Debates of 25 Mar 2015

MR SPEAKER
PRAYERS 11:55 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 11:55 a.m.
Mr Speaker 11:55 a.m.
Hon Members, the Votes and Proceedings for yesterday, which we should have corrected this morning are not yet ready. The Clerk to Parliament has informed me that copies are being run. So, I will want us to move straight to Urgent Questions.
Hon Members, we have in our midst, the Hon Minister for Education to respond to an Urgent Question from the Hon Member for Mpohor.
URGENT QUESTION 11:55 a.m.
MINISTRY OF EDUCATION 11:55 a.m.
Minister for Education (Prof. Naana Jane Opoku-Agyemang) 11:55 a.m.
Mr Speaker, Ghana has a robust education system that has served the nation very well. This is the time to express appreciation to all stakeholders: government, communities, teachers, parents and the learners themselves for the established record of excellence. Interestingly, only this week, our students have made the nation proud by sweeping all the awards

of WAEC International in the recent WAEC examinations at the level of West African Senior Secondary Cer- tificate Examinations (WASSCE).

However, this system is not perfect. Even though in terms of percentages, our national measurement of examination malpractice has not gone beyond 3.4 per cent Mr Speaker, the Min istry of Educat ion consider s th is most unacceptable. It needs a lot of fine tuning. The Ministry has already taken the initiative by making public this anomaly at a stakeholders' forum organised on the 11th of March to bring to the forecourt of the minds of the public our seriousness in confronting this issue and solicit their collaboration.

Measurement and evaluation, in this case, as in tests, play an important role in education delivery. They aid in determining achievement and certifying attainment, providing incentives and goals for students, and delivering inputs for decision-making. As well, tests can be employed in defining the curriculum and structuring teaching and learning. In this regard, tests may be regarded as a yardstick to measure the effectiveness of pedagogy may be education policies.

In spite of the highly advantageous uses of tests, they have varied social implications since they reveal vital in formation about the studen t in question, which may not always be pleasant, yet factual. In an attempt to circumvent the unpleasant factual revelation and social implications of testing, some examinees resort to various kinds of malpractices during test taking.

Definition of examination malpractice

Mr Speaker , there are rules and regulations governing the conduct of every examination. Examination malpractice is any

action that goes contrary to the rules and regulations as laid down for the conduct of examinations.

Generally, examination malpractice is an act of omission or commission by a person before, during or after an examination, which fraudulently gives an unfair advantage to himself/herself or to another person.

Mr Speaker, if you would permit me, WAEC has identified and documented the following forms of examination mal- practices:

Forms of Examination Malpractices

Bringing foreign materials into the examination hall

This includes note-books, prepared notes, textbooks, any printed material, blank sheets of paper, un-prescribed calculators, mobile phones.

Irregular activities inside or outside the examination hall

This includes:

Soliciting for/or receiving assistance

Pupils going out without permission

Refusing to submit scripts

Causing commotion and so on

3. Collusion

This includes:

Receiving/giving assistance to other candidates, communica- ting with other candidates during examinations copying from works of other candidate(s), making one's work available to other candidates for copying.

Impersonation -- writing an examination on behalf of another person.

Leakage of examination -- breaking the secrecy around examinations question papers a day or more before the set time for the examination.

Fore knowledge of questions - - having knowledge of examina- tion questions even a few moments before the examination takes place.

Mass cheating -- cheating by large number of candidates at the same centre.

Insults/assaults on examination officials during or after the examinations.

Refusal/failure to write names and/or index numbers on answer booklets/scripts.
Minister for Education (Prof. Naana Jane Opoku-Agyemang) 11:55 a.m.
SPACE FOR TABULATION - PAGE 3 - 11.55 A.M.

Interventions to Curb Examination Malpractice

The issue of examination malpractice is very serlous.

It is critical, therefore, to eliminate examination malpractice from our educational system. It requires a multi- stakeholder approach. The scourge of examination malpractice knows no boundaries, unfortunately. It cuts across all spheres of society, and it could include the students, candidates, teachers, supervisors and believe it, even some invigilators, parents/guardians, examina- tion officials and members of the public as a whole, hence the meeting we held on March 11, 2015 to address this serious matter, with everyone present. This is because, no one institution can single- handedly deal with the situation without stakeholder involvement.

Effort by WAEC

Mr Speaker, we are swapping supervisors for school candidates. No school henceforth supervises examina- tions on its compound. A supervisor is appointed from a different school to oversee an examination in a particular school.

Mr Speaker, we believe that by intensifying this particular tenet, we are able to maybe catch more offenders than we have been able to do in the past. We are streamlining the system because we believe that we have a good education system that we should not compromise.

We are also intensifying the sensitisation of the students themselves, and revising the rules and regulations to

give stiffer punishment for offences. We are also synchronising the time of the conduct of each paper in all members of the WAEC. Because we are spread in different time zones, it is very important to synchronise the time any given paper is taken. It may be an hour or so different but then students may be writing at the same time in real time. We think all of these would bring the malpractices down.

Introduction also of biometric registration of students for private candidates' examination.

Use of metal detectors to scan candidates before entry into examination hall to prevent smuggling in items including unapproved calculators and mobile phone.

Use of composite answer booklets (graph and supplementary sheets in­printed) to prevent use of loose sheets that facilitate collusion and mass cheating.

Intensification of inspection of examination centres by WAEC and MoE to enforce adherence to rules and regulations.

School functionaries found to have facilitated malpractice are reported to GES for swift reaction.

Handing over of persons involved in malpractices bordering on criminality, for example, impersona- tion, leakage to the police for prosecution.

Use of “Name and Shame”, that is, publication of lists of persons/ schools involved in malpractices in the national newspapers.

Further suggestion for MoE and GES

a. Instilling the importance of the sanctity of examinations and the curricula at our colleges of education.

b. Ensuring the use of appropriate pedagogy to facilitate interest in and understanding of subjects taught in the class- room.

c. Improving teacher-student contact hours by fur ther reducing teacher absenteeism, increasing time spent on task and reducing student truancy. We already have results in some of the interventions.

d. Increasing the availability of books and equipment in schools.

e. Curtailing misappropriation of materials sent to schools for teaching and learning.

f. Arresting irregular activities in schools, for example, selling by student or teachers.

These will go to ensure effective teaching and learning in the schools and completion of subject syllabi in order to boost the confidence of candidates during test taking. This is because one of the causes of examination malpractice is lack of confidence in the candidates.

Mr Speaker, we also have sug- gestions for parents since we are using a multi-stakeholder approach.

Suggestions for parents

i. Taking keen interest in the education of their children/ wards.

ii. Creating study habits in children/ wards.

iii. Exercising parental control over TV watching and electronic game playing by children/wards.

iv. Supervising the completion of homework.

v. Not relegating role of parents to teachers.

vi Participating in parent-teacher interactions.

vii Providing children/wards with enough materials and encour- agement/for them to study.

viii. Not condoning or conniving fraud especially in examinations.

ix. Parents should train up children to imbibe the values of honesty, hardwork, fairness and upright- ness.

Mr Speaker, we believe that all of these put together will instil the right discipline in students, ensure syllabi are completed and let the students believe that it is worth earning their grades.

Thank you very much.
Mr A. K. Agyekum 12:05 p.m.
Mr Speaker, the Hon Minister has outlined a number of measures.
Mr Speaker, I would want to refer the Hon Minister to the WAEC website where we have a record stating that the year 2014 had the highest recorded examination malpractices in the country.
Out of the 240,662 candidates who sat for the May/June 2014 WASSCE, 8,051 candidates were involved in examination malpractices. Mr Speaker, this is coming
Mr A. K. Agyekum 12:05 p.m.


out of a report by WAEC in 2012 that indicated that they had been able to reduce examination malpractices from 1,127 in 2011 to just 823 in 2012.

Mr Speaker, if the Hon Minister is outlining all these measures, what is the guarantee that these measures are meeting the desired results in the face of the recent publication by WAEC, that 3.5 per cent of candidates that sat for WASSCE in 2014 were involved in examination malpractices?
Prof. Naana Opoku-Agyemang 12:05 p.m.
Mr Speaker, the Hon Member is right in pointing this out. This is why the Ministry has taken such a very serious view of it. When the preliminary report got to us, we thought we should act immediately. That explains the conference that we had on 11th March, 2015.
We will also notice that certain measures have been introduced for this examination in particular that were not there in the first place. When we saw the percentages, we asked ourselves, is it worse or better? What really is happening? What should happen?
Mr Speaker, you will notice that in the current examination that brought this large number out, we have very few supervisors selected from the schools in which they teach. Now, look at the result.
Assuming we had done that in the past, we would have a more realistic view of the problem and perhaps, we could have introduced more realistic measures. Now that we are swapping them, some do not even know where they are going until very late in the time. Therefore, we are preventing collusion from the teachers, pupils and even from parents to ensure that the results are as clean as they should get.
Mr Speaker, we are not happy about this. The only thing we are learning is that the methods should be further fine-tuned. We need to have a picture of the real situation. It may not make us happy; that is not the point. But it leads us into getting measures that work, so that so many people do get away with it.
In terms of the percentages for malpractices at the r isk of saying something unacceptable, perhaps, if we leave the method loose, we get very low percentages but they do not tell us the truth. They do not even tell us what we should know. Our results are credible. We want them to continue to be so.
Mr A. K. Agyekum 12:05 p.m.
Mr Speaker, the Hon Minister's Answer is that, if these measures that she is putting in place were done in the past, things would have been different. But here, we are consistent, and the malpractices are going up.
Mr Speaker 12:05 p.m.
Hon Member, your question. The first time, I gave you enough chance to lay your foundation and so -- Hon Member, under the rules, you do not argue. So, go straight and ask the question.
Mr A. K. Agyekum 12:05 p.m.
Mr Speaker, I take a cue from your advice.
Mr Speaker, I would like to ask the Hon Minister the specific measures that the Ministry is taking to prevent those stakeholders that she has mentioned from indulging in these examination mal- practices.
Thank you.
Prof. Naana Opoku-Agyemang 12:05 p.m.
Mr Speaker, for specifics, one is to ensure that the syllabus is completed. In other words, we need to ensure reduction of teacher absenteeism and time spent on task.
We need to intensify counselling and I am happy to see so many students in this Gallery. I hope they take the message away that it is by their own efforts that they can progress in the future. We are doing counselling; we are also doing it at the level of encouraging the students to work and pass on their own. These are just two interventions. But we are also applying the rules. All the malpractices have their own sanctions. Sometimes they are not applied and we are urging str ict application as deterrent.
Mr Speaker 12:05 p.m.
Hon Member, your last supplementary question, if any.
Mr A. K. Agyekum 12:05 p.m.
Mr Speaker, I would like to ask the Hon Minister whether she considers the introduction of the time zones that she talked about as effective.
12. 15 p.m.
Prof. Naana Opoku-Agyemang 12:05 p.m.
Mr Speaker, currently, with all kinds of quick ways of communicating, we saw that we should synchronise the time differences, so that in real time, all students are writing the same paper at the same time. We do not want some to finish one hour before others. We thought we should plug as many loopholes as possible.
Thank you.
Prof. Dominic Kwaku Fobih 12:05 p.m.
Mr Speaker, the Hon Minister had said some measures that she intended to take to curb these rising malpractices in the schools. But I know that these malpractices are nurtured in the schools. So, I would want to find out from the Hon Minister what her office is doing to support teachers who rise against this practice in the schools
Prof. Opoku-Agyemang 12:05 p.m.
Definitely, doing the right thing sometimes, attracts the wrong reaction but that should not stop any of us. It is not the Ministry that is telling the teachers that they are doing unpatriotic things. The Ministry will apply the rules and will apply the sanctions.
Thank you.
Mr Speaker 12:05 p.m.
You are the Hon Ranking Member, so I will indulge you one more question. I will relax the rules and indulge Prof Fobih.
Your next supplementary question?
Prof. Fobih 12:05 p.m.
Mr Speaker, the problem is arising from the school system itself. So, it demands that an external body or agent has to intervene to solve that problem. My question is based on what is happening within the school system, where the authorities are sometimes more or less condoning it. They are not supporting such teachers and such teachers feel threatened.
So, it demands that, the Ministry itself or the Ghana Education Service (GES) or somebody from outside the system has to intervene, and that is why I am asking the question of the Hon Minister.
Thank you.
Prof. Naana Opoku-Agyemang 12:05 p.m.
Thank you very much, Hon Member of Parliament.
You noticed that last year when we had the Best Teacher Award, there was one teacher that was isolated and nationally recognised for stopping something untoward in the school as in examination malpractice, even if that teacher was the only one to have spoken up. So, that is the measure.

In terms of stopping it in the school, we also need to continue with our education, even of our teachers of explaining why examinations are important and of making examples of those who deliberately flout these regulations.

Finally, it is about also swapping the invigilators, so that they are coming from different schools and they do not have time to build alliances.

Thank you very much.
Mr Speaker 12:05 p.m.
Last supplementary question on this matter.
Hon Member for Ablekuma North?
Mr Justice Joe Appiah 12:05 p.m.
Mr Speaker.,the Hon Minister said they needed more time - - for this stateholders'approach. Mr Speaker, may I ask the Hon Minister if there has been constant monitoring and evaluation at the West Africa Examination Council (WAEC) in order to curb the examination malpractices -- [Interruption.]
Mr Speaker 12:05 p.m.
Order! Hon Members, let us have order.
Prof. Naana Opoku-Agyemang 12:05 p.m.
Mr Speaker, I would want to thank the Hon Member for his question.
The Hon Member would recall that the examination malpractices do not only occur at the moment of writing the examination. They occur before, during and after and I listed all the instances where these malpractices occur and each of them as I said, has its own sanctions.
So, yes, it is also about counselling, as I said, and the emphasis, in my view, as a person, should be on the students. It is the student who needs to understand that it is his or her own future that is at stake; it is not the parents', it is not the teachers' and it is not the invigilators'. It is
important that whatever grade they get, you can improve on it and so, they should take that lesson as part of the counselling session.
I think that when we target the people who are likely to be most hurt by the examination malpractice, which is the student, we could be making some progress because really, one cannot cheat one's way throughout life. At some point, it would be found out and the earlier one stops, the better.
Mr Frederick Opare-Ansah 12:05 p.m.
Mr Speaker. the Hon Minister and her outfit seem to have concluded that there is some collusion on the part of some teachers and have outlined measures to swap them during invigilation. May I know in the last examination, how many teachers were actually brought to book for engaging in examination malpractices?
Mr Speaker 12:05 p.m.
Hon Member, please, re- phrase the question because the Hon Minister did not say what you are attributing to her. Those are some of the steps they are taking by swapping. It is said that, “familiarity breeds contempt”.
It is a step to deal with the problem but she did not say specifically that there is collusion.
Mr Opare-Ansah 12:05 p.m.
Mr Speaker, that is exactly my question. I am saying that, they seem to have concluded that that is so, and that is what is giving rise to the measure to do the swapping of invigilators.
So, if you have not caught even one teacher engaging in it, then what is the rationale behind swapping teachers from different schools? If they have, how many have they brought to book?
Prof. Naana Opoku-Agyemang 12:05 p.m.
Actually, this is not a conclusion we have come to. You heard Hon Prof. Fobih talk about collusion of teachers, I am sure you heard that very clearly. So, you know where it is coming from.
All we are trying to do is to ensure that the examinations are clean, the results are predictable, the children can take the results anywhere and so, whoever is likely to be a culprit -- I have mentioned parents, the students themselves -- I have mentioned many.
But the mention of teachers as people who collude, came from Hon Prof. Fobih.
Thank you.
Mr Speaker 12:05 p.m.
Hon Minister, we thank you very much for attending upon the House to respond to Questions from Hon Members.
We now move to Question number 232, standing in the name of the Hon Member for Akuapim South.
ORAL ANSWERS TO QUESTIONS 12:05 p.m.
MINISTRY OF PETROLEUM 12:05 p.m.
Minister for Petrtoleum (Mr Emmanuel Armah-Kofi Buah) 12:05 p.m.
Mr Speaker, when Ghana made discoveries of oil and gas in commercial quantities, the desire of Government was to ensure that the benefits from the discovery and to a larger extent, the control of the industry must remain with Ghanaians.
The following areas were identified as key hurdles for achieving these goals:
1. Finance
2. Human Resource Capacity
3. Technology
Recognising these constraints, the goal of Government to develop a local content and local participation policy was to define actions that will ensure that these challenges are overcome to enable Ghanaians take control and thereby maximise the benefits of the oil and gas industry.
The key objectives of the local content policy are to:
maximise procurement of Ghanaian goods and services;
maximise employment of Ghanaian professionals;
Maximise Ghanaian participation in the sector; and
maximise technology and skill transfer to Ghanaians.
Extent of Implementation by Government so far:
Since the local content and local participation policy was finalised in March 2013, Government has implemented the following:
1. Oil and Gas Capacity Building Project
This programme is supported by the World Bank and has two components.
The objective of component “A” is to:
improve public management and regulatory capacity building while enhancing transparency in the following
  • [MR BUAH} agencies -- GNPC, EPA, Ministry of Petroleum, Petroleum Commission, Ministry of Finance, Attorney Generals' Department, EOCO and Ghana Revenue Authority. The objective of Component B is to: strengthen local technical skills in Ghana's emerging oil and gas sector by providing support to vocational training institutions for the development of programmes focused on skills for the oil and gas industry, including technical institutes, the Regional Maritime University in Tema and theKwame Nkrumah University of Science and Technology in Kumasi. 2. Establishment of an Enterprise Development Centre in the Western Region The Centre was established in 2013 to develop SME skills and capabilities, so that they can meet international procurement requirements and also assist SMEs to market their capabilities. The Centre has so far trained 1,183 SMEs in 69 oil and gas and business development programmes. 3. Local Content Legislation and Petroleum Commission The Petroleum Commission was established in January 2012 and mandated to promote local content and local participation in the upstream petroleum sector. In order to give the local content policy the legal backing it deserves, Local Content Regulations, LI 2204 was also passed in November, 2013. Since its establishment, the Petroleum Commission has undertaken the following activities: Review of Annual Local Content Plans and Procurement Plans to ensure compliance with the local content L.I. 2204 Processing and issuing of regis- tration permits to maximise participation of Ghanaian SMEs in the sector. Development of guidelines and procedures for insurance to deepen participation of local insurance firms in the upstream sector. Development of guidelines and procedures for finance to maximise the procurement of financial services in the financial sector. Review of work permit applications to minimise the influx of expatriates in the upstream sector. Stakeholder engagements to build capacity of local SMEs.
    • Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, can the Hon Minister tell the House, that since the coming into force of the L. I. 2204, that is the Petroleum Local Content and Local Participation Regulation 2013, whether the levels required under the First Schedule of the Regulation regarding minimal local content with goods and services, fabrication, construction et cetera, have been fulfilled and if not, why?
    Mr Buah 12:25 p.m.
    Mr Speaker, we have made a lot of progress with the goals that were set under the L.I. Let me give you real numbers in terms of what we have been able to achieve. As we speak today, in terms of employment, the total number of local-- [Interruption.]
    Sorry, I think I missed the question.
    Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, I was saying that if you look at the First Schedule to the Petroleum Local Content and Local Participation Regulation, 2013, that is L.I. 2204, there are minimum levels of local content that any indigenous company should be allowed to participate in regarding specific areas like the supply of goods and services, fabrication and construction, procurement, well drilling services et cetera. For a start, the minimal percentages have been provided. Can the Hon Minster tell us whether these levels have been attained and if not, why?
    Mr Buah 12:25 p.m.
    Mr Speaker, I am happy to inform the Honourable House that since the passage of L.I. 2204, the International Oil Companies (IOCs), contractors and sub-contractors have met their localisation targets according to Schedule 1 of L.I. 2204. For example, Tullow had 346 employees with 71 per cent locals and 99 experts and this goes across in terms of goods and services.
    Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, I think the Hon Minister has not comprehen- sively provided the answer to this particular question.
    Mr Speaker 12:25 p.m.
    Your supplementary question?
    Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, I am not satisfied with the Answer.
    Mr Speaker 12:25 p.m.
    You have an opportunity to ask two more questions.
    Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, as the Hon Minister for Petroleum, Regulation 47 of L.I. 2204 mandates the Hon Minister to receive complaints and to take decisions regarding the Regulations and local content levels for indigenous companies. Could he tell this House whether he has received any such complaints and the action he has taken on such complaints?
    Mr Buah 12:25 p.m.
    Mr Speaker, I have not received any such complaints. What I know is that the Petroleum Commission has been engaging the oil and service companies and there is a lot of progress that has been made in all of the areas that have been established in the L.I.
    Mr O. B. Amoah 12:25 p.m.
    Mr Speaker, under Regulation 45, the Petroleum Commission is required to initiate investigations regarding the activities of contractors and sub-contractors regarding fronting by Ghanaian companies as well as bid rigging and cartelisation under the Regulations. Could the Hon Minister tell the House whether the Commission has had cause to initiate any investigation regarding the activities of contractors, bid rigging, fronting and cartelisation?
    Mr Buah 12:25 p.m.
    Mr Speaker, as required by the Local Content L.I., the Local Content Committee has been established and their focus has been in the areas of ensuring that these challenges in the oil and gas sector are avoided. For example, they have dealt with issues of monopoly and cartalisation, limited capacity of local companies, shared transfer issues, limited role of indigenous companies and how that can be strengthened and potential fronting issues. They continue to deal with such issues to ensure that Ghanaian companies are in the forefront of the industry.
    rose
    Mr Speaker 12:25 p.m.
    I thought you had exhausted your supplementary questions. Hon O. B. Amoah, you have but I will allow you to ask one.
    Mr O. B. Amoah 12:25 p.m.
    Thank you, Mr Speaker.
    Could the Hon Minister assure this House that he would submit a report regarding the First Schedule of L.I. 2204 for the whole House to know whether the

    levels mandated under the Regulations have been met? The Answer he gave touched on a few areas. So, could he assure the House that he would submit a report which would confirm the levels stated in the Regulations?
    Mr Buah 12:25 p.m.
    Mr Speaker, as required by the L.I., the Local Content Committee has established certain templates on annual procurement plans, annual local content plans, performance plans and quarterly procurement focus. All these are being tracked and I would be happy to provide that to the Honourable House.
    Mr Speaker 12:25 p.m.
    Last question, Hon K. T. Hammond.
    Mr Hammond 12:35 p.m.
    Mr Speaker, in the written Answer by the Hon Minister, he identified principally, as the major objective of the policy as the maximisation of Ghanaian participation in the sector.
    I would want to ask the Hon Minister, whether he is aware that GIPC seems to have in place some Regulations and policies which appear to be undermining this particular policy and that, the Petroleum Commission is so sad about it and has been complaining.
    If the Hon Minister is aware, is he prepared to come to this House to sort out the anomaly? This is because, there appears to be some layers of Regulations which are undermining his effort and the Ministry's effort to achieve this specific policy he has identified.
    Mr Buah 12:35 p.m.
    Mr Speaker, I am aware of the overlapping of certain roles between the Petroleum Commission and the GIPC. I am also aware that there has been an
    Dr Kojo Appiah-Kubi 12:35 p.m.
    Mr Speaker, I would like to come back to the Question of Hon O.B. Amoah.
    Has the Hon Minister had any cause to conduct any investigation concerning any incidence of fronting cartelisation, et cetera?
    Can the Hon Minister also inform us, which firms were involved in these investigations, what the results of these investigations were and what sanctions were meted out to those involved?
    Mr Speaker 12:35 p.m.
    Hon Member, Question over-ruled.
    Yes, and this is because, in answering Hon O.B. Amoah's Question, he quoted the L.I. and he said that was an obligation imposed on the Petroleum Commission and not the Minister.
    So, if you want to reframe your question, do it properly to reflect what is in the law.
    Dr Appiah-Kubi 12:35 p.m.
    Thank you Mr Speaker.
    Has it come across the knowledge of the Hon Minister, whether the Petroleum Commission has had cause to investigate any incidence of fronting, cartelisation, et cetera? And is he aware of the results of any investigation, and the sort of sanctions meted out to the firms involved?
    Mr Buah 12:35 p.m.
    Mr Speaker, I have not been confronted with the issue of fronting, but this is the step we have taken on major contracts that are currently ongoing.
    Mr Speaker, I can report to the House that the Petroleum Commission has outlined a number of strategies to ensure that the operator, which is Tullow, achieves a significant local content from
    the Tweneboa, Enyenra and Ntomme (TEN) Project as an example.. And among some of the initiatives we have put in place to avoid some of the concerns the Hon Members have raised, are to ensure that Tullow would not extend the Jubilee Contract to TEN. And that the unbounding of contract should be a smaller unit as possible.
    They have also done a lot to ensure that there is a local management of contracts that have been awarded and that 10 per cent cost preferential to indigenous companies are what is in the tender. They have taken a lot of measures to make sure we can avoid potential fronting, shared transfers and all other things that would put Ghanaians at the disadvantage.
    Mr Speaker 12:35 p.m.
    Hon Members, Question numbered 287.
    Procurement of Crude Oil by Tema Oil Refinery (TOR)
    Q. 287. Daniel Nii Kwartei Titus- Glover asked the Minister for Petroleum what effort was the Ministry making to assist Tema Oil Refinery procuure crude oil to refine.
    Mr Buah 12:35 p.m.
    Mr Speaker, The Ministry of Petroleum is committed to ensuring that TOR operates efficiently with consistent supply of crude. In 2011, the MoPt conducted a comprehensive audit of TOR. The audit identified TOR's challenges as being mainly technical and commercial and concluded that TOR needed to complete a Plant Stabilisation and Enhancement Project on the Crude Distillation Unit and Residual Fluid Catalytic Cracking Units to enable it procure crude and run efficiently.
    After the audit, TOR submitted a comprehensive action plan and capital expenditure budget for Plant Stabilisation
    and Profitability Enhancement Project, which amounted to US$67.7 million. Subsequently, MoPt facilitated the release of the first tranche of US$30 million from the Ministry of Finance (MoF) to TOR to initiate implementation of the enhance- ment project. Work on the first phase of the project has been substan-tially completed.
    Earlier this year, MoF satisfactorily completed an internal audit to validate the disbursement of US$30 million by TOR. After the audit, MoPt and TOR have engaged the MoF to release the outstanding balance of US$37.7million which has been approved and is awaiting disbursement.
    Since the first phase of the rehabilita- tion was completed, a number of companies have expressed interest in the supply of crude to TOR. The Ministry will continue to work with TOR to ensure the full completion of the enhancement project. This is the surest way of ensuring that TOR runs at optimal level to enable it secure consistent supply of crude oil.
    Nii Kwartei Titus-Glover: Mr Speaker, in the response of the Hon Minister, he just told us that he wants to see the refinery running very efficiently. The underlined words here are “consistent supply of crude”. I would want to find out from him, what has been the impact with the release of the first tranche of US$30 million, and the work done with regard to production at the refinery.
    Mr Buah 12:35 p.m.
    Mr Speaker, I think the first phase of the work that was done has had a very significant impact. I know that work was done on the furnace to ensure efficiency and reduce how much crude was used in processing. I know that part of that Fund was used to purchase a 6.5 megawatt generator and a lot of major work to ensure efficiency has been completed.
    Mr Speaker 12:35 p.m.
    Your second supplementary question.
    Nii Kwartei Titus-Glover: Mr Speaker, my question --
    Mr Speaker 12:35 p.m.
    Hon Members, the essence of supplementary questions, is to pursue the Hon Minister. You do not use it to repeat a question that has been asked. The rules are very clear and that is the reason if you think the Hon Minister is not responding to your satisfaction, you use subsequent supplementary questions to pursue him.
    Nii Kwartei Mr Titus-Glover: Very well, Mr Speaker.
    Mr Speaker, the two challenges of the Refinery, according to the response of the Hon Minister, was technical and commercial. My checks from the Refinery was that, the US$30 million was paid around 2013. So, when is that difference of US$30.7 million going to be released to complete the project?
    Mr Buah 12:35 p.m.
    Mr Speaker, I am with TOR on this one and we are working. As I speak, we have been working with the Ministry of Finance and I know that the approval has been given by the Ministry. We would continue to work to make sure that the money is ready for TOR to complete the work.
    Mr Speaker 12:45 p.m.
    Your last supplementary question.

    Nii Kwartei Titus-Glover: Mr Speaker, respectfully, I would want to ask the Hon Minister — it is on record that most of these finished products that are being imported into the country are of low quality. What is the Ministry of Petroleum doing to correct this, because they are disturbing our engines.
    Mr Speaker 12:45 p.m.
    Your question again, please?
    Nii Kwartei Titus-Glover: Mr Speaker, because the Refinery is not producing, the bulk oil companies are importing finished products for storage in the Refinery, and it is on record that these finished products being imported are of low quality. I am asking the Hon Minister, what he is doing to make sure that these bad finished products do not destroy our engines.
    Mr Buah 12:45 p.m.
    Mr Speaker, I know that we have very stringent processes in place to ensure that products that are imported into the country are of good quality for Ghanaian customers. I know that the Ghana Standards Authority, working with the National Petroleum Authority (NPA) is involved in this process. Nothing has come before me about specific situation of products that have been referred to. We would continue to make sure that products that have gone into the market are of good quality.
    Mr Hammond 12:45 p.m.
    Mr Speaker, just about the year 2009, there were only about five bulk distributors in the country. We discussed this matter, and there are about thirty of them. Can I find out from the Hon Minister — Hon Minister, if I am wrong, you may correct me — Ultimately, is it the intention of the Ministry to collapse Tema Oil Refinery (TOR), so that the bulk distributors could have ascendency?
    Mr Buah 12:45 p.m.
    Mr Speaker, the Government is committed to ensuring a very efficient TOR that would meet the country's requirements, that is why US$30 million was spent. We are working with the Ministry of Finance to get additional funds to complete the second phase to make TOR a very robust and efficient Refinery.
    Mr Speaker, as a Government, we have no intention to collapse the Tema Oil Refinery, but to make it efficient and expand it to meet the country's requirements.
    Mr Francis Addai-Nimoh 12:45 p.m.
    Mr Speaker, I would want to ask the Hon Minister a simple question.
    If crude is delivered to the Tema Oil Refinery today, would the Refinery be able to refine the crude into the various products? And if the Refinery would be able to refine, at what efficiency level would they refine that crude?
    Mr Buah 12:45 p.m.
    Mr Speaker, it would be very important to note that, just the last two months, the Tema Oil Refinery received 60,000 metric tons of crude and has processed that crude. But as with any other refinery, they process crude, and at some point, when the need is required, it is shut down for maintenance. I know that the Tema Oil Refinery is not different from any other refinery. I would be able to get specifics from the engineers on the percentage level of performance. But as we speak, I do not have that information. I would be able to come back and provide that information.
    Mr Speaker 12:45 p.m.
    Hon Members, we are moving to the last Question, but I will take one more.
    Mr Kofi Frimpong 12:45 p.m.
    Mr Speaker, I would want to know from the Hon Minister, how often the system is shut down for maintenance. This is because, it is when it is operating that it needs maintenance, and for a long time now, it was not operating. It operated once and it has been shut down for maintenance.
    Mr Buah 12:45 p.m.
    Mr Speaker, the decision to shut the plant down is determined by the engineers and the technicians who are on the plant on a daily basis, and if it requires that the plant is shut down for maintenance, they make that decision at the plant — [Interruption] It depends on the circumstance.
    Mr Speaker 12:45 p.m.
    Hon Minister, address the Chair.
    Mr Buah 12:45 p.m.
    Mr Speaker, it depends on the circumstance, but if it is required for a plant to be shut down to ensure the safety, sanctity, and efficiency of the plant, it would be shut down.
    Mr Speaker 12:45 p.m.
    Hon Members, I want to move to the last Question.
    Dr Richard W. Anane 12:45 p.m.
    Mr Speaker, the Hon Minister seems to be taking the questions too lightly.
    When Hon Addai-Nimoh asked a question about the efficiency levels — he is telling this House that he cannot give the efficiency level.
    Mr Speaker, nobody expects the Hon Minister to know this. He comes with his Directors and they know it. The Hon Minister has to inform this House what efficiency level, if crude is given today. He cannot take the questions lightly, and think that we do not care about what we are asking.
    Mr Speaker 12:45 p.m.
    Hon Member, you have to understand the context in which that question was asked. Look at the substantive Question. It is not about the efficiency level. The reason I allowed the question from Hon Addai-Nimoh was because the first part of the Question was about whether today, if crude is brought to TOR, they can refine it. That was the relevant part of the Question.
    Dr Anane 12:45 p.m.
    Mr Speaker, I am sorry.
    Mr Speaker 12:45 p.m.
    The main Question is about whether TOR is in a position to refine crude.
    Dr Anane 12:45 p.m.
    Mr Speaker, when crude is refined, it always goes with efficiency levels and that is why that question, in spite of the fact that it was not part of the original Question, it is still relevant and that is how and why I do know the Hon Minister knows. And if he, as the Minister, does not have it offhand, he has helpers behind him who can easily inform him.
    Mr Speaker 12:45 p.m.
    Hon Members, let us make progress. If anybody wants to know the efficiency level of TOR, they can file a Question, specific to that, and I would gladly admit it for the Hon Minister to come and answer.
    Joint Venture Arrangement between Petro Saudi and TOR
    Q.334. Dr Matthew Opoku Prempeh asked the Minister for Petroleum what the details of the Joint Venture arrangement between Petro Saudi and Tema Oil Refinery are and why Parliament thus far had not been furnished with the terms.
    Mr Buah 12:45 p.m.
    Mr Speaker, currently, various documents for the transaction including Project Agreements, Comprehensive Business Plans, Government Consent and Support Agreement (GCSA), Shareholders Agreement and Off-taker Agreements, among others, are being reviewed and negotiated by the Attorney-Generals Department, Ministry of Petroleum, TOR, Ministry of Finance and PetroSaudi
    TOR has submitted the reviewed document to Petro Saudi for their consideration.
    The negotiated GCSA and other related Agreements and documents will
    as required by law and practice, be submitted to Cabinet for approval and thereafter submitted to Parliament for ratification. The Government of Ghana (GoG) and TOR team plan to have GCSA and other related documents before Parliament by second quarter this year.
    Dr Prempeh 12:45 p.m.
    Mr Speaker, I hope the Hon Minister does not really mean that Parliament is coming to ratify what Cabinet — I hope he can change that — So, he should change that before I ask my question.
    Mr Speaker 12:45 p.m.
    What is your supplemen- tary question?
    Dr Prempeh 12:45 p.m.
    Mr Speaker, I would want it to go on record that, what the Hon Minister has done is an embarrassment to his own Government. He cannot tell us approval and ratification by this House --
    Mr Speaker 12:45 p.m.
    Please, you cannot argue. The rules are clear. Use the Answer to ask your supplementary question.
    Dr Prempeh 12:45 p.m.
    Mr Speaker, in his previous Answer to the question, the Hon Minister said; “TOR identified technical and commercial challenges, and that they are putting in the money.”
    Mr Speaker, there are only two reasons to enter into a joint ventureship. Why have Ghanaians not been told the true reason all these documents have been submitted to Petro Saudi when the Hon Minister for Petroleum concedes that TOR is now a very efficient plant?
    Mr Buah 12:55 p.m.
    Mr Speaker, I think it would help me to give a little background as to why we have engaged Petro Saudi.
    The history for TOR is that the Ghana Supply and Commission Limited had always provided the working capital needed to import crude oil. We know that TOR had had challenges without working capital to import crude oil and so, the whole idea is to make sure that we bring in a player with the working capital and the capacity to partner TOR to import crude oil. The processes leading to that happening is what we are engaged in.
    I have already outlined where we are and I have said that once we have gone through the process and Cabinet and Parliament have ratified the Government's consent and support, that process can then begin, but we are not there yet.
    Dr Prempeh 12:55 p.m.
    Mr Speaker, obviously, for the layman, joint ventureship means you are divesting parts of the same. Mr Speaker, for under-performing company, like the Hon Minister for Petroleum said like TOR, if he accepts that it is under- performing, you either sell or transform it. He just said that they were partnering Petro Saudi to transform. But Mr Speaker, to get a value out of joint ownership, you do not milk your company before you transform.
    Some Hon Members 12:55 p.m.
    Your question?
    Dr Prempeh 12:55 p.m.
    Yes, that is the question.
    Mr Speaker, by delaying the necessary investment in TOR, the value of shares in TOR gets to virtually zero. On what basis would a meaningful partnership be gained by Ghanaians?
    Mr Buah 12:55 p.m.
    Mr Speaker, let me make it very clear.
    The partnership between TOR and Petro Saudi is not about divesting any asset of TOR. TOR is not for sale; there is an engagement on the marketing arm of TOR. That is all what we are engaging. Let me make it clear that the Government of Ghana does not intend to sell TOR. We are bringing the partner that would provide the working capital to work with TOR and the marketing arm and bring in crude oil. We are working on the processes and as soon as we are done, that process will begin. In the meantime, the Government is committed to continuing to invest in TOR to make it efficient.
    Mr Speaker 12:55 p.m.
    No! You have exhausted your supplementary questions.
    Dr Prempeh 12:55 p.m.
    No! I have asked only two questions.
    Mr Speaker 12:55 p.m.
    All right. Your last supplementary question.
    Dr Prempeh 12:55 p.m.
    Mr Speaker, the Hon Minister, at the Dispatch Box, tells Ghanaians that they are not selling TOR, and that they are bringing a marketing arm of TOR. Mr Speaker that is a dangerous statement.
    Mr Buah 12:55 p.m.
    Mr Speaker, the reason is very simple.
    We have created a new company called TOR Petro Saudi (TOR PS). That is a new company and that is the only reason that is being done. Let me say that it has
    Mr Buah 12:55 p.m.


    nothing to do with TOR; it is the marketing arm that is being created in the same vein as the Ghana Supply Commission Limited had an engagement and in the same vein as the Ghana National Petroleum Company (GNPC) had an engagement. That is the same relationship that Petro Saudi is working to have with TOR. The assets of TOR is untouched; they belong to TOR and will remain that way.
    Mr Speaker 12:55 p.m.
    Hon Members, the Answer by the Hon Minister for Petroleum indicated that they would be bringing the documents to the House. In order for us to appreciate the arrangement, would it not be better to stop here while we wait for the documents and then we can take the issues one by one? Otherwise, the rules of the House are clear. Based on the information they provided --
    Hon Member for Suhum and then Hon Member for Wenchi?
    Mr Opare-Ansah 12:55 p.m.
    Mr Speaker, from the Answers given by the Hon Minister so far, it would seem that they are procuring some kind of services for TOR. He has talked about the marketing arm. Mr Speaker, I would want to find out from him whether he has obtained the requisite approval from the procurement authority to sole-source and if he has so done, what were the reasons he adduced for sole-sourcing from Petro Saudi?
    Mr Buah 12:55 p.m.
    Mr Speaker, we went through the right processes for forming the Joint Venture and the necessary approval was received. Mr Speaker, we laid out Petro Saudi's proposals in terms of their financial trends and the projected infusion of capital that they intended to bring to support TOR to really get crude oil. Petro Saudi had proposed that they
    were going to make available the needed working capital and the urgent need to make sure that happens, and we made the necessary case and the Public Procurement Authority (PPA) gave us the approval.
    Prof. George Y. Gyan-Baffour 1:05 p.m.
    Mr Speaker, the Hon Minister is saying that there is a new venture being put together called TOR PS. Is he saying that Petro Saudi is coming in there, not paying anything and having it for free? Is that what he is saying, that we are not selling any part of it; is it for free? [Laughter.]
    Mr Buah 1:05 p.m.
    Mr Speaker, as I said, the Joint Venture is basically a trading company. But Mr Speaker, I would urge Hon Members -- I think they would have all the opportunity in the world to scrutinise the partnership once I bring the documents to this Honourable House.
    Mr Speaker 1:05 p.m.
    Hon Members, I think that is the best thing to do, because we do not have the document before us now. The Hon Minister standing here says that he will make those documents available. So, let us wait and when that time comes, we can then raise whatever issue we want to raise.
    Mr Hammond 1:05 p.m.
    Mr Speaker, I would want to ask the Hon Minister if he can put his hand on his heart and tell this House that for all he knows about Petro Saudi, all he has read about Petro Saudi and all he has seen on the Internet about Petro Saudi, is he comfortable with Petro Saudi?
    Mr Bagbin 1:05 p.m.
    On a point of order.
    Mr Speaker, we are guided by our rules. Standing Order 67 is very clear on asking Questions and supplementary questions. I believe this one falls foul of Standing Order 67 (1) (b);
    “(1) Questions must comply with the following conditions --
    (b) a Question shall not contain any arguments, expression of opi- nion, inferences, imputations, epithets or controversial, ironical or offensive expressions or hypothetical cases;”
    The Hon Member was caught up squarely by this provision in the question he has posed. [Interruption.] He was caught up by Standing Order 67 (1) (b) and Mr Speaker, I urge that you disallow that question. Do not allow it for the Hon Minister to --
    Mr Speaker 1:05 p.m.
    Hon Members, refer to 67 (1) (b) and (e). If you put the two together -- the Hon Majority Leader has referred to (b). The (e) says that,
    “(e) a Question shall not solicit the expression of an opinion…”
    If you are asking whether he is comfortable, it is his opinion. He may be comfortable; somebody might not be comfortable. To that extent, you are caught by the rules of the House and the question is disallowed.
    Hon Members, that brings us to the end of Question time.

    Hon Members, I have admitted one Commemorative Statement.

    The understanding is that, the Chairman of the Committee on Health will make the Statement and only one comment will come from the Hon Ranking Member.
    rose
    Mr Speaker 1:05 p.m.
    Hon Majority Leader?
    Mr Bagbin 1:05 p.m.
    Mr Speaker, I was just trying to plead with you to permit us to vary the order of business to allow the Hon Deputy Minister for Finance to lay some urgent Papers for and on behalf of the Hon Minister for Finance, who is on an official assignment outside this country.
    Mr Speaker 1:05 p.m.
    Very well.
    Hon Members, we go to item numbered 6 -- Presentation of Papers by the Hon Minister for Finance. Item number 6 (a);
    Dr A. A. Osei 1:05 p.m.
    This is at the Commence- ment of Public Business. I need your guidance on a certain matter because we are rising tomorrow --
    Mr Speaker 1:05 p.m.
    The Hon Majority Leader has made an application under Standing Order 53 (2) - to vary the order of business.
    Dr A. A. Osei 1:05 p.m.
    I agree and it is at the Commencement of Public --
    Mr Speaker 1:05 p.m.
    And then he referred to a particular item for the Hon Deputy Minister to lay a Paper on behalf of his Minister, item number 6 (a).
    Dr A. A. Osei 1:05 p.m.
    Yes, usually, before the Commencement of Public Business, you allow certain issues to be asked before you proceed. That is why --
    Mr Speaker 1:05 p.m.
    No!,
    Hon Majority Leader, I thought this Paper has been laid? Have we laid a Paper like this earlier?
    Mr Bagbin 1:05 p.m.
    Mr Speaker, it was laid and withdrawn yesterday.
    Mr Speaker 1:05 p.m.
    Was it withdrawn?
    Mr Bagbin 1:05 p.m.
    Yesterday, it was withdrawn and somethings have been done to it and it is now being re-laid.
    PAPERS 1:05 p.m.
    Mr Bagbin 1:05 p.m.
    Mr Speaker, my attention has been drawn to the fact that the Committee on Finance has finished with a number of Reports which are ready to be laid. So, once we are at item number 6, we could take advantage of that to lay the Reports that are ready.
    Mr Speaker 1:05 p.m.
    Which of them is ready?
    Mr Bagbin 1:05 p.m.
    Item number 6 (b) (i) (ii). (iii), (iv), (v) and (vi).
    Mr Speaker 1:05 p.m.
    Very well.
    Hon Members, item 6 (b) (i) by the Chairman of the Committee.
    By the Chairman of the Committee --
    (i) Report of the Finance Committee on the request for waiver of Import Duty, Import VAT and NHIL, ECOWAS Levy, EDIF, inspection fees, withholding tax and other related taxes amounting to six million, twenty-four thousand, eight hundred and twenty-three United States dollars and eight cents (US$6,024,823.08) on project materials and equip- ment to be procured domestically or imported for use in the
    implementation of the Contract Agreement between Govern- ment of the Republic of Ghana and China Jiangxi Corporation for International Economic and Technical Cooperation (autho- rised by the Chinese Govern- ment) under the China-Aided Stadium Project in Cape Coast.
    (ii) Report of the Finance Committee on the request for waiver of Import Duty, Import VAT and NHIL, ECOWAS Levy, EDIF, inspection fees, withholding tax and other related taxes amoun- ting to eight hundred and nineteen thousand, seven hundred and fifty United States dollars (US$819,750.00) on project materials and equipment to be procured domestically or imported for use in the imple- mentation of the Contract Agreement between Govern- ment of the Republic of Ghana and China Gansu International Corporation for Economic and Technical Cooperation under the China-Aided New Century Career Training Institute Expansion Project at Dansoman.
    (iii)Report of the Finance Committee on the request for waiver of Import Duty, Import VAT and NHIL, ECOWAS Levy, EDIF, inspection fees, withholding tax and other related taxes amoun- ting to fifty-one thousand, six hundred and thirteen Ghana cedis and thirty-seven Ghana pesewas (GH¢51,613.37 [VAT/ NHIL]) and two hundred and sixty-eight thousand, two hundred and sixty-one United States dollars (US$268,261.00 [Customs duties]) on project materials and equipment to be
    procured domestically or imported for use in the implementation of the Contract Agreement between Govern- ment of the Republic of Ghana and China Geo-Engineering Corporation under the China- Aided Basic School Project at Otuam and Arkra in the Central Region.
    (iv) Report of the Finance Committee on the Loan Agreement between the Government of the Republic of Ghana and the African Development Fund for an amount of twenty-eight million, six hundred thousand Units of Accounts (UA28,600,000) [equivalent to US$42.90 million] and a Grant amounting to nineteen million, eight hundred and sixty thousand Units of Accounts (UA19,860,000) [equivalent to US$29.79 million] to support the Electr icity Distribution System Reinforce- ment and Extension Project.
    Mr Speaker 1:15 p.m.
    Hon Members, item number 6 (b) (v) on the Order Paper.
    By the Chairman of the Committee --
    (v) Report of the Finance Committee on the On-lending/Subsidiary Agreement between the Govern- ment of the Republic of Ghana and the Electricity Company of Ghana (ECG) for a Ghana cedi equivalent of twenty-eight million, six hundred thousand Units of Accounts (UA28,600,000) [equi- valent to US$42.90 million] to support the Electricity Distribu-
    tion System Reinforce-ment and Extension Project.
    (vi) Report of the Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the International Fund for Agricul- tural Development for an amount of twenty-three million Special Drawing Rights (SDR23,000,000), [equivalent to thirty-six million, six hundred thousand United States dollars (US$36.6 million)] to co-finance the Ghana Agricul- tural Sector Investment Project
    (GASIP).
    Mr Speaker 1:15 p.m.
    Hon Majority Leader, do we now move to the Statement?
    Hon Members, I have been advised that the Hon Chairman of the Health Committee is making a Commemorative Statement on the World Tuberculosis Day, 2015, after which I will take only one comment from the Hon Ranking Member of the Committee.
    STATEMENTS 1:15 p.m.
    Chairman of the Health Committee (Mr Joseph Yieleh Chireh) 1:15 p.m.
    Thank you, Mr Speaker, for giving me the opportunity to make a Statement to mark the World Tuberculosis Day, which was yesterday, 24th March, 2015.
    World Tuberculosis (T.B.) Day is a day set aside by the United Nations to draw attention of the global pandemic. The theme for this year's celebration by the UN is “Reach the 3 million: reach, treat, cure everyone”. In Ghana, our aim is to reach, detect and treat the over 45,000 estimated missed cases annually.
    Mr Speaker 1:25 p.m.
    Hon Member for Nhyiaeso and Ranking Member for the Health Committee?
    Dr Richard W. Anane (NPP--Nhyiaeso) 1:25 p.m.
    Thank you, Mr Speaker, for the opportunity to associate with the Statement presented by Hon Joseph Yieleh Chireh, Chairman of the Health Committee and Member of Parliament for Wa West.
    Mr Speaker, yesterday, the diagnosis of Tuberculosis (TB) which because of how it used to be seen, was normally referred to as cox disease, was more like a condemnation to death. However, because of advances in diagnoses and treatments, today, we can easily say Tuberculosis without any qualms and it is because we know it is a treatable condition.
    Notwithstanding that, for our nation Ghana, we continue to carry the very heavy burden of the disease. Yes, it is true that successive governments have made it possible for Tuberculosis to be treated and the treatment for Tuberculosis is accessed freely in the country. But the upsurge of Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (HIV/AIDS) in the 90s and early 2000s worsened the incidence of TB in our country.
    Yes, it is true also that the implementa- tion of the positive policies over the years have been able to contain the free fall of TB in the country. But we still know that we still carry a very heavy burden. Noting this and knowing that it is a treatable condition and that it is no longer a condition anybody should be ashamed of, because over the years and in the past, people seemed to be ostracised when they are said to carry the disease.
    We would want to call on the Ministry of Health to intensify its education for the people to appreciate the signs and the symptoms of the disease and for the people to know that TB is a treatable and curable condition. People should also know that TB treatment exists in our health facilities and that the treatment is free.
    Mr Speaker, we believe that then, the people would have been educated on these and if the people get to know that these are accessible, they will take advantage of them. We believe that this will be one of the major strides that will be taken in order to reduce the impact and the incidence of the disease condition in our country.
    Dr Richard W. Anane (NPP--Nhyiaeso) 1:25 p.m.


    With these few words, Mr Speaker, I would want to thank you for giving me the opportunity to associate with the Statement.
    Mr Speaker 1:25 p.m.
    Thank you very much.
    Hon Members, that brings us to the end of Statements.
    Hon Deputy Majority Leader?
    Mr Alfred K. Agbesi 1:25 p.m.
    Mr Speaker, the presentation of Papers on the Order Paper Addendum number 2.
    Mr Speaker 1:25 p.m.
    Do Hon Members have copies? -- [Pause.]
    Where is Addendum 1 before we have Addendum 2?
    Where is Addendum 1?
    If there is no Addendum 1, we cannot have Addendum 2.
    Papa Owusu-Ankomah 1:25 p.m.
    Mr Speaker, I think there must be a mistake somewhere. In fact, the Addendum 1, I am told, was unofficially withdrawn. That is it.
    Mr Speaker 1:25 p.m.
    We never used it?
    Papa Owusu-Ankomah 1:25 p.m.
    So, it is not supposed to be part of the records.
    Mr Speaker 1:25 p.m.
    It is not supposed to be part of the records. So, we should treat this one as --
    Papa Owusu-Ankomah 1:25 p.m.
    I do not know why the Table Office put Addendum 2 because we asked why they withdrew it. You come and distribute an Addendum and you say we should withdraw it. I asked why we should withdraw it?
    Mr Speaker 1:25 p.m.
    Hon Members, for record purposes, should it be --
    Once the Addendum 1 has been withdrawn, it has not been used at all, it has not been captured in any of our records. Should it be Addendum 1 or Addendum 2?
    Papa Owusu-Ankomah 1:25 p.m.
    Mr Speaker, the Table Office has brought Addendum 2. If it is a mistake, we expect the pro tem Majority Leader to seek your leave and ask Hon Members to ignore the first one as having been brought by mistake. But when Hon Members have these things on their tables and there is another Addendum 2, it becomes difficult to ignore the first one because officially, we have been informed that there are two addenda, not one. So, this is the source of the confusion.
    So, what I believe the Hon Deputy Majority Leader --
    Mr Speaker 1:25 p.m.
    Your classmate.
    Papa Owusu-Ankomah 1:25 p.m.
    Yes, my classmate, who was not a socialist in school.
    Mr Speaker 1:25 p.m.
    [Laughter.]
    Mr Agbesi 1:25 p.m.
    Mr Speaker, my attention has been drawn to the fact that originally, there was Addendum 1 and we need to withdraw it. So, this one, if it is labelled (1), there would be confusion which is Addendum 1.
    So, we have to withdraw the first one, which is labelled Addendum 1 and then we take this one now.
    Mr Speaker 1:25 p.m.
    Officially, we have never used that Addendum 1. We have not used it. These are the things that would be entering the Votes and Proceedings and the Official Report -- the Hansard. Once we have not used it, we should list this as Addendum 1. You can amend it and call it Addendum 1 because we never used the other one.
    Hon Minister for Defence?
    Dr Benjamin B. Kunbuor 1:25 p.m.
    Mr Speaker, I think there is just an Addendum not even an Addendum 1, let alone Addendum 2. This is because the first paper that was circulated had something to do with my sector and I noticed that there were some technical mistakes on it. So, I drew the attention of the Table Office and it was withdrawn on the quiet. They were not before the House and that one was actually an Addendum to the main Order Paper.
    So, I am at a loss where we are getting Addendum 2 from. I am saying that the Leader should make the necessary application.
    Mr Speaker 1:25 p.m.
    Hon Deputy Majority Leader, do the necessary correction, so that we can refer to it. But we are not using the first one.
    Mr Agbesi 1:25 p.m.
    Mr Speaker, there was a paper which was circulated and it was labelled “Addendum”. Now, there is another paper labelled “Addendum 2.”
    Mr Speaker, with your leave, I apply to withdraw the first paper which was circulated and the second paper is to be referred to as Addendum.
    Mr Speaker 1:25 p.m.
    Yes, I think so. So, we should delete the 2.
    Accordingly deleted.
    Mr Agbesi 1:25 p.m.
    Thank you, Mr Speaker.
    Mr Speaker 1:25 p.m.
    Hon Members, I refer you to Order Paper Addendum.
    rose
    Mr Speaker 1:25 p.m.
    Yes, Hon Member for Old Tafo?
    Dr A. A. Osei 1:35 p.m.
    Mr Speaker, I just need your guidance. The confusion is the following. When we got the first one, there was a directive from the Table to quietly take it away -- quietly.
    So, I said if it is mine, then you cannot take it away. Some of us have it.
    My question, is, how do we quietly withdraw it?
    Mr Speaker 1:35 p.m.
    It is not known to the House.
    Dr A. A. Osei 1:35 p.m.
    Thank you, Mr Speaker.
    Mr Speaker 1:35 p.m.
    We have only one Order Paper Addendum.
    Mr Speaker 1:35 p.m.
    At the Commencement of Public Business -- Presentation of Papers by the Chairman of the Committee.
    PAPERS 1:35 p.m.
    Mr Speaker 1:35 p.m.
    Leadership, I will want you to guide the Chair at this stage. It is now about 1:35 p.m. Are we going beyond the 2 o'clock? Are we holding Committee of the Whole meeting today? I know some of the statutory Funds formula are in.
    Mr Speaker 1:35 p.m.


    We are rising tomorrow, but I am not hearing anything from Leadership on this matter. I need to be guided, so that I could make the necessary directives. Are we holding the Committee of the Whole today to look at the statutory Funds? I have not been briefed.
    Mr Agbesi 1:35 p.m.
    Mr Speaker, yes, we are holding a meeting of the Committee of the Whole.
    Mr Speaker 1:35 p.m.
    So, do we Sit up to 2 o'clock and use the period to hold the Committee on the Whole, so that we could take all the reports tomorrow?
    Mr Agbesi 1:35 p.m.
    Yes, Mr Speaker, we have already met the three institutions and asked that they should be around at 2 o'clock. So, in the meantime, we could take one or two Motions.
    Mr Speaker 1:35 p.m.
    Very well.
    Yes, Hon Member for Sekondi?
    Papa Owusu-Ankomah 1:35 p.m.
    Mr Speaker, I am worried.
    Mr Speaker 1:35 p.m.
    Do not be worried -- [Laughter] -- Hon Member for Sekondi, do not be worried.
    Papa Owusu-Ankomah 1:35 p.m.
    Mr Speaker, since you have said that, I will reserve my comment.
    Mr Speaker 1:35 p.m.
    There is nothing to worry about.
    Yes, what item are we taking?
    Mr Agbesi 1:35 p.m.
    Item number 17.
    Mr Speaker 1:35 p.m.
    Hon Members, item number 17 -- Motions.
    MOTIONS 1:35 p.m.
    Chairman of the Committee (Mr James K. Avedzi) 1:35 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 Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the International Development Associa- tion (IDA) for an amount of 15.6 million Special Drawing Rights (US$24.0 million equivalent) to finance the Africa Higher Education Centres of Excellence Project may be moved today.
    Mr Francis K. Arthur 1:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 1:35 p.m.
    Item number 18, Chairman of the Committee?
    Financial Agreement between Government of Ghana (GoG) and the
    International Development Association (IDA) to Finance the Africa Higher
    Education Centres of Excellence Project
    Chairman of the Committee (Mr James K. Avedzi) 1:35 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the International Development Associa- tion (IDA) for an amount of 15.6 million
    Special Drawing Rights (US$24.0 million equivalent) to finance the Africa Higher Education Centres of Excellence Project.
    Mr Speaker, in doing so, I present your Committee's Report.
    Introduction
    The request for approval of the Financing Agreement Between the Government of the Republic of Ghana and the International Development Associa- tion (IDA) for an amount of 15.6 million Special Drawing Rights [US$24.0 million equivalent] to finance the Africa Higher Education Centres of Excellence Project was presented to the House by the Hon. Minister for Finance, Mr. Emmanuel Seth Terkper on Wednesday 18th March, 2015 in accordance with article 181 of the 1992 Constitution.
    The Rt Hon Speaker referred the request to the Finance Committee for consideration and report in accordance with Order 169 of the Standing Orders of the House.
    The Committee was assisted in its deliberations by the Hon Deputy Ministers of Finance and Education, Messrs Cassiel Ato Baah Forson and Samuel Okudzeto Ablakwa, Executive Secretary of National Council for Tertiary Education (NCTE), Prof. M. Duwiejua, representatives from the beneficiary institutions and officials from the Ministries of Finance and Education and
    NCTE.
    The Committee is grateful to the Hon Deputy Ministers for Finance and Education, Executive Secretary of NCTE and officials from the Ministries of Finance and Education and the NCTE 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 Loans Act, 1970 (ACT 335)
    Background
    The level of scientific and technolo- gical capacity embodied in the future African workforce will be critical to transforming African economies. The current situation in the West and Central African region points to the lack of immediate skills in addressing develop- ment challenges and poverty reduction. The skills shortage as identified, is severe in the growing sectors of extractive industries, energy, water and infrastruc- ture, sanitation and services sector, such as health and information and Commu- nication Technologies (ICT).
    West and Central African countries thus face particular shortage of human resources and capacity in science, technology, engineering, and mathematics as well as agriculture and health disciplines. The current pattern of skills production however, does not match labour market demand or development needs. The percentage of graduates in areas of engineering, agriculture, health and science is extremely low.
    The result is that, while graduates of many West and Central African higher educational institutions are unemployed, substantial shortages of relevant skilled labour persist. The challenges therefore, is to increase both the quantity and the quality of relevant graduates through
    Chairman of the Committee (Mr James K. Avedzi) 1:35 p.m.


    investments in laboratories and human resource for these disciplines, improve the link with employers to raise relevance of education and foster strong international collaboration to increase quality.

    A regional approach to higher education in Africa therefore, offers the best way to build and sustain excellence in higher education in African economies. Few, if any, West and Central African countries have the persistent means to fund internationally competitive centres of excellence in the broad range of areas required for their economies.

    Regional specialisation and co- ordination of investments is the only way that West and Central African countries can financially and academically develop quality provision of higher institutions and Centres within universities across West and Central Africa that already specialise in offering high level training in the areas of Sciences, Technology, Engineering and Mathematics (STEM), Agriculture and Health Sciences.

    Supporting these institutions will allow them to boost quality of education in the regions within their fields through partnerships and allow them to compete with institutions based in high-income countries for African students capable of paying for quality education.

    The Project, which is a regional project competed for by a number of Africa countries including Burkina Faso, Benin, Cameroon, Ghana, Nigeria, Senegal and Togo is therefore, a means by which financial support is being provided to facilitate the establishment of Higher Education Centres of Excellence in African universities.

    The higher order objective is to meet the labour market demands for skills within specific areas where there are skill shortage affecting development, econo- mic growth and poverty reduction.

    The project will also support the implementation of sector-level human capital plans such as the Comprehensive African Agriculture Development Project (CAADP) and the Africa Mining Vision

    Project Objective

    The Project Development Objective (PDO) is to support the country to promote regional specialisation among participating universities in areas that address regional challenges and strengthen the capacities of universities to deliver quality training and applied research.

    Components of the Project

    The project consists of two components.

    Component one aims at strengthening the capacity of the two universities competitively selected in Ghana and to strengthen or establish Centres of Excellence. These Centres will deliver regional, demand-driven, quality training and applied research in partnerships with regional and international academic institutions and in partnership with relevant employers and industry.

    Component two consists of regional activities to build capacity, support project implementation, monitor, evaluate and develop regional policies.

    Component1: Strengthening Africa Centres of Excellence

    Component one will strengthen the 3 Centres of Excellence in the two universities (University of Ghana and Kwame Nkrumah University of Science and Technology) to produce highly skilled graduates in Applied Research to help address specific national and Regional development challenges. The amount awarded to each Centre of Excellence is US$8.0 million.

    The selected institutions will imple- ment their own Centre of Excellence proposal aiming to help address a specific national and regional development challenge through preparation of professionals (education), applied research and associated outreach activities with partners.

    Each selected institution will sign a performance and funding contract with GOG which states the following;

    “At least, 15 percent of the funding must be invested in the partnership and at least 10 per cent must be invested in partnership activities with non-national Africa partners. Further, civil works will be limited to 25 per cent of the amount.”

    This Agreement will include the Government's planned commitments for continued funding of institutional staff as part of the funding and performance agreement. Within these parameters, institutions will have autonomy to implement their own institutional specific proposal that encompasses the following six elements:

    Enhance capacity to deliver regional high quality training to address the development challenge, including, inter alia, update curricula of existing programmes or create new education programmes to meet the development challenge; meet international benchmarks for quality education, for example, international accreditation, deliver short- term courses for professionals and attract a regional student body.

    Training of faculty to introduce new approaches to teaching and learning, enhance work-place learning such as internship, encourage entrepreneurship among students, upgrading of qualifi- cations of faculty; improve learning resources, including lab equipment and minor rehabilitation or extension of existing facilities.

    Enhance capacity to deliver applied research to address the regional development challenge, including inter alia, faculty development and staff training, minor rehabilitation works or extension of existing facilities, scholar- ships and post-doctoral studies, networking activities with national and international partners, hosting and participating in conferences, research equipment and materials and laboratory refurbishment, research dissemination, knowledge and technology transfer and patenting or other intellectual property rights-related costs.

    Build and use industry/sector partnerships to enhance impact of the ACE on development and increase relevance of said centres of education and research, including, inter alia, industry advisory boards, internship, industry lectures, training of trainers for sector training institutions (such as poly- technics, nursing, teacher or agriculture colleges), joint research, training and other activities to communicate, interact and reach out to the sector/industry/ communities.

    Build and strengthen regional international academic partnerships to raise quality of education, raise the capacity of network partners and to raise the ACE's capacity, including, inter alia, joint delivery of education programmes, professional courses for regional faculty exchanges/ visiting faculty, joint research, joint conferences, sharing of specialised equipment and library resources

    Enhance governance and management of the ACE and the participating university to improve monitoring and evaluation, including monitoring of labour market outcomes of graduates, administration, fiduciary management (including financial management, procurement, oversight and capacity), transparency ability to generate resources and project implementation.
    Chairman of the Committee (Mr James K. Avedzi) 1:35 p.m.


    publish 60 articles related to the development problems including patenting of new technologies and products. The Centre of Excellence seeks to be relevant to society (quality staff, new relevant programmes, state-of-the-art facilities), visible and attractive and managed to attain sustainable financing beyond the project duration.

    The Centre will also procure construction of a new postgraduate laboratory and lecture room and laboratory equipment for training and research in climate change, water resources, water supply and environmental sanitation, environmental health and settlement/ municipal services planning.

    Terms and conditions of the facility

    The Committee noted that the facility is a concessionary one with a standard IDA terms. The facility, it was noted, has a grace period of 5 years, repayment period of 20 years and maturity period of 25 years. Service charge is 0.75 per cent whiles commitment charge on unwith- drawn balance is 0.5 per cent per annum.

    The Committee was also informed that preliminary assessment of the financial terms yielded a grant element of 38.75 per cent at a discount rate of 5.11 per cent which meets Government's concessionary criterion of a minimum grant element of 35 per cent on new borrowings.

    Institutional and Implementation Arrangements

    The Committee observed that each selected institution will implement its own ACE subproject. It was also noted that for an effective implementation of the project, an ACE Implementation team has been established to run the day-to-day management of the project and provide

    secretarial services to the National Review Committee formed by the Ministry of Education (MoE). It was further indicated that the committee will be headed by the Executive Secretary of the National Council for Tertiary Education and supported by senior faculty members of the selected institutions and other senior officers of the relevant MDAs.

    Each ACE's central administration will assist with the fiduciary tasks and partners, including international academicians and will be represented on an advisory committee.

    The Committee was also informed that Regional Facilitation Unit (RFU) will be formed by the Association of African Universities (AAU) that will be responsible for regional activities and will be financed through a grant facility from the World Bank. The AAU, it was added, will lay out the key activities of the RFU, which include preparation of an annual work plan to be agreed between the WB, the ACEs with details on capacity building, M&E, and convening of ACE meetings, including steering committee meetings.

    The RFU in AAU relies upon existing staff and resources in AAU and add specific required staffing, including an ACE deputy project facilitator that will be responsible for the day-to-day project implementation.

    Conclusion

    The Committee has carefully examined the facility and is convinced that successful implementation of the project will promote regional specialisation among participating universities in areas that address regional challenges and strengthen the capacities of universities to deliver quality training and applied research. The Committee therefore, recommends to the House to adopt its

    Report and approve by Resolution, the request for approval of the Financing Agreement between the Government of the Republic of Ghana and the International Development Association (IDA) for an amount of 15.60 million Special Drawing Rights ( (US$24.0 million equivalent) to finance Africa Higher Education Centres of Excellence in accordance with article 181 of the 1992 Constitution, section 7 of the Loans Act and Order 169 of the Standing Orders of the Parliament of Ghana.

    Respectfully submitted.
    Dr Anthony A. Osei (NPP -- Old Tafo) 1:35 p.m.
    Mr Speaker, I beg to second the Motion that this House adopts the Report of the Finance Committee on the Financing Agreement between GoG and IDA for an amount of US$24.00 million equivalence to finance the Africa Higher Education Centres of Excellence Project.
    Mr Speaker, this is a project in which our universities dons are involved. As the Committee listened to the universities professors, we realised Ghanaians should be proud that our researchers are able to win competitive bids because of their excellence in academic research. In fact, to allow other nations to get into the bid, Ghana had to withdraw from one of the competitive bids, so that other nations could get into it.
    All the three areas are very technical. They involved of Nuguchi Memorial Institute of Medical Research, the Seed Programme and the issue on water and sanitation.
    In my opinion, this is a worthy project and I would want to ask Hon Members to
    adopt the Report to give the opportunity to our university professors in these areas of excellence to be able to conduct more research.
    But more importantly, we should train more doctorate students and master students. And Mr Speaker, one of the conditions which I like about this is that, one gets money on the basis of the output either through a research publication or the production of either a master of doctor of philosophy (PhD) student and I think this would enrich the stock of the scientists we have in Ghana.
    So, Mr Speaker, with these few words, I ask Hon Members to adopt the Report of the Committee.
    Question put and Motion agreed to.
    Mr Speaker 1:35 p.m.
    Consequential resolution, Deputy Minister?
    RESOLUTIONS 1:35 p.m.
    Minister for Finance) 1:35 p.m.
    Mr Speaker, I beg to move, that
    WHEREAS by the provisions of article 181 of the Constitution and sections 3 and 7 of the Loans Act, 1970 (Act 335), the terms and conditions of any loan raised by the Government of the Republic of
    THIS HONOURABLE HOUSE 1:35 p.m.
    Mr James K. Avedzi 1:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question proposed.
    Question put and Motion agreed to.
    Resolved accordingly.
    1. 45 p.m.
    Mr Speaker 1:35 p.m.
    Hon Deputy Majority Leader?
    Mr Agbesi 1:35 p.m.
    Mr Speaker, item 20.
    Mr Speaker 1:35 p.m.
    Chairman of the Committee?
    MOTIONS 1:35 p.m.
    Chairman of the Committee (Mr James K. Avedzi) 1:35 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 Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the International Development Associa- tion (IDA) for an amount of twelve million, nine hundred thousand Special Drawing Rights [SDR12.9 million] (US$19.8 million equivalent) being additional financing for the ongoing Oil and Gas Capacity Building Project may be moved today.
    Dr Anthony A. Osei 1:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 1:35 p.m.
    Item number 21.
    Government of Ghana/International Development Association (IDA)
    Financing Agreement -- Oil and Gas Capacity Building Project
    Chairman of the Finance Committee (Mr James K. Avedzi) 1:35 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and the International Development Association (IDA) for an amount of twelve million, nine hundred thousand Special Drawing Rights [SDR12.9 million] (US$19.8 million equivalent) being additional financing for the ongoing Oil and Gas Capacity Building Project.
    Mr Speaker, I present the Committee's Report.
    Introduction
    The request for approval of the Financing Agreement between the Government of the Republic of Ghana and the International Development Association (IDA) for an amount of twelve million, nine hundred thousand Special Drawing Rights (SDR 12.9) (USD 19.8 million equivalent) for the proposed additional financing for the Oil and Gas Capacity Building Project was presented to the House by the Min ister for Finance Mr Seth Emmanuel Terkper, on Wednesday, 18 th March , 2015 in accordance with article 181 of the 1992 Constitution.
    Mr Speaker referred the request to the Finance Committee for consideration and report in accordance with Order 169 of the Standing Orders of the House.
    The Committee was assisted in its deliberat ions by the Hon Deputy Minister for Finance, Mr Cassiel Ato Baah Forson, and officials from the Ministries of Finance and Petroleum.
    The Committee is grateful to the Hon Deputy Minister and officials from the two Ministries 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.
    Loans Act, 1970 (Act 335).
    Background
    The production of oil in commercial quantities required that relevant public institutions were urgently equipped with the requisite knowledge and skills to effectively and efficiently manage the oil resources; particularly policy formulation, as well as the revenue, legal, environmental and data management aspects; while promoting transparency and information sharing.
    The Oil and Gas Capacity Building Project was, therefore, designed to bridge the skills gap in the management of oil and gas resources.
    The nation, through the International Development Association of the World Bank financed the Oil and Gas Capacity Building Project. The original loan (IDA - 48470) of SDR 24.2 million (US$ 38 million equivalent) was approved on December 20, 2010 and the project which was declared effective on May 24, 2011 is expected to close in June 30, 2015.
    The Project Development Objective (PDO) of the original project is: i) improve public management and regulatory capacity while enhancing transparency: and ii) strengthen local technical skills in Ghana's emerging oil and gas sector. A mid-term review conducted revealed
    Chairman of the Finance Committee (Mr James K. Avedzi) 1:35 p.m.


    among others, that the project is performing well, for “Progress towards the achievement of the PDO” and for “Implementation progress. A deficit of US$19.8 million is anticipated till project closure if the full scope of the project is to be implemented. This deficit will have a negative impact on the achievement of the project's development objectives if the funding gap is not addressed and it in this regard that the additional funding is being sought.

    Terms of the Facility

    The terms of the credit facility is as follows:

    Loan Amount -- SDR12.9 million (US$19.8 million)

    Repayment Period -- 25 years

    Grace Period -- 5 years

    Interest Rate -- 1.25 per cent per annum

    Commitment Fee -- 0.5 per cent on undrawn credit

    balance

    Service Charge -- 0.75 per cent on the withdrawn

    credit balance

    Components of the Project

    The proposed additional financing project will comprise three main components with various sub-components as follows:

    Component A- Institutional Development and Sector Management

    This component seeks to support the:

    i) Ministry of Petroleum (MoPet) and

    Petroleum Commission (PC);

    ii) GNPC and Petroleum Commission for the expansion and revamping of the data repository to safeguard the oil and gas data being generated through exploration and Well development.

    iii) The Environmental Protection Agency (EPA), to enhance its ability to monitor oil and gas sector operations.

    iv) Ministry of Finance (MoF) particularly the Ghana Revenue Authority (GRA) for revenue management.

    v) EITI Secretariat, other public bodies dealing with sector governance such as the Attorney- General's office and the Economic and Organised Crime Office (EOCO)

    Component B-- Education and Skills Development

    This will support three vocational training institutions, that is, Kikam Technical Institute, Takoradi Technical Institute and the Maritime University. It is designed to strengthen the capacity of these institutions to enhance the skills of the local workforce to engage in the oil and gas sector. Specifically, it is to upgrade the facilities in these training schools mainly through the provision of good laboratory equipment.

    The components will also look at the support to Kwame Nkrumah University of Science and Technology (KNUST) where the capacity of KNUST is strengthened to provide high level degree programmes in petroleum engineering and petrochemical engineering.

    Component C-- Project Management

    This supports the project's coordi- nation unit in its role as co-ordinator and manager of the project. The funding for

    this component will be increased to account for the extension of the project, additional financing and additional consultancies needed for technically complex procurement packages.

    Observations

    Justification for Funding Gap and Government Actions

    Justifying request and Government action, the Deputy Minister of Finance and officials of the Ministry of Petroleum indicated that the final costs of the equipment packages for the beneficiary institutions became much higher during the actual implementation of the project than initially anticipated during the preparation of cost estimates and associated project documents.

    It was explained that these equipment packages consist of specialised petroleum sector teaching equipment like hydraulic and crane packages, Well controlled simulator and Well fluids lab as well as specialised laboratory equipment such as fluid properties laboratory, core preparation laboratory, rock properties laboratory, drilling fluids laboratory and oil Well cementing laboratory.

    The Hon Minister added that due to the highly technical nature of these packages, the exact technical specifications were done only during implementation with assistance provided either by the bank- funded project or by other donors. Further, getting the cost estimates right was challenging due to the limited competition and presence of few vendors for these types of equipment.

    The Minister maintained that the funding and completion of these laboratories and installation of technical

    equipment, with the follow-up technical assistance and training, is essential to the achievement of the PDO, especially the second part of the PDO which seeks to “strengthen local technical skills in Ghana's emerging oil and gas sector”.

    The Minister added that potential for finding alternative funding sources to complement this gap is minimal and was convinced that the continuous financing by the World Bank would ensure uninterrupted project implementation and would guarantee the achievement of project objectives.

    Terms and conditions of the facility

    The Committee noted that the Facility is a concessionary one with a standard IDA terms. The facility, it was noted, has a grace period of 5 years, repayment period of 20 years and maturity period of 25 years. Service charge is 0.75 per cent whiles commitment charge on unwithdrawn balance is 0.5 per cent per annum. The Committee was also informed that preliminary assessment of the financial terms yielded a Grant Element of 38.75 per cent at a discount rate of 5.11 per cent which meets Government's concessionary criterion of a minimum Grant Element of 35 per cent on new borrowings.

    Potential Benefits of the Project

    Commenting on the potential benefits of the project the Hon. Minister for Petroleum stated that though the project basically involves technical and capacity building operations, there are many direct and indirect economic benefits that the country will derived from the implementa- tion of the project.

    The Minister, for example, stressed that as a new oil producing country, Ghana lacks a cadre of technical professionals with advanced training in the key petroleum disciplines needed to staff the key regulatory agencies and the alternative to the training provided by the project would have been to hire expatriate consultants who are in very high demand.
    Chairman of the Finance Committee (Mr James K. Avedzi) 1:35 p.m.


    It was further indicated that facilities in the country's existing vocational and tertiary educational institutions are inadequate to educate students in the professional and technical skills needed by the oil and gas industry.

    The alternative to the laboratories and faculty development provided by the project would have been to send students to overseas courses which would be expensive to be borne by the country at this stage of our economic development. Cost of similar overseas training funded at MoPet were cited to buttress this claim.

    According to them, an estimated cost for an overseas vocational training course is US$25,000 and the cost of an overseas petroleum engineering degree is US$100,000. Therefore, training of 530 COTVET students and 300 KNUST students would thus cost the country US$43 million.

    Another benefit which was indicated was the development of EPA shoreline monitoring capacity. It was explained that to assured the coastal communities that the water they depend on is not being polluted by offshore oil activity, the EPA needs a method of patrolling coastal waters, drawing samples, and processing samples in a certified laboratory which is being provided under the project.

    The alternative to the surveillance vessel and laboratory provided by the project according to the officials, would have been to hire contractor for surveillance and to send water samples overseas for analysis.

    Conclusions

    The Committee, after a careful examination of the facility, is of the view that the project has the potential of strengthening local skills in the country's

    emerging oil and gas and also improve public management and regulatory capacity. The Committee, therefore, recommends to the House to adopt its Report and approve by Resolution, the request for approval of the Financing Agreement between the Government of the Republic of Ghana and the International Development Association (IDA)) for an amount of twelve million, nine hundred thousand Special Drawing Rights (SDR 12.9) (US$19.8 million equivalent) for the proposed additional financing for the Oil and Gas Capacity Building Project in accordance with article 181 of the 1992 Constitution, section 7 of the Loans Act and Order 169 of the Standing Orders of the Parliament of Ghana.

    Respectfully submitted.
    Dr Anthony Akoto Osei 1:35 p.m.
    Mr Speaker, with your permission, since it deals with oil and gas, I wish to seek the indulgence of the Ranking Member for the Committee on Mines and Energy to comment on it.
    Mr Speaker 1:35 p.m.
    Very well.
    Dr A. A. Osei 1:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question proposed.
    Mr Kobina Tahir Hammond (NPP - Adansi Asokwa) 1:35 p.m.
    Thank you very much, Mr Speaker, for the opportunity to contribute.
    Mr Speaker, in this era, where people are terrified by the amount of loans that this country under this Government, is prepared to take this particular loan, is peculiarly terrifying. The reason is that it may not be much but what on earth is the reason for this loan? Is it the concept that we run after anything? The maturity period may be good. The interest rate and
    whatever may be good but there must be a justifying reason for us to go for this sort of loan.
    Mr Speaker, check and look and the memorandum and see what it is all about
    -- 1:35 p.m.
    Mr Buah 1:35 p.m.
    On a point of order.
    Mr Speaker, I think the Hon Member is misleading the House. The reference to GNPC in this Agreement has to do with the Data Centre that is really a repository for the upstream sector that is quite, frankly, going to the Petroleum Commission. So, that is the reference here and I would want to make sure he makes that clear. It is about the Data Centre and since the establishment of the Petroleum Commission, that function is for the Commission.
    Mr Hammond 1:35 p.m.
    Mr Speaker, if you have a copy now, the next one makes it very clear. There is a difference between the Petroleum Commission, which is here. The Commission originally was going to benefit to the tune of US$4 million. It has now been changed to US$5.9 million. If the Data Centre was originally for GNPC, GNPC is here.
    Mr Speaker, either way, I said it did not make any commercial sense whatsoever. Why burden the country with so much debt when GNPC could simply pay for itself?

    Mr Speaker, “Governance” -- Which governance? Is it for Flagstaff House or the Castle or what? Governance is going to benefit originally to the tune of US$3 million. Now, it has gone down to US$1.8 million. What is it all about?

    Mr Speaker --
    Mr Speaker 1:35 p.m.
    Please, wind up.
    Mr Hammond 1:35 p.m.
    Mr Speaker, I am winding up.
    Mr Speaker, I invite this House to reject this particular one. There is no good use for this loan, except to add to the debt stock. I plead with the House, that GNPC does not need it because they are distributing their money like confetti. Government does not need US$3 million from this. We do not need this loan. It simply adds to our debt stock -- the interest repayment of our outstanding debt.
    Mr Speaker, we do not need it. Let us reject this particular one.
    Mr Speaker 1:35 p.m.
    Hon Members, I refer you to Standing Order 40 (3) and direct that having regard to the state of Business of the House, Sitting be held outside the prescribed period.
    Yes, Hon Minister?
    Minister for Petroleum (Mr Emmanuel Armah-Kofi Buah)(MP) 1:55 p.m.
    Mr Speaker, I rise to support the Motion and to ask Hon Members to approve this Oil and Gas Capacity Building Project. The reason is very simple. The first phase of the project, which was US$38 million has benefited 400 staff of various agencies.
    Mr Speaker, we have to understand where we have come from. Suddenly, we discover oil and we had a choice. We could have waited to build our capacity for five years but we decided to fast track development and suddenly we found out that we did not have the capacity. All the institution of State -- the Attorney- General's Department, the Ghana Revenue Authority had no capacity.
    Mr Speaker, that was why we found ourselves in this. As a result of this programme, four hundred employees from the Ministry of Energy, Petroleum Commission, the Environmental Protection Agency (EPA), Economic and Organised Crime Office (EOCO), the Attorney- General's Office, Council for Technical and Vocational Education and Training (COTVET), and Kwame Nkrumah University of Science and Technology (KNUST) have benefited.
    Mr Speaker, more than that, we have talked a lot about the need to make sure that we are regulating the upstream sector.
    The EPA must have the capacity and skill to be able to go to the Floating Storage, Production, and Offloading (FPSO) any time. We have been able to provide a vessel under the capacity building. We have been able to build a modern Petroleum Engineering Depart- ment at the Kwame Nkrumah University of Science and Technology (KNUST) and we are helping to build the Council for Technical and Vocational Education Training (COTVET) with skills training.
    What we are doing, simply is, because there is cost overrun, and we are now asking for additional funds. For example, out of this GH¢19 million, GH¢7.8 is going to KNUST to make sure that when we say that one is a petroleum engineer graduate from Ghana, one really has the capacity.
    Mr Speaker 1:55 p.m.
    Hon Member for Old Tafo?
    Dr A. A.Osei 1:55 p.m.
    On a point of order.
    Mr Speaker, the Hon Minister is misleading the House by not telling us what he really wants to say.
    Mr Speaker, why do I say that? This House is the oversight body, but our name is not mentioned in the Report. He is not addressing it. Parliament's capacity must be built, but this programme does not include it. It should be explained to this House why we are oversighting but he has not included us in it.
    Mr Buah 1:55 p.m.
    Mr Speaker, the Hon Member is asking for us to give more capacity for Parliament. I think it is a good one. We have been working with the Energy Committee and occasionally, the Finance Committee as well. I think it is very important.
    The Ghana Revenue Authority has benefited. Mr Speaker, we have been talking about doing proper accounting to make sure that what revenue accrues to the State is properly accounted for. We are building the capacity to do that and we have said that EPA, under this GH¢19 million, is getting GH¢1.8 million to build the EPA's capacity.
    rose
    Mr Speaker 1:55 p.m.
    Hon Member for Suhum, do you have a point of order?
    Mr Buah 1:55 p.m.
    Mr Speaker, what I was saying was that, we are not only bringing out good petroleum engineers, but we are also producing them in good numbers to meet our needs.
    Our base continues to expand; the industry is expanding and we need to produce these graduates. This programme is helping to do exactly that and so Mr Speaker, it is very important -- it has good reasons we are doing that and I have justified it. But let me make the point. GNPC is not the beneficiary here.
    The Data Centre mentioned is for the Petroleum Commission. Let the record be clear about that -- and the Petroleum Commission is very critical as a regulator to make sure --
    Mr Speaker 1:55 p.m.
    Hon Minister, look at page 3 of the Committee's Report that we are debating, and look at components of the project.
    Component A -- Institutional Development and Sector Management, look at (ii).
    Mr Buah 1:55 p.m.
    Mr Speaker, you are right. GNPC was mentioned. GNPC has always been in charge of the Data Centre and data management. We are now in a transition. I am trying to make a point that the reference has to do with the Data Centre that would ultimately --
    Mr Speaker 1:55 p.m.
    Please, the question is -- You see, Hon Minister, we are adopting the Report. The Motion is to adopt this Report and this Report has GNPC there. If the Data Centre is no longer the function

    or under the management of GNPC and you think that GNPC as a corporate entity is not going to benefit, then the Report must be amended accordingly to reflect that fact.

    But so long as it is in it, it is right for people to mention GNPC, because this is the Report which is the subject matter of this Motion.
    Mr Buah 1:55 p.m.
    Mr Speaker, thank you.
    Let me concede that the GNPC is mentioned and it is correct. We are in a transitional period where GNPC is working with the Petroleum Commission. So, it is right for it to be mentioned. But it has to be pointed out that we are building the capacity of the Petroleum Commission through a transition with GNPC and it has to do with the Data Centre that would ultimately be managed by the Petroleum Commission.
    Mr Speaker, I would urge Hon Members to approve this Report.
    Mr Speaker 1:55 p.m.
    Hon Member for Sekondi? The last contributor, then I will put the Question.
    Papa Owusu-Ankomah (NPP-- Sekondi) 1:55 p.m.
    Thank you very much, Mr Speaker, for the opportunity to contribute to this debate.
    Mr Speaker, I admire the zeal and passion with which the Hon Minister is contributing to this debate, but I believe that he has not adequately responded to the concerns of the Hon Member for Adansi Asokwa.
    This question was posed at the Committee meeting and I believe that it was adequately answered by the representatives of the Ministry and I was hoping that the Hon Minister would address this concern.
    We have had oil and capacity building as a component of the distribution of the petroleum revenue. So, why do we take a loan again for oil and capacity? In terms of the Government's priorities in expenditure, is there no way we could get these funds from Government's own revenue?
    I believe that if he is able to answer this, it would assist this House. I am hoping that having said this, Mr Speaker, even though he has finished contributing, he would be in the position to assist us.
    Nobody disputes the importance of what the loan is meant for. The question is, do we need to take a loan to do this? That is all; that is the question. He should adequately answer it to the satisfaction of the House.
    Mr Speaker 1:55 p.m.
    Hon Minister, the rules of the House do not allow you to speak two times. But I will relax the rules for you to respond to the point raised by the Hon Member of Parliament for Sekondi, before I put the Question.
    Mr Buah 1:55 p.m.
    Mr Speaker, I really appreciate the issue and concern raised by the Hon Member.
    Mr Speaker, the simple answer is that, yes, this facility is very important, it is needed.
    Mr Speaker, we have to make a distinction between building the capacity of the national oil company as opposed to building the capacity of State institutions. We are building the national oil company's capacity and we project, for example, that the personnel must be
    -- 1:55 p.m.
    Mr Speaker 1:55 p.m.
    The point he is raising is that under the Petroleum Revenue there is a component for capacity building. That is what he is saying. And now, we
    are taking a loan again to build the same capacity. Do we still need the loan for this purpose? Can the one we put there for petroleum revenue not take care of the capacity building?
    Mr Buah 1:55 p.m.
    Mr Speaker, the answer is very clear. The allocations in the Petroleum Revenue Management Act (PRMA) for capacity has never been enough. That is why we are discussing this, else this loan would not be necessary.
    Mr Speaker 2:05 p.m.
    Hon Member for Old Tafo?
    Dr A. A. Osei 2:05 p.m.
    Mr Speaker, I gave the Hon Minister the chance to help this House, but I think he is hurting this House.
    Mr Speaker, the amount as the capacity building coming from the petroleum revenue, up till now, US$111million that was spent has not been explained to us. So, if he says it is not enough and it has not been explained to us, I disagree. In fact, I can speak on authority that, that is a grey area. So, there is enough.
    The Hon Minister can just say that he will consider this next time. But if he says it is not enough, I challenge him to explain how the US$111 million was used.
    Mr Speaker, no --
    Mr Speaker 2:05 p.m.
    Hon Minister?
    Mr Buah 2:05 p.m.
    Mr Speaker, I believe we are talking about two things. If the Hon Member is asking a question for me to
    come and explain line by line how the amount on capacity was utilised in the PRMA, that can be done. But that is a different matter.
    I am saying that that amount that has been spent, the reason we need this additional US$19.8 million is because that has not been enough to help EPA to get a vessel to do instant inspection.
    It has not been enough to help KNUST, the Petroleum Commission of COTVET to build skills of Ghanaians. So, it is obviously not enough. But if the issue is about explaining how oil and gas capacity money on PRMA has been spent, we will be happy to be able to share that with Hon Members.
    But this loan is very important. It will strengthen regulatory capacity of institutions that are too critical for the sector.
    Mr Speaker 2:05 p.m.
    Hon Members, that brings us to the end of the debate.
    Question put and Motion agreed to.
    RESOLUTION 2:05 p.m.
    THIS HONOURABLE HOUSE 2:05 p.m.
    Chairman of the Committee (Mr James Klutse Avedzi) 2:05 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Speaker 2:05 p.m.
    Mr First Deputy Speaker to take the Chair.
    Hon Deputy Majority Leader?
    Mr Agbesi 2:05 p.m.
    Mr Speaker, there is a document which is being distributed, titled Order Paper Addendum 3.
    Mr Speaker 2:05 p.m.
    What is the name of the document? [Laughter.]
    Mr Agbesi 2:05 p.m.
    Mr Speaker, Order Paper Addendum 3.
    Mr Speaker, with your permission, I would want it to be amended to Order Paper Addendum 2.
    The Hon Deputy Minister for Finance should lay it.
    MR FIRST DEPUTY SPEAKER
    Mr First Deputy Speaker 2:10 p.m.
    Very well.
    Hon Deputy Majority Leader, you asked for leave to amend to make it read Order Paper Addendum 2.
    Leave granted.
    Yes, Hon Deputy Minister for Finance?
    PAPERS 2:10 p.m.
    Mr Opare-Ansah 2:10 p.m.
    Mr Speaker, I am confused. I heard the Hon Deputy Majority Leader change the name of a Paper from Order Paper Addendum 3 to Order Paper Addendum 2. Subsequently, you called the Hon Deputy Minister for Finance and he did something, then I heard the Clerks-at-the-Table read the title of the document.
    Mr Speaker, when I look at the title of the document, it reads by the Hon Minister for Finance and I did not hear the Hon Deputy Majority Leader say that we will take that item nor did I hear him ask for permission for the Hon Deputy Minister to represent his Minister in laying this Paper. I am so confused. So, Mr Speaker, could you help me?
    Mr First Deputy Speaker 2:10 p.m.
    I pray thee, do not get confused -- [Laughter.] I believe we have gone through the process of dealing with the Order Paper Addendum 2 as amended and the Hon Deputy Minister for Finance did it for and on behalf of the substantive Minister.
    Yes, Hon Deputy Majority Leader?
    Mr Agbesi 2:10 p.m.
    Mr Speaker, at this stage, we would want to reconstitute the House into a Committee of the Whole to handle the statutory Funds.
    Mr First Deputy Speaker 2:10 p.m.
    Yes, Hon Member?
    Mr Ignatius Baffour Awuah 2:10 p.m.
    Mr Speaker, this was what was agreed at the pre-Sitting meeting, and I believe it is in order.
    Mr First Deputy Speaker 2:10 p.m.
    Very well. In that case, Hon Members, the House will move into the Committee of the Whole to consider Reports that are available.
    Yes, Hon Member?
    Mr Opare-Ansah 2:10 p.m.
    Mr Speaker, I noticed that on the Order Paper, item 24 reads: “Committee of the Whole”, and item 25 reads: “Committee sittings”.
    Mr Speaker, I took a look at our Standing Orders and in the definition of “Committees”, it says “Committee of the Whole”. So, I am just trying to find out why we want to take Committee of the Whole as a separate item from Committee sittings.

    I am saying that item 24 reads: “Committee of the Whole” and then item 25 reads: “Committee sittings”. Is the Committee of the Whole no longer a Committee of this House? This is my question to the Leadership.
    Mr First Deputy Speaker 2:10 p.m.
    Yes, Hon Deputy Majority Leader?
    Mr Agbesi 2:10 p.m.
    Mr Speaker, today's Order Paper, Wednesday, 25th March, 2015, on page 21, item 24, it reads: “Committee of the Whole to consider the Statutory Funds”. That is exactly what I have asked Mr Speaker to do for us to go into the Committee of the Whole. It is not Closed Sitting; it is Committee of the Whole.
    Mr First Deputy Speaker 2:10 p.m.
    Yes, Hon Deputy Minority Leader?
    Mr B. Awuah 2:10 p.m.
    Mr Speaker, the observation made by the Hon Opare- Ansah is valid and I think we should humbly accept the mistake and effect the necessary correction. This is because a Committee of the Whole is a Committee of the House. So, it should have come under the heading “Committee sittings”. It should not have been on its own. So, I believe his observation is right.
    Mr First Deputy Speaker 2:10 p.m.
    Very well.
    I agree with you, but we are the authors of our own rules. And as such, to make Hon Members become increasingly aware that there will be a Committee of the Whole sitting, that is probably why the Table Office separated that one from the rest of the Committee sittings. But the point is well taken.
    I believe the Table Office will have to take note, so that next time round, we do not have this kind of --
    Hon Members, we will move into a Committee of the Whole. At the end of it, if there is time, we will come back to plenary and deal with one or two other matters.
    2.15 p.m. -- Sitting suspended.
    4.15 p.m. -- Sitting resumed.
    Mr First Deputy Speaker 2:10 p.m.
    Hon Deputy Majority Leader?
    Mr Agbesi 2:10 p.m.
    Mr Speaker, the House was at a Committee of the Whole. Before, we had this Paper presented by the Chairman of the Committee on Defence and Interior
    as captured in the Addendum 1. It is a Motion numbered 2.
    So, Mr Speaker, Addendum 1, item 2.
    Mr First Deputy Speaker 2:10 p.m.
    Yes, Hon Member for Old Tafo?
    Dr A. A. Osei 2:10 p.m.
    Mr Speaker, Addendum number 2, he made us amend it and it is a Paper to be laid. This numbering system is confusing us. You asked us to revise Addendum number 2, which is the loan. How can it be Addendum1?
    Mr First Deputy Speaker 2:10 p.m.
    Hon Member, he sought leave of the Chair to have it amended to read Addendum number 1. Is that not right? And the Rt Hon Speaker granted leave. So, that has been done. Addendum 3 is now 2.
    Mr Agbesi 2:10 p.m.
    Mr Speaker, originally, there was an Addendum which was removed. So, when Addendum 2 came, I made an application and it was changed to Addendum 1 on which we have item 2, which is capturing the Agreement for the purchase of the aircraft.
    Dr A. A. Osei 2:10 p.m.
    Mr Speaker, with the new one, they repeated Addendum 2, which should have been Addendum 1.
    Mr First Deputy Speaker 2:10 p.m.
    Hon Members, let us get it clear.
    What originally read Addendum 2 is now Addendum 1 and that is what he is referring to. He is referring to item number 2, which is a Motion.
    So, Hon Members, item number 2 is a Motion by the Hon Chairman of the Committee.
    MOTIONS 2:10 p.m.
    Chairman of the Committee) 2:10 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 Committee on Defence and Interior on the Contract Agreement between the Government of the Republic of Ghana and AirBus Defence and Space S.A.U for the acquisition of one (1) C-295 Aircraft and related equipment for the Ghana Armed Force Peacekeeping efforts undertaken by the United Nations Organisation and other agreed uses may be moved today.
    Maj. Derek Odum (retd): Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Government of Ghana/AirBus Defence and Space SAU- Contract
    Agreement
    Vice Chairman of the Committee (Mr Ernest K. Yakah) (on behalf of the
    Chairman of the Committee) 2:10 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Financing Agreement between the Government of the Republic of Ghana and AirBus Defence and Space S.A.U for the acquisition of one (1) C-295 Aircraft and related equipment for the Ghana Armed Force Peacekeeping efforts undertaken by the United Nations Organisation and other agreed uses.
    Mr First Deputy Speaker 2:10 p.m.
    Hon Members, I would plead with you that we reduce the heckling to its barest minimum.
    Hon Vice Chairman, you have the Floor.
    Mr Yakah 2:10 p.m.
    Mr Speaker,
    Introduction
    The Contract Agreement between the Government of the Republic of Ghana (represented by Ministry of Defence) and Airbus Defence and Space S.A.U. for the supply of one C-295 Aircraft and related equipment was laid in the House on Tuesday, 17th March, 2015 by the Hon. Deputy Minister for Defence, Mr. Alexander Percival Segbefia, on behalf of the Hon Minister. Mr Speaker in accordance with Order 158 of the Standing Orders of the House referred the Agreement to the Committee on Defence and Interior for consideration and report.
    The Committee met with the Hon Minister for Defence, Hon. Benjamin Kunbour and officials of the Ghana Armed Forces to consider the terms of the Agreement. The Committee is grateful to the Hon Minister and his officials from the Air Force and Legal Department for availing themselves to facilitate deliberations on the said Agreement.
    Reference Documents
    The Committee referred to the following documents during its deliberations:
    1. The 1992 Constitution
    2. The Standing Orders of the House
    3. The Report of the Finance Committee on the Credit Facility Agreement between the Govern-
    Mr Yakah 2:10 p.m.
    ment of the Republic of Ghana and VTB Capital Plc London (as Arranger and Facility Agent) for an Amount of three hundred million United States dollars (US$300 million) for the Ghana Armed Forces Peace-keeping Efforts undertaken by the United Nations Organisation and other agreed uses.
    Background
    At its Twenty-First Sitting of the Second Meeting of the Second Session of the Sixth Parliament, this Honourable House approved by Resolution, the Credit Facility Agreement between the Government of the Republic of Ghana and VTB Capital Plc, London for an amount of three hundred million United States dollars (US $300M) for the Ghana Armed Forces Peacekeeping efforts undertaken by the United Nations Organisation and other agreed uses.
    A provision of thirty four million euros (€34m) has been allocated in the approved VTB Loan Facility for the purchase of an Aircraft for the Ghana Air Force to enable it participate in the United Nations Peace Support Operation (UNPSO), particularly, in emergency entry into South Sudan and Mali. Article 181(5) of the 1992 Constitution requires that any international business or economic transaction to which Government is party, should be authorised by Parliament.
    Since the procurement of the aircraft involves an external contract with a foreign company, the Ministry of Defence in compliance with article 181 (5) presents to this House for consideration and approval, the Purchase Agreement between the Government of the Republic of Ghana and AirBus Defence and Space S.A.U for the acquisition of one (1) C-295 Aircraft and related equipment.
    Justification
    An amount of €34m has been allocated in the US$300m VTB Loan facility approved by Parliament in July, 2014 for the purchase of the Aircraft for the MINUSMA Operations of the Ghana Armed Forces. The Committee is to consider the terms and approve the Contract Agreement for the acquisition of one (1) C-295 Aircraft and related equipment for AirBus Defence and Space S.A.U. The estimated cost of the aircraft is € 33,325,126.00. The acquisition of the aircraft will enhance Ghana's input to the United Nations Peacekeeping Operations.
    The present demands of the Wet Lease System in UNPSO requires a Troop Contributing Country (TCC) to launch its contingent into a Mission with adequate equipment, logistics and materials which must be sustained in the area of operations. The UN reimburses for personnel, major equipment and self- sustaining tools deployed in the mission areas.
    The present demand for acquisition of the C-295 aircraft emanates from the timeline given by the UN for TCCs to be deployed particularly in Mali. Failing to do this (with effect from 1st July, 2014) TCCs are to suffer a deduction of the Troop Cost reimbursement for dysfunc- tional or unserviceable Contingent Owned Equipment (COE) in the Mission area.
    It is expected that reimbursements from Peacekeeping operations would be used to repay the loan overtime. Meanwhile, the aircraft can be used back home upon termination of the assignment or deployed to another UN Peacekeeping mission to draw revenue for Ghana.
    The Ministry of Defence has held discussions with the Ministry of Finance and the Ministry of Justice and Attorney- General's Department whose concerns have been incorporated into the Purchase Agreement.
    Terms of the Contract Agreement
    The Contract Agreement has twenty (20) Articles with clauses and subclauses which the Committee deliberated upon and found to be standard:
    (i) The Committee raised initial concerns over the conditions given in clauses 3.2 and 3.3 but concluded that payment of initial deposit is standard. Provisions of 3.3 are to ensure that the delivery meets with specifications at each stage.
    (ii) The Committee expressed reservations with clause 3.5 (v) but it was explained that it was in effect a Performance Bond in favour of the Buyer (Government of Ghana).
    (iii)The Committee raised security concerns over clause 10.5 which gives the Seller “reasonable” access to the aircraft and its records, even if for monitoring purposes.
    Additional Equipment
    CASA is a brand name and C-295 is the biggest of the series. Specifically how the aircraft is deployed is what makes the difference in the aviation industry.
    Ghana's acquisition of the C-295 aircraft includes the following additional equipment:
    (i) Cargo Handling Systems
    (ii) Aerial Delivery Systems
    (iii) MEDEVAC Kits
    (iv) Kit of twenty-five double economy class seats.
    The additional equipment will allow for re-configuration of the craft at any given time. Thus, the craft can be used to carry forty-four (44) VIP passengers (forward- facing seats) or seventy (70) troops. In times of medical evacuation, it can be reconfigured to carry twenty-seven (27) lying cases or forty-four (44) sitting cases.
    Basic and Additional Training Package
    Four packages of Basic training and Technical assistance will be given as well as Four Additional advance level training packages.
    The training package will include Flight Crew Type for Pilots, Power Plant and Systems Maintenance Type, Engine run- up course, Flight Stimulator refreshment and familiarisation maintenance course for maintenance technicians. There will be one technical representative for two (2) months.
    Observations and Recommendations
    The Committee is of the view that the Aircraft can be deployed for civilian, military and humanitarian purposes. All the seats can be removed and be easily reconfigured for a role (about 15 minutes), which makes it very useful in emergency situations. It has an endurance level of over nine (9) hours and can fly two thousand (2,000) nautical miles without refueling.
    The Committee noted that the difference in the total allocated under the VTB Loan Facility and the cost of the aircraft is for the intermediary activities (which are not international in nature) that will enhance the deployment of the craft.
    There are enormous political, economic and socio-cultural gains that Ghana stands to make from participating in UN Peace Support Operations. More so, the reimbursements will contribute to offset the loan facility involved.

    The Committee recommends that Ghana continues to participate in emergency peacekeeping operations, not only in Mali, but anywhere in the world where duty calls. The acquisition of the aircraft will enable Ghana achieve this objective of participating fully in peacekeeping operations in Mali and sustain existing contingents on other missions.

    Conclusion

    The Committee has carefully examined the referral and finds the Contract Agreement to be in good faith. The Committee affirms the need for acquisition of one (1) C-295 Aircraft and related equipment from AirBus Defence and Space S.A.U. This will enhance and facilitate Ghana's input in the peacekeeping support operations generally.

    The Committee, therefore, recommends that this august House adopts this Report and approve the Contract Agreement between the Government of Ghana (represented by the Ministry of Defence) and AirBus Defence and Space S.A.U, for the purchase on one (1) C-295 aircraft and related equipment for the Ghana Armed Forces peacekeeping efforts, undertaken by the United Nations Organisation and other agreed uses.
    Mr First Deputy Speaker 4:25 p.m.
    Hon Members, order!

    Maj Derek Y. Oduro (retd) (NPP -- Nkoranza North): Mr Speaker, I beg to second the Motion moved by the Hon Vice

    Chairman of the Committee on Defence and Interior and would want to add some few comments to the Report.

    Mr Speaker, the loan is needed to purchase C-295 Aircraft for the Ghana Armed Forces to enable them participate in the peacekeeping operations throughout the entire world. This is because the Ghana Armed Forces is called upon to undertake operations in Africa and outside Africa.

    Mr Speaker, the United Nations (UN) enjoins the troop contributing nations to come to the mission area with certain equipment. These equipment are enshrined in the memorandum of understanding and it is expected that every bit of the Agreement is fulfilled, otherwise, the troop contributing nation would never be reimbursed with the equipment that they bring to the mission area.

    Therefore, the Ghana Armed Forces is buying this aircraft to be able to fulfill the Agreement that has been signed with the United Nations.

    Mr Speaker, I would want to draw attention to the fact that this aircraft is being purchased, there are other accessories that are supposed to be purchased in addition to the aircraft and these accessories are, cargo handling systems, area delivery systems, MEDEVAC kits and then kits of 25 double economy class seats. These are the accessories that are supposed to be added unto the aircraft, so that at some point in time, it will be reconfigured for the purpose assigned to Ghana as a contributing nation.

    Mr Speaker, UN will reimburse Ghana for this equipment that we are sending and therefore, the loan that we are contracting would be paid back by the UN reimbursement. And therefore, I expect that nobody should murmur about this

    because the money will come back to the country. I would even expect that more of these aircraft could be purchased because we are not going to suffer when we procure any loan.

    I would challenge the Hon Minister if he could even come to this august House to appeal to Hon Members of this House, so that we could buy more of these aircraft so that the Ghana Armed Forces would be able to participate in further operations throughout the globe.

    Mr Speaker, with these few words, I think I would urge my Hon Colleagues to support this Report, so that we buy the aircraft for the Ghana Armed Forces to enable us maintain our position as one of the best contributing countries when it comes to peacekeeping operations.
    Mr First Deputy Speaker 4:25 p.m.
    Hon Members, we will take two more contributions from each side of the House and then I will put the Question.
    Wg. Cdr. Francis K. Anaman (retd) (NDC -- Jomoro): Thank you, Mr Speaker, for giving me the opportunity to contribute to the Motion on the floor of the House.
    The CASA C-295 Aircraft is one of the biggest in the CASA series. The demand for this aircraft has become necessary because of Ghana's participation in the Malian operation. Apart from the fact that the aircraft is going to pay for itself through UN reimbursement, it is coming with a package of basic and additional training package for our aircraft and technical crew.
    I believe, if this august House approves of this contract, it is not only
    [MAJ. ODRO (RETD)][MR YAKAH] going to give the Ghana Armed Forces and therefore, the Ghana Air Force an air asset, but this country is going to have an air asset which is going to live with us for many years to come. So, aside operating in the UN theatre, this aircraft would also contribute to air operations in the country.
    Therefore, without wasting much time, Mr Speaker, I would want to implore Hon Members on both sides of the House to approve this Agreement for the benefit of the Ghanaian people whom we represent.
    Mr David Oppon-Kusi (NPP -- Ofoase/ Ayirebi) 4:25 p.m.
    Mr Speaker, I rise to support the Motion but in doing that, I would like the Hon Members who proposed the Motion to clear the air about some of the comments they have made.
    We have been told that we are going to be reimbursed for the cost of the aircraft and I find that a bit difficult to understand. Are we going to be reimbursed with the total cost as a bullet payment, so that we can go back and pay the loan? This is because we are going to take a loan and pay over a period with some interest.
    Now, is it the case where it is part of the equipment we are going to use, such that as we provide the services, we are paying for the services and probably, out of that, we may get the cost of the equipment? But the impression is given that once you buy this, UN will reimburse us for the cost of the aircraft. I need a clarification to that, so that we know exactly what is going to happen.
    With that, if the explanation comes, Mr Speaker, I support the Motion.
    Mr Dominic A. Azumah (NDC -- Garu) 4:25 p.m.
    Mr Speaker, I rise to support the Motion and to urge the House to adopt the Report and approve it.
    Mr Speaker, the international community holds Ghana in very high esteem. We have been in peacekeeping operations for several years and the performance of the Ghana Armed Forces in such operations have been applauded.
    Mr Speaker, one of the critical things certainly facing the Ghana Armed Forces is the provision of logistics, which normally can enhance their performances. I am sure the procurement of this aircraft, certainly, is going to boost the Ghana Armed Forces in their performances. I would always want to repeat that in Mali, when the outbreak of insurgency started, the Ghana Armed Forces was invited there.
    When it came to the air operations, that was delegated to the Ghana Armed Forces. They did a yeoman's job in Gao and that was the place they managed to dismember the insurgents who ran into the bush by the use of the Ghana Armed Forces aircraft and other things. Indeed, this was recognised in Abuja when the Heads of Authority met to appraise the situation in Mali.
    I am convinced that with the provision of this particular aircraft, which is specially designed for such operations, it would help them to perform better.
    I am happy to hear that as we go for the operations and the UN recognises our performances, they continue to support the Ghana Armed Forces with some kind of logistics and this is what is going to go a long way into defraying the cost of this aircraft.
    So, the facility is good enough and I think it would further enhance the image of the Ghana Armed Forces and for that matter, the country in general.
    I would urge this House to approve this, so that we can procure the aircraft.
    Mr First Deputy Speaker 4:25 p.m.
    Yes, Hon Member for Dorman Central, then after that the Hon Minister for Defence will then address the issue raised by the Hon Member for Ofoase/Ayirebi concerning the repayment of the loan.
    Mr Kwaku Agyeman-Manu (NPP -- Dormaa Central) 4:25 p.m.
    Mr Speaker, I also rise to urge my Hon Colleagues to support the Motion by virtue of the relevance of this particular equipment in Ghana's p;eacekeeping operations.
    Mr Speaker, this is not the first time that we would be procuring an equipment like aircraft for the Ghana Armed Forces for peacekeeping operations. All the time, the impression created is that, the equipment would pay for itself. Implying that UN disbursements into supporting operations would cater for utilisation of the equipment we procure.
    But we have not had any report from the Committee submitted to this House that tries to propose that we should set aside these inflows to utilise the moneys that accrue to redeem the loans.
    So, what happens is that, whatever UN pays us, it goes into the peacekeeping account sitting somewhere in New York and then the loans are managed by the Ministry of Finance -- Debt and Aid Management. So, whether money comes from UN to come and pay the debt, we do not even know. I think that would not support the assertion that the Committee would want us to believe.
    So, I would want to suggest that you give direction to enable us introduce a system that would assist us track the inflows, set aside for repayment for some of these loans. Other than that, we always borrow money; moneys that are supposed to come to redeem these loans, would not come and then we will use the same tax revenues to do these redemptions. I do
    Mr First Deputy Speaker 4:25 p.m.
    Thank you very much.
    Hon Minister for Defence, I think a number of issues have been raised and it would be only proper that you respond.
    Minister for Defence (Dr Benjamin B. Kunbuor) 4:35 p.m.
    Mr Speaker, let me use this opportunity to thank Hon Members for the interest they have shown in this particular contract arrangement and to respond to one specific question, which is also related to the second question.
    Normally, when you are going on peacekeeping, there are internationally recognised guidelines and memorandum of understanding which are signed. When these are signed, these indicate specifically men -- What they call boots on the ground, aircrafts, naval, intelligence and communication. They will specify the type of equipment that you would need to send into the theatre.
    Mr Speaker, each of these specifica- tions include the amount that the United Nations (UN) will pay for. So, anytime you deploy any equipment and you are given the UN certificate as up to the standard, the amount automatically is paid.
    This money is paid into a peacekeeping account in New York.
    Mr Speaker, one of the challenges we have had over the years is that, people have described this account as a “mystery account”. This is because the Hon Minister for Defence has no way of knowing what exactly happens in that account.
    We wrote a Cabinet memorandum two weeks ago when I was in the Ministry and the President gave us the convening orders to set up a committee. The committee is left with two weeks to submit its report, to streamline that peacekeeping account in New York and to indicate how it could be used for capacity and capability readiness and other issues for effective response, given the new threat that we are beginning to have around us.
    It will submit its report and immediately we submit it to the Commander-in-Chief, we will make sure members of the committee deliberate on it and possibly, this House to get stakeholder built-in.
    Mr Speaker, I can use this opportunity to give about three countries. For security reasons, you cannot mention their names on the floor of the House. This UN arrangement, they do not really need budgetary allocations. This is because, what is paid for these equipment that you deploy is relatively substantial. If we can plough them back, it is one of the biggest industries.
    In one country in particular, they are even using this peacekeeping proceeds to deal with other development concerns of their economy.
    With these few words, Mr Speaker, I would like to thank Hon Members again and promise that we will come to this House at the appropriate time to address a number of issues.
    Let me just register that this is actually a subsidiary Agreement emanating from the VTB that this House approved. There is a second corollary of it which eventually will be coming but we would want that
    Mr First Deputy Speaker 4:35 p.m.
    All right.
    Thank you very much.
    Hon Members, we have had enough debate of this and I will put the Question.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 4:35 p.m.
    Hon Minister for Defence, I believe we will move on to item number 4 -- Resolution.
    RESOLUTIONS 4:35 p.m.
    Minister for Defence (Dr Benjamin B. Kunbuor) 4:35 p.m.
    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 Govern- ment 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, there has been laid before Parliament the terms and conditions of a Purchase Agreement
    between the Government of the Republic of Ghana and AirBus Defence and Space S.A.U. for the acquisition of one (1) C-295 Aircraft and related equipment for the Ghana Armed Forces peacekeeping efforts undertaken by the United Nations Organisation and other agreed uses.
    THIS HONOURABLE HOUSE 4:35 p.m.
    HEREBY RESOLVES AS 4:35 p.m.
    Mr Ernest Kofi Yakah 4:35 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr Agbesi 4:35 p.m.
    Mr Speaker, it is some few minutes to 5.00 p.m. The House is in your hands.
    Mr First Deputy Speaker 4:35 p.m.
    Hon Members, I direct that the House be adjourned until tomorrow at 10.00 0'clock in the forenoon.
    ADJOURNMENT 4:35 p.m.
  • The House was adjourned at 4:40 p.m. till Thursday, 26th March, 2015 at 10.00 a.m.