Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the request for waiver of taxes, customs duties, Value Added Tax, National Health Insurance Levy, Destination Inspection Fees, Export Development Fund Levy and ECOWAS Levy, amounting to GH¢3,793,352.05 on goods and equipment required for the implementation of the Awoshie - Pokuase road construction and Community Development Project.
Mr Speaker, in doing so, I present your Committee's Report.
Introduction
The request for waiver of taxes, customs duties, Value Added Tax, National Health Insurance Levy, Destination Inspection Fees, Export
Development and Investment Fund and ECOWAS Levy, amounting to GH¢3,793, 352.05 on goods and equipment required for the implementation of the African Development Bank funded UA53.59 million Awoshie-Pokuase road con- struction and Community Development Project was presented to Parliament on behalf of the Hon. Minister for Finance by the Hon Deputy Minister for Finance, Mr Cassiel Ato Baah Forson on Tuesday, 4th March, 2014.
Mr Speaker referred the request to the Finance Committee for consideration and report in accordance with article 174 (2) of the 1992 Constitution and Order 169 of the Standing Orders of the Parliament of Ghana.
The Committee was assisted in its deliberations by the Hon Minister for Roads and Highways, Mr Amin Amidu Sulemani, Hon. Deputy Minister for Finance, Mr Cassiel Ato Baah Forson, officials from the Ministries of Finance, Roads and Highways and Ghana Revenue Authority (GRA).
The Committee is grateful to the Hon. Minister, the Deputy Minister and officials from the two Ministries and GRA for their assistance.
Reference
The Committee referred to the following additional documents during its deliberations:
The 1992 Constitution of Ghana.
The Standing Orders of the Parliament of Ghana.
The Loan Agreement between the Government of the Republic of Ghana and the African Develop- ment Bank for the Awoshie-Pokuase
Road and Community Development Project.
The general conditions applicable to Protocols of Agreements for Grants of the African Development Bank.
Background
The Government of Ghana in April and May, 2010 entered into an agreement with the Agence Francaise de Development and the African Development Bank for the construction of the Awoshie-Pokuase road and Community Development Project. The project aims at providing integrated solution to urban development in Ghana. To this end, a 15.2 kilometre Awoshie- Pokuase road is to be constructed alongside the construction of secondary roads and the provision of key socioeconomic infrastructure such as drainage system, market, water supply, lorry stations, schools and health centres.
The 15.2 kilometre road, which links Awoshie, Anyaa, Ablekuma, Amarmorley and Ayawaso is to be implemented in two sections. The first section which is been funded by the ADF is 3 kilometres, beginning from the Awoshie Junction on the Nl Highway and terminates at Anyaa. The first 2 kilometres is a three lane dual carriage way with two service lanes in each direction. The remaining 1kilometre is a dual carriage way with service lanes and community upgrading infrastructure.
The second section which is being financed by AfDB, is a 122 kilometre two lane dual carriage-ways with service lanes and community infrastructure from Anyaa to Amarmorley and to Pokuase.
To this end, the then Minister for Finance and Economic Planning presented to the House for approval, the Loan Agreement between the Government of the Republic of Ghana and the African
Development Fund (ADF) for an amount equivalent to fifty-three million, five hundred and ninety thousand Units of Account (UA53, 590,000.00) [equivalent to US$80.35 million] to partially finance the Awoshie-Pokuase road construction and Community Development Project.
Approval of the Loan Agreement
It may be recalled that the previous Parliament at its twenty-first Sitting held on Tuesday, 2n March, 2010, approved by Resolution, the Loan Agreement between the Government of the Republic of Ghana and the African Development Fund (ADF) for an amount equivalent to fifty-three million, five hundred and ninety thousand Units of Account (UA53, 590,000.00) [equivalent to US$80.35 million] to partially finance the Awoshie-Pokuase road construction and Community Development Project.
Required waiver
To ensure that the full amount of the credit facility is used on the project, the Ministry of Roads and Highways, through the Ministry of Finance, is seeking for tax exemption amounting to GH¢3,793,352.05 on goods and equipment required for the implementation of the African Development Bank funded UA53.59 million Awoshie Pokuase road construction and Community Develop- ment Project.
Observations
Legal bases for the tax waiver
The Committee noted that article I of the Loan Agreement between the Republic of Ghana and the African Development Bank approved by the House, subjected the Agreement to the General Conditions of Loan Agreements and Guarantee Agreements of the AfDB. Article I of the Agreement states that: “The parties to this Agreement accept all of the provisions of the General Conditions applicable to