the Corporation is not “Father Christmas”. My comparison of it was only on the basis of the fact that it is a multi-national entity. As far as I know, even the World Bank, the AfDB and all its soft window agencies do charge interest rates and what have you. I believe that we are always obliged to give all these tax waivers.
Mr Speaker, take a look at whatever is written there; that is why I have difficulty. Look at the tax exemption. Mr Speaker, with your permission, I beg to quote:
“The Corporation, its property, assets, income, operations and transactions shall be exempt from all taxation and customs duties. The Corporation, and its receiving, fiscal and paying agents shall be exempt from any obligation relating to the payment, withholding or collection of any tax or duty out of funds owned by or otherwise appertaining
--”
What is all this? Let them come as a corporation and whatever is required of them, let them discharge it to the various
Mr Owusu-Agyemang 11:50 a.m.


member countries concerned.

Mr Speaker, it is my view, and judging from what AfDB does and all of these agencies do, I believe that we are spoon- feeding this Corporation. Unless they have to give an undertaking that they are going to be like a soft window, and that it is going to be a minimum margin of taxes just to cover administrative services -- I do not have any difficulties but as it is presently conceived, unless, as I said, there is something to it, we must be able to rise up and say too many tax exemptions - We do not have enough money in this country and we give all these strings of everything. The next time, another corporation will come and then it will go on and on.

Mr Speaker, elsewhere, the European banks, the Asian banks or the finance corporations and companies have not benefited from these exemptions but they have survived. This corporation will not give us anything free of charge, So if it is, let the Committee tell us, at least, tell me where in the document it says that we are going to have subsidized interest rates and what have you and the rest.

The banks and this Corporation, make a lot of money and I have difficulty in approving the tax exemption for this Corporation. If we want to ratify it, we must take a look at this.

Thank you very much.
rose
Mr First Deputy Speaker 11:50 a.m.
Hon
Member, is it a point of order?
Mr Agbesi 11:50 a.m.
Yes. Mr. Speaker, I want
to believe that the Hon Member on his feet is a member of the Finance Committee.
Some Hon Members 11:50 a.m.
He is not.
Mr Owusu-Agyemang 11:50 a.m.
I am not a
member.
Mr Agbesi 11:50 a.m.
Mr Speaker, I am sorry.
I have been corrected that he is not a member.
Mr P. C. Appiah 11:50 a.m.
None

Asikuma/Odoben/Brakwa): Mr Speaker, whatever decision we take in this House, we must precede it with cost benefit analysis. It is only when the benefit outweighs the cost that we have to embark upon it. If the cost outweighs the benefit, we do not have to do it.

Mr Speaker, we are going to take US$50 million to subscribe to shares in a financial institution. Can you look at what US$50 million can do for Ghana? Instead of subscribing to the shares, can this money not be used to finance road works? Go to Achimota, from Achimota via Peace FM; the road started years back and we have not been able to complete it because of inadequate financial resources, we are going to take US$50 million to subscribe to shares? Mr Speaker, is it in the best interest of Ghana?

I am of the opinion that you should stay action on this, do proper cost benefit analysis and if the cost outweighs the benefit, let us suspend it. It is only when the benefit outweighs the cost that we should embark upon it. If we do things this way Ghana's interest will be protected.

Thank you.
Dr Francis B. Dakura (NDC - Jirapa) 11:50 a.m.
Mr. Speaker, I rise to support the Motion and in doing so, I want to also express my absolute commendation to my Hon Colleague, the Hon Finance and Economic Planning Minister for bringing this up for the consideration of the House.
Mr Speaker, it is important to realize that when we go to the World Bank, we have problems in accessing finance, especially when we ask for non -conditional loans and I think that this august House should
If you look at its objects, it is to “support and promote infrastructural development in Africa . . .” Why? Because we believe that just like we go round the world sourcing for funding to develop our infrastructure, we should as West Africans try to set up an institution whose focus would be on infrastructural development on the sub-region.
Mr Speaker, already, as the Report
indicates, Ghana has benefited with the Jubilee Field and the Green Field IPP in Ghana.
Indeed, Mr Speaker, when you are not relatively strong financially, certain things appear to be something not really beneficial, but from humble beginnings, I believe that when we all support it, AFC can deliver and support us in our infrastructural development.
Mr Speaker, when you are a member of
the board of any institution, it also enables you to exert more influence in terms of the direction in which that institution goes. So, in my opinion, if we are going to subscribe to this treaty as a nation and just be onlookers without being involved in terms of general policy direction, then we will not be benefiting and that is why I am encouraging Government, despite our financial problems --
Now, we have introduced the new expression, they say “challenges”, no, we have difficulties and problems. Of course, challenges can always be overcome but they are the same things. We are constrained financially; we should make choices and choices must be based on what we consider to be in our best national interest and in this case, I believe that investing 50 million dollars will be worthwhile.
Mr Speaker, I also wish to note that Cabinet's decision said SSNIT could even subscribe and then manage the shares together with the Government. Of course,
look at the fact that such an establishment could help smaller African countries to access finance for domestic infrastructure without the pre- conditions that are usually set for us when we go to most of the western international financial institutions.
I also want to express my absolute support for this Motion because I know that within the West African sub-region, we have serious problems with putting together resources to actually stand on our own feet. I think it is important that we begin to look inside and within ourselves to resolve difficult financial matters that can always sabotage our international reputation.
I will call on the House to support this Motion because I believe that we are beginning as African countries to realize that the power of development relies purely on our own resources.
With these few words, I will urge my Hon Colleagues to support the Motion.
Papa Owusu-Ankomah (NPP - Sekondi) noon
Mr Speaker, I rise to support the Motion and urge Hon Colleagues to also support it.
The Hon Member for Asikuma/ Odoben/Brakwa states that everything that we do,there must be a cost benefit analysis. Indeed, that is the essence of this House and I would want to inform him, that in this case, cost benefit analysis has been done and it will be in the interest of the nation to subscribe to shares in this institution.
Mr Speaker, if you look at the Report,
5.0, page 3, item 4.0, it says, and Mr Speaker, with your permission, I beg to quote: . . .
“AFC was founded and promoted by Nigeria, Ghana, The Gambia and Guinea Bissau . . .”
So, it is not really an institution that is being set up as a commorcial bank, sort of.
Papa Owusu-Ankomah (NPP - Sekondi) noon


the Hon Deputy Minister for Finance and Economic Planning, Mr Fifi Fiavi Kwetey -- [Interruption] -- says that the liquidity situation of SSNIT -- I did not know whether Fiifi is an acronym of something. [Interruption.] Kofi Fiifi, the Hon Chairman - Oh, Mr Speaker, I did not really -- they pronounce it “Fifi” but is spelt “Fiifi”; I know “Fifi” just like Papa. Mr Speaker, so in this case, I believe that we ought to support this Motion.

But however, Mr Speaker, I know that because of the volume of documents Hon Members are given, some documents are accessible to some committees of this House that are not accessible to ordinary members. I will encourage Government to make all documents available. I know that on many occasions, Hon Members do not have the opportunity to read all the documents.

It is important that we have them, so that at least, when Members are in doubt, they can refer to documents in their possession. In this case, most Hon Members do not have copies of the Annual Report and somehow what is described as a folder on the Corporation at a glance -- The Chairperson's Report, et cetera.
Mr Owusu-Agyemang noon
On a point of order. Mr Speaker, I do not think, for one moment, that the sweep of taxes and things being done for the World Bank-- For example, interest, commission, fees, profits, gains, proceeds, they are not in the World Bank - World Bank is treated like a diplomatic organisation, which I
have headed for 10 years and these are not the -- because the World Bank is not made for this. But Mr Speaker, one of the difficulties that they have is that, they combine the ratification of an institution with a subscription. So let us ratify the Agreement despite my objection to this and then you subscribe to it.
But now you have combined the ratification and the subscription as if one was conditional upon the other. Maybe, that is a shortcut but it is a very bad way and an unusual way of doing this thing. It is not the best way to go about it; you could do ratification, then that establishes your organisation, then you do the subscription.
But having said that, they should make the documents available to us and I still stand by my position that the avoidance and the non-payment of taxes are too sweeping, and if that is the case, then we must get something back and make sure that they give us concessionary rate for doing this thing but not to come and give us rate which may not be -
Dr A. A. Osei noon
Mr Speaker, I was trying to come on a point of information. My Hon Senior Colleague is using statements like “sweeping” when he does not have any evidence to support it. Even though he has worked in the United Nations (UN) -- [Interruption.]
rose
Mr First Deputy Speaker noon
Hon Ranking Member, you are on the floor.
Dr A. A. Osei 12:10 p.m.
Mr Speaker, my Hon Senior Colleague used the word “sweeping” and I think that when he does not have any evidence to support it, he should not use such words.
I want to assure him that he can go and check in the United Nations (UN)
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
if in my words, I used “sweeping”, I do not think it is meant to offend anybody. But if the Hon Member for Old Tafo should say that it is not ‘senior-like', it is my view that it is sweeping. If I used “sweeping” and he does not like it, so be it.
Mr First Deputy Speaker 12:10 p.m.
Hon
Member for New Juaben North, if you used the word “sweeping” for the Committee, it pre-supposes that they have not done their homework well. They have not done good work; they have done a shoddy job; that is it.
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
in my view, in my considered opinion, it is sweeping. And I think, for him to say that it is not ‘senior-like', I am objecting to it and I want him to withdraw that.
Mr First Deputy Speaker 12:10 p.m.
Hon
Member for New Juaben North, he thinks that you used the word “sweeping” on them, that they have not done their work well. That they have done a sweeping kind of thing. Yes, that is your view but he is taking objection to your word. He is taking objection to the use of the word “sweeping”. Now, you are rather saying that he should withdraw the word “senior- like”.
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
Mr First Deputy Speaker 12:10 p.m.
I am not;
if you had not intervened, I would not have spoken.
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
if he is saying that it is not ‘senior-like', I take objection to it
Mr First Deputy Speaker 12:10 p.m.
If you
think that I am participating in the debate, then let the Hon Member for Sekondi continue.
Mr Owusu-Agyemang 12:10 p.m.
It was not
Sekondi; it was this guy; it was the man from Old Tafo, not Sekondi. [Laughter.] Mr Speaker, it is Old Tafo.
Mr First Deputy Speaker 12:10 p.m.
Hon
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
are you saying that because I said that he --[Interruptions] - is that what you are saying?
Mr First Deputy Speaker 12:10 p.m.
So what I
will do is that, withdraw the “sweeping”, then I will also ask him to withdraw the “senior-like”. Withdraw the “sweeping”, and I will ask him to withdraw the “senior- like”.
Mr Owusu-Agyemang 12:10 p.m.
Mr Speaker,
in view of the multiplicity and the multitude of the exemptions that are being requested, I have objected to the position and I change the word “sweeping”. “Sweeping” means plenty of it. Look at the dictionary; and that is what it means and I do not like it.
Dr A. A. Osei 12:10 p.m.
Mr Speaker, when I was
Dr Prempeh 12:10 p.m.
Mr Speaker, I would like my Hon Deputy Majority Leader to
even though we have not contributed our capital yet and a few of them have been listed in the Committee's Report.
One is the submarine fibre optic cable which passed through Ghana and Nigeria; a very important communication device that will lead us into the information super highway, in helping in the development of the country. Because we have many more benefits out of it, it is important that Ghana takes the lead not just in politics, not just in foreign policy issues but in very, very substantive issues as in finance and financing development in the country.
I will urge my Friends to support it and to ensure that we are part and parcel of this process and that by paying US$50 million, we will be part of the Board that would take the final decision how this organisation will be steered and how we are going to find ourselves in it and how it will express itself in the development of our four-nation countries.
Mr Ambrose P. Dery (NPP - Lawra- Nandom) 12:20 p.m.
Mr Speaker, I rise to support the Motion that this House adopts the Report of the Finance Committee on the Agreement for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the request to Ghana to join and subscribe to shares in the Africa Finance Corporation for a minimum amount of US$50 million.
Mr Speaker, the history of African unity indicates that since independence, Ghana has taken a leading role, right from the first President, Dr Kwame Nkrumah in 1963 at the Organisation of African Unity (OAU) through to President J. J. Rawlings as far as sub-regional integration is concerned to President J. A. Kufuor, ending as the Chairman of African Union (AU).
Mr Speaker, in all these things, one thing that we finally agreed is important
talking, I said those of us who are “junior” would like to follow our “seniors”. So, I least suspected a Senior Colleague to use the word “sweeping” when he does not have any evidence to support it. I took it that he is trying to attack the credibility of the Committee. If he had come to this House and said “this is my evidence, that is why I am calling it sweeping”, I would have had no objection. So in that sense, I am saying, as a role model -
Mr First Deputy Speaker 12:20 p.m.
He has
withdrawn it.
Dr A. A. Osei 12:20 p.m.
In that case, I
withdraw mine.
Mr First Deputy Speaker 12:20 p.m.
Hon
Member for Sekondi, kindly conclude.
Papa Owusu-Ankomah 12:20 p.m.
Mr Speaker,
I urge the House to support this Motion and then also to reiterate that it will help this House if Government at any time decides on taking action on the subscription, to brief the House.
Thank you very much.
Mr First Deputy Speaker 12:20 p.m.
Hon
Members, I will take two more and then I will put the Question; two quick ones. I will take the Deputy Majority Leader and then the Minority Leader.
Mr Abdul-Rashid Pelpuo (NDC
- Wa Central): Mr Speaker, I also rise to support the Report of the Finance Committee for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the request for Ghana to join and subscribe to shares in the Corporation to a minimum amount of fifty million United States dollars (US$50,000,000.00).
Mr Speaker, this is a very important organisation and I am very happy that

address the essential question. This is a Report that this Parliament should ratify our membership of that organisation. Should it not have gone to the Foreign Affairs Committee of Parliament to deal with it? Why the Finance Committee because we have two separate things here. Apart from joining the Africa Finance Corporation, there is a subscription to the Board like we want to do. So please, try and answer why the Foreign Affairs Committee of our House was not involved in this object --
Mr First Deputy Speaker 12:20 p.m.
You want to make the Foreign Affairs case through the back door? [Laughter.]
Mr Pelpuo 12:20 p.m.
Mr Speaker, it looks like my Friend wants to double in the principles but at the moment, we are on the substance whether we should accept the Charter or not and I am arguing that it is important for us to accept it because the object of the Africa Finance Corporation is crucial and fundamental among the five major objectives -- to provide on-lending and re-financing facility to African financial institutions.
Mr Speaker, this is very, very important because we know that business -- the private sector is the engine of growth of our economy and of many, many economies round the world.
For them to be able to operate with ease, without the trouble of going through tedious market regulations, it is important that we have this organisation set up so they can always seek funding and then go into operation and create jobs for our people, increase investment, increase consumption and therefore, ensuring that there is growth and development in the country. So Mr Speaker, my last observation on this is that, Ghana is already benefiting from this organisation
Mr Speaker, look at page 3 of the Report and the objects. It says 12:20 p.m.
“Support and promote infrastructure development in Africa through the provision of investment funds.”
And you need an institution that is committed to giving investment support to this sort of development. If we left it to the international bodies, the International Monetary Fund (IMF) and others, which we give the same conditions to, I am sure they are less committed to Africa than this Corporation is going to be, and so, when the iron curtain, the Berlin Wall collapsed, we saw that most of the multi- national corporations and institutions were concentrating more on Eastern Europe than Africa.
So if we have an institution or corporation like this, which is going to take care of our infrastructural development, which is going to facilitate African trade generally and export-oriented trade and we do know that if we could get Africa as a market, then we are sure that our

industries would grow and we would benefit from the economies of scale, just like the European Union (EU) is benefiting.

But here we have North-South trade and most of the time the terms are against us. So for any corporation that is going to facilitate trade among Africans generally, I think that we should support it. And the importance of energy to development cannot be over-emphasized and this is going to contribute to the development of energy and extractive industries.

Mr Speaker, already, even before we have joined, we have benefits. People are talking of cost benefits analysis. Yes, I agree, but we have benefits. First of all, we have the submarine fibre optic cable from Portugal to South Africa which is landing in Ghana and Nigeria; it is going to promote the integration through that. Then we have the Jubilee Fields; we are feverishly working on a legislation to see how we will deal with the oil that we are expecting to flow from the Jubilee Fields, and then the GreenFields IPP in Ghana.

Mr Speaker, I am not saying that this is a perfect organisation and that it is an agreement that has no challenges. But how are we going to make the agreement better? We will do so by first joining, subscribing, then as shareholders and secondly, as board members, we can better improve the functioning and the benefits that would come to us as a country. So, I think the best way is to join -- and Mr Speaker, I have heard my very good nephew raise the issue of ratification without referring to the Foreign Affairs Committee.

Mr Speaker, article 75 gives the power to the President to ratify agreements on our behalf and cause them to be ratified and therefore, it is His Excellency the President who is bringing this before us, and this relates to finance and so, I do not think it is out of place and it is not a contradiction that it has come through the Committee on Finance, even though I have

IN ACCORDANCE with the said article 75 of the Constitution, the President has caused to be laid before Parliament through the Minister responsible for Finance and Economic Planning, the Agreement for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the request for Ghana to join the Africa Finance Corporation on 24th November, 2010.

N O W T H E R E F O R E , t h i s Honourable House hereby resolves to ratify the said Agreement for the establishment of the Africa Finance Corporation, the Charter of the Africa Finance Corporation and the request for Ghana to join the Africa Finance Corporation.

Mr Speaker, in so doing, I wish to take cognisance of the points made on the floor as to the ratification and to point out with respect to investments, that the one-time investment may have limited opportunities with respect to an institution like this, which is capable of giving us longer term investments.

Mr Speaker, the points on tax exemption are important and I put it in the context of the Ranking Member's earlier contribution for a review, because ultimately, we must make our tax system fair to all individuals and institutions.
Mr J. K. Avedzi 12:30 p.m.
Mr Speaker, I beg
to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.

no personal problem with it going jointly. But having said that, it is no derogation that it has not gone through the Foreign Affairs Committee.

Mr Speaker, in view of these immense benefits, I would say that we should support that we ratify the Agreement and that we also subscribe, so that we would have a bigger voice, we have a stronger voice within the Corporation.

Mr Speaker, I think that this is one of the things we should have done yesterday, and if we have the opportunity to do it today, we should do it with all the speed and gusto that we can muster and so I see it as an all-benefit exercise when we do join.

Because of these few points that I have raised and other good reasons that have been canvassed by my Hon Colleagues in this House, that I do support that we adopt and ratify the Agreement.

Thank you, Mr Speaker, for the opportunity.

Question put and Motion agreed to.
RESOLUTIONS 12:30 p.m.
Mr J. K. Avedzi 12:30 p.m.
Mr Speaker, I beg
to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Avoka 12:30 p.m.
Mr Speaker, we are left with the last Motion, that is, Motion number 12 on page 8, but that involves the Committee on Lands and Natural Resources. I want to crave your indulgence to permit members of the joint Committee on Mines and Energy and Finance to move to the winnowing room for us to start winnowing the Petroleum Revenue Management Bill, 2010.
I must say that for the past one hour or so, Justice Crabbe and some other lawyers from the Attorney-General's Department have been in the House to assist us to go through the amendments. So those of us who have also filed amendments with regard to the Petroleum Revenue Management Bill, 2010 should also attend to the Committee.
So Finance and Energy Committee members, you may wish to move now and the rest of us may just stay for the next fifteen minutes and take Motion 12.
Thank you.
Dr A. A. Osei 12:30 p.m.
Mr Speaker, I just want to seek clarification from the Hon Majority Leader. The members of the Committee are going to meet on amendments that we have already met on and come back and do what? The reason I am asking that is, it is these same Committee members who proposed these same amendments; if it is a different group, I can understand it. But we have already agreed on those amendments as a Committee.
So as a Committee, if you are asking us to meet, we would not have anything to do because we have already agreed on those amendments. I thought maybe,
Request for Ghana to subscribe to shares in the Africa Finance
Corporation
Deputy Minister for Finance and Economic Planning (Mr Seth Terkpeh on behalf of the Minister for Finance and Economic Planning): Mr Speaker, I beg to move, that
WHEREAS by the provisions of article 181(5) of the Constitution, the, terms and conditions of any international business or economic transaction to which the Government of Ghana is a party, 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(5) of the Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Finance and Economic Planning, there has been laid before Parliament the request for Ghana to subscribe to shares in the Africa Finance Corporation for a minimum amount of fifty million United States dollars
(US$50,000,000).
THIS HONOURABLE HOUSE 12:30 p.m.
H E R E B Y R E S O LV E S A S 12:30 p.m.
Mr First Deputy Speaker 12:30 p.m.
Hon Member, we agreed on this yesterday. Indeed, some of the amendments - it is not every amendment from the Finance Committee that finds favour on the floor. So with those who are proposing amendments, with the Attorney-General and those in charge of the Bill there, some of them would just then go through automatically, then when we come here, the period that we would use to debate those proposed amendments from the Committee would reduce considerably.
Dr A. A. Osei 12:30 p.m.
We are going to look at amendments by other people -
Mr First Deputy Speaker 12:30 p.m.
As well, yes; and of course, the Committee's because it is not every amendment from the Committee that goes through on the floor. So when you go there and -
Dr A. A. Osei 12:30 p.m.
Mr Speaker, I think that those amendments, when they come to the floor, we would definitely debate and we should. But the Committee should not be encouraged to go and open it up again.
Mr Avoka 12:30 p.m.
Some of the amendments even border basically on drafting. That is why the officials from the Attorney- General's Department are there - both lawyers who are conversant with drafting and then the substance of the law to assist
us to reduce the number of the issues that we have amended.
Some other members who have been attending to the Winnowing Committee would also be available, so that we can reduce the numbers and come back here and it would be manageable. But at the moment, we have about one hundred and seventy-five amendments and to debate them clause by clause in this Chamber would take us the whole of the year.
Dr A. A. Osei 12:30 p.m.
During the Committee meeting, the drafters from the Attorney- General's Office were there. Almost every time, we had the Attorney-General's drafters there. So they helped in the Committee's amendments. That is what I am saying. So for us -
Mr Dery 12:30 p.m.
Mr Speaker, first of all, my understanding is that, most of the over one hundred amendments are not controversial. They might be a matter of “is” and “was” and because you cannot at the Committee level amend the text, we have now agreed that we should go and those non-controversial ones could be incorporated and then the Bill brought for us to deal with the grey areas. That is what I was thinking. So it is in that vein that I see the position of the Hon Majority Leader.
But since the Hon Majority Leader himself has said that we need about fifteen minutes, why do we not just finish up this Motion? Because, you see, if you ask the members of those Committees to leave and in fact, those who are proposing amendments to join them, then who would stay behind here and move these Motions, which I do not see to be controversial. So why do we not just quickly see to move and adopt these Motions and within the next fifteen minutes, we are out of here? Even just the mere understanding of his proposal, is taking more than fifteen minutes to debate.
Mr First Deputy Speaker 12:30 p.m.
Hon
Ghana, Volta River Authority and Clark Sustainable Resources Development Limited for harvesting, processing and marketing of timber from the Volta Lake (Phase II).
In so doing Mr Speaker, I wish to present the Report of the joint Committee.
1.0 Introduction
The Agreement among the Government of Ghana, Volta River Authority (VRA) and Clark Sustainable Resources Development Limited for Phase II on harvesting, processing and Marketing of timber from the Volta Lake was presented to Parliament by the Hon Deputy Minister for Lands and Natural Resources, Mr Henry Ford Kamel on Wednesday, 17th November, 2010. The Rt. Hon Speaker referred the Agreement to the joint Committee on Lands and Forestry and Mines and Energy for consideration and report, in accordance with Orders 177 and 188 of the Standing Orders of the House.
Pursuant to the referral, the Committee met with the Hon Minister for Lands and Natural Resources, Alhaji Collins Dauda and officials of the Ministry of Lands and Forestry, Ministry of Energy, Volta River Authority and Clark Sustainable Resources Development Limited (CSRD) and considered the Agreement.
2.0 Reference
The Committee made reference to the following documents during its deliberations:
i. The 1992 Constitution of Ghana;
ii. The Standing Orders of the Parliament of Ghana;
iii. T h e T i m b e r R e s o u r c e s
v. Development of an appropriate stumpage fee structure for underwater harvested wood.
The Phase I was for a period of three years. CSRD has since completed the study and the study confirmed that the project was feasible and economically viable. The feasibility report has been accepted by the Ministry of Lands and Natural Resources, Ministry of Energy and Ministry of Transport.
4.0 Objectives of the Phase II of the Agreement
The object of Phase II of the Agreement is to grant CSRD the exclusive right to harvest, process and market timber submerged in the Volta Lake over a contiguous area comprising 350,000 hectares to allow for safety and ease of transportation on the Volta Lake.
5.0 Terms of the Agreement
The Agreement seeks to grant salvage rights for an initial period of fifteen years, a second term of ten years and thereafter renewable by agreement of both parties.
6.0 Obligations of the Contractor
(CSRD)
The Agreement imposes the following obligations, among others, on the contractor:
i. Meet or exceed all current Ghanaian and World Bank guidel ines for social and environmental governance;
ii. Work with the Ministry of Transport and other relevant institutions to facilitate the development, financing and implementation of lake safety and transportation development programmes;

Majority Leader, this is phase 2 of this project; it is not a controversial issue. Let us take the Motion and then we all go; those who are interested can go and join the Committee. If we go there and we have problems, we would come back to the floor of the House and continue. That is all.

Hon Members, item 12 -
MOTIONS 12:30 p.m.
Mr Gershon G. K. Gbediame (On behalf of the Chairman of the Committee) 12:30 p.m.
Mr Speaker, I beg to move, that notwithstanding the provisions of Standing Order 80 (1), which require that no Motion shall be debated until at least, forty-eight hours have elapsed between the date on which notice of the Motion is given and the date on which the Motion is moved, the Motion for the adoption of the Report of the joint Committee on Lands and Forestry and Mines and Energy on the Agreement among the Republic of Ghana, Volta River Authority and Clark Sustainable Resources Development Limited for harvesting, processing and marketing of timber from the Volta Lake (Phase-II) may be moved today.
Prof. Christopher Ameyaw-Akumfi 12:30 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly. Joint Committee on Lands and
Forestry/Mines and Energy Report on the Agreement among GOG/
VRA/Clark Sustainable Resources Development Limited
Mr Gershon G. K Gbediame (On behalf of the Chairman of the Committee) 12:30 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the joint Committee on Lands and Forestry and Mines and Energy on the Agreement among the Republic of
Management Act, 1997 (Act
547);
iv. T h e T i m b e r R e s o u r c e s Management (Amendment) Act, 2002 (Act 617); and
v. T h e T i m b e r R e s o u r c e s Management Regulations, 1998
(L. I. 1649)
3.0 Background
The Government of Ghana represented by the Ministry of Energy, the Ministry of Transport and the Volta River Authority in February, 2006, entered into an Agreement with Clark Sustainable Resources Development Limited for harvesting, processing and marketing of timber from the Volta Lake. Phase I of the Agreement centred on the conduct of feasibility study by CSRD and had the following specific objectives:
i. Acquisition of relevant data and experience for the effective application of underwater technology in a tropical water environment;
ii Assessment of overall timber resource potential of the Volta Lake including diversity of spices, economics of extraction and processing, marketing and value added opportunities;
iii. Assessment of economics of addressing transportation and safety issues in various regions of the Lake;
iv. Development of an overall strategy for the underwater timber harvesting industry on the Volta Lake; and
Mr Andrews Adjei-Yeboah (NPP - Tano South) 12:40 p.m.
Mr Speaker, I beg to second the Motion. Before I go ahead, I want this correction to be made.
There is no Ministry of Lands and Forestry. There is Ministry for Lands and Natural Resources as stated in the Report. I want that amendment to be --
Mr First Deputy Speaker 12:40 p.m.
Which
page of the Report?
Mr Adjei-Yeboah 12:40 p.m.
Mr Speaker, page
1, second paragraph. The “officials of the Ministry of Lands and Forestry” should read “officials of the Ministry of Lands and Natural Resources”.
Mr Speaker, having said that, I want the
House to support this particular Motion, which is very important. It is a project that when we were in the Ministry, got it ratified through Parliament.The first phase was done and the company is so much convinced about the economic viability of the project.
Mr Speaker, for those who are not very conversant with it, at the time that the Lake was being constructed, there was a portion of land that the Forestry Department then was managing. It was a protected area, which was not meant for production and as a result of the dam, other areas with very good species were submerged. It has been a source of worry to the nation as to the fact that transportation on the Volta Lake was impeded as a result of these stumps in the Lake. Because this is, time and time again, we hear of accidents occurring on the Lake.
It was as a result of this that the Government then agreed that with this vision from the company to take the risk to see that they can harvest this thing and then the country benefiting from it, we went ahead to sign the first phase of the agreement with the company. Fortunately, they are convinced that they can have something which Government and the country can benefit from. It is in line with this that I am supporting it and encouraging the House also to support it.
Mr Speaker, two, three issues actually
came up strongly, that the harvesting of the timber would help to make transportation on the Volta Lake very safe. The nation itself was going to look out for money to see how these stumps could be removed from the Lake. But fortunately, a company is going to do it for free and then add value to the species that will be taken from the water. In my opinion, that is very important and an encouraging step that the Government then took.
Added to it, is the fact that it will help those communities around the area as far as sawmilling activity is concerned; that

iii. Submit reports as required by relevant laws of various regulatory departments and agencies of Government;

iv. Pay all relevant levies and charges accruing to the relevant District Assemblies and relevant stakeholders in accordance with the laws of Ghana;

v. Operate within the tax regime as applicable to the timber industry;

vi. Ensure that all timber harvested is processed locally with the possibility of an exempt under a ministerial consent.

7.0 Observation and Recommendations

7.1 EconomicViability of Timber in the Volta Lake

The Committee was informed by the technical experts from the Ministry of Lands and Natural Resources that CSRD fulfilled all the obligations under the previous Agreement and submitted a comprehensive report on the feasibility study conducted on the Volta Lake. The study conducted proved the economic viability of the timber resources in the Volta Lake, hence the request to ratify Phase II of the Agreement, to allow for harvesting and processing of timber from the Volta Lake. 7.2 Period of the Agreement

As indicated earlier, the Agreement grants salvage rights to CSRD for an initial period of fifteen years and this can be extended for another ten years and thereafter extended upon an agreement by both parties. The Committee noted that the period of the salvage rights was in conformity with section 6A 1(a) of the Timber Resources Management Act, 1997 (Act 547). Section 6A 1(a) provides that timber rights shall not be granted for a
Mr Adjei-Yeboah 12:40 p.m.


these species that will be extracted will be milled. They have done all the test and they have found a lot of species under the water that are of good economic value and as a result, these ones are going to be harvested. The project is going to create employment in the catchment area and also help as far as timber deficit of the country is concerned.

We are all crying about the fact that we are exhausting our timber resource on the surface of the land. So if we can take these things out and then add value to them and then export them as it were -- Added to it is the fact that royalties also will be accruing and then money will be coming to the District Assemblies, and if they will be applying and using it judiciously, then of course, it is going to improve the liquidity position of the District Assembly that is there.

Therefore, I believe strongly that it is a very important project and I recommend that the House supports it so that the company can come into business, extract it and add value to it to help the country.

Mr Speaker, on that note, I want to

support the Motion.
Mr Albert Abongo 12:40 p.m.
(NDC - Bongo):
Mr Speaker, I thank you very much for the opportunity to speak to this Motion, on the harvesting, processing and marketing of timber from the Volta Lake.
Mr Speaker, I think this is a good
project, in the sense that first and foremost, we will be enhancing the Volta Lake transportation system because we have had a lot of accidents on the Lake as a result of the tree stumps, causing damage to boats and causing the entanglement of fishing nets. Our fishermen have suffered a lot on the Lake and I think that this facility, if we harvest the tree stumps, will give them access to the free use of the river.
Mr Speaker, also, submerged timber
over several years, are of very high value because the conditions under water are very conducive for the curing of some timber species. So over the years, those timber species that have not been dissolved, are definitely high value timber at this time and so Government will definitely earn a lot of revenue from the harvesting of such resources. We will be making money from it and I urge this House to approve of it so that, that will give some revenue to the people of this country.
Mr Speaker, also, however, I have a
beef about this project. I wish that the Committee had gone further to give an indication of how much we will really make from this project, at least, we should have a general idea that this project will give this much money to the people of this country.
Having said this, I hope the Minister, in summing up, will give much money for this project and I will definitely support it?
Mr First Deputy Speaker 12:50 p.m.
Hon Members, this is phase 2 of the project. When the phase 1 came, we had a very long debate on the floor of this House. So I will take one person and then we conclude on this matter.
Mr Joseph B. Aidoo (NPP -
Amenfi East): Mr Speaker, as you have indicated, there is no controversy about this Agreement. But Mr. Speaker, the Committee made a number of observations, among them, most importantly, the termination clause. As had been indicated or captured by the Report, the termination period is 15 years and this is different from the normal termination period for timber operations, which is for a period not exceeding 40 years.
Mr Speaker, this is important because of the peculiarity of the operation. The operation is going to involve the harvesting of timber under water. I do not know
whether I should call lit aquatic timber, and it will require special technology and special expertise. So it is imperative that within 15 years, they should be able to assess how feasible the operation has gone, so as to come back to the drawing board.
Mr Speaker, much as we are interested in the safety of the lake transportation, that is, transportation on the Volta Lake, we are also interested in the economic fortunes of this whole operation - [Interruption] -- I do not know the worry of Hon Prof Ameyaw-Akumfi.
At the Committee level, what was worrying to Hon Members was the fact that the company, as of now, has not been able to undertake inventory of the timber submerged. In the opinion of some of us, that was very, very important because we do not know how much we are going to get from this whole operation. And we want .to believe that if the company could provide annual inventory as to the number of trees that they are going to harvest every year --

Mr Gbediame —rose
Mr First Deputy Speaker 12:50 p.m.
Do you have a point of order?
Mr Gbediame 12:50 p.m.
Mr Speaker, point of information.
Mr First Deputy Speaker 12:50 p.m.
Well, if he is ready to yield.
Mr Gbediame 12:50 p.m.
Mr Speaker, at the Committee level, this issue was raised and we were assured that this harvesting was going to take the same form as harvesting on land, whereby it would be supervised by the Forestry Commission. On daily
basis, the harvesting will be --
Mr First Deputy Speaker 12:50 p.m.
Hon Member, the point he is making is that, as of now, we do not know the quantity.
Mr Gbediame 12:50 p.m.
Mr Speaker, I am on that; that is what we call statistics. [Laughter.] When you take the statistics and then -
Mr First Deputy Speaker 12:50 p.m.
Hon Member, as of now, do you know the quantity? You are the Chairman of the Committee.
Mr Gbediame 12:50 p.m.
Mr Speaker, the total quantity?
Mr First Deputy Speaker 12:50 p.m.
Yes.
Mr Gbediame 12:50 p.m.
Mr Speaker, it is over thirty thousand.
Mr First Deputy Speaker 12:50 p.m.
Do you know it?
Mr Gbediame 12:50 p.m.
Mr Speaker, that is why I am saying it is over thirty thousand. [Laughter.]
Mr J. B. Aidoo 12:50 p.m.
Mr Speaker, this issue was raised at the Committee level. In fact, we wanted to know the volume of timber that Ghana was expecting to harvest from the Lake and the information was not readily available.
So all what I am saying is that, yes, it is going to go along the lines of TUC but we should be careful, we should be able to have an idea on annual basis regarding the number of trees involved, even the volume of timber or lumber that is going to be harvested or produced for the country.
I was expecting that with modern technology and the use of even the sonar system, they should have been able to tell us the number of trees and the expanse of trees under the water. This, they could not.
The other important thing which
Mr J. B. Aidoo 12:50 p.m.


we want the House to note is that, the feasibility study upon which this Motion is coming, is only known to the Ministry. So, we will urge that a copy of the feasibility studies report is submitted to Parliament because it is very, very important that we get a copy of that report.

On that note, I would want to urge Hon Members to support the Motion.
Mr First Deputy Speaker 12:50 p.m.
Yes, Hon Member for Techiman North, brief comments.
Prof. Christopher Ameyaw-Akumfi (NPP - Techiman North) 12:50 p.m.
Mr Speaker, there are two observations, which in my opinion, are very important. If you go to page 5 of the Committee's Report, it states that:
“environmental impact assessment has been done for the project by Environmental Resources Mana- gement Limited of the United Kingdom and this was being reviewed by the Environmental Protection Agency.”
Mr Speaker, it means that we do not know what is in that report and that finally, it will have to be certified by the EPA. And I believe that before one deals with an agreement, one would have to look at this. So, this would either have to be corrected or we should wait for the review to be completed before we sign the agreement.
A second observation that I would want to make is, CSRD came on board when we started crying about tree stumps in the lake. And when they came in, as my Hon Colleague was trying to point out, one of the difficulties they had was that, there were no records of the species of trees that we had. They had to engage the Forestry Research Institute. Now, we are working on the Bui River and the concern that I have been raising to various agencies is that, we should take stock of what we have there before the flooding.
When the Committee was put up, the
Ministry of Transport was not invited to serve on this Committee. Just as for the review or to look at this Agreement, the Ministry of Transport was not there, and I think that is not also proper because basically, when you deal with tree stumps, one of the major benefits would be easier movement of boats and so on.
A third point is that, I do not know what the Committee said about how far down the trunk, the cutting should be done. Because one of the issues raised with the Clerk to the Committee was that, we should leave stumps for fauna and flora to survive for the fish. If we are not careful and we uproot right from the base, we would be doing some damage to the echo system.
So, while supporting this Motion, I hope that first, we get a review report of what the EIA is, and secondly we want to make sure that some stumps are left behind for the fauna and flora.
On this note, let us congratulate the group for their patience, because we were in this country when one newspaper reported that the company was going to reap two billion dollars from the Lake when nobody had an assessment of the fauna that we were dealing with. The newspaper did not even know the kind of trees that were there and I believe that if we are not careful, the same thing is going to be done with the Bui Dam. Therefore from now, I will suggest strongly that we engage people to go and take stock of what we have there.
With these few words, I support the Motion.
Mr First Deputy Speaker 1 p.m.
Hon Members, that brings us to the end of the debate.
Mr K. T. Hammond — rose - Mr
IN PURSUANCE of the said article 268 (1) of the Constitution, the Government of Ghana has caused to be laid before Parliament through the Minister responsible for Lands and Natural Resources, the Agreement among the Republic of Ghana, Volta River Authority and Clark Sustainable Resources Development Limited for harvesting, processing and marketing of timber from the Volta Lake (Phase --II).
NOW THEREFORE, this House, in accordance with the said article 268 (1) of the Constitution, hereby resolve to ratify the said Agreement among the Republic of Ghana, Volta River Authority and Clark Sustainable Resources Development Limited for harvesting, processing and marketing of timber from the Volta Lake (Phase-II).

Mr Speake r, t he i s sue abou t environmental permit is very crucial for the operation that would be undertaken by this company, and I just wish to assure the House that, before the harvesting begins, an environmental permit would have to be secured by the company before they proceed to do the harvesting. Therefore, the fears of my good Friend would be allayed after the review is concluded; after which a permit would be issued to the company to start the harvesting.

Mr Speaker, with regard to the volume of trees under the water - it is very difficult for anybody to determine the accurate volume of wood embedded in the water. Mr Speaker, even on surface, the practice is that, the tree has to be felled first before measurements are taken and the volumes determined.

That was why in the Committee's Report, they have indicated that the

Speaker, it is a very important matter --
Mr First Deputy Speaker 1 p.m.
Hon Members, that brings us to the end of the debate.
Question put and Motion agreed to.
Mr First Deputy Speaker 1 p.m.
Hon Members, the Hon Member for Techiman North has raised an issue of environmental impact assessment, and I would want the Hon Minister for Lands and Natural Resources, when moving the Resolution, to address that point.
rose
Mr First Deputy Speaker 1 p.m.
Hon K. T. Hammond, I will let you second the Motion for the Resolution, then you can say whatever you want to say.
RESOLUTIONS 1 p.m.
Minister for Lands and Natural Resources (Alhaji Collins Dauda) 1 p.m.
Mr Speaker, I beg to move, that
WHEREAS by the provisions of article 268 (1) of the Constitution, any transaction, contract or undertaking involving the grant of a right or concession by or on behalf of any person or body of persons howsoever described, for the exploitation of any mineral, water or other natural resource of Ghana, made or entered into after the coming into force of the Constitution, is made subject to ratification by Parliament.
Forestry Commission would be at the point of harvesting so that as soon as a log is moved out of the water, measurements will be taken and the volumes involved here would be determined based on the way calculations of volumes of trees are done. I believe that if the House is still interested in knowing the volume, I would assure the House that, we would ask the Forestry Commission to submit to this House volumes of trees that are harvested in this place on quarterly basis, first to the Committee and that, I believe will resolve the matter.
Mr. Speaker, on this note, I beg to move.
Mr K.T. Hammond 1 p.m.
Mr Speaker, in February 2006 --
Mr First Deputy Speaker 1 p.m.
Hon
K.T. Hammond, you have to second the Motion first -
Mr Hammond 1 p.m.
Mr Speaker, I was going to do exactly that, but they would not give me the space.
Mr Enoch T. Mensah 1 p.m.
Mr Speaker, the Hon Member is a member of this House and if he is making an allegation against Hon Members who were there at the time he signed the Agreement and he is mentioning figures, he should produce the facts - it is very important. He cannot just conjecture on this floor. This is a sacred floor. If he does not have his facts, he should mention the Members who made those allegations, otherwise, he should withdraw the statement.
Mr First Deputy Speaker 1 p.m.
Hon
Member, if you cannot substantiate now, you have to withdraw the statement. That
is the practice of the House.
Mr Hammond. Mr Speaker, I cannot
substantiate.
Mr First Deputy Speaker 1 p.m.
Hon
Member, then you have to withdraw the statement.
Mr Hammond 1 p.m.
No, I can substantiate it. I am going to mention names. I know those who made the claim. I am going to mention them. Mr Speaker, the Hon E.T. Mensah, one; Hon Moses Asaga, two; Mr Speaker, the Hon Member who has just risen up there, number three -[Interruptions] - [An Hon Member: He was not in Parliament.] I am told he was not in Parliament; it might be the other one sitting over there; he was number three. Mr Speaker, quite a lot of them said that US$2.5 billion worth of gold was sitting down there. Maybe they did -- [Interruptions] - in the first phase. We would ask the Hon Minister during this first phase, the quantity of gold, the US$2.5 billion should be brought to the House here for the whole world to know the quantity of gold that is hiding - they should be careful. The same way that oil was announced in this House, they said it was “Suame” engine oil; now we have a quantity of oil and they are fighting about it. Mr Speaker, this is just the information I thought the House -
Mr Mensah 1 p.m.
Mr Speaker, as a
member of this House, he is aware that if he cannot produce the information, he withdraws the allegation and then he must come back with the explanation - this is false. What he has said is a wicked lie - he must withdraw the allegation or get the Hansard prove it.
Mr First Deputy Speaker 1 p.m.
Hon
K. T. Hammond, you know, in fact, there were some allegations, newspaper publications and one of the Hon Members made an allusion to those allegations in his contributions. There were allegations
Question put and Motion agreed to.
Resolved accordingly.
Mr Cletus A. Avoka 1 p.m.
Mr Speaker, I want to remind Hon Members of this august House that tomorrow, we will begin the debate on the principles of the Budget. As I indicated earlier, we are doing winnowing with regard to the Petroleum Revenue Management in the new block. So those who are interested or have filed amendments, should try and be there.
Subject to this, Mr Speaker, I want to, in view of the fact that we have exhausted the programme for today and the fact that there is this important committee meeting taking place, where many members have filed amendments, move, that we now do adjourn until tomorrow at 10.00 a.m.
Mr Ambrose P. Dery 1 p.m.
Mr Speaker, I
beg to second the Motion for adjournment till tomorrow.
Question put and Motion agreed to.
ADJOURNMENT 1 p.m.
Mr Hammond 1 p.m.
Mr Speaker, thank
you very much. But I do know that part of the Standing Orders allow the Speaker to confirm certain matters if they are true. So Mr Speaker, you just confirm that at least, one or two -
Mr First Deputy Speaker 1 p.m.
It was
a newspaper publication. Withdraw, withdraw the statement for now.
Mr Hammond 1 p.m.
All right, I take heat
out of the system for the morning.
Mr First Deputy Speaker 1 p.m.
Withdraw the statement for now.
Mr Mensah 1 p.m.
He has withdrawn - taking the heat -
Mr First Deputy Speaker 1 p.m.
He has
withdrawn the statement.
Mr Mensah 1 p.m.
I did not hear it.
Mr First Deputy Speaker 1 p.m.
He has
withdrawn the statement. Hon Members, he has withdrawn the statement.
Motion for the adoption of the Resolution moved and seconded.