Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Joint Committee on Finance and Works and Housing on the Credendo-Backed Export Credit Facility Agreement between the Government of the Republic of Ghana and the ING Bank of Belgium SA/NV for an amount of twenty-five million, three hundred and forty-one thousand, nine hundred and fifty-eight euros ((€25, 341,958.00), being loan component of the total project cost of thirty-seven million, six hundred and eighty-three thousand, two hundred sixty-six euros (€37,683,266.00) to finance the Navrongo (Upper East) Water Supply Project.
Mr Speaker, in so doing, I present the Report of the Committee.
Mr Speaker, the Credendo-backed Export Credit Facility Agreement between the Government of the Republic of Ghana and the ING Bank of Belgium SA/NV for an amount of twenty-five million, three hundred and forty-one thousand, nine hundred and fifty-eight euros (€25,341,958.00) being loan component of the total project cost of thirty-seven million, six hundred and eighty-three thousand, two hundred and sixty-six euros (€37,683,266.00) to finance the Navrongo (Upper East) Water Supply Project was laid in the House on Tuesday 31st October, 2017 .
Pursuant to article 103 of the 1992 Constitution and Orders 169 and 180 of the Standing Orders of the House, the
Agreement was referred to a Joint Committee on Finance and Works and Housing for consideration and report.
The Joint Committee subsequently met and considered the Agreement with the Minister for Sanitation and Water Resources, Hon Kofi Adda, the Deputy Minister for Finance, Hon Abena Osei- Asare, as well as officials from the two Ministries and the Ghana Water Company Limited (GWCL). The Committee appreciates their immense contributions and hereby submits this report to the House.
Mr Speaker, the Committee referred to the following documents inter alia during its deliberations on the Agreement:
The 1992 Constitution of the Republic of Ghana
The Standing Orders of the Parliament of Ghana
The Public Finance Management Act, 2016 (Act 921)
The Upper East Region and the Navrongo area in particular have over the years faced perennial water challenges. The major cities of the region which include Bolgatanga, Navrongo, Paga and Bongo, have been identified by the Ghana Water Company Limited (GWCL) as deprived in terms of their access to potable drinking water supply system.
The main surface water supply system in the region is the Vea Dam which is located between Bolgatanga and Bongo.
That Dam, however, has inadequate capacity to meet the raw water demands of the fast growing cities. The Vea reservoir is the only source of fresh water supply and is being used conjunctively with the Ghana Irrigation Development Authority, thus exploiting the reservoir to its limits.
To address the water supply challenges facing Bolgatanga, Navrongo, Paga and Bongo and their surrounding com- munities, there is the need for a new raw water source and a new treatment plant.
The Tono irrigation reservoir which is close to Navrongo and has surplus capacity to meet the water supply needs of the project area has been identified as the new source of raw water. This reservoir also has enough capacity to accommodate further extensions in the future.
The main objective of the project is to produce and supply potable water to adequately cater for the needs of Bolgatanga, Navrongo, Bongo and Paga and their environs up to the year 2030. The project is expected to culminate in:
i. Provision of essential basic water supply infrastructure
ii. improving the health of the inhabitants in the project area
iii. economic stimulus for existing companies and industries and new companies
iv. improving the standard of living of women and children in the Region.
Terms and Conditions
The terms and conditions of the facility are as follows:
Facility Amount -- EUR 37,683,266.00;
ORIO grant amount -- EUR 12, 341,308.00;
Loan amount -- EUR 25, 341,958.00;
Interest rate -- 1.95 per cent p.a. + 6 months Eurobor;
Commitment fee -- 0.80 per cent p.a. on the projected available facility for the availability period,
Management fee -- 0.85 per cent upfront,
Grace period -- 3.0 years,
Repayment period -- 10 years (exclusive of grace period),
Tenor -- 13 years,
Grant element -- 42.43 per ecnt.
The Committee noted that the total cost of the project is thirty-seven million, six hundred and eighty-three thousand, two hundred and sixty-six euros (EUR37, 683,266.00). This is being financed with the loan of EUR 25, 341,958.00 from the ING Bank N.V. of Belgium and a grant .amount of EUR12, 341,308.00 from the Government of Netherlands through
Deputy Minister for Finance, Mrs Abena Osei-Asare assured the Committee that the grant agreement has already been signed between the Government of Ghana
represented by the Ministry of Finance and ORIO of Netherlands, the Grantor.
The Committee was informed that the project involves the design and construction of a new water supply system, including intake, water treatment plant, transmission pipelines and distribution pipe network. Particularly, the scope of works on the project would include the following:
a) New raw water intake at the Tono reservoir (436m3/h, raw water capacity), including pumping station and raw water trans- mission pipeline. Raw water to
be treated at the new Tono water treatment plant will be supplied from the Tono reservoir from an intake tower which is provided with raw water pumps.
b) Design and construction of a new water treatment plant located at Navrongo (412 m3/h clear water capacity)
c) Rehabilitation of the existing Vea water treatment (approximately 38 m3/h clear water capacity for an improved water transmission and distribution to Bongo and its environs.
d) Design and construction of 67 km of new transmission pipelines to transport drinking water from the Tono water treatment plant to the supply areas in Navrongo, Bolgatanga and Paga.
e) Design and construction of 50 km new distribution network to transport drinking water to consumers in Navrongo, Bol- gatanga and Paga.
f) Design and construction of 3 new elevated reservoirs, and
g) Provision of 400 standpipes.
The Committee was delighted to note that unlike some previous projects, where transmission and distribution networks are left out, this particular project includes transmission and distribution networks.
The Committee, therefore, urges the Ministry of Sanitation and Water resources to ensure that these com- ponents are implemented to forestall the current situation where beneficiary communities are unable to access the water upon completion.