Debates of 24 Jul 2018

MR SPEAKER
PRAYERS 11:18 a.m.
VOTES AND PROCEEDINGS AND THE OFFICIAL REPORT 11:18 a.m.
Mr Speaker 11:18 a.m.
Hon Members, correction of Votes and Proceedings of Monday, 23rd July, 2018.
Pages 1… 14 --
Mr Ablakwa 11:18 a.m.
Mr Speaker, the last but one line of item numbered (x) on page 13 should be:
‘'…goods and services and equipment under the Ghana Agricultural Sector Investment Programme (GASIP)''.
The word ‘‘in'' which comes before the word ‘‘under'' should be deleted.
Mr Speaker 11:18 a.m.
Pages 15… 29----
Hon Members, the Votes and Pro- ceedings of Monday, 23rd July, 2018 as corrected is hereby adopted as the true record of proceedings.
Hon Members, correction of Official Report of Tuesday, 3rd July, 2018. Any corrections?
ANNOUNCEMENTS 11:18 a.m.
Mr Speaker 11:18 a.m.
Hon Members, we have in our midst five member delegation of the Iran-Ghana Parliamentary Friendship Association from the Parliament of the Islamic Republic of Iran, who would be with us here from 23rd to 27th July, 2018 as our guests to compare notes and interact with our counterparts.
The delegation comprises:
H.E. Dr Hossein Amiri Khamkani - -MP and Chairman;
H.E Habibullah Nikzadi -- MP and Member;
H.E. Ali Akbari -- MP and Member;
H.E Mohammed Karimi -- Secretary;
H.E Nader Iran Manesh -- Minister for Foreign Affairs.
Hon Members, I respectfully welcome them on your behalf and wish them fruitful deliberations.
Hon Members, I would vary the order of Business slightly to enable us go on straight to the Commencement of Public Business for now.
At the Commencement of Public Business, item listed 5 -- Presentation of Papers.
Item 5(a) -- Hon Chairman of the Committee on Subsidiary Legislation?
PAPERS 11:18 a.m.
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, the Committee informs me that they will be ready with the Reports on item listed 5(b) (i) and (ii) on Thursday and not today. So we can stand those Papers down today.
Mr Speaker 11:28 a.m.
Hon Majority Leader, is item listed 5(b) (i) not ready?
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, that is so, and that one as well is not ready.
Mr Speaker 11:28 a.m.
Do we proceed to item 5(b)(ii); Committee on Health?
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, that is what I have said, that in respect of both items listed 5(b) (i) and (ii), the Reports are not ready. They will be ready on Thursday.
Mr Speaker 11:28 a.m.
It is not ready?
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, the two of them will be ready on Thursday.
Mr Speaker 11:28 a.m.
Item numbered 5(c).
Hon Chairman of the Committee on Environment , Science and Technology?
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, the Papers listed as item (c), (d) and (e) would be stood down, and I believe that we can now ready ourselves for the
Statement by the Hon Minister for Fisheries and Aquaculture.
Mr Speaker 11:28 a.m.
Well, we would vary the order of Business slightly and move on to item listed as 7 -- Motion.
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker --
Mr Speaker 11:28 a.m.
Hon Chairman of the Committee on Mines and Energy?

Hon Majority Leader, shall we now move to Statements?
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, that is so.
Mr Speaker 11:28 a.m.
I thought we were going to take Statements later including the one which is a tribute.
Mr Kyei-Mensah-Bonsu 11:28 a.m.
Mr Speaker, this is a matter on Government policy, and we agreed on Friday that --
Mr Speaker 11:28 a.m.
Nonetheless, let us not make it a long issue. We agreed that Statements should be taken later but if you are asking, please, let us have it then. At least, I will then announce that we go to Statements.
Hon Members, we will vary the order of Business and move to item listed 4 -- Statements.
We have a policy Statement by the Hon Minister for Fisheries and Aquaculture.
Hon Minister, you may please proceed.
STATEMENTS 11:28 a.m.
Minister for Fisheries and Aqua- culture (Mrs Elizabeth Naa Afoley Quaye) 11:28 a.m.
Mr Speaker, there is a matter trending that I have to let the repre- sentatives of the people know about, which is the closed season and the policy that the Ministry of Fisheries and Aquaculture is implementing.
Mr Speaker, Parliament is respectfully informed of the Ministry's intention to implement an annual closed season for all fleets including artisanal fisheries, except the tuna fleets, starting in the month of August, 2018.
The 2018 closed season will start from Tuesday, 7th August, 2018 and end on Tuesday, 4th September, 2018. Fishing will restart on Wednesday, 5th September, 2018.
Mr Speaker, the objective is to replenish the declining marine fish stock which studies have shown that if no immediate steps are taken they will imminently collapse.
The justification for the August closed season is that, the annual peak for reproduction of the majority of pelagics is in August based on recent studies.
The abundance of food for planting available for adult and juvenile fish also peaks in August which enhances survival and viability of the juvenile fish. Fishermen confirmed the presence of large percentage of gray females in August.
Mr Speaker, furthermore, fish processors also complained of low value
smoked fish during this month because the fish are full of eggs, oily, burst open and lose shape during smoking. This results in a drop in profit margin for fish processors.
The supply of high landings in August reduces the price of the product while at the same time, negatively impact on the highest potential reproductive stock during the entire year.
The small pelagic stocks are currently categorised as over-fished and nearing collapse, based on recent stock assessment which shows that landings have declined to the lowest level since we recorded landings in Ghana.
Mr Speaker, if the closure is limited to selected number of fleets and gear types, the incidence of high bi-catch may not be avoided and therefore defeat the purpose of the disclosure thus allowing some subsectors of the industry to operate which makes it difficult to monitor, control and enforce.
The closure is to ensure sustainable fish food and nutrition security, as well as guarantee income and livelihoods of fishers. The closure is to prevent the huge security crisis that would arise if the artisanal fishing sector collapses. Mr Speaker, it means mass unemployment, high incidence of poverty and increased social vices.
The impact that this mitigative measure is expected to have may be economical and financial.
The August closed season may have the negative economic impacts as listed below:
fishermen unemployment during the closure period resulting in loss of income; and
secondly, imbalances in market price of fish due to the irregular supply of fish to the market during the closure.
The socio-cultural impacts;
The August closed season is a period when fishers, particularly those in the Greater Accra Region would harvest fish to honour the Ga Homowo Festival.
To mitigate the negative impact of the closed season, the following measures have been put in place, an alternative Livelihood Committee which has to help to select communities to implement alternative livelihood schemes.
An example is the collecting and processing of plastics for money. Landing Beach Committees are to use some fixed portions of the 53 per cent of the premix fuel margins meant for development to all fishers identified within their Landing Beach Committees.
To partly mitigate the socio-cultural impact and ensure that cultural and traditional practices, especially those related to fishing during August were not hindered, the closed season has been moved from the -- [Interruption] --Mr Speaker, there is an error here and so I would skip that.
Mr Speaker, to conclude, without immediate action by the Government, small pelagic stocks could collapse in as early as three to five years.
The closed season for August 2018 is in the interest of Ghanaian fishers, particularly the artisanal fishermen who are experiencing low catches in recent years, and considering the cushioning measures established, the negative impact would be mitigated.
The Ministry calls on all in this august House, its Leadership and all Hon Members to support this action to rebuild our stocks.
Mr Speaker, the closed season is expected to start from the 7th August to the 4th September 2018. Mr Speaker, thank you.
Mr Speaker 11:28 a.m.
Hon Minister, thank you very much.
Hon Members, we would take one contribution from each side of the House.
Hon Minority Leader, you may nominate.
Mr Haruna Iddrisu 11:28 a.m.
Mr Speaker, if I could indulge you to take a contribution from one Hon Member and then the Leadership as well, because it is a major policy decision and those on the Committee on Food, Agriculture and Cocoa Affairs --
Mr Speaker 11:28 a.m.
Very well, but you know that we also have another Statement on the late President Mills. So, we decided on something but if you want to go with that, then I am prepared.
Mr Iddrisu 11:28 a.m.
Mr Speaker, we would advise them to keep it terse. An Hon Member of the Committee would speak to it. I would speak to it based on what I have heard, but there are people in the Committee who appreciate the issues better.
Mr Speaker 11:28 a.m.
I am glad to hear the word briefly.
Mr Samuel Abdulai Jabanyite (NDC -- Chereponi) 11:28 a.m.
Mr Speaker, thank you for the opportunity to contribute to the Statement made by the Hon Minister for Fisheries and Aquaculture.
Mr Speaker, indeed, the policy to put a hold on fishing in the month of August in order to increase the stocks is something that we think is good, however, we are concerned with the reports that have come up so far.
Mr Kwame Asafu-Adjei (NPP -- Nsuta/Kwamang/Beposo) 11:48 a.m.
Mr Speaker, thank you.
I would like to associate myself with the Statement ably made by the Hon Minister for Fisheries and Aquaculture. Mr Speaker, the closed season which the Government has introduced as a policy is a measure to ensure that we have enough fish in the sea.
The reason is that Ghana had an average reduction of fish from 289,000 tonnes a year to 203,000 tonnes during the past five years.
Mr Speaker, with this kind of decline, I do not believe that the Government should sit down for the decline to continue. In fact, we used to have over US$1 billion from the fishing industry, but because of the declining nature, the
income that is generated by this country has also dwindled.
Mr Speaker, on the reason for setting August as the closed season, firstly, that is the time there is no food for the fish. That is the time that the fishes that are pregnant are supposed to breed. If we do not do this and we allow it to remain, what would happen after September?
Therefore the reasons is to enable us to conserve fish for our own intake, rake in foreign exchange earnings and also allow the fishermen to go to sea after the closed season. In fact, those who hunt also have a similar situation.
At times, the Aboakyer festival is done for nothing but it is encouraged for the preservation of other animals to grow around. So, it is important that we all embrace the closed season.
Mr Speaker, fish is the major protein that we have. If we do not preserve it, the source of protein for this country would be limited. Fish production has hovered around 400,000 tonnes every year. Like I said, the decline is due to no enforcement of fisheries regulations and laws and inappropriate use of nets.
Now that we are enforcing the laws and regulations, we are sure that the fisher folks would be able to have enough catches. It is not good for them spending money on premix fuel and going to sea without catches. The only thing Government could do is to preserve and conserve the fish.
Mr Speaker, also, with the climate change in place, we need to put up a strategy that our use of the fishes should also be maintained.
In the economic importance, there is the view that fishermen would not be
sustained because of the closed season introduced by the Government.
I believe the Government is very sensitive to fisher folks in the sense that the Government will introduce incentives which would cushion up fisher folks during the closed season from August to September. There is no cause for alarm since we would be able to compensate the fisher folks in a different month.
Mr Speaker 11:48 a.m.
Hon Member, you would have to conclude.
Mr Asafu-Adjei 11:48 a.m.
Mr Speaker, with these few words, I conclude that we should all embrace the closed season which we have introduced.
I thank you, Mr Speaker.
Mr Speaker 11:48 a.m.
Hon Okoe Vanderpuije for the Hon Minority Leader.
Dr Alfred Okoe Vanderpuije (NDC -- Ablekuma South) 11:48 a.m.
Mr Speaker, I thank you for the opportunity to contribute to this very important Statement.
Mr Speaker, the measure to close fishing activities during this period is one that is of great concern to the people in the Greater Accra Region.
Nobody disputes the fact that there is the need to do something about how we increase our ability to catch more fish but to do it in a time when energy production is on the increase and has been expanded to several areas of our country. We cannot use the low value factor anymore.
Mr Speaker, secondly, the socio- economic aspect of this decision would greatly affect the people of the Greater Accra Region, most importantly during the Homowo season. This is the Homowo season; the period where our families come
Mr Speaker 11:48 a.m.
Hon Majority Leader, or do you want the Hon Minister to respond?
Mr Abraham Dwuma Odoom (NPP -- Twifo Atti Morkwa) 11:58 a.m.
Thank you, Mr Speaker, for the opportunity to contribute towards the Statement on the Floor.
Mr Speaker, internationally, we are all aware that in some countries as much as four months are given to a closed season for fish. In China for instance, they observe four good months, and it is always done around the period when it is flooding.
Around this time when the rivers are flooding and entering into the sea, they bring a lot of food into the sea, and it is this time that the fish in the sea are able to feed well and lay eggs, as many as between 70,000 and 80,000. This is the period that the Ministry has observed that we need to ensure that we protect the fish from depletion.
Mr Speaker, when we were young, we used to have plenty herrings around this period, and now they are no more there. They are all gone, and at the end of the day our fisher folks are the people who are reeling under the bench of this depletion.
It is in their interest that the Ministry has taken this hard decision, and I am sure it is a decision that is going to be to the benefit of the fisher folk.
Hon Vanderpuye, the former Mayor of Accra made a point, and I would like to talk about it. If we are within the period of a festival, I would like to believe that it is the period that we go off work, and then concentrate on our festivities, so I am of the view that this period of festivity is just like Christmas or Easter. We go off work duties and concentrate on our festivities.
So Mr Speaker, I agree with them that there is the need for a strong stakeholder consultation, but we also realised that this is a time that we cannot afford to miss. It would be very dangerous for us to miss it.
To end these few words, I would urge the whole House to give the Ministry of Fisheries and Aquaculture all the necessary support to see this through, because it is only the political will that is needed at this stage.
Mr Speaker 11:58 a.m.
Hon Minister, would you like to make a few concluding remarks, particularly if you would address the issue of why at this particular time? It is very pertinent to the issue at stake.
Mrs Quaye 11:58 a.m.
Mr Speaker, the timing of the closed season is right. I say this because it is within the major up welling, meaning it is within the time that nutritious food from the bottom of the sea rises to the top of the sea, and it is within the period that the majority of fish in the sea also breed.
They come out with the cold and nutritious water from the bottom of the sea to feed on the surface of the sea. It is at this time that the fishermen easily catch the fish and call it the bumper harvest.
This bumper harvest has caused the nation because we harvest the fish and their offspring. We harvest the fish and their eggs together.
The fish processors have told us time without number that anytime they process the fish around this time, it is filled with eggs, and it loses its shape when smoked or processed. So we tried to align what the fish processors told us with scientific evidence. What we came up with is that, it is at this time that it is really pertinent that we implement the closed season.
Mr Speaker, several years back, as well as last year, we did a scientific pelagic survey and it came out clearly that we have lost our stocks drastically.
The graph shows that over the years, we have lost our fish stocks consistently and so, when the scientific research report came out and also established that in three years, Ghana would lose its stock, and we may not be able to replenish the stocks, we believed that as a Government, it was at this time that we had to save our stocks.
Mr Speaker, now we do not have the popular ewurafua anymore. Now we do not have the fish that we call the poor man's fish; the amane, kankamma and sardinellas.
Mr Speaker, we are in July. July is also part of the peak season. We have not closed the season yet. We are closing from the 7th August, 2018 but at this time that it is expected that fishermen would harvest a lot of fish, where is the fish? We do not have fish. July is the bumper season but there is no fish.
Mr Speaker 12:08 p.m.
Hon Minister, thank you very much for attending to the House and making this very informative Statement. You are clearly on top of your brief and we thank you very much. You are respectfully discharged.
Hon Okudzeto Ablakawa will make a commemorative Statement on the passing away of the former President, Atta-Mills and the sixth anniversary thereof.
Hon Member, we agreed on brevity and that Hansard would capture the entire Statement. So please, speak to it in a few words.
Sixth Anniversary of the Passing on of H.E. Prof John Evans Atta-Mills
Mr Samuel Okudzeto Ablakwa (NDC -- North Tongu) 12:08 p.m.
Mr Speaker, I am thankful to you for the opportunity granted to make this important Statement
in commemoration of the sixth anni- versary of the dreadful and tragic loss of our departed beloved former President, His Excellency Professor John Evans Atta Mills.
Today marks exactly six years when this nation was drowned in tears and grief at the news of the sudden passing of Prof John Evans Atta Mills; that wet and cold Tuesday, the 24th of July, 2012. It is the first and only time in Ghana's history that a sitting President has died in office.
Prof John Evans Fiifi Atta Mills was born on 21st July, 1944 at Tarkwa in the Western Region of Ghana and hailed from Ekumfi Otuam in the Mfantsiman East Constituency of the Central Region.
He began his impressive academic journey by attending the Huni Valley Methodist Primary School and Komenda Methodist Middle School respectively.
He subsequently attended Achimota School, where he obtained his General Certificate of Education (GCE) Advanced Level in 1963. He then attended the University of Ghana, Legon, where he received a bachelor 's degree and professional certificate in Law (1967).
A world class scholar; Prof. Mills studied at the London School of Economics and Political Science, where he obtained an LLM in 1968.
While earning a PhD in Law from the prestigious School of Oriental and African Studies (SOAS) of the University of London, he was selected as a Fulbright scholar at the equally prestigious Stanford Law School in the United States of America.
At age 27, he was awarded his PhD after successfully defending his doctoral thesis in the area of taxation and economic development.
His contribution to the advancement of knowledge is remarkable, having lectured at the Faculty of Law and that of the Business School of the University of Ghana for over two decades. He is the author of numerous publications which include:
Taxation of Periodical or Deferred Payments arising from the Sale of Fixed Capital (1974).
Exemption of Dividends from Income Taxation: A Critical Appraisal (1977).
Report of the Tax Review Commission, Ghana, parts 1-3
(1977).
Ghana's Income Tax Laws and the Investor (1978).
Ghana's New Investment Code: An Appraisal (1993).
Prof Mills was also a visiting professor at Temple Law School (Philadelphia, USA), Leiden University in the Netherlands and at the Liu Institute for Global Issues at the University of British Columbia in Vancouver, Canada.
Prof Mills excelled beyond the lecture room 12:08 p.m.
He was a member of the Ghana Stock Exchange Council.
In 1988, he became the acting Commissioner of the Internal Revenue Service of Ghana and was named National Tax Commissioner in September 1993.

He also held examiner positions with finance related institutions in Ghana, including the Institute of Chartered Accountants, Institute of Bankers, and Ghana Tax Review Commission.

He served on the Board of Trustees of the Mines Trust.

He was a member of the Management Committee of the Commonwealth Administration of Tax Experts, United Nations Ad Hoc Group of Experts in International Cooperation in Tax Matters and United Nations Law and Population Project.

He led a study on Equipment Leasing in Ghana.

He chaired the casebook preparation on Ghana's Income Tax.

He oversaw the Review of Ghana's Double Tax Agreement with the UK.

Prof Mills was also a distinguished sportsman and sports administrator. He played hockey and was a member of Ghana's national team and later the veterans hockey team. He also played football and was a reputable swimmer as well.

The Ghana Hockey Association, the National Sports Council of Ghana, and the famous Accra Hearts of Oak Sporting Club remember him as an administrator par excellence.

On the political scene; Prof Mills first emerged when he was chosen as running mate by President Jerry John Rawlings who was seeking re-election for a second term in office. They overwhelmingly won

the 1996 election and Prof Mills became Vice-President of Ghana from January 7, 1997 to January 6, 2001.

Between 2001 and 2008, Prof Mills became the defacto opposition leader and earned an enviable reputation for decent politicking and gracefully accepting election results without fomenting trouble. He soon became affectionately known as the Asomdwehene, to wit, King of Peace.

On January 7th 2009, Prof Mills was sworn in as Ghana's third President of the fourth Republic.

He was until his untimely death the presidential candidate for the National Democratic Congress for the 2012 presidential election, setting a new record in challenged presidential primaries winning by a remarkable 96.7 per cent.

Mr Speaker, we must take pride in ourselves as a nation for the non-partisan manner in which we collectively and soberly paid our last respect to President John Evans Atta Mills, as well as giving him a befitting and dignified State burial in 2012.

This Parliament and indeed, all Ghanaians ought to be commended for the smooth transition which has been hailed globally, especially as we were then in unchartered waters.

As he rests peacefully in the bosom of the Almighty, I have no doubt that he would be thankful to us for the maturity, dignity and peaceful manner by which we managed affairs.

Mr Speaker, Prof Mills' reverence for Parliament was exceedingly significant. He attended to his constitutional obligations to this august House with deep commitment and great pleasure. It is to

his legacy that the Job 600 project meant to house MPs was restarted.

He also mooted the idea of constituency offices which was piloted in a few constituencies before his untimely departure. He also goes down in history as the only President so far to nominate a female Speaker for consideration in the person of the distinguished Hon Joyce Bamford Addo, who acquitted herself to the admiration of all.

Mr Speaker, indeed, the governance record of Prof John Evans Atta Mills is unprecedented, as he himself once famously remarked. During his relatively short three and half year tenure; Ghana's economy grew by an unprecedented 14.4 per cent in 2011.

Cocoa production hit an unprece- dented one million metric tonnes, inflation remained at an unprecedented single digit for the longest period ever under the Fourth Republic, and he extended national electricity coverage from 54 per cent to 72 per cent, touching the lives of Ghanaians in 1,700 communities.

In other departments, President Atta Mills initiated the University of Health and Allied Sciences in the Volta Region, and the University of Energy and Natural Resources in the Brong Ahafo Region. He believed every region of Ghana deserved a public university.

The elimination of thousands of schools under trees, the construction of new classroom facilities at various levels of the educational stratum, the distribution of over 100,000 laptop computers, the introduction of the mathematics, science and technology scholarship scheme; are all lasting testimonies to his great efforts at giving more meaning to education.

President Atta Mills re-equipped and re-tooled the security agencies; making it possible for the Military, the Ghana Police Service, the Ghana National Fire Service, Ghana Immigration Service, the Ghana Prisons Service, CEPS, et cetera to have a new lease of life.

His stature in global diplomacy was to be seen by his ability to rally his peers in ECOWAS and the African Union to pursue common objectives, including convincing them to support Ghanaian candidates for various international assignments.

A more permanent evidence of this humble Pan-Africanist's clout among his peers is the donation of that well-deserved giant golden statue of his mentor and idol -- Osagyefo Dr. Kwame Nkrumah which now stands at the forecourt of the new African Union Building in Addis Ababa, Ethiopia, bearing the inscription “Donated by the Government of Ghana and unveiled by H.E. Teodoro Obiang Nguema Mbasogo, in the presence of the President of the Republic of Equatorial Guinea and Chairperson of the African Union, including H.E. John Evans Atta Mills, President of the Republic of Ghana and H.E. Dr. Jean Ping, Chairperson of the African Union Commission in Addis Ababa on January 28, 2012.”

Mr Speaker, the International Institute of Education (IIE) in New York has posthumously bestowed on Prof Mills its highest award -- the Fritz Redlich Alumni Award in recognition of his distinguished career and exemplary leadership that increased cooperation and understanding between Ghana and the world, and his resolute support for advancing education to prepare an entire generation in Ghana for today's competitively globalised economy and to honour him as the first ever Fulbright Scholar to become the Head of State of an African nation by becoming the President of Ghana.
Mr Speaker 12:18 p.m.
Thank you very much Hon Member.
We will take contribution from each side as Leadership has agreed.
Yes, Hon Minority Leader.
Minority Leader (Mr Haruna Iddrisu) 12:18 p.m.
Mr Speaker, thank you for the opportunity and I wish to commend the maker of the Statement, the Hon Samuel Okudzeto Ablakwa.
Mr Speaker, 24th July, 2012, probably, around this same time, we witnessed for the first time in our country's history, a sitting President of the Republic passed on.
Mr Speaker, the lesson to learn is that none of us should think that we are heavier than death. And that as we live, we should be wary of our last day; our last hour. And therefore, accountability is not only to the Ghanaian people but we remain accountable to the Eternal God.
Mr Speaker, I was privileged to work with the late Prof John Evans Atta-Mills, Asomdwehene as he was affectionately called, as a young Minister. And I am sure I was among few young people he seldom gave an opportunity to test, whether young people could justify their inclusion in Government and to make meaningful contributions in the development of our country.
Mr Speaker, I should believe that we did not fail him; I should believe that more of the younger people are being recognised in playing their roles.
Mr Speaker, he was a distinguished academic and a sportsman. And in my view, another lesson that we learnt is that, he did not have a long convoy. So the President should learn from it [Interruption]; he was able to do one or two of that in order to save the public purse.
Mr Speaker, during his tenure, we saw some fundamental developments in the country, including the development of the Atuabo Gas Infrastructure, which today, the initiation of it, is helping manage some of the problems within the energy sector.
Mr Speaker, he was also privileged to have one of the highest growth of Gross Domestic Product (GDP), sustained inflation over a long period of time. Mr Speaker, for me, it was his humility which was his hallmark and he played his part; he served our country.
Mr Speaker, another lesson we need to learn as citizens of this country is that, we should honour our heroes while they are alive.
It is my candid view that for instance, I have said this somewhere, the University for Development Studies (UDS) should be named after President Rawlings, the University of Mines and Technology be named after President John Agyekum Kufuor, and probably, the University for Health and Allied Health Sciences in the Volta Region should be named after the late President Mills.
That is the view I hold strongly and I have already shared that UDS, like or not, President Rawlings played a fundamental role in opening up tertiary education to many more people. Prof Atta-Mills should have one of the universities in the Volta Region which he helped establish or probably, the one in Brong Ahafo Region, named after him.
My honest view is that the University of Mines and Technology should be named President J. A. Kufuor.
Mr Speaker, if you travel to the United States of America, there are presidential libraries as a way of keeping the honour and the exemplary public service of these persons. To be a President, Vice President or Speaker of Parliament, accept it or not, is a high calling in this country.
Mr Speaker, and I believe that in concluding, one of the unique lessons we should learn which also is onto
Mr Speaker 12:18 p.m.
Thank you very much.
Majority Leadership?
Ms Sarah Adwoa Safo (NPP-- Dome- Kwabenya) 12:28 p.m.
Thank you very much, Mr Speaker, for the opportunity. I commend the maker of the Statement and indeed, all comments that have been made by earlier Hon Members of the House.
Mr Speaker, on this day, our heart pours out to the family of our Ex-President, President Prof John Evans Atta-Mills. I know that each year around this same time, they are engulfed in sorrow. So is the State.
So, Mr Speaker, on this day, I did not expect the Hon Minority Leader in contributing to say anything that would provoke debate in this House. Mr Speaker, this is a great man who had served his nation and should be remembered and we should not play politics with it.
Mr Speaker, as the maker of the Statement stated on the Floor of the House, we are remembering somebody who had served as a Law Professor in the University of Ghana, who specialised in the Law of Taxation and actually excelled in that area.
Mr Speaker, he was someone who had also served his political party, the NDC and actually started climbing the political ladder from the position when he was nominated as a Vice President of this country.
Mr Speaker, we have noted him for his humble way of speaking and a sober way of always making his point. He would always prefix his statements with ‘me nuanom' and that is what I remember him for and many Ghanaians would remember him for.
Mr Speaker, on this day, we all have to come together as a nation and know that
when people have served their nations, they deserve to be commended.
I know that, the people of the Central Region, on this day, are also in an emotional state because this is forever their son who made them proud and lifted the flag of Ghana high.
We understand how the people of the Central Region feel and more so, when we have also lost a former Vice President from the same Region.
Mr Speaker, when we lost Prof Evans Atta Mills, the whole country was taken aback and we were all in a state of shock because that was the first time a sitting President had died.
Internationally, Presidents from neighbouring countries and all over the world came to Ghana to have our father buried well.
Mr Speaker, I believe if we all should learn something from this nobleman, it should be his humility and selflessness in service to his nation. Even in times when he had contested so many times and lost, he still had the courage and perseverance to carry on.
Mr Speaker, we all know that he was in the university with the current President around the same time and they knew each other so well. I am told that they played football together, and that is the kind of rapport that we should have as politicians.
We should not have situations where we know people, yet because of politics, we act in certain ways that are detrimental to the same people we have called friends and family before.
This is a day that ought to be remembered and I know that we all today, would forever remember this man as a former President of this country.
Mr Speaker 12:28 p.m.
Thank you very much Hon Deputy Majority Leader.
Presentation of Papers, item numbered 5. Could we possibly take item numbered 5 (c)?
Ms Safo 12:28 p.m.
Mr Speaker, respectfully, could we take Motion numbered 7 and then come back later to lay Papers?
Mr Speaker 12:28 p.m.
Motion numbered 7, Chairman of the Committee?
MOTIONS 12:28 p.m.
Chairman of the Committee (Mr Emmanuel Akwasi Gyamfi) 12:28 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Joint Committee on Mines and Energy and Finance on the Concession Agreement between the Government of the Republic of Ghana and the Consortium of investors led by the Manila Electric Company (Meralco) for private sector participation in the Electricity Company of Ghana (ECG) with the terms of the Second Millennium Challenge Compact.
In doing so, I would like to present your Committee's Report.
Introduction
The Concession Agreement between the Government of the Republic of Ghana and the Consortium of Investors led by the Manila Electric Company (Meralco) for Private Sector Participation in the Electricity Company Of Ghana (ECG) within the terms of the second Millennium Challenge Compact was laid in the House on Tuesday 10th July, 2018 by the Minister for Energy, Hon Boakye Agyarko.
Pursuant to Orders 169 and 188 of the Standing Orders of the House, the Concession was referred to the Joint Committee on Finance and Mines and Energy for consideration and report.
The Committee met and considered the request with a Minister for Energy, Hon Boakye Agyarko, a Deputy Minister for Energy, Hon Owuraku Aidoo, a Deputy Minister for Finance, Hon Charles Adu- Boahene as well as officials from the Ministries of Finance and Energy.
Also in attendance were officials of the Public Utilities Regulatory Commission (PURC), the Millennium Development Authority (MiDA), Power Distribution Services Ghana Limited and the Electricity Company of Ghana (ECG). The Committee hereby presents this Report to the House, pursuant to order 161(1) of the Standing Orders of the House.
Background
On 5th August, 2014, the Republic of Ghana and the United States of America, acting through the Millennium Challenge Corporation (MCC) entered into a Millennium Challenge Compact. The Compact provides for a grant of up to US$498,200,000.00 to advance economic growth and reduce poverty in Ghana and commit Ghana and the MCC to a five-year economic development programme that will fund investments in the power sector of Ghana.
The Programme consists of six projects namely:
i. ECG Financial and Operational Turnaround Project;
ii. NEDCO Financial and Opera- tional Turnaround Project;
iii. Regulatory Strengthening and Capacity Building Project;
iv. Access Project;
v. Power Generation Sector Improvement Project; and
vi. Energy Efficiency and Demand Side Management Project.
Private sector participation in ECG is an activity under the ECG Financial
Operational Turnaround Project. This activity seeks to identify and engage a private sector entity in the power distribution sector to partner with Ghana to turn around the fortunes of ECG in its operations and finances.
In structuring the private sector participation in ECG, the Government in 2014 sought to review the options for improving the performance of the distribution sector in light of the challenges the ECG was facing.
When the initial analysis of ECG was undertaken in 2014, the following observations were made:
Aggregate technical and commer- cial losses were significantly above the benchmarks for comparable utilities.
ECG's customers suffered an average of 106 interruptions per customer in 2012 compared to that of comparable utilities which range from 5-10 interruptions per custo- mer per year.
ECG requires an estimated US$1 billion of capital investment every five years.
Poor financial performance does not allow ECG to raise enough funds for adequate investment.
The initial analysis further showed that revenues were growing on the back of customer growth and high demand but ECG suffered from deteriorating profit margins and decreasing marginal revenues.
Since that analysis was undertaken, the situation has not improved. Despite significant investments, technical and

commercial losses have remained at levels well above the benchmark for comparable utilities, as the company's financial performance continued to deteriorate.

‘

The private sector participation activity under the ECG Financial and Operational Turnaround Project is therefore designed to turn around the fortunes of the ECG and to return the company to financial and operational viability.

Objectives of the Programme

The Goal Of the Millennium Challenge Compact is to reduce poverty through economic growth in Ghana. The objectives of the programme are to increase private sector investment and the productivity and profitability of micro, small, medium and large scale businesses; increase employment opportunities for men and women; and raise earning potential from self-employment and improved social outcomes for men and women.

Observation and Recommendations

Components of the Concession Agree- ment

The Committee observed that the Concession Agreement comprises the following three ‘“‘different sub agree- ments:

Lease and Assignment Agreement;

Bulk Supply Agreement; and

Government Consent and Support Agreement.

Lease and Assignment Agreement (LAA)

The Lease and Assignment Agreement between the ECG and the concessionaire is the primary document governing the 20- year relationship between ECG and the concessionaire with regard to ECG's distribution system.

The Committee was informed that under the concession arrangement, ECG would lease its distribution system assets to the concessionaire (Power Distribution Services Ghana Limited) and grant the concessionaire the right to use and make the necessary modifications to the leased assets over a 20 year contract period, beginning from the date in which the transfer is executed. In addition to the transfer of ECG's distribution Assets described as “Leased Assets”, certain ongoing contracts being executed by ECG would also be transferred to the Concessionaire.

The Lease and Assignment Agreement protects the interest and rights of the current staff of ECG. The concessionaire is required to accept the transfer of employment contracts of all the employees that were employed by ECG as of the effective date of the transfer.

The Agreement also provides that the terms and conditions of service for the engagement of the transferred staff should be equal or better than the terms and conditions on which the employees were employed under ECG.

The Agreement prohibits the concessionaire from undertaking any involuntary reduction in respect of the employees that will be transferred from ECG to the concessionaire, unless there is sufficient cause to do so under the applicable law. It further provides that where there is sufficient cause to terminate
Chairman of the Committee (Mr Emmanuel Akwasi Gyamfi) 12:28 p.m.


cheaper hydro sources of energy to power critical industries such as the refinery and smelting in the aluminium industry. In this regard, the current PPAs held by Volta River Authority would be transferred to

ECG.

Government Support Agreement

The Joint Committee observed that the government is providing a sovereign guarantee to indemnify the Concessionaire for any substantial breach by ECG of the terms and conditions under the Lease and Assignment Agreement and the Bulk Supply Agreement.

The areas where the sovereign guarantee is being provided include payment of electricity bills supplied to Ministries, Departments and Agencies (MDA) and Buy-Out Price after the expiration of the 20 year concession period.

The Agreement makes special arrangement for the supply and payment for electricity to Strategic Facilities of Government.

Attached as Appendix 1 is a list of the Strategic Facilities and their respective total electricity bills for the 2017 financial year.

ECG's Current Losses

The Committee was informed that ECG experienced approximately 23 per cent aggregate Technical and Commercial Losses in 2017. This figure was said to be high compared to worldwide industry standards that presently stands at about 8-9 per cent. ECG's loss rate is also slightly above the average for the Sub-saharan countries of about 22 per cent. Worst still, the total aggregate of Technical, Commercial and Collection losses of ECG was said to have averaged about 32 per cent at the end of 2017.

To help stem the tide of losses, the concessionaire is required by the Agreement, as part of the Key Performance Indicators (KPIs), to reduce the losses in accordance with the agreed schedule for the first five years as follows:

ECG's Current Generation Costs and Tariffs

The Committee observed that at the end of 2016, Ghana's average electricity generation costs stood at 15 US Cents/ kWh. This amount was said to be lower than in many countries in the African Region, including Cameroon (16 US Cents/ kWh), Malawi (16 US Cents/kWh), Uganda (17 US Cents/KWh) and Kenya (22 US Cents/kWh. Few countries in the Region however, had lower generation costs that year, including Zambia (9 US Cents/kWh) and South Africa (11 US Cents/kWh)

In spite of the relatively low generation costs, Ghana's average electricity tariff in 2017 was approximately 21 US Cents/kWh.

This is similar to the average tariffs in countries in Sub-Saharan Africa, Latin America and the Caribbean but significantly higher than the average for counties in South Asia, Europe, Central Asia, the Middle East and North Africa.

Decision to Grant Concession

The Committee was informed that in a bid to deal with the challenges facing the ECG, Government was faced with five alternative causes of action. The options were:

i. to carry on business as usual and let ECG operate as it is;

ii. to give ECG to a private manager under a Management Contract;

iii. to lease out the assets of the company to a private operator;

iv. to grant a Concession to a private investor/operator to manage the operations of the distribution

business, including financing and procuring new nvestments; or

v. partial or full privatisation.

Among the above options, Govern- ment, after a critical evaluation selected the Concession arrangement in which ownership of the distribution company remains unchanged, but the conces- sionaire takes on the responsibility of funding all new investments as well as maintaining all existing assets.

As the Special Purpose Vehicle (SPV) of the Concessionaire retains all the revenues from the distribution business, it is incentivised to improve performance.

Benefits of the Concession Approach

The Committee observed that the Concession approach is advantageous to Government partly because the Concessionaire is responsible for all major new investments. This would help to minimise the impacts of such investments on the national budget.

Again, the Concessionaire takes responsibility for the delivery and operation of ECG's power distribution and services infrastructure, thereby trans- ferring the inherent risks from Government to the Concessionaire.

Schedule of Investments by the Concessionaire for first 5 Years

As to how much the Concessionaire proposes to invest in the short to medium term, the Committee was informed that the Concessionaire is committed to making critical investments of at least US$580.00 million within the first five (5) years to achieve the turn-around priorities of the concession arrangement.

Attachment: Please find attached as APPENDIX, the details of the Investment Plan of the Concessionaire for the first five years.
Chairman of the Committee (Mr Emmanuel Akwasi Gyamfi) 12:28 p.m.


It was further explained that the investment strategy of the concessionaire is aimed at improving the quality of service to consumers whilst at the same time making tariffs affordable.

Additionally, the approval and execution of the Concession arrangement is a condition precedent to the release of about US$480 million grant under the Millennium Challenge Compact (MCC) to reduce poverty through economic growth in Ghana.

Stability for the Concessionaire

The Committee noted that Government is required under the Agreement to provide protection to the Concessionaire against changes in law, including changes to the licenses and PURC Rate Setting Guidelines and changes in taxes that can cause material adverse effect on the concessionaire and those that are not recovered under the PURC Rate Setting Guidelines. Government further guarantees ECG's payment of a Buy-out Price at the end of the 20 year concession period.

Local participation

The Minister for Energy, Hon Boakye Agyarko, informed the Committee that prior to the coming into office of the present Administration, Government had stipulated that there must be at least twenty per cent (20%) local participation in the Concessionaire's Consortium.

However, upon assumption of office, the present Government directed that local participation in the consortium should not be less than fifty-one (51%); and that 51 per cent or more of the issued and outstanding shares in the SPV must be held, directly or indirectly, by individuals who are citizens of Ghana.
Chairman of the Committee (Mr Emmanuel Akwasi Gyamfi) 12:28 p.m.


the Republic of Ghana and the Consortium of Investors led by the Manila Electric Company (Meralco) for Private Sector Participation in the Electricity Company Of Ghana (ECG) within the

Terms of the Second Millennium Challenge Compact in accordance with article 181 of the 1992 Constitution of the Republic of Ghana

Respectfully submitted.

SPACE FOR APPENDIX, PAGE 16, 12.28 P.M
Mr Speaker 12:28 p.m.
Thank you very much Hon Chairman.
Who seconds the Motion?
Mr Mutawakilu Adam (NDC — Damango) 12:38 p.m.
Mr Speaker, I beg to second the Motion and in doing so, I would make some few comments.
This Agreement is for the financial and operational turnaround of the Electricity Company of Ghana (ECG).
As a result, the consortium is expected to invest some money of about US$580 million in the next five years. However, if we look at their target for the first year, the turnaround is pinned around current technical and commercial losses of ECG, which is around 23 per cent.
It is expected that over the next five years, with this investment, there would be significant reduction in technical and commercial losses.
In the first year, they indicated that they would not be able to reduce the technical and commercial losses of which I have a bit of concern.
This is because 9th August, 2018, would be the financial closure, where about US$990.2 million is expected to be released by the Millenium Challenge Corporation (MCC) for the turnaround.
In addition, the consortium said they would invest about US$125.99 million, which in total is almost US$410 million, within a span of one and a half years. Still, they cannot record any reduction in technical and commercial losses. That indicates that there is a problem in respect of how much they would be able to reduce.
The other thing is that, after the US$580 million that has been invested, we are not told how much would be invested from the sixth to the twentieth year. That means that mostly, the asset would be used and by the time it is handed over to ECG, it might not be of any significant value for ECG to take over the assets in good condition and shape.
Mr Speaker, if we go to the Report, the Hon Minister made a statement to which I asked the Hon Chairman to critically look at it, but it still remains hanging. The necessary documentation to correct it has not been given to the Committee. Mr Speaker, permit me to read paragraph
4.1.2.3:
“The Minister for Energy informed the Joint Committee that as part of the government restructuring process in power sector institu- tions, arrangement is being made for ECG to be the custodian of all PPAs in [That is, the power Purchasing Agreement] the country”.
However, if we take the Agreement on Schedule II, page 6, this is what it says:
“The Company and the Volta River Authority shall have entered into mutually satisfactory agreements pursuant to which the company shall purchase capacity and energy from the following thermal plants owned by the Volta Revenue Authority:
(a) Takoradi Power Company Ltd (TAPCo);
(b) Takoradi International Power Company (TICO);
(c) Mines Reserve Plant (MRP);
(d) Tema Thermal Power 1 Plant
(TTP1PP);
Mr Speaker 12:38 p.m.
Hon Members, we are still trying to agree on the time to be allotted to every contributor, so that we are clear on how we are to go. I am waiting for the communication thereon. — [Pause.]
Five minutes each; it is a quarter to one o'clock.
Question proposed.
Mr John Abdulai Jinapor (NDC-- Yapei/Kusawgu) 12:38 p.m.
Mr Speaker, this Concession Agreement is a programme that was initiated during our time.
The main essence for this Concession was to bring about efficiency, reduce the cost of producing power, improve technology and eventually, drive down the cost of power to the end-user.
That was the fundamental issue underpinning the essence of this programme. That was why we decided to invest close to US$500 million from Compact II of the Millennium Challenge Account (MCA) into the power sector.
Mr Speaker, I have looked at the Report. My first concern has to do with the value of the assets being handed over to the new company. When one is involved in a concession, it is only proper that one estimates, in total, the asset that is to be handed over to the concessionaire. I think that it is fundamental.
At the Committee level, it was made clear that we did not have it, and it was not necessary. I find that problematic.
I have looked at the Memorandum, where the Hon Minister for Energy stated that ECG's liabilities amount to GH¢ 7.6 billion and that their current asset is GH¢5.5 billion.
I disagree with the Hon Minister. I have in my hand the audited financial statements of ECG as at the end of the year 2014. Their asset was about GH¢9.4 billion. I talk of 2014 and not 2017. Subsequently, their assets have increased.
So it cannot be possible that in the memorandum we would state their current asset as only GH¢ 5.5 billion. ECG is a huge company, and it is important that we pay particular attention to that.
It is also refreshing that eventually, the Hon Minister concedes that as of the end of the year 2016, the power generation cost of US$0.15 cents was one of the lowest within the sub-region. I believe it is important to state this.
If we look at the bid document itself that the Millennium Development Authority (MiDA) announced, six companies were prequalified. Meralco,
which is the company that won, was a tier two company. It was not a tier one company. There were three tier one companies, two tier two companies and one tier three company. All the tier three companies withdrew because of the changes. Eventually, BXC Ghana Limited was disqualified.
So we were left with only Meralco. So there were no companies to compare Meralco to. So the idea of competitive issues do not come in at all. I think we should have looked at this, open up again and ensure that we get the competitive process, so that we would have gotten the best company as we speak.
I have also looked at the list of local partners. The highest among the shareholding structure is TG Energy Solutions Limited, which has about 18 per cent.
Mr Speaker, I have MiDA document itself here and it is titled ‘‘List of Companies that have Submitted the Expression of interest in the Concession and have No Objection''. At number 19 is TG Energy Solution Limited and their physical address is empty. This is a company that has no physical address.
Mr Speaker, my worry is that some of these companies have no track record in the energy sector. Some of them cannot tell us what they have done in the energy sector to support Meralco in managing the Concession.
Mr Speaker, I am equally worried about the outstanding bills of ECG. The understanding is that the outstanding debt or liabilities would be ring-fenced and that ECG would have to deal with that. This is problematic.
If we continue this way and do not look at some of these critical issues I am raising, my fear is that at the end of this
Dr Mark Assibey-Yeboah (NPP -- New Juaben South) 12:48 p.m.
Mr Speaker, this Agreement has been well negotiated. I heard Hon Jinapor say that ‘'during their time'', but during their time, if this Concession had been given out, 80 per cent would have gone to foreigners. Originally, 80 per cent was to go to foreigners with local participation only at 20 per cent.
Mr Speaker, following good negotia- tions now, foreign participation in this Concession is 49 per cent with 51 per cent local participation. I am at a loss why my Hon Colleague would single out some local entities and say they control 18 per cent.
Together, Ghanaians own 51 per cent of this Concession and we should applaud those who led the negotiation -- the Ministry of Energy and all the agencies like MiDA for doing a good job.
Mr Speaker, what is also reassuring is the fact that on page 13 of the Report, there is the assurance of the condition of staff. With your permission, I beg to quote:
‘'The Committee observed that Government had secured an agreement with the Concessionaire to ensure that the workers of ECG are not adversely affected by the new arrangement. All workers of ECG under their Collective Bargaining Agreement (CBA) are to
Mr Speaker 12:48 p.m.
Hon Member, thank you very much particularly, for your brevity.
Hon Dr Kwabena Donkor?
Dr Kwabena Donkor (NDC -- Pru East) 12:48 p.m.
Mr Speaker, in contributing to the Motion, I would want to draw attention to the process short-circuiting that has taken place.
Mr Speaker, as an Hon Member of the Committee, I saw the Report for the first time in the Chamber. The Hon Ranking Member of the Committee has confirmed that he did not see the final Report, in
that, he had a discussion with the Hon Chairman of the Committee and raised some issues that he thought should be worked on. This did not happen and we have come to meet the Report here.
Mr Speaker, having said that I would --
Mr Speaker 12:48 p.m.
Hon Member, there is a Report before us and we are going by it. You are telling me what somebody told you and so on. That Hon Member who pointed out that matter-yours now is to contribute to the Motion in terms of the Report which you have in your hand.
Please, continue.
Dr Donkor 12:48 p.m.
Mr Speaker, I thank you for your direction. I thought --
Mr Speaker 12:48 p.m.
Hon Member, what you thought does not matter at this stage. [Laughter.]
Please, continue with your contribution.
Dr Donkor 12:48 p.m.
Mr Speaker, I take your guidance.
Mr Speaker, I have to speak to a Report I am seeing for the first time and I would want that on record.
Mr Speaker 12:48 p.m.
Hon Member, would you want somebody else who has seen it for the second time to comment? Otherwise, go on and comment.
Dr Donkor 12:48 p.m.
Mr Speaker, this Concession Agreement arises at the tail end of a Power Sector Reform Programme that was approved by Cabinet as far back as 1995. For me, this is an indictment on all of us -- the players in the power sector, both political parties that have been in Government.
Mr Speaker, as far back as 1995, we committed ourselves as a people to reform the power sector especially, EGG and we were to create special business units from it.
As a people, we failed to honour our own commitment to ourselves and therefore a Foreign Engineered Compact Agreement has been foisted on us because of our own inaction. I would want to also put that on record.
Mr Speaker, the policy changes that arose out of the shift of local content participation from 20 per cent to 51 per cent as it is today, that policy change engineered a new process. It created a process where the major players who had tendered had to withdraw.
At that stage, it was important for this bid to be reopened for other players to come in. We ended up with just one company and therefore the question of competitive tender was defeated.
Mr Speaker, as much as enhanced local content is important, the more important is the quality of the local participants. We must not just have local contents for local contents sake, but we must have participants who would bring on board expertise, capital and intellectual capacity so as to enhance the whole process.
Mr Speaker, I am afraid that even as I speak, we do not know the beneficiary owners of these local companies. It is important to put that on record.
Mr Speaker, I would also want to say that --
Mr Speaker 12:48 p.m.
Hon Member, have you conducted a search in the Register General's Department where all owners of companies are listed?
Mr Speaker 12:48 p.m.
What is the result of your search?
Dr Donkor 12:48 p.m.
Mr Speaker, the Committee at our meeting directed the secretariat and the leadership to do that search and provide us with the information but that was not done.
Mr Speaker 12:58 p.m.
Hon Member, before you make such a clear, authoritative and unambiguous statement on the Floor of Parliament, you must really confirm that with what you hold in your hand by way of an official search at the relevant quarters. This is because a document which is what is in the public domain should not be a matter of speculation before this Honourable House. If you do not have it, withdraw it and proceed.
Dr Donkor 12:58 p.m.
Mr Speaker, I would humbly suggest that it was for that reason that at the Committee meeting, we asked the secretariat and the Leadership --
Mr Speaker 12:58 p.m.
Hon Member, please, you are now making a statement on the Floor of Parliament. You must then produce, and if you are not able to do so, withdraw and go on.
Dr Donkor 12:58 p.m.
Mr Speaker, with all respect, and I submit to your direction that if it was for that reason that I early on said that this Report was unknown to us, in that we had asked for certain things to be captured so that we could present you with a full Report.
Mr Speaker 12:58 p.m.
An assiduous Hon Member of Parliament of the Republic of Ghana should make his own investigation on this simple matter of public record. Otherwise, withdraw it and proceed.
Dr Donkor 12:58 p.m.
Mr Speaker, I withdraw the fact that your Committee did not add the beneficial ownership. As far as Committee records are outstanding, I withdraw that fact.
Mr Speaker 12:58 p.m.
Proceed and conclude.
Dr Donkor 12:58 p.m.
Mr Speaker, I conclude by stating that this Report was rushed. Information that we requested for was not supplied.
Mr Speaker 12:58 p.m.
Hon Member, due diligence is required of an Hon Member of Parliament and something that is --

Hon Members, let us be careful.
Dr Donkor 12:58 p.m.
Mr Speaker, they denied us.
Mr Speaker 12:58 p.m.
Maybe, the lawyers here will advise them. Interruption] -- Listen. We must learn. We have a responsibility and we do not discharge our responsibility as Hon Members of Parliament by being speculative over matters that can be easily ascertained from public records and I insist on presiding over this Honourable Parliament.
Yes, now, Hon Kwabena Okyere Darko- Mensah?
Mr Kwabena Okyere Darko-Mensah (NPP -- Takoradi) 12:58 p.m.
Mr Speaker, thank you for the opportunity to add my voice to the Motion ably moved by the Hon Chairman of the Committee.
Mr Speaker, I do believe that this Agreement is one of the best we have ever had in this country. It is an agreement that ensures majority Ghanaian participation and that saves the jobs of our people at ECG. It is also an Agreement that saves our assets and only gives it on concession and it is expected to make electricity affordable over the long term.
Mr Speaker, the Report states on page three (3) 12:58 p.m.
‘ECG requires an estimated US$1billion of capital investment in every five years'.
If you take the Agreement that has been signed, this would happen.
Mr Speaker, it also states on page 4 12:58 p.m.
‘Despite the significant investment, technical and commercial losses have remained at levels well above the benchmark for comparable utilities as the company's financial performance continues to deterio- rate'
It shows that there is a fundamental problem at ECG and naturally, they need help. It is therefore appropriate and opportune that today, we are able to look at this Agreement and give passage to it.
Mr Speaker, going forward, the concessionaire is also expected to do an investment of US$580million in the distribution system over the first five years.
In doing so, technical losses are expected to come down from 0 to 4.8 per cent and commercial losses from 3.8 to 11.8 per cent.
Why am I so happy about this? I am happy because our current electricity tariff has a built-in waste.
This is because we are told that as at the end of the year 2017, for instance, technical, commercial and collection losses of ECG were said to be averaging at 32 per cent as at the end of the year
2017.
It shows that for every electricity bill that we pay, 32 per cent of that bill is not energy consumed but rather losses that have been built into the cost.
Therefore, it is important that we sign this Agreement, get it approved and make sure that it works.
Mr Speaker, last but not least is the issue of ECG staff and I am very happy. Initially, there were a lot of demonstrations and issues on radios all over the country that ECG staff would lose their jobs and that the concessionaires would employ new people.
They have been given that guarantee that no job would be lost; not a single one. Nobody would be forced involuntarily to leave their jobs. They would be kept and moved on to the concessioner and that is going to help us maintain peace on the industrial front.
Mr Speaker, last but not least is the issue of the stability for concessionaires. It gives them stability in terms of new laws and new rate setting guidelines --
rose
Mr Speaker 12:58 p.m.
Hon Member, please, do you rise on a point of correction or order?
Mr Jinapor 12:58 p.m.
Mr Speaker, yes. My good Friend, the Hon Darko-Mensah, indicated that out of the power we consume, 32 per cent is not what we consume. Because the Hansard is capturing that, I thought I should correct that.
Mr Speaker 12:58 p.m.
Hon Darko-Mensah, would you advise yourself on that?
Mr Darko-Mensah 12:58 p.m.
Mr Speaker, what I was trying to explain was just something basic, that these losses that ECG is losing out of non-collection, will definitely find a way into our bills.
This is because when they are doing their price buildup, these losses will always find their way into our bills and therefore it is very important that we sign this Agreement so that ECG is helped to help us so that we do not overpay what we actually consumed.
Mr Speaker, in conclusion, it is good that we have 51 per cent of local participation. Before Facebook was built, Mark Zuckerberg did not run a Facebook company; before Microsoft became a giant and started working with International Business Machines (IBM) Corporation it did not have the experience of working with multinationals.
Therefore, we cannot use any excuse for encouraging Ghanaian participation in this project.
Mr Speaker, this is the best way to keep the profit in Ghana instead of sending the profit outside this country. I believe that this Agreement is the best we have had in this country.
Mr Speaker 12:58 p.m.
Member, for Damango
Mr Adam 12:58 p.m.
Mr Speaker, I seconded the Motion.
Mr Speaker 12:58 p.m.
Thank you very much, Hon Member. Hon Minority Leader?
Mr Kyei-Mensah-Bonsu 1:08 p.m.
Mr Speaker, the Minority side had two slots on the trot. So you may allow Hon Annoh- Dompreh.
Mr Speaker 1:08 p.m.
How many have spoken for the Minority side?
Mr Kyei-Mensah-Bonsu 1:08 p.m.
Mr Speaker, the Minority side had two slots on the trot and so it is important that you come to the Majority side to pick one and then you could go to the Hon Minority Leader.
Mr Speaker 1:08 p.m.
Are we on the Leadership now? [Interruption] -- I would just want to be clear -- [Pause] --
Hon Member?
Mr Frank Annoh-Dompreh (NPP -- Nsawam-Adoagyiri) 1:08 p.m.
Mr Speaker, I thank you for your kindness.
Mr Speaker, I beg to support the Motion and starting from the introductory page which gave a background to this Agreement, I could not have agreed more with Hon Jinapor that it started in their time and I congratulate the government for that.
However, it is important for us to appreciate that the first compact was started by former President Kufuor and
on this note, I would want to commend the American Government because I could still recollect vividly a plethora of good things that the first compact did especially in the agricultural sector.
Mr Speaker, I believe that there is no debate between both Sides of the House as to whether this Agreement is needed or not. We have come to a consensus that we need to inject the necessary viability in the energy sector of our country, notwithstanding the fact that for the fleeting period that this government has been in power, at least the “adumdum adumdum” has become a thing of the past.
So, going beyond the stability and ejecting the needed financial wherewithal is what is most critical and what is being considered. This Agreement would eventually ensure that we get that regime.
But I find a few things very important though. I have read the Report and I would want to commend the Hon Members of the Committee, notwithstanding the few challenges that have been raised by the Minority side. I believe that they largely agree to the content of the Report.
Mr Speaker, I would want to commend the Hon Minister for Energy and his able team who have ensured that this Agreement was secured. First of all, to have moved from a certain level of 20 per cent local participation to over 50 per cent is commendable.
It did not come by the stroke of the pen; it came through the conscious negotiation powers of my respected Hon Minister for Energy and it is something that we have to commend.
Again, as Hon Darko-Mensah mentioned in passing, before this
Agreement, we had heard all manner of allegations. Workers of ECG were going to be retrenched, people were going to be sent home and a whole lot.
Today, we could read in black and white. Mr Speaker, if you would permit me, I beg to read page 13 of your Committee's Report:
“The Committee observed that government had secured an Agreement with the Concessionaire to ensure that the workers of ECG are not adversely affected by the new arrangement. All workers of ECG under the Collective Bargaining Agreement (CBA) are to take along the conditions enjoyed under the CBA to the new Consortium. Again, the Concessionaire is prohibited from undertaking any involuntary redundancy during the entire 20 year term of concession.”
Mr Speaker, we have had a go at a number of conditions in this House. Notwithstanding the critical need of the energy sector, the boldness and the confidence with which the leadership of the energy sector have been able to negotiate and achieve this feat is something that I am very proud of. Mr Speaker, that is rightly captured in page 13 of your Committee's Report.
Mr Speaker, on page 11, there is Local Participation and I find it very important. What could we do to strengthen our local entrepreneurs and local investors especially in the energy sector which has been a preserve? Against all odds, it has been a preserve of expatriates.
Mr Speaker, if you would permit me to read 1:08 p.m.
“The Minister for Energy, Hon Boakye Agyarko, informed the

Committee that prior to the coming into office of the present Admi- nistration, Government had stipulated that there must be at least twenty (20) per cent local par- ticipation in the Conces- sionaire's Consortium. However, upon assump- tion of office, the present Govern- ment directed that local participation in the consortium should not be less than fifty-one (51) per cent ...”.
Mr Speaker 1:08 p.m.
In conclusion?
Mr Annoh-Dompreh 1:08 p.m.
Mr Speaker, this is very refreshing and impressive.
Mr Speaker 1:08 p.m.
Hon Member, please, no playing to the gallery.
We urge Hon Members, not just Hon Members from one side, to support if you so want.
Mr Annoh-Dompreh 1:08 p.m.
Mr Speaker, I take a cue and may you live long. So I urge both Sides of the House.
Mr Speaker 1:08 p.m.
You have to withdraw first.
Mr Annoh-Dompreh 1:08 p.m.
Mr Speaker, I withdraw that aspect of my speech.
I call on both Sides of the House to support in unison this Agreement to turn around the energy sector of our country, to lead the way and to sustain the viability and avoid adumdum adumdum once and for all.
Mr Speaker, I thank you.
Mr Speaker 1:08 p.m.
Hon Minority Leader?
The Hon Leaders have 10 minutes.
Minority Leader (Mr Haruna Iddrisu) 1:18 a.m.
Mr Speaker, I thank you for the opportunity to speak to the Motion. Mr Speaker, for emphasis, I beg to move,
“That this Honourable House adopts the Report of the Joint Committee on Finance and Mines and Energy on the Concession Agreement between the Govern- ment of the Republic of Ghana and the Consortium of investors led by the Manila Electric Company (Meralco) for private sector participation in the Electricity Company of Ghana (ECG) with the terms of the Second Millennium Challenge Compact.”
Mr Speaker, I was in the United States for the United States Africa Summit when this Compact was signed by Hon Seth Terkper with former President Mahama, after a major session when the then United States President, Mr Barack Obama, declared Energy for Africa Policy Initiative.
Therefore it is important that Ghana is taking advantage to reform its energy sector and particularly improve distribution.
Mr Speaker, my first objection is what I have read. The Motion says that “… Consortium of investors led by the Manila Electric Company (Meralco) …”.
Mr Speaker, I am holding an Agreement -- “Electricity Company of Ghana Limited and Power Distribution Services Ghana
Limited. Lease and Assignment Agree- ment.”
So, the Motion is saying Meralco but the Agreement that I have -- Mr Speaker, you are a lawyer and I beg to quote the recital at page 1:
“This Lease and Assignment Agreement (this “Agreement”) is made on this 3rd day of July 2018, by and between the Electricity Company of Ghana Limited, a private limited liability company established under the Companies Act, 1963 (Act 179), with its principal office located at Electro- Volta House, 28th February Road, Accra, Ghana (“ECG”) as owner and lessor of the assets to be leased hereunder, and the owner and assignor of the rights to be assigned hereunder, and Power Distribution Services Ghana Limited (the “Company”), a private limited liability company established under the Companies Act, 1963 (Act 179), with its principal office located at House number 23, Switch Back Road, Josif Bros Tito Street, Accra, Ghana (DTD, Constitution 190, Cantonments, Accra), as the lessee and assignee (each of ECG and the Company, a “Party”, and collec- tively, the “Parties”)”.
So legally, we are dealing with the Power Distribution Company Limited. Mr Speaker, as you requested, I have done my due diligence.
This company was incorporated even after the procurement process. From the details that I have from the Registrar- General's Department, Power Distribution Systems was incorporated with 10 persons behind it on 29th June, 2018.
Minority Leader (Mr Haruna Iddrisu) 1:18 a.m.
hold the persons taking this decision responsible based on the experience in La Cote d'Ivoire.
Secondly, tomorrow, if the workers of Ghana are worse off, particularly workers of ECG and more importantly the Public Utility Workers are -- [Interruption.] and listened to Michael Nyantakyi who has raised concern --
Mr Speaker, it is true that MiDA engaged stakeholders including me. In the stakeholders meeting, we were told that the employment relationship as was defined by the MiDA Compact has been extended from the five year moratorium to 25 years.

There have been changes. I said MiDA gave me a document. The Hon Majority Leader would remember the meeting at Movenpick Hotel Accra.

They gave us certain slides which I would share. In those slides, there have been changes that have been agreed to between the Government and the Government of the United States and the Millennium Compact.

I would need from the Minister a signed document from the Millennium Corporation of the United States committing to those changes because he has said to us that as MiDA presented it there are changes.

With those changes, I need an official correspondence from the Millennium Challenge Corporation of the United States agreeing to those adjustments which include tenure and guarantee of

employment security for the workers of ECG and the Public Utilities Workers Union.

We owe them a certain responsibility, and we would jealously protect their security of employment.

Mr Speaker, in that Agreement which Government signed with the Millennium Challenge Corporation, there was a part of it which I disagreed with as the then Minister for Employment. It was to ouster the laws of Ghana in favour of other laws when it came to interpreting matters on employment. I also would want to raise that particular issue.

Mr Speaker, my third issue is to refer to pages 11 and 12 of your Committee's Report. But before I do so, let me respectfully quote paragraph 4.1.1.5:

“The Committee was further informed that the Concessionaire would be required under the Agreement to inject an amount of US$580 million in the Distribution System during the five years of the Agreement period.”

Mr Speaker, having quoted, the investment expected by the consortium, Meralco, and the Ghanaian 51 per cent are expected to bring US$580 million.

Mr Speaker, if you come to the pages where the Agreements are listed, how much each of them is expected to bring, which are pages 11 and 12, I would start with page 11.

It says:

“i. Manila Electric (Meralco) of Philippines -- 30 per cent.

i.Aenergia SA, (Angola) -- 19 per cent.

ii. Santa Baron Ventures Ghana -- 13 per cent.

iii. TG Energy Solutions (Ghana) -- 18 per cent.

iv. GTS Engineering Ghana Limited -- 10 per cent.

v. TBK Ghana Limited -- 10 per cent”.

Mr Speaker, I concede that some of them may have expertise in running enterprises and businesses relative to ECG distribution, but what that means is that Santa Baron Ventures Ghana is expected to bring US$75.4 million; TG Energy Solutions (Ghana) is expected to bring US$104.4 million.

Your Committee has not even helped this House and the people of Ghana. They have not stated this. We would not know.

They just said US$580 million. We need to know how much each of them is contributing by way of investment and their capacity to do so. We have TBK Ghana Limited bringing US$58 million.

Mr Speaker, we need to know their muscle and strength. That is, I am saying we do not want a situation where tomorrow, the distribution system would suffer.

I have heard the politics that there would be improvement and reforms in the energy sector, but they should not forget some of our problems even with the dumsor, to wit, power outage, and the adundum adundum, to wit power outages as the Hon Colleagues say, do not confuse problems associated with the generation and problems associated with distri- bution.
Mr Speaker 1:18 a.m.
And in conclusion?
Mr Iddrisu 1:18 a.m.
There may be light cut.
Mr Speaker, in conclusion, we have been told of 51 per cent shareholding for Ghana. Who owns the 49 per cent? What is the value of ECG's assets; who valued it and when was it valued? We need to know.
Mr Speaker 1:18 a.m.
Order!
Mr Iddrisu 1:18 a.m.
This is because, the ECG remains a partner. It is their assets. Given the 51 per cent plus 49 per cent shares, the 49 per cent belongs to who?

I asked it deliberately. With ECG as the asset holder, what is their equity holding?
Mr Speaker 1:18 a.m.
Thank you very much.
Mr Iddrisu 1:18 a.m.
If they think they can do financial alignment or engineering, what is their --? They own the assets, what is their holding, if they say the sharing ratio is 51:49?
Mr Speaker 1:18 a.m.
Hon Majority Leader? [Interruption.]
Hon Members, order!
Mr Iddrisu 1:18 a.m.
Mr Speaker, firstly, I referred to you to the legal issue where the Motion has Meralco but we have power systems here. We have been told by MiDA authoritatively that certain three
Mr Speaker 1:18 a.m.
Hon Majority Leader?
The Hon Minister would conclude.
Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 1:18 a.m.
Mr Speaker, I thank you for the opportunity to say a few words about the Motion before us.
Mr Speaker, the Hon Minority Leader concluded on the point that this is a house of record and that we should deal with the substance of matters. I heard him say at the very outset that on page 1 of the Agreement, the point has been made about the lease in assignment agreement made between ECG and a private limited liability company established under the Companies Act with its principal office located at Electro Volta House.
Mr Speaker, the company that has been named is Power Distribution Services Ghana Limited. The Hon Minority Leader kept saying that it is Power Systems. There is nothing like that. There is no Power Systems in the Agreement.

It is here; that was what he said.
Mr Speaker 1:18 a.m.
Order.
Hon Majority Leader, please, continue.
Mr Iddrisu 1:28 p.m.
On a point of order. Mr Speaker, I take strong objection to the misleading comment of the Hon Majority Leader. I just did not read, I pointed to you that I am going to the recital in page 1, and I read exactly and said Hansard would capture the rest. Please read same, I do not have a different document.
I hold the same document as you have, so do not create an impression that I came to create a new vehicle here, no.
I quoted the recitals, but for want of time [Interruption.] -- So Mr Speaker, you can understand why sometimes when you say five or ten minutes we may object to it. It was for want of time that I did not read the exact thing from the first page.
So read your page 1, I have not brought any new vehicle. I quoted it. The same document was given to me and given to him. He should read it and compare it as he is doing with what is in the Order Paper. It is here.
Mr Speaker, it is here, for the record. It says; “This Lease And Assignment Agreement…” I read all, and I said
Electricity Company of Ghana Limited, and for want of time, I emphasised Power Distribution Services Ghana Limited, the company. This was what I said.
So for the record, I said again that the Table Office should take note of what I read, so this is what I am referring to.
Mr Speaker 1:28 p.m.
Hon Majority Leader, please continue.
Mr Kyei-Mensah-Bonsu 1:28 p.m.
Mr Speaker, I do not know what the Hon Minority Leader is taking exception to.
I hope he was listening to himself when he was talking. He said power distribution systems on more than three occasions, and I am just reminding him. It was just a slip and he should admit that it was a slip, but he kept saying that it was power distribution systems, and I am telling him that that is not what obtains in the document.
If he is saying that he takes strong exception to what I am saying, I do not know what he is talking about. It does appear he was not listening to himself.
Mr Speaker 1:28 p.m.
Hon Majority Leader, address the Chair.
Mr Kyei-Mensah-Bonsu 1:28 p.m.
So Mr Speaker, he cannot take any strong exception to what I am saying. That exactly was what he said. Maybe it was a slip because he was in a hurry. I would admit to that -- [Interruption.]
Mr Speaker 1:28 p.m.
Hon Majority leader, please address the Chair and let us make progress.
Mr Kyei-Mensah-Bonsu 1:28 p.m.
Mr Speaker, there is no Parliament where business in
plenary is not regulated by time. There is no Parliament anywhere in the world, so when the Speaker invites you to speak for 10, 15 or 30 minutes, you should respect the time.
Mr Speaker 1:28 p.m.
Hon Majority Leader, you are eating into your time.
Mr Kyei-Mensah-Bonsu 1:28 p.m.
Mr Speaker, I would not respond to the cheerleaders and yes men at the back.
Mr Speaker, the young indeed shall grow, and people should have patience to grow and learn in this House.
Mr Speaker, the Power Distribution Compact is about distribution. It is not about generation. I listened to the Hon Dr Kwabena Donkor when he said that what we are doing is an indictment on us.
Indeed, this process started in 2014, and he was part of the system. When did he realise that it was an indictment? I just cannot understand this.
Mr Speaker, the cost of power generation in Ghana is the highest in the sub-region --
Dr Donkor 1:28 p.m.
On a point of order. Mr Speaker, I said this process started in 1995 when Cabinet approved the Power Sector Reform Programme, and there is documentary evidence.
Mr Speaker, fortunately, you have occupied the chair of Minister for Energy before.
Mr Kyei-Mensah-Bonsu 1:28 p.m.
Mr Speaker, the Agreement before us did not start in 1995; it started in 2014. That is the issue. The problem with power in this country is about distribution and not generation.
Mr Kyei-Mensah-Bonsu 1:28 p.m.


Over these past few years, we have concentrated on increasing power generation. The problem basically is with distribution, and that is what this project is intended to correct.

Mr Speaker, it is intended to turn the declining fortunes of ECG despite the frequent injections of capital for many successive years running, just as it happened in the water sector.

Periodically, we have been injecting capital to correct the distribution system. We are not making much headway, and it is intended to use this vehicle to try to offer some corrections and re-position the distribution system in this country.

Mr Speaker, we all know what power that is generated ends up as unaccounted for in the system, basically through, as Hon Jinapor said, technical deficiencies and even with respect to managerial difficulties in the system. That is what this project is meant to correct.

Mr Speaker, it is intended to stop and reverse the increasing losses recorded in several straight years which put higher financial pressure on the national purse, repair the unreliable and weak distribution infrastructure and reverse the increasing obsolescence and inefficiency in the infrastructural systems. This is at the heart of this project.

Mr Speaker, the concession is to provide private sector funds to develop the utility, thus freeing public funds for other national development purposes, and it is to infuse efficiency in the operations of the utility delivering available and quality power to consumers, at the same time modernising and improving the utility's operational efficiency as it seeks to deliver value in a regulated sector.

Mr Speaker, this is at the heart of this project, and issues have been raised about what obtains in the sub-region. In Nigeria and la Cote d'Ivoire, the experiences that the Manila Electric Company has had -- [Interruption] they are not going to be involved in the same processes in Ghana as they did in la Cote d'Ivoire and Nigeria.

Mr Speaker, people point to the record of the Manila Electric Company. It cannot be the same. It cannot be imported here. However, they should be a useful lesson to us. They should guide us in our observation about their performance, and if they are not able to perform, Ghanaians certainly should sit up.

What are the exit options for us? If we need to strengthen certain areas, perhaps we may have to look at these areas, so that if they are not able to perform, then we would be able to exit at not much cost to the country Ghana.

Mr Speaker, I thought that should be one of the principal considerations that we would be looking at. I believe the very salient issues have been raised and addressed by my Hon Colleagues who have spoken earlier, and because the Minister for Energy himself is here and he needs to wind up, there are so many things before us.

Mr Speaker, I would cut the story short and allow the Hon Minister to fill in whatever is appropriate since we need to carry everybody along.

It is a national project, and if there are outstanding issues that would engage our attention, as a House nothing prevents us from looking at that. I believe that we can make progress where we are and approve the Report before us.

Thank you Mr Speaker.
Mr Speaker 1:38 p.m.
Hon Minister for Energy, if you have a few pertinent points to make, please go to the point, correct or otherwise.
Minister for Energy (Mr Boakye Agyarko) 1:38 p.m.
Mr Speaker, I am grateful to you and to this House for the opportunity to appear before you in defence of this Agreement.
Mr Speaker, the country has come a long way after initiating the power sector reform as far back as 1995. These reforms have moved in fits and starts and I am glad that at least on both Sides, we agreed that the state of ECG, our distribution company, is not such that it has reached a perfect and happy state of affairs that we should consider a profanation to touch it further.
Mr Speaker, it is said that there comes a moment in time when a door opens to let the future in and that moment is now. I will however remiss my duty to this House if I do not touch on some of the issues that have been raised or placed on the Floor of this House.
A point has been raised about the competitiveness of the process. Mr Speaker, a process started with the shortlist of six and as we went along, companies dropped out.
Mr Speaker, the analogy I will make is that a marathon race starts, runners drop out as the lapse develop and somewhere, at the end of it, because only one runner is able to complete, it is said that it was not competitive. I beg to disagree.
Mr Speaker, companies dropped out mostly because some of them could not accept majority of Ghanaian ownership of the project and I am here hearing that
some are not happy because of the majority ownership in this project? Is that the complaints I hear?

Mr Speaker, I wished or hoped that the pedigree of MERALCO would be checked before the aspersions were cast. MERALCO is a reputable company and I would urge it upon my Friends on the opposite Side to do the due diligence in checking.

Besides, as you have rightly pointed out, the shareholders' structure is in the public domain with the custodian of records at the Registrar General's Department.
rose
Mr Speaker 1:38 p.m.
Hon Buah, do you rise on a point of correction or order?
Hon Minister, please hold your horses for a moment.
Mr Buah 1:38 p.m.
Mr Speaker, this is a House of record. I have conferred with all the Hon Colleagues who have spoken and nobody on this Side ever made any allusion to the fact that we are not happy with the increase in Ghanaian ownership. We have championed local content. If it was not for -- [Interruption.]
Mr Speaker 1:38 p.m.
Order!
The important point is that, nobody said that. So proceed.
Mr Agyarko 1:48 p.m.
Mr Speaker, the point has also been made about variation in the Compact agreement. Mr Speaker, for the records, there are two levels within this Compact agreement. The compact agreement itself cannot be varied without recourse to the US Congress.
However, the concession and its articles are all negotiable and it is stated clearly in the Request for Proposal and the related documentation. So we need not go to the House of Representatives in the US to change elements of the concession arrangement.
We however, have to go to the House of Congress if we need to change the Compact agreement. So for example, it is a five-year compact. If we need to extend it beyond the five year duration, then that is changing the compact itself and we would have to go and seek permission from the House of Congress but with the concession arrangement itself, that is not the requirement.
Mr Speaker, a point has also been made about the numbers. The investment commitments are as follows: year 1 -- US$125.944 million; year 2-- US$110 million; year 3 -- US$144.012 million; year 4 -- US$91.774 million and year 5 -- US$109.230 million totalling some US$580.960 million. This is the investment schedule to which the concessionaires are committed to.
Mr Speaker, may I ask, how did my Hon Friend arrive at the numbers that he wants to share with Ghanaians? He calculated it
from the shareholding structure and the amount of investments required. So, it is easy for everybody else to know what the schedule of investments are.
Mr Speaker, another point was made about the technical participation in comparison to the shareholders. Respectfully, I would say that the shareholders are at liberty to scout around the world and hire the best technical expertise they can have.
Shareholders do not necessarily need to have the technical expertise required to run the business. I believe that has been clearly pointed out by an Hon Friend on this Side with respect to Mark Zuckerberg and Microsoft.
Mr Speaker, we have made significant improvements to this concession agreement laid before the House, namely, the improvement from 20 to 51 per cent — [Interruption] -- Initially, there were no guarantees whatsoever for labour.
It was through negotiations that we made five years of employment to be the first option which labour did not appreciate and finally, we came to the third which said that there shall be no involuntary lay-offs during the entire period of the concession which is 20 years.
Mr Speaker, if you look at the human resource module of ECG on the average, the ECG worker is 52 years old and they are being given a 20 year life over the period of concession. We recently met with the Public Utility Workers Union (PUWU) and I am glad to report that they are happy with the progress made so far.
Mr Speaker, we also reduced the tenure of the programme from 25 years to 20 years
short ended. As I said earlier, there is no grounds for quibbling about what has happened. This is because my sense in all that has travailed is that, on both Sides of the aisle, we all agree that ECG is not in that happy state where we would say that to touch it further is profanation. It is not.
And I would invite friends from the Opposite to join hands with us and make sure that the weakest link in the power sector value chain or the power sector supply chain is strengthened.
And I believe that posterity would judge us rightly and be glad that we took this bold step, which is the culmination of steps all the way from the Power Sector Reform of 1995.
And that, this generation of Parlia- mentarians have had the boldness to take the correct step of fixing ECG so that the entire supply chain is made bold.
I thank you, Mr Speaker.
Mr Speaker 1:48 p.m.
Thank you very much, Hon Minister.
Question put and Motion agreed to.
Mr Speaker 1:48 p.m.
Hon Minister, Resolu- tion?
RESOLUTION 1:48 p.m.
Minister for Enegy (Mr Boakye Agyarko) 1:48 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 Government of Ghana is a party shall not come into operation unless the said terms and conditions have been laid before Parliament and approved by Parliament by a Resolution supported by the votes of a majority of all Members of Parliament;
PURSUANT to the provisions of the said Article 181(5) of the Constitution, and at the request of the Government of Ghana acting through the Minister responsible for Energy, there has been laid before Parliament the terms and conditions of a Concession Agreement between the Government of the Republic of Ghana and the Consortium of investors led by the Manila Electric Company (Meralco) for private sector participation in the Electricity Company of Ghana (ECG) with the terms of the Second Millennium Challenge Compact.
THIS HONOURABLE HOUSE 1:48 p.m.
HEREBY RESOLVE AS 1:48 p.m.
Mr Emmanuel Akwasi Gyamfi 1:48 p.m.
Mr Speaker, I beg to second the Resolution.
Question put and Motion agreed to.
Resolved accordingly.
Mr Speaker 1:48 p.m.
Hon Members, with regard to the time and the Business before us, I direct that Sitting goes beyond the regular hours.
Hon Majority Leader, do we take the Addendum Order Paper?
Mr Kyei-Mensah-Bonsu 1:48 p.m.
Mr Speaker, we could take Motion captured as item11.
Mr Speaker 1:48 p.m.
Item numbered 11 -- Motion.
Hon Chairman of the Committee?
During this period, the Hon Second Deputy Speaker would take the Chair.

Hon Chairman of the Committee, what is the difficulty?
Mr Kyei-Mensah-Bonsu 1:48 p.m.
Mr Speaker, I am informed that we now have to deal with item numbered 48.
Dr Assibey-Yeboah 1:48 p.m.
Mr Speaker, there are two loan Agreements for the same project; the Tamale Airport. So the procedural Motions numbered 48 and 51 would be moved together and the substantive Motions numbered 49 and 52
would be done same and when we get to the Resolutions, we would take items 50 and 53 together.
Mr Speaker 1:48 p.m.
You may proceed.
Chairman of Finance Committee (Dr Assibey-Yeboah 1:48 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 Term Loan Facility Agreement between the Government of the Republic of Ghana and KfW IPEX-Bank GmbH (as Original Lender) [supported by United Kingdom Export Finance guarantee] for an amount of fifty-six million United States dollars (US$56,000,00.00) for the Construction of the Second Phase of the Tamale International Airport may be moved today.
Mr Speaker, I further 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 Commercial Loan Facility Agreement between the Government of the Republic of Ghana and KfW IPEX-Bank GmbH (as Original Lender) for an amount of twenty- four million United States dollars (US$24,000,00.00) for the Construction of the Second Phase of the Tamale International Airport may be moved today.
Mr Forson 1:48 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Speaker 1:48 p.m.
Hon Chairman, please proceed with the substantive Motions.
MOTIONS 1:48 p.m.
Chairman of Finance Committee (Dr Mark Assibey-Yeboah) 1:48 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Term Loan Facility Agreement between the Government of the Republic of Ghana and KfW IPEX- Bank GmbH (as Original Lender) [supported by United Kingdom Export Finance guarantee] for an amount of fifty- six million United States dollars (US$56,000,00.00) for the Construction of the Second Phase of the Tamale International Airport.
Mr Speaker, I further beg to move, that this Honourable House adopts the Report of the Finance Committee on the Commercial Loan Facility Agreement between the Government of the Republic of Ghana and KfW IPEX-Bank GmbH (as Original Lender) for an amount of twenty- four million United States dollars (US$24,000,00.00) for the Construction of the Second Phase of the Tamale International Airport.
And Mr Speaker, in doing so, I present the Committee's Report:
Introduction
i.The United Kingdom Export Finance (UKEF) Facility Agree- ment between the Government of
Chairman of Finance Committee (Dr Mark Assibey-Yeboah) 1:48 p.m.


Project Description And Scope

The scope of Second Phase of the Project is as follows:

a. Design for the scope of work;

b. Modular Airport Terminal Build- ing with approximately 5,000m square expandable in the future;

c. Hajj Facility with approximately 1000m square;

d. Single Carriage Access road;

e. Landslide and airside infrastruc- ture adapted to the terminal size; and

f. Water, power and sewerage infrastructure deemed necessary for normal operations.

Thus, the Phase 2 Project will cover the following components:

a. Passenger Main Terminal;

b. Hajj Facility;

c. Access and Secondary Roads; and

d. Water, Power and Sewerage Infrastructure.

Observations

Expected Benefits of the Project

The Committee observed that the Tamale International Airport master plan has been translated into an overall vision and a strategy for short to medium-term development.

The Airport is to be developed to have a well-balanced mix of business, commercial, industrial, sports and recreational areas and facilities. Tamale International Airport is expected to catalyse industrialisation and rapid socio- economic development.

Expected Traffic Growth

The development of the Tamale Airport is expected to promote domestic air travel and provide the national spokes to open up the enormous potential growth of traffic in domestic and regional routes to and from the Airport in support of the KIA's pole position to be the gateway and the aviation hub in West Africa.

Boost to Eco-Tourism and Agriculture

The Committee noted that the redeveloped Tamale International Airport will boost eco-tourism and cultural tourism by facilitating domestic and international travel for the exploration of the national historic heritage sites and the development of eco-tourism and cultural tourism of the savannah zone of the Country.

Also, the Airport will benefit the Agricultural sector by leveraging the export of fresh produce and support an agro-based national strategic goal leading to the potential establishment of agro- based industries.

Annual Hajj Pilgrimage

The Tamale Airport is expected to significantly support International travel for Hajj pilgrimage by the large Muslim population which performs the annual Hajj. The catchment is also expected to cover the Sahelian countries.

Alternative to the Kotoka International Airport

The Committee was informed that the development of the Tamale Airport will serve as a fit alternative international destination to the Kotoka International Airport, Accra, for example, in case of emergency or airport closure in Accra.

Tamale International Airport was said to have been developed to an efficient and modern airport facility, oriented towards the international, regional, and national aviation markets.

Maintenance, Repair, and Overhaul (MRO) Facility

The Committee noted that upon completion, the Tamale International Airport is expected to become the only Maintenance, Repair, and Overhaul (MRO) facility for Ghana and other African Airlines.

Project Financing

The cost of the Project is estimated at US$70.00 million and is financed by KfW- IPEX Bank GmbH (as the original lender) under an export credit financing structure. The credit guarantee support is provided by the United Kingdom Export Finance

(UKEF).

The financial package provides a 100 per cent financial solution to ensure that the Project proceeds smoothly without financial hindrances.

Conclusion

In view of the socio-economic benefits to be derived from the Project, the Committee respectfully recommends to the House to adopt this Report and approve by Resolution:

i.The United Kingdom Export Finance (UKEF) Facility Agree- ment between the Government of the Republic of Ghana, represented by the Ministry of Finance, and KfW IPEX-Bank GmbH, in the sum of fifty-six million United States dollars (US$56,000,000.00) for the Design and Construction of the Second Phase of the Tamale International Airport; AND

ii. The Tied Commercial Agreement between the Government of the Republic of Ghana, represented by the Ministry of Finance, and Kfw IPEX-Bank GmbH in the sum of twenty-four million dollars (US$24,000,000.00) for the design and construction of the Second Phase of the Tamale International Airport.

In accordance with article 181 of the 1992 Constitution of the Republic of Ghana.

Respectfully submitted.
MR SECOND DEPUTY SPEAKER
Mr Second Deputy Speaker 1:58 a.m.
Hon Members, the two Motions have been moved.
Ranking Member (Mr Cassiel Ato Baah Forson): Mr Speaker, I beg to second the Motions and in doing so, advert the House's attention to the fact that this is not a new facility.
We would recall that this Honourable House approved in August 2016, the Commercial Loan Agreement for the Tamale International Airport. That Loan
Mr Second Deputy Speaker 1:58 a.m.


Agreement for some reason fell off to the extent that the Ministry of Finance had to get some other financing to replace the old one.

Mr Speaker, my concern today relates to the cost of the facility. The Committee discussed this extensively and asked the Ministry of Finance to ensure that going forward, they would negotiate loans in a way that would benefit all of us.

I say this because if you look at the loan facility carefully, the United Kingdom (UK) Export Financing Agreement would have insurance put together approximately US$10 million out of a facility amounting to about US$80 million.

So to take a facility of US$80 million and pay insurance of US$10 million, we felt that it is now time for us to look at the cost once again.

Mr Speaker, the other export credit agencies' cost is a bit cheaper than what we see in the UK. The UK Export Credit Agency cost is a bit higher than that of what we have seen of late. A typical one is the Italian Sachet Export Credit Agency Agreement and the other ones we get, particularly from other European countries.

Unfortunately, the UK Export Credit Agency's financing cost is expensive, so we urge the Ministry of Finance that though it is available, we should renegotiate with them.

Mr Speaker, let me also say that the Hon Deputy Minister, Hon Charles Adu Boahen, assured the Committee that the Ministry of Finance had started speaking with export credit agencies in such a way that the prices, particularly the cost relating to the facility would come down.

Apart from that, since this is an old facility, I support this Motion and urge Hon Members to support it.
Mr Second Deputy Speaker 1:58 a.m.
Hon Members, Motions numbered 49 and 52 have both been moved and seconded.
Question proposed.
Mr Samuel Nartey George (NDC -- Ningo Prampam) 1:58 a.m.
Mr Speaker, in contributing to this Agreement for the design and construction of the second phase of the Tamale International Airport, I believe that this Agreement is long overdue.
rose
Mr Second Deputy Speaker 1:58 a.m.
Hon Member, let us listen to the Chairman of the Committee.
Dr Assibey-Yeboah 1:58 a.m.
Mr Speaker, I have some information for my Hon Colleague. This loan for the second phase of the Tamale International Airport was approved by the Sixth Parliament in October, 2016. -- [Interruption] -- He said that the loan is long overdue.
The bank withdrew, so Government had to go and find a new lender being a Government for all -- [Interruption] -- So the Government should rather be applauded for not abandoning the project after the original lenders withdrew. The Hon Member should take that on board.
Mr George 1:58 a.m.
Mr Speaker, I would just urge the Hon Chairman to pay close attention to what I said. What I said was that the project was long overdue, and not the loan agreement. Having a fully functional international airport in Tamale is a project and that is what I said is long overdue.
I did not make any reference to the loan agreement. The facts of the loan agreement and whether the bank pulled out is evident in the Committee's Report. So that is of very little consequence to the debate here.
In 2016, shea butter export from the northern part of Ghana to the UK alone, amounted to £25 million. That tells us the importance of having an international airport in Tamale, because of its boost to the agro processing industry in the northern sector.
Mr Speaker, when you look at its impact on religious and social activities like the Hajj, it is evident to us that this project is one that is key and must be supported by all and sundry.
A project which was started by the former Administration and is being continued by this Administration, we cannot fight or say anything negative about it, but to hope that the project would be completed at the right time.
Thank you, Mr Speaker, for the opportunity to make my case.
rose
Mr Second Deputy Speaker 1:58 a.m.
Hon Member, is it a point of order? [Pause]
Hon Member, are you saying that everything is now in order?
Mr William Agyapong Quaittoo 1:58 a.m.
Mr Speaker, the Hon Member mentioned a figure, that export of shea butter alone to
the UK in 2016 was £25 million. That is outrageous. It cannot be true and has never happened before. This is a House of record, so he should withdraw that.
Mr Second Deputy Speaker 1:58 a.m.
Hon Member, are you raising a point of order or debating him? If you raise a point of order, draw our attention to the Standing Order that has been breached. Now, you are debating him and that is a different thing altogether.
Mr Quaittoo 1:58 a.m.
On a point of order. Mr Speaker, he was misleading the House in a sense that the figure that he mentioned
-- 1:58 a.m.
Mr Second Deputy Speaker 1:58 a.m.
You know my view on this order. When you say a person is misleading the House, go and read the Standing Order dealing with misleading and come back.
Hon Members, may we continue?
Mr Kwabena Okyere Darko-Mensah 2:08 p.m.
Mr Speaker, I thank you --
Mr Second Deputy Speaker 2:08 p.m.
Hon Member, you are the Hon Member for Takoradi, is that right?
Mr Darko-Mensah 2:08 p.m.
Mr Speaker, yes.
Mr Second Deputy Speaker 2:08 p.m.
We would have to start enforcing the rules. Hon Members, our Standing Orders are very clear. You would speak from your seat -- that is the Standing Orders. I am not the one saying it; and it is my duty to enforce the Standing Orders. I do not think I would fail in that duty.
Mr Kwabena Okyere Darko-Mensah (NPP -- Takoradi) 2:08 p.m.
Mr Speaker, I thank
Mr Alhassan Suhuyini Sayibu (NDC -- Tamale North) 2:08 p.m.
Mr Speaker, I thank you for the opportunity to associate myself with the Report by the Committee on Finance on the United Kingdom Export Finance Facility Agreement between the Government of the Republic of Ghana represented by the Ministry of Finance and KfW IPEX-Bank GmbH in the sum of
US$56,000,000.00.
Mr Speaker, this project, I agree with the Hon Samuel George when he said earlier that it is long overdue. It is going to be a game changer in the aviation industry in this country.
Not only because of the inclusion of the maintenance, repair and overhaul facility which would ensure that apart from landing fees and passenger output benefits to the economy, we would also now have the capacity to service aircrafts within this country.
Aircrafts that do not only undertake domestic transportation but also international aircrafts especially those from the sub-region.
It is important that this part of the investment is highlighted because of its potential to create enormous job opportunities for the people in this country, especially from the northern part of Ghana.
Mr Speaker, it would also serve as a hub for the aviation sector in the sub- region. If you consider the topography of the Airport and where it would be situated, it also reduces a lot of travel time.
It was a sight to behold in 2016 when the first biggest aircraft ever, a Boeing 747
took off from the Tamale International Airport to the Kingdom of Saudi Arabia.
Pilgrims who were on board that flight arrived an hour earlier in the Kingdom of Saudi Arabia compared to time that usually was spent when they took off from the Kotoka International Airport.
Mr Speaker, so this second phase is going to make the Tamale Airport, perhaps, the first choice for many airlines when they want to take off from Ghana or land in the country.
Mr Speaker, with your guidance, I would also want to suggest that on page 5 of the Report, instead of it being captured as just Hajj Facility under paragraph 5.0 (c) with approximately 100 metre square, it could read as ‘‘Hajj Multipurpose Facility''.
I say so because if you look at a facility such as the one that is thought of, it is not just going to be used for only Hajj purposes but would also be used for other purposes for the transportation of either goods or services. But if it is limited as it is, I believe that the usage would also seem to be limited in future.
Mr Speaker, with these few words, I would want to associate myself with the Report and urge Hon Members to adopt it and also hope that work would expeditiously be done for the benefits to begin to be realised by all in this country.
Mr Speaker, I thank you for the opportunity.
Mr Iddrisu — rose --
Mr Second Deputy Speaker 2:08 p.m.
Is that

All right; Hon Minority Leader?
Minority Leader (Mr Haruna Iddrisu) 2:08 p.m.
Mr Speaker, if somebody on the Right of the aisle would want to contribute, I can yield.
Mr Speaker, I beg to speak in support of the Motion for the approval of US$56,000,000 plus US$24 million for the designing and construction of the second phase of the Tamale International Airport and to urge Hon Colleagues to support it.
Mr Speaker, currently, Tamale serves the northern Sahelian half of the country, and if we strategically position it as an aviation hub, it can serve other countries in the West African sub-region.
I know that the Hon Minister for Aviation and his Deputy were in Yendi and they were received very well. I was told by the Kampa Kua Naa that he even gave them some donation of land for the expansion of the airport.
Mr Speaker, I do know that my own village of Kpilying, Jahanjeri, Kukuo and others including Nyeshie and Wayamba among others have had issues with the land with the Ghana Civil Aviation Authority and would be helping to see a resolution of it in order to allow for the expansion of the airport.
But it is important that the Ghana Civil Aviation Authority recognises that where they take those lands, compensation would be due for payment to the people of Kpilying and one of the communities is under the Hon Ras Mubarak of Kumbungu because it would affect those areas.
Mr Speaker, having been an Hon Minister for Trade and Industry, if the
Majority Leader (Mr Osei Kyei- Mensah-Bonsu) 2:18 p.m.
Mr Speaker, I have just a few words.
I agree with Hon Colleagues who spoke earlier that this project is one that ought to have taken place long ago.
As of now, the Tamale International Airport has the longest runway in the country. It is intended to be expanded further. Mr Speaker, what we ought to do now if indeed, the Airport should be secured as a full-fledged international airport, is to ensure that we secure the environs of the Airport.
Today, before one lands, one sees the encroachment that is happening. That cannot be acceptable. It appears the airport is now being hemmed-in; that is very serious and dangerous. So while we are at this, I would want to believe that the first thing to do is to secure the entire region of that parcel of land that was procured for the Airport.
Mr Speaker, it would not only promote Hajj, which I believe is one major activity that it may promote; much more importantly, it would add to promoting tourism in the North.
We would certainly come to talk about the development of the Kumasi Central Market and the Kejetia Market. In Kumasi
now, there is very close to the lorry park, what is supposed to be a zoo. I do not see any place now where we have the zoo right at the centre of the city.
We said to ourselves -- [Interruption.] I am not too sure what the Hon Deputy Minister for Lands and Natural Resources is talking about. In Kumasi, even though the parcel of land is there, I am not too sure that for now we have about five different species of animals there; we do not.

Mr Speaker, I am urged by the Hon Chairman of the Finance Committee to be very brief because of the tall order.

It would not only promote tourism; it would promote agriculture and social life. Today, when many people are transferred to Tamale in the Northern Region, they do not want to go because they think that the city does not come with much social life. If we have a fully-functioning airport there, that would certainly add to the attraction of Tamale and, indeed, the Northern Region.

Mr Speaker, as I said, the Hon Chairman of the Finance Committee keeps nudging. I would want to end it here, and urge all my Hon Colleagues to be supportive of the Motion that has been moved by the Hon Chairman of the Finance Committee.

Mr Speaker, I thank you very much for the space.

Question put and Motions agreed to.
Mr Second Deputy Speaker 2:18 p.m.
Hon Majority Leader, I believe we would take the Resolutions.
Mr Second Deputy Speaker 2:18 p.m.
Resolutions numbered 50 and 53 by the Hon Minister for Finance.
Mr Kyei-Mensah-Bonsu 2:28 p.m.
Mr Speaker, there is an assignment for the Hon Minister for Finance in Kumasi, so if the Hon Deputy Minister could hold the fort for him?
Mr Second Deputy Speaker 2:28 p.m.
Hon Majority Leader, I know you adopted the term ‘‘our own''.
The Hon Deputy Minister would move the Motion for and on behalf of the Hon Minister for Finance.
RESOLUTIONS 2:28 p.m.
Minister for Finance) 2:28 p.m.
Mr Speaker, I beg to move,
WHEREAS by the provisions of article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
PURSUANT to the provisions of the said article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), at the request of the Government of the Republic of Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of a Term Loan Facility Agreement between the Government of the Republic of Ghana and KfW IPEX-Bank GmbH (as Original Lender) [supported by United Kingdom Export Finance guarantee] for an amount of fifty-six million United States dollars (US$56,000,000.00) for the construction of the Second Phase of the Tamale International Airport.
THIS HONOURABLE HOUSE 2:28 p.m.
HEREBY RESOLVES AS 2:28 p.m.
Dr Mark Assibey-Yeboah 2:28 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to
Resolved accordingly.
Mr Second Deputy Speaker 2:28 p.m.
Hon Majority Leader, any indication?
Mr Kyei-Mensah-Bonsu 2:28 p.m.
Mr Speaker, we could deal with Motion numbered 42.
Mr Second Deputy Speaker 2:28 p.m.
Motion numbered 42 -- by the Hon Chairman of the Committee?
Dr Assibey-Yeboah 2:28 p.m.
Mr Speaker, again, we would take two procedural Motions together because there are two Agreements before us.
MOTIONS 2:28 p.m.
Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:28 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 Term Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring

Bank and Lender] (supported by United Kingdom Export Finance as ‘Covered Lenders' Guarantor) for an amount of forty-eight million, six hundred thousand euros (€48,600,000.00] from Covered Lenders) and thirty-two million, four hundred thousand euros (€32,400,000.00] from Direct Lenders) for Phase II of the Redevelopment and Modernisation of the Kumasi Central Market and its Associated Infrastructure may be moved today.

I further 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 Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] for an amount of twelve million, three hundred thousand euros (€12,300,000.00) for Phase II of the Redevelopment and Modernisation of the Kumasi Central Market and its Associated Infrastructure may be moved today.
Mr Second Deputy Speaker 2:28 p.m.
Any seconder?
Mr Cassiel Ato Baah Forson 2:28 p.m.
Mr Speaker, I beg to second the Motion.
Question put and Motion agreed to.
Resolved accordingly.
Mr Second Deputy Speaker 2:28 p.m.
Hon Members, item numbered 43 and 46 on the Order Paper.
MOTIONS 2:28 p.m.
Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:28 p.m.
Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Term Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] (supported by United Kingdom Export Finance as ‘Covered Lenders' Guarantor) for an amount of forty-eight million, six hundred thousand euros (€48,600,000.00 from Covered Lenders) and thirty-two million, four hundred thousand euros (€32,400,000.00 from Direct Lenders) for Phase II of the Redevelopment and Modernisation of the Kumasi Central Market and its Associated Infrastructure.
I further beg to move, that this Honourable House adopts the Report of the Finance Committee on the Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] for an amount of twelve million, three hundred thousand euros (€12,300,00.00) for Phase II of the Redevelopment and Modernisation of the Kumasi Central Market and its Associated Infrastructure.
In so doing, I present your Committee's Report.
Introduction
The Facility Agreement in the amount of up to eighty-one million euros (€81,000,000.00) between the Government
Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:28 p.m.


The first phase of the project is implemented at a cost of US$259,425,000

and it is expected to be completed in October 2018. The utilisation of the total floor space under Phase 1 is summarised in the table below.

SPACE FOR TABLE, PAGE 7, 2.28 P.M

The project deliverables upon completion will include the following, among others:

I. 8,231 m2 Leasable Commercial Spaces

6,751 Closed stores

1,069 Kiosks

Counters

60 Restaurants

304 Fishmongers and butcher stores

47 Livestock stores

Food courts

II. Utilities Area

Public transport terminal

Prayer room

Union offices

Police station

Fire station

Post offices

Creche

Clinic

Administrative offices

Waste separation dock

Cafeteria for staff

Change room for staff

Sewage treatment station

Generators

Fuel and gas storage tanks

The project also aims at providing infrastructure in the surrounding Central Business Area, making important interventions in the congested road system, organising and giving better conditions for mobility in the area, allowing traders to receive their merchandise and customers to reach the area in a safer and more organised manner.

Phase 2 of the project will be a continuation of phase I and will cover a total construction area of 172,197m2.

The two market areas (under the two phases) when completed, would be linked by two aerial walkways, providing ideal conditions for the flow of the large number of pedestrians that move frequently between them, with no interference from the street vehicular traffic.

Project Objectives

The objective for undertaking the project is to redevelop and integrate Kejetia and Kumasi Central markets, and improve on the ancillary roads, facilities and utilities in the enclave. This is to
Chairman of the Committee (Dr Mark Assibey-Yeboah) 2:28 p.m.


Project Description

The project will be a continuation of phase 1 and will cover a total construction area of 172,197m2. The main structure of the market building will be pre- manufactured steel structure and beams.

The parts will be produced abroad and shipped to the site for assembling, this will allow for a very fast pace of construction. The roof will be in steel sheets with isolation to prevent heat from the sun. The central opening provides

ventilation and light to the interior. Multiple skylights will allow the entrance of sunlight providing natural illumination.

The Engineering, Procurement and Construction (EPC) contract in the sum of €248.00 million (the equivalent of US$285.20 million) would be implemented in two tranches.

The first tranche of Phase 2 is estimated at €82.00 million (the equivalent of US$93.40 million). The total land usage under phase 2 is summarised in the table below.

SPACE FOR TABLE, PAGE 9, 2.28 P.M
Mr Richard Acheampong (NDC -- Bia East) 2:28 p.m.
Mr Speaker, I beg to second the Motion moved by the Hon Chairman of the Committee.
Mr Speaker, when we look at the terms of the facility, together we are looking at about €93.3 million to construct the Phase II of the Kumasi Market Project, but looking at it ,the Phase I is not completed.
Mr Speaker, with your permission, I beg to quote paragraph 5.0 of the Report which says:
‘‘The project will be a continuation of Phase I and will cover a total construction area of 172,197m2''.
Mr Speaker, this would give us about 10, 500 store units and the Phase I would give us about 8,248 store units.
Mr Speaker, if we look at the Phase I project, it is left with about 80 to 90 per cent to complete. When it comes to the allocation of the stores, we would want to plead that it should not be politically allocated because at the end of the day, people have to use the stores and pay the money.
Mr Speaker, my concern has to do with paragraph 6.3 on page 7 of the Report and with your permission, I beg to quote:
‘‘The proposed SPV would work as a fully-owned company of the Government of Ghana with the asset/liability structure and legal status that makes its obligations secure. This strategy is geared towards isolating the Government and for that matter the KMA from direct financial risks''.
Mr Speaker, how can this be possible? It is the Government of Ghana who is securing the facility to undertake this project and so, if the SPV is set up to manage the facility, the contingent liability would be on the Government. Failure to service the facility, the Government has to come in. So how could the Government be isolated from this arrangement?
Mr Speaker, I do not believe the Report is giving us a good indication.
Mr Second Deputy Speaker 2:28 p.m.
Hon Chairman of the Committee, I hope you are listening to the point the Hon Member is making. In the last but one line of paragraph 6.3 on page 7 of the Report, it says:
‘‘This strategy is geared towards isolating the Government and for that matter KMA from direct financial risks''.
Hon Member, please, continue.
Mr R. Acheampong 2:28 p.m.
Mr Speaker, attention has to be drawn to it so that we can make sure that the right thing is done.
Mr Speaker, with your permission I beg to quote paragraph 6.4 of the Report which says:
“The Committee observed that proceeds of the credit facilities are to be on-lent to KMA or its assignee''.
Mr Speaker, how could you on-lend the proceeds? You only on-lend the facility so that they would use the proceeds to pay for the loan. So we could not on-lend the proceeds from the loan that we are contracting or the activities of the stores.
So the point is that you could not on- lend the proceeds, it is the facility that we are giving to KMA to manage so that the proceeds from this facility would be used to settle the debts.
So, you open an ESCROW account for them and they put in the money to pay back the loan. So, we could not on-lend the proceeds.

Mr Speaker, so this is the point I am making that we could only on-lend the facility and not the proceeds.
Mr Second Deputy Speaker 2:38 a.m.
Let us listen to the Hon Minister for Monitoring and Evaluation.
Dr A. A. Osei 2:38 a.m.
Mr Speaker, I am not sure that my dear friend and Hon Colleague understands or wants to understand what is being said. Nothing is going to be sold, but these are the proceeds of the facility and it is not the facility itself.
There are proceeds of the facility that are going to be on-lent to the company and so he should not mislead this House.
Some Hon Members 2:38 a.m.
Inclusive.
Mr Second Deputy Speaker 2:38 a.m.
Inclusive?

Hon Minority Leader?
Mr Second Deputy Speaker 2:38 a.m.
Actually, you are not going to wind up. The one who moved the Motion will be doing the winding up. Yes, so if you want to contribute, you can go ahead to contribute.
Minority Leader (Mr Haruna Iddrisu) 2:38 a.m.
Mr Speaker, I beg to contribute to the Motion which is for the approval of €81,000,000.00 and €12,300,000.00 between the Government of the Republic of Ghana and Deutsche Bank AG London for the redevelopment and modernisation of Kumasi Central Market and its associated infrastructure.
Mr Speaker, in doing so, to urge the Hon Minister for Finance to let us see how the KMA is responding to the on-lending Agreement.
We need to know the extent to which they have capacity or they do not, because in the original first phase agreement that was an integral part of it. We are not too certain about how much money is involved.
Mr Speaker, again, there was confusion over the handing over of the market to the beneficiary users; the market women are desirous of using it and it should not
take too long to get these processes completed, and when completed, we should allow for the use of it.
In terms of its allocation, we should allow for more transparency in the processes because there are some who are affected when you come in to do the construction. You would plead with them to cooperate with you because you are undertaking construction and when it is done, they can no longer have access to what was their entitlement as a store.
We know that economic and market activities are very brisk. Particularly, I recall that it was during one of President Mahama's campaign visits to the market that he made the first pledge, that he will get the market done.
We should be extending it to other parts of the country; expansion of markets in Ho, Koforidua, Wa in the Upper West Region and even the Tamale Market which is just by Aboabo, around Alhaji Yahaya Iddi's house remains uncompleted, yet if it is completed, I am sure they do not need too much money to get that done.
If we collaborate with the Hon Minister for Trade and Industry, I do know that we started something to get it done with the Tamale Metropolitan Assembly.
Mr Speaker, on page 3 of your Committee's Report, we will be interested in monitoring for purposes of value for money, the commitment to what we have said, we will see them contracted in terms of utility area and other project deliveries.
I know that your Committee on Local Government and Rural Development visited the market and that is why sometimes we insist that when Committees travel, they should bring us a Report so that we know what it is that their findings determine and what appropriate recommendations they are making for these purposes.
Mr Speaker, how much the KMA charges for this allocation of stores is sometimes high for the market women, given that sales may not be booming as it should be.
Like I said, ours is to look at the terms and conditions of the loan per article 181 of the Constitution. I see in paragraph 6.2, the Hon Minister assuring us that part of it is under the now concession borrowing of year 2018 under the International Monetary Fund (IMF) agreement.
Next time, we would want to know for the whole period of year 2018, how much is the capping in terms of sealing, how much we could borrow now for concessionary for the IMF. We deserve to know as a House what it is and the identified projects, including the Tamale Market.,
Mr Speaker, with these words, I support the Motion.
rose
Mr Second Deputy Speaker 2:38 a.m.
Hon Chairman of the Committee, do you want to wind up? I thought --

I find that very difficult to accept. Yes, Hon Majority Leader?

Then you should have stopped the Hon Minority Leader from talking on the Tamale Market. Yes, Hon Minister for Monitoring and Evaluation?
Dr A. A. Osei 2:38 a.m.
Mr Speaker, the disclosure of interest, I am an Hon Member of Parliament in Kumasi and this matter is in Kumasi area so if I speak for it, at least, I am disclosing it.
Mr Speaker, this --
Mr Iddrisu 2:38 a.m.
Mr Speaker, when did you apply this; when your house goat is dead, you do not eat it with the Hon Majority Leader? [Interruption.]
Mr Second Deputy Speaker 2:38 a.m.
We have not applied anything.
Mr Iddrisu 2:38 a.m.
Mr Speaker, I was invoking some dead goat theory that when your house goat is dead, you do not eat it. [Interruption.]
Minister for Monitoring and Evaluation (Dr A. A. Osei) 2:48 p.m.
Mr Speaker, this is a very important project and the concerns raised by our Hon Colleagues are in order.
There were some litigations which delayed the project and thankfully, that litigation has been solved by no other person than Otumfuo, so it is now proceeding in a manner which would complete it on time. I believe that the first phase is about 97 per cent complete. There would be a third phase and so the sooner we finish the second phase the better.
Mr Speaker, this is likely to expand by a large number of the economic agents in Kumasi because if you look at the area of the project, it is quite expensive and the architecture that was presented to us by the consultant looks good.
Mr Speaker, one of the difficulties that they had initially was that, contractors were their own consultants but that problem has been solved now and we have qualified Ghanaian consultants working on it. So we expect that the problems they had earlier would be solved very soon.
The problem that some of us still have is with the car park and we are appealing
Mr Second Deputy Speaker 2:48 p.m.
Hon Majority Leader?
Mr Kyei-Mensah-Bonsu 2:48 p.m.
Mr Speaker, if we could take the Resolutions numbered 44 and 47 after which we could suspend the House.
Mr Second Deputy Speaker 2:48 p.m.
Hon Minister for Finance?
RESOLUTIONS 2:48 p.m.
THIS HONOURABLE HOUSE 2:48 p.m.
HEREBY RESOLVES AS 2:48 p.m.
Mr Second Deputy Speaker 2:48 p.m.
Hon Majority Leader, any further indication? [Pause.]
Mr Kyei-Mensah-Bonsu 2:48 p.m.
Mr Speaker, we could now take a suspension of the House and resume at 4.00 p.m.
Mr Second Deputy Speaker 2:48 p.m.
It is almost 3.00 p.m. so would the suspension be for approximately one hour or one and a half hours?

What is the agreement?
Mr Iddrisu 2:48 p.m.
Mr Speaker, if we could take the suspension and come back at 4.30 p.m. even though the Hon Leader said 4.00 p.m. Mr Speaker, we should be realistic and many times when we say 4.00 p.m., we come back and we do not get to start.
Mr Speaker, so, 4.30 p.m., but Hon Colleagues should endeavour to be in so that we take the COCOBOD and we also expect that Hon Members should finish with their contributions on the Mid-Year Review so that Leadership could conclude on it tomorrow.
Mr Second Deputy Speaker 2:48 p.m.
Accordingly, I suspend the House now and we would resume at 4.30 p.m.
Hon Members should endeavour to be here at the given time which is 4.30 p.m.
2.54 p.m. -- Sitting suspended.
5.01 p.m. -- Sitting resumed.
  • [MR FIRST DEPUTY SPEAKER IN THE CHAIR.]
    • Mr First Deputy Speaker 2:48 p.m.
    Hon available Leaders, where shall we start from?
    Dr Mark Assibey-Yeboah 2:48 p.m.
    Mr Speaker, having finally assumed the acting leadership role, we can take item numbered 66 on page 42 of today's Order Paper.
    Mr First Deputy Speaker 2:48 p.m.
    Item numbered 66 -- Motion.
    Hon Chairman of the Committee?
    Chairman of the Committee (Mr Samuel Ayeh-Paye) 2:48 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 Roads and Transport on the Contract Agreement between the Government of the Republic of Ghana (Ministry of Aviation) and Queiroz Galvao Constructions UK Limited represented by Construtora Queiroz Galvão S.A. Sucursal Ghana for an amount of seventy million United States dollars (US$70,000,000.00) for the construction of the Second Phase of the Tamale International Airport may be moved today.
    Mr Kwame Governs Agbodza 2:48 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Mr Speaker 2:48 p.m.
    Motion captured as item numbered 67, Chairman of the Committee?
    GoG/QUEIROZ GALVAO Contract Agreement for the Construction of the Tamale International Airport - Phase II
    Chairman of the Committee (Mr Samuel Ayeh-Paye) 2:48 p.m.
    Mr Speaker, I beg to move, That this Honourable House adopts the Report of the Committee on Roads and Transport on the Contract Agreement between the Government of the Republic of Ghana (Ministry of Aviation) and Queiroz Galvao Constructions UK Limited represented by Construtora Queiroz Galvão S.A. Sucursal Ghana for an amount of seventy million United States
    dollars (US$70,000,000.00) for the Construction of the Second Phase of the Tamale International Airport.
    Mr Speaker, in so doing, I present your Committee's Report.
    Introduction
    On Wednesday, 18th July, 2018, the Committee laid before the House the Contract Agreement between the Government of the Republic of Ghana (represented by the Ministry of Aviation) and Queiroz Galvao Constructions UK Limited for the construction of the Second Phase of the Tamale International Airport.
    Subsequently, the Hon Speaker referred the Agreement to the Committee on Roads and Transport for consideration and report in accordance with article 181(5) of the 1992 Constitution and Order 189 of the Standing Orders of the Parliament of Ghana.
    The Committee met with the Hon Minister of Aviation, Ms Cecilia Abena Dapaah, her Deputy Minister, Hon Kwabena Okyere Darko-Mensah, her technical team and officials of the Ghana Airport Company limited and considered the referral. The Committee in accordance with Order 161 of the Standing Orders of the House presents its Report as follows.
    Background
    The House would recall that it approved Phase I of the Contract Agreement between the Government of Ghana and the Construction firm Queiroz Galvao SA of Brazil in 14th November, 2013. Phase II of this project was submitted to Parliament for Statutory approval on 31st October 2016.
    The project then was to be financed by Banco Santander with an export credit
    guarantee from the United Kingdom Export Finance. However, Banco Santander was not able to put together the loan syndication and was replaced by KFW IPEX Bank of Germany.
    On 17th July, 2018, Cabinet gave its approval to the transaction and subsequently laid in Parliament on Wednesday, 18th July, 2018.
    Phase I of the project centered on preparation of the Master plan, Environmental and Social Impact Assessment, Project Rehabilitation and the extension of existing Runway from 2438 metres in length to 3400 metres. Phase I also incorporated the extension and strengthening of the existing Runway pavement, Rehabilitation of the existing Taxiway and Taxi-links, and the expansion of the Apron.
    Government in Phase II will develop the entire Tamale Airport into a modern international Airport Terminal with a multi- purpose Facility for Hajj and other activities and a modern infrastructure for all aviation and non-aviation relevant facilities.
    Purpose of project
    The purpose of Phase II of the Tamale International Airport project is to:
    further upgrade the Airport to become an alternative international hub',
    develop the project to support programmes of the Northern Development Authority (NDA);
    develop the airport to serve as a Sub-Saharan Regional aviation hub.
    Justification for the project
    The Development of the Tamale International Airport is expected to boost domestic and regional air travels which will facilitate industrialisation and rapid socio- economic development.
    The International Airport will boost the exploration of the National Historic Heritage and the development of Eco-Tourism and Cultural Tourism of the Savannah Regions.
    The Tamale International Airport is also expected to support the agricultural sector by leveraging the export of fresh produce and support an agro-based national strategic goal that would lead to the establishment of agro-based industries.
    The project will facilitate international travel for Hajj pilgrimage by the large Muslim population in Northern Ghana and from the Sahelian countries.
    Tamale International Airport, when completed will serve as the alternative international destina- tion point to the Kotoka International Airport in case of emergency or airport closure. Tamale International Airport will be positioned to host the Mainteance, Repair and Overhaul (MRO) facility for Ghana and other African airlines.
    Scope of project
    The project involves the following:
    Scope of work design for phase II.
    Mr Kwame Governs Agbodza (NDC -- Adaklu) 2:48 p.m.
    Mr Speaker, I beg to second the Motion numbered 66 and in so doing, I make a few comments in this regard.
    Mr Speaker, this is a commercial agreement to allow for the second phase of the Tamale International Airport to be started and completed. In 2016, almost the same Agreement was brought here. The scope has not changed, and the facilities and everything remain the same.
    However, we were told at the Committee level that Banco Santander, the lender, pulled out at the later day and the developers needed to replace the lender,
    COST COMPONENT BREAKDOWN 2:48 p.m.
    An Hon Member 5:11 p.m.
    Tamale Airport.
    Mr Agbodza 5:11 p.m.
    Mr Speaker, he heard Tamale but he could not hear it well, so let me repeat it --
    Mr First Deputy Speaker 5:11 p.m.
    Who are you addressing with “he heard”? Are you addressing me?
    Mr Agbodza 5:11 p.m.
    My senior Colleague --
    Mr First Deputy Speaker 5:11 p.m.
    Who has recognised him for you to address him? [Laughter.]
    Mr Agbodza 5:11 p.m.
    Mr Speaker, I would assume I have not even seen him. With these few words, I would urge my Hon Colleagues to support this Motion for the approval of US$70 million for the development of Tamale Airport Phase 2.
    Question proposed.
    Mr Benjamin Kpodo (NDC -- Ho Central) 5:11 p.m.
    I thank you, Mr Speaker.
    I feel extremely relieved that at the end of it all, this project can take off. I remember a few years ago when I was a member of the Board of Ghana Airport Company Limited, we decided to modernise the Tamale Airport.
    So, we started from the runway. I could just walk on the runway. At the time, we wanted to see the size and the length, which this same company would come and expand.
    After that had been done, the terminal building over there was very small and inconvenient. When one got there, one did not know where to move to. So if this project would give it a new look and provide a new terminal which is big and convenient for use by all of us, I believe, it is a plus for the country.
    I therefore strongly support the Motion that we should approve this Commercial Agreement. It would enhance traffic and passenger through-put, because it can now be used for international travels as well.
    We have already arranged the Hajj groups to be travelling from there. In fact, the last time some of the Hajj pilgrims flew from Tamale straight to their pilgrimage destination.
    So I believe that with the improvement of facilities at the terminal, which would not just be like the present one, but on the other side, like the Hon Ranking Member has said, it would give a very good face to our country.
    I thank you, Mr Speaker.
    Mr Kwabena Okyere Darko-Mensah (NPP -- Takoradi) 5:11 p.m.
    I thank you, Mr Speaker, and I thank the Hon Chairman for the Report.
    Dr A. A.Osei 5:11 p.m.
    On a point of order. Mr Speaker, I would just want to be advised.
    My younger Colleague said we have discussed this earlier. We are in the middle of dealing with the Report, and he says we have discussed this earlier. I am not sure if we have discussed it earlier.
    We are now discussing it, so he should keep to the Report, not what he has talked about earlier.
    Mr First Deputy Speaker 5:11 p.m.
    Hon Deputy Minister, please be guided.
    Mr Darko-Mensah 5:11 p.m.
    Mr Speaker, I just did not want to be repetitive, that is why I made mention of that.
    The issues have also been raised. We expect the private sector to help make Tamale Airport one of the busiest in Ghana. In fact, I heard of this airport when I was not a Member of Parliament, during the 2008 campaign when the Finance Minister at that time came to my constituency and talked about the need to make Tamale Airport the face of the Sahel.
    Therefore I believe that for us to have travelled this far to 2018, and access this loan to ensure that this facility is built, it is important that we all support it as a House and make sure that it becomes a reality. That is all I would add.
    Mr First Deputy Speaker 5:11 p.m.
    Let me give the Hon Member of Parliament for Tamale Central the last one. All the others are supporters.
    Alhaji Inusah Abdulai B. Fuseini (NDC-- Tamale Central) 5:11 p.m.
    I thank you, Mr Speaker, for this opportunity to add my voice in calling on Hon Members of the House to approve this facility.
    Mr Speaker, there is no doubt that the Tamale International Airport is a critically important airport for the Sahel region. As the Hon Deputy Minister for Transport has said, there is potential for value addition to the airport in terms of services that could be offered by the private sector to get the airport working.
    But more critically, the savannah area is agricultural in nature. The airport in Tamale would reduce travel time between Ghana and Europe by close to one hour.
    Mr Speaker, we are being told that the aviation industry thrives more not on passenger, but on cargo, and that if we are able to leverage the agricultural potential of the area, we could send foodstuffs from Ghana to Europe and the Middle East.
    Mr Speaker, I always wondered why we have not explored the market in the Middle East; about 90 per cent of consumables in the Middle East are imported.
    So the building of the Airport itself would offer the people in the Northern Region the opportunity to look at other opportunities. The opportunities would help alleviate poverty, because markets,
    wherever they exist work to alleviate poverty.
    So let me once again commend the Nana Addo administration for carrying on with the initial idea mooted long ago as said by the Hon Deputy Minister for Aviation to ensure that the Northern Region, and particularly Tamale, has an international airport befitting of any airport of international status.
    We know that even presently, the extent of facilities available in Tamale compares favourably with some airports in India for instance.
    If you add those facilities so that the customs, immigration, health services and all the services that are necessary for the operation of an international airport can find space and work, that would definitely make the airport a fully-fledged international airport.
    I would encourage the Ministry of Agriculture to begin to harness the opportunities of the area so that people see the advantages not only by way of travelling to other places, but also by way of what they could export to Europe.
    Mr Speaker, with these few words, I support the facility. Thank you.
    Question put and Motion agreed to.
    Mr First Deputy Speaker 5:21 p.m.
    Item numbered 68 -- Resolution. Hon Minister for Aviation?
    Mr Kyei-Mensah-Bonsu 5:21 p.m.
    Mr Speaker, we have the Hon Deputy Minister for Aviation here who has contributed enormously to the discourse. Given the fact that the Hon Minister herself has had to travel outside Accra, could we excuse him and allow him to stand in for the Hon Minister?
    Mr Avedzi 5:21 p.m.
    Mr Speaker, when you said Hon Minister for Aviation and the Hon Deputy Minister stood up, I wondered if he had taken over from the Hon Minister herself.
    That was why I asked the question if he is the Hon Minister. So, the explanation fits well that he is only stepping in in the absence of the Hon Minister herself.
    Mr First Deputy Speaker 5:21 p.m.
    Hon Deputy Minister, you are permitted to move the Motion on behalf of the Hon Minister.
    RESOLUTIONS 5:21 p.m.
    THIS HONOURABLE HOUSE 5:21 p.m.
    Chairman of the Committee (Mr Samuel Ayeh-Paye) 5:21 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 5:21 p.m.
    Hon available Leader, may I be guided? Have items numbered 36 and 37 been dealt with already? I am enquiring.
    Dr Assibey-Yeboah 5:21 p.m.
    Mr Speaker, the Report for items numbered 36 and 37 is in the bosom of the Hon Chairman of the Finance Committee. [Laughter.]
    Mr First Deputy Speaker 5:21 p.m.
    Hon Chairman, when are you releasing the Reports from your bosom to the House?
    Dr Assibey-Yeboah 5:21 p.m.
    Mr Speaker, in another 30 minutes, we would be ready to take that Report.
    Mr First Deputy Speaker 5:21 p.m.
    That is very well noted.
    Mr Iddrisu 5:21 p.m.
    Mr Speaker, did I hear that the Report is in the Hon Chairman's bosom? [Laughter.] Mr Speaker, safe or unsafe delivery, we are ready.
    Mr Kyei-Mensah-Bonsu 5:21 p.m.
    Mr Speaker, item numbered 9.
    Mr First Deputy Speaker 5:21 p.m.
    Item numbered 9, Motion by the Hon Chairman of the Committee.
    MOTIONS 5:21 p.m.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 5:21 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Concessional Credit Agreement between the Government of the Republic of Ghana and the EXIM Bank of India for an amount of one hundred and fifty million United States dollars (US$150,000,000.00) to finance the strengthening of Agricultural Mechanisation Service Centres (AMSECs) Project.
    Mr Speaker, in doing so, I present your Committee's Report.
    Introduction
    The Concessional Credit Agreement between the Government of Ghana and Exim Bank of India for a concessional loan
    of an amount of one hundred and fifty million United States dollars (US$150,000,000) to finance the Strengthening of Agricultural Mechanisation Service Centers (AMSECs) was laid in the House on 28th November, 2017 and referred to the Finance Committee for consideration and report, in accordance with the 1992 Constitution and the Standing Orders of Parliament.
    The Committee met with the Minister of State for Agriculture, Hon Dr Gyelle Nurah, the Deputy Minister for Agriculture in charge of Annual Crops, Hon Sagre Bambangi, a Deputy Minister for Finance, Hon Abena Osei-Asare, and technical teams from the Ministries of Finance and Food and Agriculture to consider the Report.
    Reference Documents
    The Committee referred to the following documents during its delibe- rations:
    1. The 1992 Constitution of the Republic of Ghana.
    2. The Public Financial Manage- ment Act, 2016 (Act 921).
    3. The Standing Orders of Parlia- ment of Ghana.
    Background
    Agriculture is predominantly a small holder activity in Ghana. According to the second Food and Agricultural Develop- ment Policy (FASDEP II, 2007), about 90 per cent of farm holdings in Ghana are less than two hectares in size even though there are some large farms and plantations in the country.
    The system of farming is traditional with hoe and cutlass as the main farming tools. There is little mechanised farming.
    Agricultural production varies with the amount and distribution of rainfall, as well as soil factors. Most food crop farms are intercropped, while mono cropping is mostly associated with larger-scale commercial farms.
    According to the Ghana Living Standard Survey (GLSS6-2014), agriculture's contribution to total employment was estimated to be 44.7 per cent. Although this is a sign of economic transformation, food security and economic growth is still a critical concern to the nation.
    The challenges affecting the agricultural sector include declining agricultural productivity, unprofitability of farming due to high cost of operations, low access to various services along the value chain such as mechanisation, irrigation, credit, extension services, processing, marketing and limited marketing information.
    Further, the provision of a well organised and commercially-viable agricultural mechanisation services in the country are inadequate due to high initial capital investment.
    As part of government's efforts to promote agricultural mechanisation in the country, the Ministry of Food and Agriculture (MoFA), in 2007 initiated the concept of establishing private-led Agricultural Mechanisation Service Centers (AMSECs) for farming communities.
    The AMSEC initiative is to assist in providing mechanisation services to small holder farmers in each of the MMDAs who cannot afford their own machinery/ equipment due to financial and other farming constraints.
    Under this initiative, the private sector who may have higher purchasing power are supported with government subsidised machinery and equipment under concessional payment arrange- ments to deliver well-organised and commercially- viable mechanisation services to small holder farmers who contribute significantly in achieving food security.
    Since 2007, AMSECs have received a number of support from Government. Twelve (12) AMSECs were supported with machinery and equipment in eight regions at the end of 2007. Fifty-seven (57) AMSECs located in various parts of the country were supported in 2009.
    In 2010 and 2011, fifteen (15) and five (5) AMSECs received equipment in five and three regions respectively. As of the end of 2015, eighty-nine (89) AMSECs had been supported to render mechanised services in 62 District Assemblies across the country.
    Between 2016 and 2017, an additional seventy nine (79) AMSECs were assisted with a range of machinery and equipment under the Brazilian More Food International Programme to bring the total operational AMSECs at 140.
    To achieve the full objectives of the AMSEC concept, there is the need to continue to strengthen the existing AMSECs as well as establishing new AMSECs in order to increase their coverage across the country. Small holder farmers will also have access to timely and affordable mechanised services.
    It is in this light that Government is sourcing for an amount of US$150 million concessional credit from the Export Import Bank of India to finance and strengthen the Agricultural Mechanisation Service Centers (AMSECs) Project.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 5:21 p.m.


    Object of the Loan

    The object of the loan is to finance the Agricultural Mechanisation Services Centers project, whose aim is to establish at least one (1) AMSEC in every district with the view of improving availability and timely access to affordable agricultural equipment and mechanised services in the country.

    Terms of the Loan

    The Financing terms of the credit are as follows:

    Loan Amount -- US$ 150 million

    Interest Rate -- 1.5 per cent

    Repayment Period -- 20 years

    Moratorium -- 5 years

    Maturity -- 25 years

    Grant Element -- 36.85 per cent

    Observations

    Role of the AMSECs

    The Minister of State informed the Committee that the Agricultural Mechanisation Centers (AMSECs) play an important role in assisting farmers undertake the needed mechanisation on their farms. He said ninety (90) per cent of farmers in the country are small scale farmers using rudimentary methods of farming.

    In order to increase crop yield, there is the need to mechanise the entire farming processes. However, he maintained that these farmers lack the necessary funding to access agricultural machinery.

    He said under the current arrangement, Government sells the tractors and other agricultural machinery to the AMSECs and the renters then rent it out to farmers for use on their farms.

    He also stated that currently, most of the machinery and equipment at the AMSECs are tractors, as such the intended mechanisation is currently limited to land preparation (ploughing).

    Through this credit, Government will extend the mechanisation to all parts of the agricultural chain, including ploughing, planting, fertilizer application and harvesting.

    Non-use of Cooperatives

    The Committee was informed that giving machinery/equipment to cooperatives was now a thing of the past. An inherit challenge with the system is that there was no ownership, hence, no one can be held responsible for the maintenance and management of the machinery/equipment.

    Due to this, most of the equipment sent to cooperatives were never maintained, leading to their deterioration. There were instances where the machinery were even sold and the proceeds shared among the members.

    Given the lessons leant, Government is no longer using cooperatives but rather registered business entities as the AMSECs. This approach has worked well since its introduction as the centers own the machinery and operate as commercial entities.

    Equipping the Centres

    The Committee observed that some of the AMSECs were not operational. It was explained that as a result of the high

    demand for the machinery in certain areas of the country, some of the machinery had been over-used thereby leading to their breakdown.

    The Minister of State stated that Government is procuring more machinery to equip existing AMSECs to make them operational and also establish new ones. The goal is to establish an AMSEC in each district. This is to reduce the workload and demand for the machinery.

    The Committee was informed that as part of efforts to ensure the effective management of the scheme, there would be training programmes in the following areas:

    Operation and maintenance of agricultural machinery;

    Enterprise management including financial management; and

    Institutional development and marketing.

    Pricing of the Machinery

    The Minister of State informed the Committee that under the project, Government would sell the machinery to the AMSECs at concessionary rates. There would also be a financial arrangement for centres buying a large number of machinery.

    Further, the machinery will be given at concessionary rates in order to reduce rent charges and also to ensure that farmers can procure the renters' services while the centres stay competitive.

    Repayment by AMSECs

    The Minister of State indicated that at the start of the initiative in 2007,

    repayment was very bad. The Ministry of Agriculture therefore revised the method of operations.

    Some of the measures introduced included dealing with renters which are registered businesses and demanding upfront payment. Centres requiring large machinery pay by installments. These measures have greatly improved recoveries.

    Machinery and Equipment to be procured

    The Minister of State informed the Committee that this is an Indian EXIM Bank facility, and therefore, all the machinery and equipment would be procured from India.

    However, the Ministry of Agriculture has developed the specifications for the various items and this has been supplied to the EXIM Bank. He assured the Committee that given the specifications, there would be value for money. The proposed bill of quantities of the machinery and equipment to be procured is attached as APPENDIX 1.

    Conclusion

    Having considered the immense benefits of the project, the Committee recommends to the House to adopt its Report and approve by Resolution the Concessional Credit Agreement between the Government of Ghana and Exim Bank of India for a Concessional Loan of an amount of one hundred and fifty million United States dollars (US$150,000,000) to finance the Strengthening of Agricultural Mechanisation Service Centres (AM- SECs) in accordance with article 181 of the 1992 Constitution, section 56 of the Public Financial Management Act of 2016 (Act 921) and Order 171 of the Standing Orders of the House.

    Respectfully submitted.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 5:21 p.m.


    SPACE FOR APPENDIX 1, PAGE 11, 5.21 P.M SPACE FOR APPENDIX 1, PAGE 12, 5.21 P.M
    Mr Richard Acheampong (NDC — Bia East) 5:21 p.m.
    Mr Speaker, I beg to second the Motion moved by the Hon Chairman of the Committee.
    Mr Speaker, I am happy to read on page 2 of your Committee's Report that the Committee met with the Hon Minister of State in charge of Agriculture and then they admitted --
    Mr Speaker, I would want to read from page 2 of the Committee's Report 5:21 p.m.
    “The challenges affecting the agriculture sector include declining agricultural productivity, unprofit- ability of farming due to high costs of operations, low access to various services along the value chain such as mechanisation, irrigation, credit, extension services, processing and marketing and limited marketing information.”
    Mr Speaker, this is an admission that we have challenges with the agricultural sector. It is good to admit and then we would see the way forward on how to support and improve the agricultural sector in this country.
    Mr Speaker, looking at paragraph 3, the background, it is stated that 5:21 p.m.
    “Under this initiative, the private sector who may have higher purchasing power are supported with government subsidised machinery and equipment under concessional payment arrange- ments …”
    Mr Speaker, the point is, if we give this facility to those who have the highest purchasing power, what is the guarantee that in renting out the machines to the small holder farmers they would also take on board the concession given them and charge lower rates?
    There is nothing in the Report indicating that the Ministry will monitor these processes so that at least, our farmers would not be shortchanged because they are not paying the actual price of those machinery. If we do not monitor this process, it would create problems for our small holder farmers.
    So I am calling on the Ministry to at least, --
    Mr First Deputy Speaker 5:31 a.m.
    Hon Member, you are telling us that your Report does not contain any assurances that the Ministry of Agriculture would ensure that the concession given to the operators would be passed on to the farmers.
    Why did you not ask the Hon Ministers and report to us on that? This is your Report, so why did you not ask? Are you saying that they failed to give you that information?
    Mr Richard Acheampong 5:31 a.m.
    Mr Speaker, the House may recall that I have raised this very issue before.
    At least, after the Committee's deliberations, the Leadership of the Committee should be privy to the draft Report so that if issues raised at the Committee level are not captured in the Committee's Report, they could be addressed.
    But you would just come to the House, the Report is given to you and all that you said at the Committee level is not captured and there is no opportunity—
    Mr First Deputy Speaker 5:31 a.m.
    Hon Member, are you saying that, that matter was — ?
    Mr Richard Acheampong 5:31 a.m.
    Yes, Mr Speaker. I raised it at the Committee level.
    Mr First Deputy Speaker 5:31 a.m.
    Did the Ministry give you assurance or not? That is what we are interested in.
    Mr Richard Acheampong 5:31 a.m.
    Mr Speaker, they gave us the assurance but I just want to urge them to walk the talk so that the double assurance would be there. This is because all that we seek to do now is to protect the small-holder farmer.
    It is not about the one with the highest purchasing power. Mr Speaker, that is the point I am making.
    Mr Speaker, looking at the terms of the facility, the amount is US$150million at an interest rate of 1.5 per cent. Repayment period is twenty (20) years and moratorium of five years summing up to twenty-five years and the Grant element is 36.85 per cent.
    Mr Speaker, I do not know when we would implement Ghana Beyond Aids. This is because we have 36.85 per cent as grant.
    So can we not pay for the cost of the facility so that we would challenge ourselves that we have paid for it and we are working to pay for the loan so that at least, we would also gain some respect in the international community? But we are still taking grants —
    Dr A. A. Osei 5:31 a.m.
    On a point of Order. Mr Speaker, I would just want the Hon Member, Mr Richard Acheampong, to remember that the Grant element is not the same as the Grant component of the loan.
    It is different; the computation of Grant element does not mean that there is a Grant of 36.85 per cent. There is a big difference and he should be careful the way he uses the two.
    Mr First Deputy Speaker 5:31 a.m.
    Very well. Hon Member, take that on board and proceed.
    Mr Richard Acheampong 5:31 a.m.
    Mr Speaker, it was the same point that I was making. This is because somebody is giving a grant; either aid or grant, you are not paying for it.
    So if we say, ‘Ghana Beyond Aid', we could also stand on our own and do things for ourselves. That was the point I was making.
    Mr Speaker, turning paragraph 6.6; Machinery Equipment to be procured. We are told that the facility is from India Exim Bank and as a result, they have to procure the equipment and supply those equipment to us.
    At Committee meeting, we were told that the Ministry wanted tractors from Brazil but the facility from Brazil was on commercial terms, which was very expensive. As a result, we opted for that of India Exim Bank. This means they would supply the tractors from India.
    The Ministry, as a result, gave them their own specifications so that that would meet their standard. But the question is, are we sure that they would give us the quality we expect? So I would just urge the Ministry to at least, monitor the type of tractors they would supply to us.
    This is because, originally, the Ministry wanted tractors from Brazil because of their quality but because we did not meet their terms and conditions, we opted for that of India.
    So I would just plead with the Ministry; they have to do proper due diligence so that at least, whatever has been requested for, is delivered to the good people of this country.
    Mr First Deputy Speaker 5:31 a.m.
    Hon Member for Nsuta-Kwamang-Beposo?
    Mr Kwame Asafu-Adjei (NPP--Nsuta/ Kwamang/Beposo) 5:31 a.m.
    I thank you Mr Speaker. There have always been challenges in the agricultural sector and this is not the first time that we are seeing challenges. I would give you data to support my argument.
    Mr Speaker, in 2008, we recorded 7.8 per cent agricultural growth rate; in 2009, we recorded 7.2 per cent; in 2010, we recorded 5.3 per cent; and in 2011, we recorded 0.8 per cent. That was the worst agricultural growth we have had in this country.
    The worst challenge ever faced by this country in terms of agricultural growth was 0.8 per cent registered under their erstwhile Government.
    Mr Speaker, why are we importing tractors? We realised the fact that majority of our farmers are small-holders and because of that, they practise what I call rudimentary agriculture; that is the usage of cutlasses and hoes. Because of that, they cannot make enough savings. There is low savings and for that matter, low investment.
    So, there is the need for a Government that is proactive to bring on board the necessary equipment to increase productivity and also increase yields.
    Mr Speaker, as the Hon Chairman said, the small-holder farmers constitute about 80 per cent. The remaining twenty per cent are large-scale farmers. They have collateral whereby anytime they need
    loans, the banks in the financial sector are prepared to support them.
    But with respect to the small-holders from Nsuta/Kwamang/Beposo, they do not have the means to purchase tractors. That is why this Government, under the leadership of Nana Akufo-Addo has decided to bring on board and establish AMSECs all over the country.
    Mr First Deputy Speaker 5:31 a.m.
    Hon Members, could we restrict ourselves to the Loan Agreement before us?
    Mr Asafu-Adjei 5:31 a.m.
    Mr Speaker, I was giving a background.
    Mr First Deputy Speaker 5:31 a.m.
    The background is enough. I am saying that we have had enough of the background. Return to the Loan Agreement and the Report before us.
    Mr Asafu-Adjei 5:31 a.m.
    I thank you, Mr Speaker. The unit cost of a tractor is US$16,000.00. This is to support the small- scale farmers.
    Mr Speaker, we did not mention the brand of the tractor because it is when we are doing the bills of quantities that they would bring the specifications of the tractors.
    It is the responsibility of the Ministry of Agriculture to mention the type of tractor that they would bring on board; it is not the Committee's responsibility to determine the type of tractor. It is never done anywhere.
    Mr Speaker, I would ask this House to support this noble investment that would help small-scale farmers to produce enough to feed all of us and bring on board food security.
    Mr Speaker, on this note, I thank you for your attention.
    Mr Samuel Abdulai Jabanyite (NDC -- Chireponi) 5:41 a.m.
    Thank you Mr Speaker, for the opportunity to contribute to the Report presented by the Hon Chairman of the Finance Committee on the Concessional Credit Agreement between the Government of the Republic of Ghana and Exim Bank of India.
    Mr Speaker, this credit Agreement is a very comprehensive one. It is an improvement of the previous AMSECs programmes that we have had over the years.
    The AMSEC programme is anchored on the low hanging fruit model in agriculture, where nucleus farmers give support services to smaller holder farmers. So you would have noticed that from a very modest beginning of 12 AMSEC centres in the country in 2007, it rose up to 140 by the end of 2017.
    From the Report presented, it is observed that the AMSEC programme has been beset with a lot of challenges and most of the challenges that it has been bedevilled with come as a result of the initial high cost in agricultural investment. So if you look at all the factors mentioned as militating factors, it is the initial cost of investment.
    What I think makes this credit agreement comprehensive is that it does not just look at land development but it is a whole package that looks at the entire agricultural value chain; right from land development to mechanical maintenance and fabrication centres in all the Regions.
    Mr Samuel Abdulai Jabanyite (NDC -- Chireponi) 5:41 a.m.


    It goes further to look at haulage, harvesting and value addition. It is a loan facility that seeks to provide processing centres for the typical crops produced in this country, such as maize, soyabean and rice.

    This credit agreement also provides the opportunity for the capacities of local farmers to be developed. So, there is a component where farms would be established to develop training centres and get resource persons to train farmers on how to increase productivity.

    Mr Speaker, looking at the loan agreement in a holistic form, it would go a long way to cure most of the teething problems that bedevil agriculture in this country. In this case, I would ask that the House supports this Credit Agreement.

    Thank you very much.
    Mr William Agyapong Quaittoo (NPP -- Akim Oda) 5:41 a.m.
    Mr Speaker, I believe a lot has been said about the Report and credit facility. The challenges of agriculture were not only identified in 2010 or even 2016.
    As far back as 2007, it was identified that the agricultural system in Ghana would forever remain subsistent in the sense that our land tenure system is such that we do not have one person owning a very large portion of land.
    About a week ago, I had a chat with one Professor I knew from the university who had come to the Ministry of Education and was complaining about the fact that the agricultural science departments of the various universities were almost going extinct. This is because they were not getting students.
    The major reason was that agricultural students found out that after school, they could not get employment. We do not
    Mr William Agyapong Quaittoo (NPP -- Akim Oda) 5:41 a.m.


    have large tracks of land to attract very big investors who would do very large plantations. If anyone tried to do that, they would have to consult a lot of land owners before getting about 5,000 or 10,000 hectares.

    For that matter, farming in Ghana would continue to be on a small scale. The only way to improve it is to use those that are seemingly big which we now call nucleus farmers and they would then use out- growers around them. When this happens, any attempt to help individual farmers who put themselves together fails.

    This was because when you bought them any heavy equipment or assisted them with capital and asked them to pay, they failed to do so. This was because ownership became a problem. This was realised when the idea of AMSEC centres was born in 2007.

    So moving from 2007 to the end of about 2016, where we had about 89 of them, in 2017, we had a facility from the Brazilian arrangement, more machines were bought and some AMSECs that had broken down were revitalised.

    Mr Speaker, this loan is to establish more centres in the various districts which have no AMSEC centres. In the three northern regions which are our food baskets, because their land is of savannah nature, we should of course increase the number of AMSEC centres in their various districts.

    The GH¢150 million has carefully been utilised. If you look at the Appendix on the last page, the various equipment that the project seeks to buy range from

    tractors to post-harvest activities. This is because in Ghana, one of the key challenges in agriculture has been post- harvest losses.

    Farmers are mostly forced to sell all their produce just after harvest because they do not know how to store them. So, most of the equipment here are geared towards helping in post-harvest.

    Mr Speaker, the Hon Minister had to move from Brazil to India, in the sense that the Brazilian facility was on purely commercial basis, and this is a concessionary loan.

    With that grand component there, it tells us that the Indians identify with us. As an African country, a lot of them are here and know our challenges. That is why they gave these facilities.

    Besides that, in India, there are several good machinery that are produced in India with specifications from huge countries like the United States of America and Germany. Most of these countries now move to these Asian countries where there is cheap labour for them to produce the various agricultural equipment.

    India is now one of the key giants in terms of agriculture and equipment. So, I see nothing wrong with us going to India to bring into this country the machines produced there.

    I support this agreement and believe that when we are able to give it backing and the equipment are brought in, they would meet the test of time.

    Thank you for the opportunity.

    Question put and Motion agreed to.
    Mr First Deputy Speaker 5:41 a.m.
    Motion numbered 10, Resolution. Hon Minister for Finance?
    RESOLUTIONS 5:41 a.m.
    Minister for Finance) 5:41 a.m.
    Mr Speaker, I beg to move, that
    WHEREAS by the provisions of article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
    PURSUANT to the provisions of the said article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), at the request of the Government of the Republic Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of the Concessional Credit Agreement between the Government of the Republic of Ghana and the EXIM Bank of India for an amount of one hundred and fifty million United States dollars (US$150,000,000.00) to finance the Strengthening of Agricultural Mechanisation Service Centres (AMSECs) Project.
    THIS HONOURABLE HOUSE 5:41 a.m.
    HEREBY RESOLVES AS FOL- 5:41 a.m.
    Dr Mark Assibey-Yeboah 5:41 a.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 5:41 a.m.
    Hon Deputy Majority Leader?
    Ms Safo 5:41 a.m.
    Mr Speaker, respectfully, we could take item numbered 36, Motion.
    Mr First Deputy Speaker 5:41 a.m.
    Item numbered 36. Hon Chairman, it has left your bosom unto the Floor. Now you may move the Motion.
    Dr Assibey-Yeboah 5:41 a.m.
    Mr Speaker, there are two procedural Motions, two substantive ones, as well as, two Resolutions. We would take these together.
    MOTION 5:41 a.m.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 5:41 a.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
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 5:41 a.m.


    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 Term Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] (supported by United Kingdom Export Finance guarantee) for an amount of twenty million, twenty-two thousand, eight hundred and thirty euros and fifty-eight cents (€20,022,830.58) to finance the Completion and Equipping of the Bekwai District Hospital may be moved today.

    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 Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] for an amount of four million, seven hundred and eighty-two thousand, five hundred and forty-one euros and thirty-one cents (€4,782,541.31) to finance the Completion and Equipping of the Bekwai District Hospital may be moved today.
    Mr R. Acheampong (NDC-- Bia East) 5:51 p.m.
    Mr Speaker, I beg to second the Motions.
    Question put and Motions agreed to.
    MOTIONS 5:51 p.m.
    Chairman of the Committee (Dr Mark Assibey-Yeboah 5:51 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Term Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] (supported by United Kingdom Export Finance guarantee) for an amount of twenty million, twenty-two thousand, eight hundred and thirty euros and fifty-eight cents (€20,022,830.58) to finance the Completion and Equipping of the Bekwai District Hospital.
    Mr Speaker, I further beg to move, that this Honourable House adopts the Report of the Finance Committee on the Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] for an amount of four million, seven hundred and eighty-two thousand, five hundred and forty-one euros and thirty-one cents (€4,782,541.31) to finance the Completion and Equipping of the Bekwai District Hospital.
    Mr Speaker, in doing so, I present your Committee's Report.
    Introduction
    The United Kingdom Export Finance (UKEF) Facility Agreement amounting to EUR 22,500,000 between the Republic of Ghana and Deustche Bank AG London Branch (as the Agent, Arranger and Structuring Bank) to finance the Completion and Rehabilitation Works at Bekwai District Hospital and the Supply and Installation of related Modern Medical Equipment was presented to the House on 19th July, 2018 in accordance with article 181 of the 1992 Constitution.
    Further, the Tied Commercial Facility Agreement in the amount up to EUR 4,782,541.31. Between the Republic of Ghana and Deustche Bank AG, London Branch (as the Agent, Arranger and Structuring Bank) to finance the Completion and Rehabilitation Works at Bekwai District Hospital was also laid.
    Mr Speaker referred the Credit Agreements to the Finance Committee for consideration and report in accordance with Orders 169 and 158 of the Standing Orders of the House.
    Pursuant to the referrals, the Committee met with a Deputy Minister for Health, Hon. Kingsley Aboagye-Gyedu and officials from the Ministries of Finance and Health.
    References
    The Committee referred to the following additional documents during its deliberations:
    The 1992 Constitution of Ghana.
    The Public Financial Management Act of 2016 (Act 921); and
    the Standing Orders of the Parliament of Ghana.
    Background
    Government is committed to enhancing health infrastructure in the country to bring equity and provide quality health care services to the general populace.
    It is against this background that the Government is constructing a number of secondary level hospitals in the medium term.
    One of such hospitals is the Bekwai District Hospital, which is one of the important and strategic hospitals in the Ashanti Region.
    The construction of the District Hospital was originally part of a two District Hospitals Project made up of the Tarkwa and Bekwai Hospitals to be financed under an earlier co-funding arrangement under the Health Services Rehabilitation Project by the Government of Ghana, AfDB and EBID.
    Unfortunately, this project encountered some challenges. The Tarkwa District Hospital has been completed and has been operational since 2012.
    The Bekwai Project has been stalled since 2012, due to inadequate funding. In 2016, Parliament approved the commercial contract and the credit agreements for the project. Upon the approvals, Delcredere Ducoire (DD) of Belgium which is the Export Credit Agency (ECA), withdrew its Guarantee cover that allows Deutsche Bank to fund the project. In view of this, the project was suspended.
    Government has since made additional efforts to complete the Bekwai District Hospital. Therefore Delcredere Ducoire has been replaced with United Kingdom

    Export Finance (UKEF) and the new agreement submitted to the House for approval.

    Object of the Project

    The object of the project is to facilitate the completion and equipping of the

    Bekwai Hospital as well as supply and install related modern medical equipment.

    Terms and Conditions of the Facility

    The terms and conditions of the facility are as follows:

    Observation

    Benefits of the Project

    The Committee was informed that the Bekwai Hospital is one of the important and strategic hospitals in the Ashanti Region. The completion of the hospital would help ease pressure on the old Bekwai District hospital and enhance healthcare delivery in and around the Bekwai Municipality.

    Scope of Works

    The technical team informed the Committee that the scope of works for the project include:

    Building and civil works which comprises the completion of the Bekwai Hospital with key Departments such as Surgery, Radiology, Medicine, Pharmacy, Maternal and Pediatric Care, among others;

    Supply and installation of medical and non-medical equipment;

    Twelve unit staff accommodation; and

    External works covering land- scaping, parking lots roads, etc.

    Execution period

    The Committee was informed that the project is expected to be completed within 24 months.

    Conclusion

    Considering the benefits the health sector stands to gain from the completion of this project and the immense socio-

    economic benefits to be derived from the project, the Committee recommends to the House to adopt its report and approve the following Credit Agreements:

    The United Kingdom Export Fi- nance (UKEF) Facility Agreement in the amount up to EUR 22,500,000 between the Republic of Ghana and Deustche Bank AG, London Branch (as the Agent, Arranger and Struc- turing Bank) to finance the completion and rehabilitation works at Bekwai Hospital and the supply and installation of related modern medical equipment; and

    The Tied Commercial Facility Agreement in the amount up to EUR 4,782,541.31between the Republic of Ghana and Deustche Bank AG, London Branch (as the Agent, Arranger and Structuring Bank) to finance the completion and rehabilitation works at Bekwai Hospital and the supply and installation of related modern medical equipment in accordance with article 181 of the Constitution, Section 56 of the Public Financial Management Act and the Standing Orders of the House.

    Respectfully submitted.
    Mr First Deputy Speaker 5:51 p.m.
    Hon Chairman of the Committee, I thank you.
    Mr Chairman, but I believe there is some discrepancy which we must correct. Your Report talks about 22.5 million euros but the Order Paper has 20,022,830.58 euros. So, let us reconcile the figures. It goes way down through to the Resolution.
    Dr Assibey-Yeboah 5:51 p.m.
    Mr Speaker, if we can stand this Motion down because I would have to get the loan agreement itself so as to be clear on this. I do not have it here. I can rush to my office and get it.
    Mr First Deputy Speaker 5:51 p.m.
    Hon Chairman of the Committee, we can discuss it and defer the Question.
    Hon Chairman of the Committee, you go and get it well; by the time you come, we would be ready.
    Hon R. Acheampong?
    Mr Richard Acheampong (NDC -- Bia East) 5:51 p.m.
    Mr Speaker, this Bekwai Hospital facility reminds me of the Parliamentary architecture of the Zambian parliament. The Rt Hon Speaker is a Member of Parliament and per their Standing Orders his seat is not contested for; so he has that kind of protection. [Laughter.]

    Mr Speaker, putting the two facilities together, it amounts to 27,282,541.31 million euros. But looking at the cost of it, it is about 3.8 million euros before the interest which is very expensive.

    So, one would have expected that those who negotiated for this very facility could have done us some good by negotiating the interest, the commitment fee, the structuring fee and even the arrangement fee which in itself is 1.5 per cent flat on each facility and that gives us 3 per cent.

    Mr Speaker, with these few words, I second the Motion.
    Mr First Deputy Speaker 5:51 p.m.
    Hon Member for Adaklu, can you advise us if there is value for money on this project?
    An Hon Member 5:51 p.m.
    Consultant.
    Mr First Deputy Speaker 5:51 p.m.
    Yes; and that is why I am asking him. He must declare his interest so that he can then contribute fairly.
    Mr Agbodza 5:51 p.m.
    Mr Speaker, I heard you mention my name.
    With the document I have seen, there is a full value for money audit report and the report is favourable towards the project.
    Mr First Deputy Speaker 5:51 p.m.
    I would want you to contribute to the debate.
    Mr Kwame Governs Agbodza (NDC -- Adaklu) 5:51 p.m.
    Mr Speaker, I support this Motion. Bekwai Hospital is a very critical healthcare facility in that part of Ashanti Region.
    It would be one of the largest district hospitals in the country and it is a sad situation that the project that was 72 per cent complete many years ago stood at that position.
    Currently, we may have to even cause repair to be done to certain things that were previously completed.
    Mr Speaker, if you go to the existing Bekwai Hospital, it is a very sad situation as well. In fact, the arrangement of the facility at the current hospital is quite interesting.
    Those Hon Members who know Bekwai Hospital, if you even see the location of where the morgue is and where other people come, it is not the best and it should not have been so. Attendance at the hospital is very huge because it serves a large catchment area.
    The site for the project was quite challenging in the beginning but I believe where it has gotten to now, when this loan agreement is approved and the project is completed, it would serve this country very well.
    One of the nice things about that project is that it has got a lot of sustainable features built into it. They would draw water from site and treat it, so there would not be any need for necessarily getting water from Ghana Water Company Limited or somewhere else.
    They would prepare a certain level of medical gases on site and so there is no need for them to come to Accra to get oxygen and other things.

    Mr Speaker, I thank you very much for the opportunity.
    Alhaji (Dr) Abdul-Rashid Hassan Pelpuo (NDC -- Wa Central) 6:01 p.m.
    Mr Speaker, I also beg to support the Motion to provide €22.5 million and an additional amount of €4.7 million for the completion of the Bekwai Hospital.
    Mr Speaker, of late, there have been serious concerns about the quality of health delivery we give to Ghanaians. For such a hospital to be built and completed in Bekwai, it is very good and refreshing news. We cannot, but fully support the project.
    The challenge however, is that, I have not seen what often my good Hon Friend, Mr Emmanuel Agyarko, has been talking about. I have had a number of debates with him in which he has mentioned that it is not just about the construction and equipment of the hospital, it is also about providing certain kinds of consumables that can let the hospital run.
    This is because the equipment that are put in hospitals cannot function well without the consumables. I cannot see those consumables here. I hope that it would not suffer the same fate as the University of Ghana Teaching Hospital.
    Mr Speaker, my expectation is that this hospital would create the kind of equity and value that is expected for the people of Bekwai. It is so critical and important that it should be recorded here that we all support this project for a special reason, which was also identified by my good Hon Friend here.
    With these few words, I urge Hon Members to support the Motion and get it done.
    Thank you, Mr Speaker.
    rose
    Mr First Deputy Speaker 6:01 p.m.
    Hon Members, I would listen to everybody on Bekwai. [Laugher.]
    Dr Sebastian Ngmenenso Sandaare (NDC-- Daffiama/Bussie/Issa) 6:01 p.m.
    Mr Speaker, I thank you for the opportunity. I also beg to support the Motion to adopt the two loan facilities to help complete and rehabilitate the Bekwai Hospital.
    Mr Speaker, we all know that this facility has immense socio-economic benefits for the people of Bekwai. Such a hospital would really help in the effort to achieve universal access to health for the people of Bekwai.
    Mr First Deputy Speaker 6:01 p.m.
    Hon Member for Takoradi, you may disclose your interest if you wish.
    Deputy Minister for Aviation (Mr Kwabena Okyere Darko-Mensah): Mr Speaker, it is very fulfilling that today we have this loan facility to complete the new Bekwai Hospital.
    Mr Speaker, we know that especially during the galamsey or small-scale business period, a lot of people came into the area. This put a lot of pressure on the old Bekwai Hospital.
    I know that this hospital in particular would serve people from Jacobu, Anhwia Nkwanta, Poano, Bone, Akrokeri, part of Fomena, Bosome Freho, Kokofu and as far as Manso Nkwanta. This facility is very important, especially, to complete the project.
    The last time I passed through Bekwai to Kumasi, I saw that the buildings were there but they were not working.
    If we look at the period for the completion, which is 24 months, I am looking at the possibility of the contractor actually adding more people to do the work, so that it could be completed on time to serve the numerous people around the area and make it useful as quickly as possible.
    Mr Speaker, I also believe that a lot of supervision should be attached to this work to make sure that quality is delivered, which could go a long way to enhance the longevity of this project.
    This is because we are aware of the kind of effort your good Hon Self has actually put into making sure that this project comes to fruition. We would be happy to see it completed whiles you are still the Hon Member of Parliament and beyond.
    Mr First Deputy Speaker 6:01 p.m.
    Hon Minority Leader, I would give you the last word.
    rose
    Mr First Deputy Speaker 6:01 p.m.
    Sorry; after the Hon Minority Leader, we would have the Hon Deputy Majority Leader.
    Minority Leader (Mr Haruna Iddrisu) 6:01 p.m.
    Mr Speaker, I would want to thank you for the opportunity to contribute to the Motion, and ask Hon Colleagues to support it.
    Many of us here, including your good Hon Self, as Hon Members of Parliament, are measured in our standing, sometimes
    by the extent to which we return home to our constituencies with development interventions that better the lives of our constituents.
    I am told that Bekwai has a population of over 118,000, using the results of the 2010 Population Census. We expect that communities such as Pampaso, Nampansa, Asaman, Kokotro and New Zongo would all benefit from a befitting hospital for Bekwai.
    Mr First Deputy Speaker 6:01 p.m.
    I am sure my constituents from Kokotro would be very excited by the way you pronounced the name of the town. The name is “Kokotro”. [Laughter.]
    Mr Iddrisu 6:01 p.m.
    Mr Speaker, I am guided.
    I think that we should take a collective decision. It is not right and it should not be acceptable that we would delay the execution and completion of hospital projects by six years from the year 2012 till today. This should not happen.
    It is not for nothing that the Directive Principles of State Policy enjoins Governments to do that. From the year 2012, why must it be now that we have found money?
    Mr Speaker, I whole-heartedly support this. We should approve it. Next time the Committee should do good work so that you can police the process.
    If we go to page 4, how much is dedicated to building and civil work? How much of the €22 million is dedicated to the supply for medical and non-medical equipment?
    How much is dedicated to external works covering landscape parking lots and
    roads? We are only informed of the scope of works. I am sure that in the works contract, many of this can be taken care of. Even as we approve the loan, we should be guided.
    Mr Speaker, so I think that Hon Colleagues should support you and if this is what improves your standing based on votes and return to this august House, let it be.
    Thank you for the opportunity.
    Mr First Deputy Speaker 6:11 a.m.
    Hon Chairman, I will give you the last word. Hon Deputy Majority Leader who is a beneficiary just like me will also speak to the matter.
    Deputy Majority Leader (Ms Sarah Adwoa Safo): Mr Speaker, I beg to support the Motion and to add my voice to Hon Colleagues who have earlier also proposed to the House to support the Motion.
    Mr Speaker, indeed, a health facility in Bekwai gladdens my heart that this project is coming to its proper execution within 24 months. It has been on and off for a while now and I believe that the people of Bekwai are very expectant of this project and so it is a step in the right direction.
    This is because the health of the people of Bekwai is very important and it is not going to serve only Bekwai as a constituency or as an area but all surrounding villages and constituencies would also benefit.
    From the Report, we are told that this is going to be a modern facility with all the modern technology when it comes to medical equipment. This will also ease a lot of pressure on Komfo Anokye Hospital
    Mr First Deputy Speaker 6:11 a.m.
    Hon Member for Okaikoi Central, do you want to raise a point of order against your Hon Deputy Majority Leader?
    Mr Patrick Boamah (NPP -- Okaikoi Central) 6:11 a.m.
    Mr Speaker, we are debating a
    Motion for the approval of a facility that is going to your constituency and the Hon Deputy Majority Leader, who is now leading the House, is trying to invite you into the debate. You look so excited that you are going to approve such a facility.
    Mr Speaker, can you be a judge in our own cause?
    Mr First Deputy Speaker 6:11 a.m.
    I had to deal with this question yesterday at the other Committee but in this matter, I am not judging. I am only presiding over your decisions.
    Ms Safo 6:11 a.m.
    Mr Speaker, in concluding, just as I made the point, I believe that you will put smiles on the faces of a lot of people, touch the hearts of many, especially the vulnerable; women and children. So I urge this Honourable House to support the Motion for this loan facility.
    Mr First Deputy Speaker 6:11 a.m.
    Hon Chairman, have you found the correction?
    Dr Assibey-Yeboah 6:11 a.m.
    Mr Speaker, we have gone through the Agreement and the figure captured in the Order Paper is the right one. There was a memorandum accompanying the Agreement that had a different figure but going into the Agreement itself, it is €20,022,830.58 as on the Order Paper.
    Mr Speaker, so on pages 1, 2, 3 and 5 of the Report, I seek your leave to amend €22,500,000 and in all these pages to €20,022,830.58 as on the Order Paper.
    Mr First Deputy Speaker 6:11 a.m.
    Very well. Correction duly effected. Hon Members, I am grateful that everybody has supported this Agreement. If you look at the Report, you will notice that in the year 2016, at the last Sitting, we approved another loan but we could not conclude that.
    Today, I am happy that we are coming to a conclusion and I know that I have other people who are not disclosing their interest but who are equally happy by looking at me and nodding their heads [Laughter] -- The amount of bashing I have endured because this project delayed, if we could accommodate all the comments by the young men on social media and put them in a book, it will be up to one encyclopaedia but I had to quietly endure them. Finally, today, it is over.
    Question put and Motion agreed to.
    Hon Minister for Finance, kindly move the Resolution.
    RESOLUTION 6:11 a.m.
    Minister for Finance) 6:11 a.m.
    Mr Speaker, I beg to move,
    WHEREAS by the provisions of article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
    PURSUANT to the provisions of the said article 181 of the
    Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), at the request of the Government of the Republic Ghana acting through the Minister responsible for Finance, there has been laid before Parliament the terms and conditions of a Term Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank AG, London Branch [as Agent, Arranger, Structuring Bank and Lender] (supported by United Kingdom Export Finance guarantee) for an amount of twenty million, twenty-two thousand, eight hundred and thirty euros and fifty-eight cents (€20,022,830.58) to finance the completion and equipping of the Bekwai District Hospital.
    THIS HONOURABLE HOUSE 6:11 a.m.
    HEREBY RESOLVES AS 6:11 a.m.
    THIS HONOURABLE HOUSE 6:11 a.m.
    HEREBY RESOLVES AS 6:11 a.m.
    Mr First Deputy Speaker 6:11 a.m.
    Hon Members, I thank you immensely for your support.
    Dr Assibey-Yeboah 6:11 a.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motions agreed to.
    Resolved accordingly.
    Hon Deputy Majority Leader?
    Ms Safo 6:11 a.m.
    Mr Speaker, we can now take motion numbered 30.
    MOTIONS 6:11 a.m.
    Chairman of Committee (Dr Mark Assibey-Yeboah) 6:11 a.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
    Buyer Credit Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank S.p.A. [as Agent, Arranger, and Lender] (supported by SACE and SIMEST of Italy) for an amount of forty million euros (€40,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital may be moved today.
    Mr Speaker, I further 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 Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank S.p.A. [as Agent, Arranger, and Lender] for an amount of six million euros (€6,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital may be moved today.
    Mr Benjamin Komla Kpodo (NDC -- Ho Central) 6:21 p.m.
    Mr Speaker, I beg to second the motions.
    Question put and Motion agreed to.
    Resolved accordingly.
    Mr First Deputy Speaker 6:21 p.m.
    Hon Chairman, you may now move the consequential Motion to present the Report.
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 6:21 p.m.
    Mr Speaker, I beg to move, that this Honourable House adopts the Report of the Finance Committee on the Buyer Credit Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank S.p.A. [as Agent, Arranger, and Lender] (supported by SACE and SIMEST of Italy) for an amount of forty million euros (€40,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital.
    Mr Speaker, I further beg to move, that this Honourable House adopts the Report of the Finance Committee on the Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank S.p.A. [as Agent, Arranger, and Lender] for an amount of six million euros (€6,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital.
    Mr Speaker, in so doing, I beg to present your Committee's Report.
    Introduction
    The Buyer Credit Facility Agreement between the Government of the Republic of Ghana and the Deutsche Bank, S.p.A [as Agent, Arranger and Lender] (supported by SACE and SIMEST of Italy) for an amount of forty million euros

    (40,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital; AND

    Tied Commercial Loan Facility Agreement between the Government of the Republic of Ghana and the Deutsche Bank, S.p.A [as Agent, Arranger and Lender] for an amount of six million euros (6,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital were presented to the House on Thursday 19th July, 2018, by the Hon Minister responsible for Finance, Mr Ken Ofori-Atta.

    Pursuant to article 103 of the 1992 Constitution and Orders 169 and 171 of the Standing Orders of the House, the Agreements were referred to the Committee on Finance for consideration and report.

    The Committee subsequently met and discussed the Agreement with the Leadership of the Committee on Health, the Deputy Minister for Health, Hon Aboagye Gyedu, a Deputy Minister for Finance, Hon Kwaku Kwarteng, as well as officials from the Ministries of Finance and Health.

    The Committee hereby submits this Report to the House pursuant to Order 161(1) of the Standing Orders of the House.

    The Committee is grateful to the Hon Deputy Minister for Health, the Hon Deputy Minister for Finance and the officials for attending upon the Committee.

    References

    The Committee referred to and was guided by 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; and

    The Public Financial Management Act, 2016 (Act 921).

    Background

    The vision of the Health Sector is to have a healthy population for national development. The sector has a mission to contribute to socio-economic develop- ment by promoting health and vitality through access to quality healthcare for all people living in Ghana using well- motivated personnel.

    The Government of Ghana is com- mitted to ensuring the provision of health infrastructure to enhance the quality of health service delivery in the country.

    The policy thrust of the Ministry of Health (MoH) under its programme of work is to reduce inequities in access to healthcare and increase coverage, quality and use of health services so as to achieve a healthier national population.

    There is continuous increase in OPD visits in all the regions of Ghana but the development of health infrastructure has not kept pace with it. The country has two hundred and fifty-four (254) Districts of which only one hundred and nine (109) have District Hospitals.

    This has led to congestion and brought pressure on the utilisation of most of the health facilities, as there are long waiting times at the Out Patient Departments (OPDs). This also poses a challenge in providing quality health care services by overstressed health workers.

    Managerial strategies for improving quality assurance should be matched with corresponding expansion and improve- ment in health infrastructure.

    The challenges are compounded by inadequate funding for the Ministry's capital investment plan and the rising cost of maintenance of the existing health infrastructure.

    It is in the light of these challenges that the need for appropriate infrastructural technology for constructing health facilities is of prime importance.

    The Government of Ghana through the Ministry of Health entered into a turnkey Agreement with an Italian company called Messrs Contracta Limited to undertake infrastructurale development within the health sector.

    The partnership is expected to improve healthcare infrastructure in selected health facilities in the Eastern Region of Ghana through the execution of construction, upgrade/rehabilitation (civil works) and retooling (medical and non-medical equipment supply and installation) of the selected beneficiary facilities.

    This is part of the effort by the government to enhance the quality of healthcare delivery and also bring equity

    in the distribution of health care infrastructure in the country.

    Project Objective

    The objective of the Project is to modernise and equip the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital in the Eastern Region of the Republic of Ghana.

    The goal is to have a healthy and productive population in the catchment areas of the selected hospitals to achieve the following objectives:

    Bridge the equity gaps in geo- graphical access to health services;

    Ensure sustainable financing for health care delivery and financial protection for the poor;

    Improve efficiency in governance and management of the health system;

    improve quality of health services delivery including mental health services;

    enhance national capacity for the attainment of health-related MDGs and sustain the gains; and

    intensify prevention and control of non-communicable and other communicable diseases.

    Terms and Conditions of the Loan

    The terms of the two Credit Facilities are as follows:
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 6:21 p.m.


    A. SACE Export Credit Facility

    Facility Amount : up to €40.00million (inclusive of estimated SACE premium of €6.00million)

    Interest Rate : CIRR+0.95 per cent p.a

    Commitment Fee : 1.00 per cent p.a on the undisbursed balance

    Arrangement Fee : 1.25 per cent flat of facility

    Structuring Fee : 0.50 per cent flat of facility

    Grace Period : 2 years

    Repayment Period : 10 years

    Tenor : 12 years

    B. Tied Commercial Facility

    Loan Amount : up to EUR 6.00 million

    Interest Rate : 6M EURIBOR + 5.00 per cent p.a.

    Commitment Fee : 1.00 per cent p.a on the undisbursed balance

    Arrangement Fee : 1.25 per cent flat of facility

    Structuring Fee : 0.50 per cent flat of facility

    Grace Period : 1 years

    Repayment Period : 4 years

    Tenor : 5.0 years
    Chairman of the Committee (Dr Mark Assibey-Yeboah) 6:21 p.m.


    Observations

    Coverage of the project

    The Committee observed that the Project covers expansion, retooling and equipping of the Tetteh Quashie Memorial Hospital in Mampong-Akwapim, Atibie Hospital, Kibi Hospital and the Aburi Health Centre (Korn Presbyterian Clinic) all in the Eastern Region. Messrs. Contracta Costruzioni Italia S.r.l will undertake the execution of the Project.

    Improvement of Infrastructure

    The Committee was informed that the aim of retooling, revamping and supply of equipment to the selected hospitals is to address the shortfall in the provision of infrastructural facilities and biomedical equipment including the problem of maternal/neonatal care services, patient transport and handling, laundry services, corpse storage, dental services, audiology services, sterilisation services, dietetic services, emergency care services, poor quality of electricity supply, water supply and where possible address medical oxygen supply in the selected hospitals.

    Project Financing

    The Committee noted that the estimated cost of the project is forty- million euros (€40.00 million). Deutsche Bank S.p.A is providing the financing under an Export Credit Arrangement. The Italian Export Credit Agency (SACE) is providing the Export Credit Guarantee to enable Deutsche Bank S.p.A to lend under this arrangement. The financial package provides a 100 per cent financial solution for the Project.
    Mr Benjamin Komla Kpodo (NDC -- Ho Central) 6:21 p.m.
    Mr Speaker, I beg to second the Motion and also support the Hon Chairman to recommend this loan facility for the approval of the House.
    Mr Speaker, you would notice that all the hospitals are in the Eastern Region, Tetteh Quarshie Hospital especially is a very old hospital, and anything that we could do to rehabilitate and bring it up to modern standards should be supported.
    Mr Speaker, we have one cardinal principle in accepting and approving these loans but we have not been addressing ourselves to them. We always say that we need to know the impact of every loan on the entire public debt but for all these loans that we have approved, we have not done any and I believe that the Hon Chairman of the Committee on Finance -- [Interruption].
    Mr Speaker, the Hon Chairman is not paying attention.
    Mr First Deputy Speaker 6:21 p.m.
    Hon Member, you are addressing me.
    Mr Kpodo 6:21 p.m.
    I am addressing Mr Speaker --
    Mr Speaker, we have not been getting the impact of each of these loans on the entire public debt. That is dangerous and I believe that we have to wake up to it because over the past few days, we have approved a number of millions of Euros and US Dollar facilities for the projects that we are undertaking.
    Mr Speaker, you would also note that for all the loans, we are talking about repayment periods of five years, 10 years, 20 years or 25 years but we should be watching what we are transferring to the generation behind us. Mr Speaker, none of these projects that we have approved
    the loans for would be constructed from our revenues that we have generated and we are talking about not getting assistance from other places.
    I believe that we should be very watchful once again about the amount of loans that we are accumulating for people to come and pay in 10 years, 15 years, 20 years and some are even to be paid in five years.
    Mr Speaker, nevertheless, and for the good purpose, I beg to support the Motion for the approval of the loan.
    Mr Speaker, thank you.
    rose
    Mr First Deputy Speaker 6:21 p.m.
    Hon Minister for Monitoring and Evaluation.
    Dr A. A. Osei 6:21 p.m.
    Mr Speaker, I had a point of order against my Hon Friend.
    Mr Speaker, this Motion has been moved by the Hon Chairman and it is yet to be seconded. He made a contribution as he said, but he has not seconded it. So, would he rise to second the Motion?
    Mr Kpodo 6:21 p.m.
    Mr Speaker, the first Statement I made was -- [Interruption.]
    Mr Speaker, all right. I beg to second the Motion.
    Question proposed.
    Mr First Deputy Speaker 6:21 p.m.
    Hon Member for Adaklu.
    Mr Kwame Governs Agbodza (NDC - - Adaklu) 6:21 p.m.
    Mr Speaker, thank you for the opportunity to support the Motion for the approval of a sum of €40 million for the
    Mr Kwame Governs Agbodza (NDC - - Adaklu) 6:31 p.m.
    refurbishment of four health facilities in Eastern Region.
    Mr Speaker, you would notice that this is mainly to retool and refurbish a few of these facilities and some of them are quite historic; Tetteh Quarshie Memorial Hospital is a very important hospital and some people have been calling for a bigger refurbishment to make it even a tourist attraction. Mr Speaker, but we are happy that, at least, some funding has been provided to upgrade some of the facilities there.
    Mr Speaker, if you go to some of these hospitals, it is quite disturbing. For instance, in my line of work, a theatre where we conduct an evasive procedure should have a specialised floor.
    Mr Speaker, I noticed that in this country, many hospitals still have terrazzo as their floor finishing. There is no way one could effectively clean and remove human tissue and other things on the floor. What this means is that one could leave germs on the floor and a new patient could actually acquire sickness from a theatre instead of being a place for treatment.
    I believe that as a country, we need to develop a policy on this; there are global standards on what has to be done as to finishing work in a theatre or laboratories. Mr Speaker, even in Accra, we could see a floor of theatre made out of terrazzo or tiles. It is unheard of and it is not a good thing.
    Mr Speaker, so, these kinds of loans give us the opportunity to upgrade and make things better. I believe that some of the facilities mentioned actually do not have critical areas; we need Out Patient Departments, laboratories, X-Ray Departments and even Children's Units
    in some of the hospitals that are on this list. I believe if we could do this, it would be helpful.

    Mr Speaker, you would notice that the values of what we are doing today are quite huge. We are politicians in this House. We need to be careful what we put out there in terms of the prices of things.

    When we do these things and go out and somebody goes to say, for instance, a district hospital could be built for US$3 million, it is simply ignorance. It is not possible.

    In fact, equipment for district hospital is more than US$5 million. So how on earth could one go somewhere for cheap political propaganda and say that he can effectively build district hospitals for US$3 million? We should desist from that.

    We are not building any new hospital out of this. We are just refurbishing. This is US$40 million.

    So I am urging my Hon Colleagues that this is a very good value-for-money project. However, when we go out to speak about it for the votes, let the truthfulness by which we do our works here translate to what we communicate outside.

    I cannot see anything here that has been inflated neither do I see anything here that was inflated in the years 2015 and 2016. The rates I see here were the same rates I saw in the years 2015 and 2016. How come today we apply these rates and think it is value-for-money, but in the years 2015 and 2016, we said they were not good value-for-money?

    Mr Speaker, on this note, I think this is a very good thing. I personally know these facilities. They require even more

    than this level of intervention and I urge the Hon Minister for Finance to actually give more money to the Ministry of Health so that we can do more of these.

    Mr Speaker, I am sure there are many Hon Members of this House whose health facilities require similar interventions, and I am sure when we do this, we are not doing this for politics. There is none of the district hospitals in our village in Adaklu yet.

    The one that would come to Adaklu in the future is for my benefit. Who knows when I would be sick and be in the village and need the intervention of it? When we do these things, I believe it is good for our country. A country that wants its people to live long must improve on healthcare delivery.

    Mr Speaker, everybody is telling me it is enough but when they are talking about other things, I do not tell them to stop.
    Mr First Deputy Speaker 6:31 p.m.
    Hon Member for Adaklu, we know your expertise in this area.
    Mr Agbodza 6:31 p.m.
    Mr Speaker, I urge my Hon Colleagues to support the Motion and urge my Colleague, Hon Osei Bonsu Amoah, to also give me space when I am contributing to the Motion.
    Thank you very much, Mr Speaker.
    Mr First Deputy Speaker 6:31 p.m.
    All right. The Hon Member for Abuakwa South?
    Minister for Works and Housing (Mr Samuel Atta Akyea) 6:31 p.m.
    Mr Speaker, I thank you for this opportunity to contribute to the Motion on the Floor that this Honourable House approves a Buyer Credit Facility Agreement in the sum of €14 million to part finance the modernisation and equipping of the Tetteh
    Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital.
    Mr Speaker, half the time, we should not make any noise when we are trying to improve the lot of our people. Some people always want to talk about why we are adding on the debt stock.
    We have never said this nation should develop an allergy when it comes to borrowing. We are saying that if you would want to borrow, we should apply the moneys to where --
    Mr First Deputy Speaker 6:31 p.m.
    Hon Member, just restrict yourself to the Report. We would do that debate outside here.
    Mr Akyea 6:31 p.m.
    So Mr Speaker, to sum up on what I am trying to say, this borrowing is eminently sensible and good for this nation.
    Mr Speaker, I am not saying this because of the fact that my constituency is a beneficiary of what we are about to approve. I look at the amount which is supposed to be applied to my constituency and that very strategic hospital which services a whole huge area for the benefit of the good people of Akim Abuakwa South and beyond.
    The €14 million is for the construction and equipping of new facilities as follows, the items are huge: Out Patient Department, Surgical Suite, Pharmacy and Counselling Unit, Laboratory, Diagnostics Unit, Kitchen, CSSD and Laundry, ten units of staff accommodation, service area for plant and equipment and waste disposal et cetera. Then, there would be wards, and we have the benefit of a world- class mortuary.
    Mr Akyea 6:31 p.m.


    Mr Speaker, I am of the humble view, that this borrowing is very good, looking at the kind of refurbishment and improvement that the area will enjoy and enhance the efficiency and the effectiveness of that health-delivery facility.

    I do not think it would compete with the Bekwai District Hospital because this is a modest sum. Bekwai District Hospital is a very huge -- [Interruption].

    Is it not? Between €20 million and €14 million, we are not close to Bekwai District Hospital, but we are happy with this modest sum which would improve --
    Mr First Deputy Speaker 6:31 p.m.
    The Bekwai Hospital is already 76 per cent completed. It has been standing there since 2012. This is just to complete it.
    Mr Akyea 6:31 p.m.
    Oh, is it just to complete it? We are starting.
    Very well.
    Mr First Deputy Speaker 6:31 p.m.
    And for your record, the Bekwai Hospital is programmed as an adjunct medical training school.
    Mr Akyea 6:31 p.m.
    Oh, is it intended as a medical training school?

    Mr Speaker, to all intents and purpose, this is a fit and proper Motion that this House should approve and the benefit would show.

    However, as an infrastructure Minister, I am of the humble view that when we quote these figures, at the end of the day, we have entities that can do value-for- money analysis. With the kind of auditing that goes on in this country, sometimes we do not do proper project auditing.

    After the event, we can look at the facilities erected and do proper auditing and we would be satisfied that the monies have been properly applied for the very purpose the loan was contracted.

    Mr Speaker, with these few words, I add my voice that this Honourable House approve the facilities as expressed in the Motion.
    Mr Speaker 6:31 p.m.
    Hon Member for Tamale North?
    Mr Suhuyini Alhassan Sayibu (NDC -- Tamale North) 6:41 p.m.
    Thank you very much, Mr Speaker, for the opportunity to associate myself with the request made by the Hon Chairman of the Committee for us to approve the concessional credit agreement between the Government of the Republic of Ghana and the Deutsche Bank.
    Mr Speaker, I also want to associate myself with some of the comments that have been made by my Hon Colleagues in relation to how important this particular project is.
    I wish and hope that the releases would be speedy and the construction would also be done in time, especially as we know that our people require these facilities so that we would not be recording the needless debts that we have recorded recently, especially in relation to maternal and child mortalities.
    It is a very big concern, and I am sure some of these facilities, when they are completed, would lead to reduction in child and maternal mortality.
    It is my hope that when the construction is completed, the maintenance culture that has always been said to be appalling would be improved. This is because if we go round some of our health facilities that were constructed years ago, sometimes it is an eye sore.

    Dr A. A. Osei — rose —
    Mr First Deputy Speaker 6:41 p.m.
    Hon Member, hold on.
    Hon Minister for Monitoring and Evaluation, today you are monitoring us seriously.
    Dr A. A.Osei 6:41 p.m.
    On a point of order. Mr Speaker, I thought I was listening to Hon Suhuyini, but I saw the name Otuteye, so I do not know who is speaking. He rarely ever wears a suit, so I was paying attention. Then I saw the name Otuteye.
    Mr Speaker, may we be told who is addressing the House?
    Mr First Deputy Speaker 6:41 p.m.
    Hon Member, thank you. I recognised the Hon Member for Tamale North, and I know him.
    Hon Member for Tamale North, please continue.
    Dr A. A.Osei 6:41 p.m.
    Mr Speaker, unfor- tunately today, the Hon Second Deputy Speaker was saying that people cannot contribute from anywhere, that is why I was drawing the attention of the House.
    Mr First Deputy Speaker 6:41 p.m.
    We would leave the palm fruit where it fell.
    Mr Sayibu 6:41 p.m.
    Mr Speaker, thank you for your intervention.
    I would conclude by taking note of the sums that are involved, and also associate myself with earlier comments made by Hon Agbodza when he talked about the need for us to be very candid at all times and not only when we are at the other Side of the House and speak from there.
    Apart from putting ourselves in danger as politicians, we also put our democracy in danger when we begin to let the people lose confidence in us.
    Mr Speaker, it is on this note that I would draw attention to what I find disturbing and unacceptable. It has to do with the finding fees arrangement in these agreements.
    Mr Speaker, if you would permit me, if you put this agreement and the previous one we passed, you would realise that about GH ¢6 million is what is involved by way of finder's fee. If you look at this GH¢6 million, it is part of the percentage interest rate per anum that the people of Ghana would be expected to pay back over the period.
    So Mr Speaker, I would plead that moving forward, even as we want to encourage people to help us do some of
    these negotiations, we should work at reducing the burden that their fees would put on the average taxpayer. If we do not do that and also work at reducing the insurance that we usually pay, we would be reducing the debt burden that the citizens are usually expected to pay through the increment of taxes and other sources of revenue.
    Mr Speaker, with these few words, I would associate myself with the agreement and ask that we support its approval.
    Thank you very much.
    Mr First Deputy Speaker 6:41 p.m.
    Hon Member for Bantama, then I would come to the Leaders.
    Mr Daniel Okyem Aboagye (NPP— Bantama) 6:41 p.m.
    Thank you, Mr Speaker, for the opportunity to contribute to the Motion on the Floor, and to say that any attempt whatsoever to support and improve healthcare in Ghana is very important, especially for the Tetteh Quarshie Memorial Hospital, Atibie, Kibi, and then the fourth one in Aburi.
    Mr Speaker, one of our Hon Friends on the other Side of the House was talking about the fact that these loans are not added to our public debt.
    I believe at the right time, they would be added, because I am sure that when this was being considered at the Committee level, the people at the Finance Committee were there, so this would be captured accordingly at the right time.
    Mr Speaker, let me say this. Should we sit down for our children whom we call future generation to die now, or should we build good hospitals now by taking
    loans to save their lives? If we do not do that, there would never be future generations.
    So I would say that the healthcare improvement that we are considering here or the loan that we are seeking for this expansion, retooling and equipping of these hospitals is important.
    It would guarantee that future generations would be here, and if it means they have to take care of the burden that we leave behind, it would be more helpful than to see them die.
    We have witnessed situations where people have gone to hospitals and they say there are no beds. It is better for us to borrow to provide beds, than to sit down for all of us to die.
    Mr Speaker, there is this notion that loans are bad. Some of my Hon Friends debating this Motion are saying that none of this is being financed locally. Where is the money? Where can we find the money? You would not support marginal increases in taxes, you would criticise every loan that is taken even if it is being taken responsibly.
    Mr Thomas Ampem Nyarko 6:41 p.m.
    — rose —
    Mr First Deputy Speaker 6:41 p.m.
    Hon Member for Bantama, hold on.
    Mr Thomas Ampem Nyarko 6:41 p.m.
    On a point of order. Mr Speaker, is the Hon Member trying to suggest that loans are
    not bad depending on the Government that is borrowing?
    We were all here when his Side was criticised for the borrowing that we we do when we were in Government --
    Mr First Deputy Speaker 6:41 p.m.
    Hon Member, you were not here.
    Mr Nyarko 6:41 p.m.
    Mr Speaker, thank you.
    Mr D. O. Aboagye 6:51 p.m.
    Mr Speaker, so like I said, a loan in itself is not bad. It depends on who you give it to, and how it is used.
    Experience shows that if you borrow responsibly, you would be able to take care of it, but if you borrow recklessly, you would not be able to take care of it. You would burden future generations.
    Mr Speaker, some of these loans that are being taken and I hear our Friends on the other Side mentioning several loans being considered this week -- some of these loans are being taken to finish their unfinished projects. Is it better for us to leave the projects unfinished, or it is better for us to borrow to finish them?
    If we really mean well for Ghana, I believe sincerely that instead of leaving places like affordable homes in Kumasi uncompleted, it is important that when loans are taken -- look at the Motion we just looked at Bekwai. For six years, the hospital was not done.
    I would rather believe that it is important to borrow to finish the unfinished business especially of the previous Administration, than to let these projects sit uncompleted and to lose the value of money we have invested into it.
    Mr Speaker, with these few words, I thank you for the opportunity.
    Minority Leader (Mr Haruna Iddrisu) 6:51 p.m.
    Mr Speaker, I would endeavour to be very brief, and to speak in favour of the Motion for the approval of €40 million, and additional €6 million, to part finance the modernisation and equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital.
    Mr Speaker, this weekend, we had the opportunity as Parliament to be in Hon O.B .Amoah's Constituency, Akuapem South, and I believe that Nana Otubuor Kwasi, the Aburihene and Akuapem Adontenghene, I hope I got it right [Interruption] -- Hon Colleagues, we should appreciate that the Ghanaian public, including chiefs and traditional rulers very much follow what we do in this august House.
    I am sure if I or Hon O.B. Amoah said Aburi Hospital was being considered, someone would have said John the Baptist, but I have just two comments.
    One, as Members of Parliament, we need to appreciate that there is a difference between a commercial loan and a concessionary loan.
    Therefore when one debates and argues and people decide to debate as if it is apple and mangoes, they would go and take the terms of a commercial loan agreement and come and say that the concessionary agreement is better than it and that is not good economics or finance.
    If we are taking a commercial loan agreement, that is where you have arrangement fee, structuring and all those. Concessionary on the basis of our Statutes and the generosity of donors, we may get it. So it is important that at all times we make a clear distinction between commercial and concessionary loans.
    Mr First Deputy Speaker 6:51 p.m.
    Hon Deputy Minister, items numbered 32 and 35.
    RESOLUTIONS 6:51 p.m.
    Minister for Finance) 6:51 p.m.
    Mr Speaker, I beg to move,
    WHEREAS by the provisions of article 181 of the Constitution and sections 55 and 56 of the Public Financial Management Act of 2016 (Act 921), the terms and conditions of all government borrowings shall be laid before Parliament and shall not come into operation unless the terms and conditions are approved by a resolution of Parliament in accordance with article 181 of the Constitution;
    PURSUANT to the provisions of the said Article 181 of the Constitution and Sections 55 and 56 of the Public Financial Management Act 2016 (Act 921), at the request of the Government of the Republic Ghana acting through the Minister responsible for Finance, there has been laid before
    Parliament the terms and conditions of a Commercial Loan Facility Agreement between the Government of the Republic of Ghana and Deutsche Bank S.p.A. [as Agent, Arranger, and Lender] for an amount of six million euros (€6,000,000.00) to part finance the Modernisation and Equipping of the Tetteh Quarshie Memorial Hospital, Kibi District Hospital, Aburi Hospital and the Atibie Hospital.
    THIS HONOURABLE HOUSE 6:51 p.m.
    HEREBY RESOLVES AS 6:51 p.m.
    THIS HONOURABLE HOUSE 6:51 p.m.
    HEREBY RESOLVES AS 6:51 p.m.
    Dr Mark Assibey-Yeboah 6:51 p.m.
    Mr Speaker, I beg to second the Motion.
    Question put and Motions agreed to.
    Resolved accordingly.
    Ms Safo 6:51 p.m.
    Mr Speaker, I was just conferring with the Hon Minority Leader on the debate on the Mid-Year Review of the Budget Statement and Economic Policy.
    Earlier at pre-Sitting, we agreed that we would take one contribution from each Side. Then we would move on to the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018.
    Mr Speaker, we would take one contribution each from the Minority side and Majority side then we would go to the Bill.
    Mr Iddrisu 6:51 p.m.
    Mr Speaker, I consulted with the Hon Deputy Majority Leader through a whisper but thankfully and fortunately for me, you presided yesterday at pre-Sitting.
    We had said that for the debate on the Mid-Year Review of the Budget Statement and Economic Policy, we would take three contributions from each Side of the House today but knowing that there was loaded Government Business we skipped that.
    So I was making a request that we can allow one or two Hon Members to contribute then we go to the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018. [Interruption.] Not three.
    We cannot do three contributions but maybe, two contributions because we agreed yesterday on three contributions each.
    rose
    Mr Iddrisu 6:51 p.m.
    Mr Speaker, I am not yet seated. The Hon Deputy Majority Leader knows I would not be intimidated.
    Mr Speaker, we agreed yesterday on three contributions. We are helping her as is required of us to govern this House. Ideally, we could have insisted at the start that we should debate the Mid-Year Review of the Budget Statement and Economic Policy but when the Hon Majority Leader said we should take the Motions, we did.
    So I am just saying that in addition to her one contribution each, she should allow two Hon Members -- [Interruption].
    If she cannot get it, that is her problem; that is not our problem. Mr Speaker, we could take two contributions each though the Hon Deputy Majority Leader is saying one each. We are in your hands.
    Mr First Deputy Speaker 6:51 p.m.
    Hon Deputy Majority Leader, yesterday's agreement appears to have been overreached by a new one which you informed me about now. If you cannot reach a consensus, then I would use my discretion.
    Ms Safo 6:51 p.m.
    Mr Speaker, I had earlier indicated to the Hon Minority Leader that the instruction from the Hon Majority Leader, the Leader of Government Business, was that we should take the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018. Then the Hon
    Minority Leader drew my attention to the fact that he had earlier agreed with the Hon Majority Leader that we go on and take one contribution from each Side of the House on the Mid-Year Review of the Budget Statement and Economic Policy.
    Mr Speaker, as you know, this Bill is equally relevant and at pre-Sitting, we agreed that we would move on with Public Business and facilitate the entire process. That was the initial negotiation I had with the Hon Minority Leader.
    So Mr Speaker, I believe that we can take one contribution from each Side of the House then we can take the Ghana Integrated Bauxite and Aluminium Bill,
    2018.
    Mr First Deputy Speaker 6:51 p.m.
    Hon Members, I do not intend to Sit beyond 8 p.m. so, I will admit one contribution each and then we would do the next Business.
    Hon Deputy Majority Leader, who is starting? How did you agree?
    Ms Safo 7:01 a.m.
    Mr Speaker, the Minority would start.
    Mr First Deputy Speaker 7:01 a.m.
    Very well. Hon Member for Ho Central, you may take the stand now.
    MOTIONS 7:01 a.m.
  • [Resumption of Debate from 23/07/ 18]
    • Mr Benjamin Komla Kpodo (NDC— Ho Central) 7:01 a.m.
    Thank you Mr Speaker. We have all come to this Parliament, we have taken Government leadership position based on the pledges we made to our citizenry.
    Mr Speaker, I would like to concentrate my contribution on the revenue and the taxation measures we have taken to address our revenue problems.
    Mr Speaker, if you read page 29 of the Mid-Year Review, paragraph 126 acknowledges that we have run short of the target we set for ourselves in the 2018 Budget to make revenue. So, in paragraph 127 it is stated and Mr Speaker, I read with your permission:
    “Mr Speaker, we anticipate that at rate, if remedial actions are not taken, the end-of-year fiscal deficit target could widen mainly on the back of lower revenues.”
    And the solution which the Hon Minister proffered in the Address was to introduce new taxes. Mr Speaker, the record of this Government as far as taxation is concerned, we know the major principle is that, ‘we are moving from taxation to production'. But on the contrary, the reverse is being done.
    The record is that, we have African Union Levy (AU Levy), which is one of
    the taxes imposed by this Government. Now, that tax handle is expected to yield about GH¢90million; but we only need between GH¢23million and GH¢29million for our expenditure at the AU.
    Next, we got imposed on us the National Fiscal Stabilisation Levy, which was supposed to have ended in December, 2017 and that is to yield GH¢260million. Then, we also re-imposed the Special Import Levy, which is yielding over GH¢600million for the country. This was also to have ended in December, 2017.
    Now, the Government in a very strange manner announced that they were going to abolish taxes. So we had a long list; Kayaye Tax, ‘nuisance taxes; 17.5 per cent tax on Domestic Flight Tickets. Mr Speaker, how many people are flying the single airline that we have now; Africa World Airline?
    Mr Speaker, when you add up all these taxes that were abolished, they do not even measure up to the amount which one of the tax handles is bringing in. That is the Special Import Levy.
    Mr Speaker, the Government has admitted on page 3, paragraph 9.7 7:01 a.m.
    “We have given tax relief of over GH¢800million to businesses and households through the abolish- ment of nuisance taxes;”
    Mr Speaker, but when you come to page 45, in paragraph 206, the same document read by the Hon Minister for Finance is telling us that the Government reduced tax burden by more than GH¢1billion. From page 3 to page 45, we have got again, GH¢200 million in one document. So, I do not know which one you would want to believe.
    Mr Speaker, it is true that some other Hon Colleagues have said elsewhere that
    it is GH¢1billion, GH¢2billion and some even say it is GH¢5billion. And in this document, we have two different figures. They should come clear and tell us how much actually has been saved by the abolishment of those ‘nuisance' taxes.
    So Mr Speaker, as part of the measures, the Government has imposed new taxes; one, the Government has introduced Luxury Vehicles Levy, which is expected to bring in GH¢300million. Then it has introduced Higher Net Worth Income Tax, which is tax of thirty-five per cent (35%) in excess of those who earn ten thousand Ghana Cedis.
    Mr Speaker, it is a very lazy way of raising revenue. They have identified you; they have identified the Hon Deputy Majority Leader and they have identified the Hon Minority Leader that they earn more than ten thousand Ghana Cedis so they should pay 35 per cent of any income they get.
    Mr First Deputy Speaker 7:01 a.m.
    What about you, were you not identified?
    Mr Kpodo 7:01 a.m.
    Mr Speaker, I would want to start from the Hon Leaders before it drops to our school children in the House.
    Mr Speaker, the same people are to pay the Luxury Vehicle Tax. So you are just cornering a few people in the economy to collect taxes and go and do grandiose expenditure, which the Hon Minister for Finance himself has admitted is unnecessary.
    Yesterday the Hon Minister for Finance said on radio that the Free Senior High School cannot be taken on like that in the form it is now. Give me my GH¢3,500.00 after my GH¢10,000.00 tax and I would go
    and look after my own child in school. That was what the Hon Minister for Finance was saying.
    He said he could pay for ten people so, why ask him that he should carry his child and drop in school and go home? That is not correct. And that burden is being placed on us through these means, which are not acceptable. They are imposing a burden.
    Mr Speaker, now, they have also introduced new taxes surreptitiously. The Hon Minister said that Value Added Tax (VAT) has not been increased; it is twelve per cent (12%).
    Mr First Deputy Speaker 7:01 a.m.
    Hon Member, conclude, you have spent seven minutes.
    Mr Kpodo 7:01 a.m.
    Mr Speaker, what I would want to say is that, with the decoupling of the Ghana Education Trust Fund (GETFund) and the National Health Insurance Levies (NHIL), additional taxes have been imposed on the citizenry and the prices of goods would go up. Mark it.
    Prices of goods and services would go up because the people who pay the previous 17.5 per cent VAT would not be able to recover the five per cent when they are doing their output.
    This is an input-output tax but the current situation is that we would not get the 5 per cent back and therefore prices would go up; in fact, double the 5 per cent.
    Mr Speaker, on page 44 —
    Mr First Deputy Speaker 7:01 a.m.
    Hon Member, your time is up.
    Mr Kpodo 7:01 a.m.
    Mr Speaker, this is very important.
    Mr First Deputy Speaker 7:01 a.m.
    Well, you have the option to start with it.
    Mr Kpodo 7:01 a.m.
    Mr Speaker, I would want to show this table on page 40-41 to you, where the roads listed are to be constructed. It was listed that, they would construct one hundred and ten kilometres (110km) of road network from Jasikan to Nkwanta.
    Mr Speaker, this was the road which was done by the contractor from Burkina Faso which became so much talk in this country that the former President had a bribe of a vehicle.
    Mr Speaker, that road from Dodi- Pepeso to Nkwanta has already been constructed and commissioned by the former President.
    Why are they saying that they are now going to construct it from the Luxury Vehicle Tax and from the Higher Net Income Tax? The road had already been constructed, so if it is double payment, they should let us reverse that programme by the Government.
    Finally --
    Mr First Deputy Speaker 7:11 a.m.
    Hon Member, your time is up. You have done 10 minutes instead of five minutes.
    Hon Minister for Monitoring and Evaluation?
    Minister for Monitoring and Evaluation (Dr Anthony Akoto Osei) 7:11 a.m.
    Mr Speaker, originally, I did not intend to contribute to the debate, but as I heard the contributions, I was a bit disturbed. Either Hon Members do not understand what the Review is about or they mischievously want to deviate from it.
    Let me bring our attention to what the Review is about. In November 2017, the Minister for Finance brought us a Budget

    in which he set some targets on expenditure and revenue. The Public Financial Management Act (PFMA) requires him to inform us on the direction he is going and how things are going and that is why he came before us.

    So he came to report to us on the Budget that he read in November, 2017 and to tell us if things are not going well, how he would bring them together. If things are going well, he would tell us where they have reached.

    Mr Speaker, what the Hon Minister talked about was that, broadly speaking, he is on course. However, he had some challenges on revenue, and that the expenditures were not up to par. So he would have to adjust the revenues and some expenditures to remain on the target that he told us about in November, 2017.

    That is what I expect Hon Members to comment on. Was he on target or not? But talking about Doduase and Pepease roads here and there has nothing to do with the Mid-Year Review.

    The measures he is taking, bringing them together to fill the gap, do we agree or not? That is the question we should ask. First of all, he talked about the retailers not getting the five per cent.

    If they do not have to pay 17.5 per cent, why would they want to recover the additional five per cent? It is 12.5 per cent they would pay and then recover. So what is the point about him looking for them to recover five per cent. This is because I have to do the input.

    Mr Speaker, what the Hon Member should be telling us -- Now he has become a prophet, saying that prices would rise up. Since when did he become a retailer or a prophet of doom? We need to bring the evidence of what he talked

    about as to the reasons prices might go up or not.
    rose
    Mr First Deputy Speaker 7:11 a.m.
    Hon Member, hold on. Hon Naabu?
    Mr Joseph Bipoba Naabu 7:11 a.m.
    Mr Speaker, I would want to ask the Hon Member if he is debating or coming on a point of order? [Interruption.]
    Mr First Deputy Speaker 7:11 a.m.
    Hon Naabu, are you raising a point of order or asking your own question?
    Mr Naabu 7:11 a.m.
    Mr Speaker, I would want to know because he is talking too much. So I would want to know whether he is raising a point of order or debating? That is all. [Laughter]
    Mr First Deputy Speaker 7:11 a.m.
    Very well.
    Hon Naabu, the Hon Member is making his contribution and responding to issues raised by the previous Member who spoke. Is that clear?
    Hon Minister, continue.
    Dr A. A. Osei 7:11 a.m.
    Mr Speaker, Hon Naabu is my friend, so if he is worried about where I am going, I would spare him more details. However, it is important that as a Member of this House, he pays attention to what we need to do in this House. [Interruption.] That is why as a Senior Member of this House, I am spending a little time to educate my Hon Colleagues. [Interruption.]
    They say they do not want it, but they would accost me in the hallway to explain. [Laughter.] So I want to do it on the Floor. Back in 1997, I was coaching even the Hon
    Minority Leader, so they should not feel bad. The whole Hon Minority Leader took lessons.
    Mr Speaker, what you and I should discuss is if the Hon Minister is on track to achieve his targets, if we disagree, we should say why we do so. Clearly, he has raised two new taxes; one on luxury vehicles --
    rose
    Mr First Deputy Speaker 7:11 a.m.
    Hon Member for North Tongu, what is your point of order?
    Mr Ablakwa 7:11 a.m.
    Mr Speaker, Hon Anthony Akoto Osei said that he is here to educate us. He is here to contribute to the debate and not to educate us. He talked about 1997 and he is getting to the analogue Gold Coast days. I would want to say that we belong to the modern era, so he should just contribute to the Motion and spare us. [Interruption.]
    Mr First Deputy Speaker 7:11 a.m.
    Hon Minister, they are confirming that they are babies in the House, so you must make sure that you recognise that. [Laughter]
    Dr A. A. Osei 7:11 a.m.
    Mr Speaker, so it is important for my Hon Colleagues to raise the legitimate questions. Are those taxes going to fill the gap that the Hon Minister said he needs to fill? Then they should adduce reasons as to why they do not think that he could reach the gap.
    With the revenue that he said he would raise, we should not forget that he talked about new taxes, but the most important thing he mentioned was the audits of the large companies.
    Is that a necessary thing to do? I am sure we would agree that the telecommunication companies, gold mining companies and oil
    Dr A. A. Osei 7:11 a.m.


    I am debating because it is part of the measures the Hon Minister would bring. I have not heard anybody talk about the audits. Do we need to do a proper audit of these companies to get the revenue that we deserve? I believe we all agree.

    So we should help the Hon Minister and if we disagree with him, we should say so.

    Mr Speaker, he also talked about rolling back on expenditures. The question we should ask him is which expenditure he would roll back and how they would affect our various communities.

    I have not heard anybody talk about that. This is because, if he would cut back on expenditures that affect development, we should take him on as Hon Members of Parliament (MP). This is because, we are the representatives of the people.

    However, I have not heard Hon Members ask the Hon Minister what expenditures he would hold back. That is where I expected the debate to go, but it is not going that way and I am a bit disappointed.

    Mr Speaker, the subject matter of the Review, if we do not finish today, we should go back and ask the question, has the Minister told us if he is on target or not? We should go back and raise that question and look at the target that he set.
    rose
    Mr First Deputy Speaker 7:11 a.m.
    Hon Minister, please hold on.
    Mr Kpodo 7:11 a.m.
    Mr Speaker, Hon Dr A. A. Osei is using unpalatable words against us on the other Side. For instance, he told us to address the contents of the Mid- Year Review document in front of us. I quoted from page 41 of this document. Why is he telling us that we are not addressing the issues?
    Mr First Deputy Speaker 7:11 a.m.
    Hon Member, what is unpalatable about?
    Mr Kpodo 7:11 a.m.
    He is rather diverting. The book is here and I quoted from it. I did not present it but it was presented by the Hon Minister for Finance. Yet he said I am not addressing the issues in it.
    Mr First Deputy Speaker 7:11 a.m.
    Hon Kpodo, you raised a point of order. You said he is using unpalatable words but you have not said which word is unpalatable, so I could rule on it.
    Mr Kpodo 7:11 a.m.
    For instance, he said if we do not understand the Budget Statement, he would educate us. What does he mean by that? Is he the only person here? That is the kind of behaviour he puts up. [Interruption.]
    Mr First Deputy Speaker 7:11 a.m.
    The point of order is overruled.
    Hon Minister, proceed.
    Dr A. A. Osei 7:21 p.m.
    Mr Speaker, I am surprised Hon Kpodo got sensitive about the debate. He stood there for Hon Adongo to say that the President of Ghana does not understand the Budget, and he found that palatable.

    Mr Speaker, Hon Kpodo has had his chance to contribute, he should allow me to contribute.

    Mr Speaker, the questions I am raising are for the benefit of all Hon Members. Even though I am with the Majority Side, I am not saying that we should totally take what the Hon Minister gave us.

    Mr Speaker, the Hon Kpodo is holding a copy of the Mid-Year Review and Government Financial Policy and so I asked him a question on the audit -- W hat did the Hon Finance Minister say about the audit and how much is he getting for the audit? The Hon Member should be asking those questions. But he is not interested in that.

    Mr Speaker, the point is that the two tax handles that he talked about are not sufficient to fill the gap. So it must come from somewhere else. He ought to know how he is going to fill it and that is the reason he must go to the audits.

    Mr Speaker, so I believe that the Hon Minister has done a very good job.
    Mr First Deputy Speaker 7:21 p.m.
    Hon Member, you would conclude.
    Dr A. A. Osei 7:21 p.m.
    Mr Speaker, you gave them 10 minutes, but I would conclude.
    Mr Speaker, I believe the Hon Minister has fulfilled the constitutional requirement. He came to us in November with the Budget Statement. He is required to come back to us to tell us how well he is going; I believe he has done that. It is up to us --
    rose
    Mr First Deputy Speaker 7:21 p.m.
    Hon Deputy Minority Leader, please raise a point of order. Otherwise, I would be embarrassed to rule you out.
    Mr Avedzi 7:21 p.m.
    Mr Speaker, the Hon Minister for Monitoring and Evaluation keeps saying that the Hon Minister for Finance raised two new taxes; that is factually incorrect. He raised three new taxes. [Interruption.]
    Mr Speaker, let me mention them. The first one is the luxury tax for vehicles with engine capacity of 3.0 litres and above. The second one is the income tax -- pay as you earn -- exceeding GH¢10,000 increasing it from 25 per cent to 35 per cent.
    The third one is the conversion of VAT on GETFund to a straight levy and NHIL from VAT to a straight levy. These put together are three new taxes and so he should correct himself.
    Mr First Deputy Speaker 7:21 p.m.
    Hon Member, that is your interpretation. [Uproar]
    Mr Avedzi 7:21 p.m.
    Mr Speaker, no. It is in the document so he should correct himself and make sure he does the right thing.
    Mr First Deputy Speaker 7:21 p.m.
    Hon Member, you would conclude.
    Dr A. A. Osei 7:21 p.m.
    Mr Speaker, both the GETFund and NHIL Levy have been in existence. The rates are the same. I said he brought in new taxes; the operative word is “new”. [Interruption.] They have been existing, they cannot be new.
    Mr Speaker, he talked about conversion to a straight levy; it is not new. It is the same 2.5 per cent levy. What he could say is that the way it is treated in accounting is different, it is not a new tax.
    Mr First Deputy Speaker 7:21 p.m.
    Hon Minister, conclude. I am adding the 13 seconds that --
    Dr A. A. Osei 7:21 p.m.
    Mr Speaker, I would say that the Hon Minster has done a very good job. It is up to us when we debate it to find out where we are going from here, because on the basis of the Budget Review we would have to look at the November Budget Statement and judge the Hon Minister on it.
    But I believe we would have to commend the Hon Minister for fulfilling the statutory requirement and for giving all of us information on where the economy is heading to.
    Mr Speaker, I thank you.
    Mr First Deputy Speaker 7:21 p.m.
    Hon Members, this is where I draw the curtain on the continuation of the debate on the Mid-Year Budget Review.
    Hon Deputy Majority Leader, it is 7.25 p.m. We can do one hour on the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018.
    Ms Safo 7:21 p.m.
    Mr Speaker, rightly so.
    Mr Speaker, except to draw your attention to an Addendum 2 where some insertions have been made or there is being an update on the proposed amendments. So we would not go by the one captured in the main Order Paper. We would rather go by what is on the Addendum 2.
    Mr Speaker, I thank you.
    Mr First Deputy Speaker 7:21 p.m.
    Very well.
    The Ghana Integrated Bauxite and Aluminium Authority Bill, 2018, at the Consideration Stage.
    BILLS -- CONSIDERATION STAGE 7:21 p.m.
  • [Resumption of Consideration from 20/7/2018.]
    • Mr First Deputy Speaker 7:21 p.m.
    Hon Members, clause 3(i).
    Mr Emmanuel Akwasi Gyamfi 7:21 p.m.
    Mr Speaker, just to inform you that there was a directive from the Chair yesterday that wherever we have proposed amendment that seeks to delete “Authority” and insert “Corporation”, we should take that as consequential, so I would just want to inform you on that.
    Mr First Deputy Speaker 7:21 p.m.
    Very well.
    Mr Gyamfi 7:21 p.m.
    Mr Speaker, the Committee wanted to delete clause 3(g) but after a careful consideration, we would want to maintain it. But we have just a little amendment to that.
    Mr Speaker, so clause 3(g) would now read 7:21 p.m.
    “collaborate with the Environmental Protection Agency, and communities
    affected by the operations of the inte- grated aluminium industry to protect the environment”.
    Mr Speaker, so we are deleting “bauxite and”.
    Mr First Deputy Speaker 7:21 p.m.
    The new rendition would read
    “collaborate with the Environmental Protection Agency, and commu- nities affected by the operations of the Integrated Bauxite Industry to protect the environment”.
    Mr Haruna Iddrisu 7:21 p.m.
    Mr Speaker, first of all, I wanted to understand where we are. The Hon Deputy Majority Leader said we should pay attention to Addendum 2 which has clause 3, paragraph (g), delete and insert the following:
    “ensure that benchmarks for determining the debt to equity proportion is fixed in accordance with government policy;”
    Now, the Hon Chairman of the Committee moved to paragraph (g) and maintains what is in the Bill and reads “collaborate with the Environmental Protection Agency and communities” -- that which Mr Speaker you did. Mr Speaker, he must explain himself further so that we know where --
    Mr First Deputy Speaker 7:31 p.m.
    Hon Minority Leader, he did. He said there was an original proposal to delete paragraph (g). But after further consultations, they have decided to maintain it with just a little amendment. It was that amendment that I read for the consideration of the House.
    Mr Iddrisu 7:31 p.m.
    Mr Speaker, let him then abandon what is in Addendum 2 clause 3 and then we could proceed the way you want us to do. He cannot have both; we want clarity. Clause 3 and then he should abandon it.
    Mr Speaker, he was advised yesterday to abandon it; he is not the investor and he cannot tell the investor that when he comes, he must debt to equity proportion. It depends on how much the investor is bringing. But on his substantive amendment, “collaborate with the Environmental Protection Agency and communities”. How is he going to collaborate with communities?
    The EPA is regulatory and they regulate under the Ministry of Environment, Science, Technology and Innovation on matters relating to protecting communities for the safety and for other health reasons.
    So I agree with their collaboration with EPA, but we have to delete “and communities” in paragraph (g) if it is to make sense. I do not see how they would collaborate with EPA and the communities.
    They are to collaborate with EPA for purposes of protecting the communities, so that they are not compromised in terms of health as it is done in the management of bauxite resources and others. The Hon Chairman should explain how they would want to collaborate with EPA and the communities. I do not see it.
    Maybe, even with the EPA, he must add “other government agencies”. The collaboration would not just be with the EPA. What about the Minerals Commission? What happens? This is because under article 269 of the Constitution, I believe, there is supposed to be a Minerals Commission. I am sure they would also collaborate.
    Mr Patrick Boamah 7:31 p.m.
    Mr Speaker, I disagree with the position of the Hon Minority Leader.
    My view is that we are setting up an Authority to collaborate with the EPA, which would work in collaboration with the communities. The EPA, by its Act and subsequent Legislative Instruments (L.I.s) has certain stakeholder provisions embedded in it, where they hold some interactions with communities with regard to certain programmes that a Ministry or Agency would embark upon.
    So, I do not see the reason we should have such a lengthy argument about EPA collaborating with communities to ensure the effective implementation of the functions of the Authority or corporation that we are setting up. I believe we must leave it there.
    Thank you very much.
    Mr First Deputy Speaker 7:31 p.m.
    Hon Members, I really do not see what we want to achieve by this clause.
    We are setting up the functions of the Authority, one of which is to collaborate. EPA is the creator of the law that sets out all the rules regarding the environment. Why should we get the Agency to collaborate with EPA?
    The Agency's job is to obey and comply with the regulations; period. In the performance of its functions, it should obey the rules. EPA's job is to ensure that they obey.
    If we set the two up to collaborate and there is no achievement of the end results, and the environment is not protected, who would we hold responsible? So I think the whole thing should go. It cannot be a function also. It is their duty to comply with all rules and regulations regarding the environment in their operation. That is my view.
    Mr Mutawakilu Adam 7:31 p.m.
    Mr Speaker, I think that your view is quite laudable.
    However, EPA always does environmental impact assessments even before the establishment of a refinery or smelter. So in that case, there must be collaboration between EPA and the Agency to ensure that this is done properly.
    After it has been done, then we would have the EPA Act play its part. So, this one seeks to address that the corporation needs to collaborate with EPA, so that before the establishment of any refinery or smelter, the environmental impact assessment would be well conducted.
    Dr Kwaku Afriyie 7:31 p.m.
    Mr Speaker, I subscribe to your position. Sometimes, we have to dig deeper and know why institutions have been set up. When we do the analysis, I believe that the EPA was set up to be in an adversarial position to some of these entities.
    So when we use “collaboration”, it is not that they should be very hostile to them, but really like Mr Speaker seemed to imply, I do not like “collaboration”. It implies that they are in tandem with them and all that. I believe they should be in an adversarial position ab initio to certain entities, especially when we have very weak systems in our part of the world.
    Thank you very much, Mr Speaker.
    Mr First Deputy Speaker 7:31 p.m.
    Let me listen to the Hon Minister first, and then I would come to you.
    Mr Peter Amewu 7:31 p.m.
    Mr Speaker, for the purpose of free and prior consent in mining communities, the trend these days is for companies engaged in extractive activities to have some social responsibility in terms of social performance. One of the key indicators of social performance has to do with the environmental impact assessment.
    It is the responsibility of the company, through the regulator, to undertake the social performance that relates to the environmental impact assessment. If the company is not given the mandate to collaborate with the communities, then its responsibility of producing environmental impact assessments cannot be verified by the regulator.
    So I think it should remain as it is here because the company needs to collaborate with its communities or immediate environment to be able to undertake the environmental impact assessment.
    It is not the responsibility of the regulator to do that impact assessment for the company. It is the company's own mandate and responsibility to undertake it. If that could be done without some level of collaboration, the company would face some difficulty.
    It is therefore clear that we state it in this Bill, that the company must collaborate with the communities. Mr Speaker, I think that it is in order.
    Ms Safo 7:31 p.m.
    Mr Speaker, I am in total agreement with your earlier direction. Indeed, when Authorities or institutions have already been established by law and their functions are already spelt out in their
    scope of application, in this case the EPA, then maintaining paragraph (g) where it is makes it superfluous.
    I am in total agreement with the fact that we should delete paragraph (g) because from the explanation the Hon Minister gave, I would want to enquire if the environmental impact assessment would be a continuous process?
    I really do not get why they should collaborate with the EPA when they are already given the mandate to ensure that the environment is protected, and they would do the assessment for them. So do we make it more ambiguous by adding the communities and all that? I believe it would help if we delete it.
    rose
    Mr First Deputy Speaker 7:31 p.m.
    Let me hear the Hon Chairman of the Committee on Constitutional, Legal and Parliamentary Affairs.
    Mr Ben Abdallah Banda 7:31 p.m.
    Mr Speaker, I support the proposition that paragraph (g) is needless because before one could set up any factory or a business concern, there are certain permits or documents one must procure from certain recognised institutions.
    The integrated aluminium industry must collaborate with the Ghana National Fire Service for fire-related matters. Once all these are well and expressly stipulated in relevant laws, those provisions must be complied with.
    They also talked about social responsibility. If it is not stipulated in the law that the industry should collaborate with the affected communities, social responsibility cannot be performed.
    Mr Ben Abdallah Banda 7:31 p.m.


    Mr Speaker, we do not have to legislate for the industry to be able to perform its social responsibilities.

    So having listened to the submissions so far made, and given the relevant laws that make it mandatory for certain processes to be gone through before an industry or business concern could be setup, I do not think we need to make a provision for this before the industry can have the capacity to do that. I believe this provision is otiose and must, therefore, be deleted.
    Mr Iddrisu 7:41 p.m.
    Mr Speaker, I disagree with that thought. We were all in this country when the President, together with all of us, launched an onslaught on illegal mining. The EPA was in Ghana when the Chinese and some foreigners did as they pleased. They do not respect our laws; they pollute the environment.
    Mr Speaker, the essence of paragraph (g) is to provide protection for communities. Which regulatory function is vested in the EPA? I still repeat my argument that we could collaborate with the EPA, but not a community; we could only cooperate with a community. One needs the cooperation of the community to protect them.
    So I believe that for the abundance of caution--- What do we lose? Functions of the Authority -- we all know that we are anticipating for some support from foreigners to invest in the bauxite industry. These foreigners are noted for some of the things we would want to protect the communities from.
    There are abuses that can lead to environmental degradation. Therefore to say that this Authority must work with
    the EPA is not out of place. We are vesting this Authority with a mandate to deal with the management or the exploitation of the mineral resource, bauxite, and it must work with the EPA.
    Other than that, they will be on their own. We are only doing this to strengthen the hand of the EPA, so that they could contain them and they would not just exploit it as they wish.
    I get the thinking that we are being religious as if the law will be respected if it were there; it is not the case. Were we not here when galamsey?
    Mr First Deputy Speaker 7:41 p.m.
    This is law, so are the EPA laws; they are strict regulations that must be followed. If that will not be followed, what makes you think that collaboration will be done, because we put it in the law?
    I believe that the complaint is that we admit we are not enforcing our rules whether it is the galamsey or something because we have rules against all of them. So, if we would not respect the laws we have made for our environment, what difference would it make if we say “collaborate with EPA”?
    The issue is that, before you start operating, you are required to get these permits and one of them is to provide your environmental action plan and so on.
    That should go to the EPA. If you say that it should collaborate with them, then where does the regulator sit? Is he a regulator anymore or he is part of this Agency?
    The regulator should ensure that the agency is following the laws of the land and so, if we say ‘collaborate with the
    regulator,…' at this point, we put them together. So who will then oversee them if it is done or not? We should look at that again and just make it the responsibility to follow and comply with all the laws and regulations relating to the environment. That is what we should charge them to do.
    Mr Adam 7:41 p.m.
    Mr Speaker, I side with you, but deleting it is where I have a challenge. This is because when it comes to the natural resources, it is very critical and when there is a disaster or any sort of pollution, it is so high.
    That is why when we were passing the Petroleum Exploration and Production Law (2016) Act 919, a whole section was devoted to ensure that any international oil company that comes goes through these processes with the EPA so that one day they cannot come back and give any excuse. This is because that is the Act they would use mostly.
    So I believe that because this is the processing of bauxite and mostly, the refineries would be set up closer to rivers because they would need so much water for the cooling system. Therefore any pollution could have significant effects on the communities along the river banks and those they settle with, so it should be clearly stated but as to how it should be stated -
    Mr First Deputy Speaker 7:41 p.m.
    Hon Ranking Member, I am looking at clause 27 where we have provided: “Colla- boration with public institutions…” and you have listed a number of them but the critical thing there is that:
    “Notwithstanding anything to the contrary in this Act, the Authority shall comply with all the relevant laws relating to --
    (a) the grant of mineral rights…
    (b) environmental permits…”
    So you have already charged it to comply which I think is the most critical thing. So I still suggest, anyway, I am not supposed to take part in the -
    Yes, Hon Minister?
    Dr K. Afriyie 7:41 p.m.
    Mr Speaker, I believe that when you look for the meaning of collaboration, it is a positive word. Even though I am not suggesting by any means that that is the intendment of the proponents of this Bill, it is not for nothing that one of the meanings of “colla- boration” is “treacherous cooperation with an enemy”.
    The first meaning which might fit is “cooperation, alliance, participation”. So the ethos of “collaboration”, means, ‘‘hand in gloves with an entity to execute something''. When you find that the EPA was set up specifically to do the direct antithesis of all these things, then I find it very difficult to accept “collaboration” in this Bill.
    Mr Asamoa 7:41 p.m.
    Mr Speaker, not only is the provision unnecessary as it stands, but it positively undermines the authority of the EPA. One is on all fours when one says that it is a necessity that EPA rules are complied with.
    It is a given. If we say “collaborate”, we tend to dilute the relationship a bit to the extent that one wonders whether the regulator could actually put its foot down and determine that anything going wrong can be stopped.
    Mr Speaker, we should let the EPA do its work. This provision does not belong in this Bill; paragraph (g) must go.
    Mr Gyamfi 7:41 p.m.
    Mr Speaker, having listened to Hon Colleagues, I withdraw my earlier application for the proposed amendment.
    Mr First Deputy Speaker 7:41 p.m.
    Very well; so paragraph (g) is to be deleted.
    Mr Gyamfi 7:41 p.m.
    Yes, Mr Speaker.
    Mr First Deputy Speaker 7:41 p.m.
    Hon Members, I would put the Question on the deletion of clause 3 (g).
    Question put and amendment agreed to.
    Mr First Deputy Speaker 7:41 p.m.
    We would now go to the item numbered (i) on the Order Paper Addendum 2.
    Hon Chairman, you were inserting another paragraph (g).
    Mr Gyamfi 7:51 p.m.
    Rightly so, Mr Speaker.
    Mr Speaker, I beg to move,
    clause 3 -- paragraph (g), delete and insert the following:
    “ensure that benchmarks for determining the debt to equity proportion is fixed in accordance with government policy;”
    Mr Speaker, the legal entity that we intend to create is a joint venture with other investors and we all know that in financing projects, we could have the debt and also equity.
    We have observed that most investors would come and if we do not have this as part of the law, then they would come with 100 per cent debt which they would pay for years and Government would not get anything.

    Mr Speaker, so we said that the proportion of debt to equity which is a government proportion should be fixed so that any investor who is interested in investing in the Integrated Aluminium Industry would stay within the government policy.

    Mr Speaker, that is why we have this clause.
    Mr Avedzi 7:51 p.m.
    Mr Speaker, I oppose the introduction of this new clause.
    Mr Speaker, as we speak now, could the Hon Chairman of the Committee tell us what the government debt to equity proportion is now? Mr Speaker, we do not have it.
    We know that companies try to adopt a proportion. In actual fact, there is no optimum proportion in business, but the agreed proportion is 70-30. Mr Speaker, Government has never adopted a proportion or there is government policy that all companies operating in Ghana should adopt 70:30 or 60:40.
    Mr Speaker, we do not have. So, if he is making reference to government policy then there is nothing like that.
    So I believe that it is not necessary to put this in the law. I oppose it.
    Mr Kyei-Mensah-Bonsu 7:51 p.m.
    Mr Speaker, this is a new regime that the State is trying to craft. We are all witnesses to the fact that in the past, the State has not really benefitted from the exploitation of the vast mineral resources of this country.
    The reason is simple. These mining concessions have managed to often massage their books such that the State is left with nothing. Mr Speaker, so it is intended to have a new policy drive, a new regime that is not before us now.
    Now, this amendment is a proactive position that this legislation is taking. We would remember that these days, talks have been about exacting taxes on turn over but not on profit. It is a new regime that is emerging and that is what South Africa has done and they have benefitted tremendously from their resources.
    Even though, Ghana has the richest gold mine in the world, we have not benefitted. So it is a proactive stance that we would want to take as a nation and that would guide us into the future and that is why we have this provision.
    Of course, it is anticipatory that the legal regime that would be forthcoming very soon would then sit within whatever framework that we want to construct for ourselves as a nation.
    Mr Speaker, so I agree with the Hon Deputy Minority Leader that for now it is difficult to position in the regime that obtains but the future is what we are looking at.
    Mr Speaker, you would remember that in the AngloGold Agreement that we fashioned a few weeks back, we talked to the centrality of the issues concerned moving forward as a nation. Mr Speaker, this is the direction that, going forward, we would want to craft for ourselves in this country.
    So as I said, I agree with the Hon Deputy Minority Leader that for now, we do not have this regime but that is the future that we would want to move into.
    Mr First Deputy Speaker 7:51 p.m.
    Hon Members, it is proposed that this is inserted as a function of the Authority. Now, I am looking at clause 3 (d) --
    Mr Kyei-Mensah-Bonsu 7:51 p.m.
    Mr Speaker, the function of the corporation but not the Authority.
    Mr First Deputy Speaker 7:51 p.m.
    Sorry. Now, it should be corporation? I thought that we have moved away from corporation years ago and so yesterday I was surprised to hear that we were returning to corporations.
    However, if you look at (d), we are already saying that “make recom- mendations to the Minister in the form and scope of government participation in the development of any integrated bauxite and aluminium.”
    I believe that coming from that it may follow that even in making the recommendations to the Minister, they should be guided by government policy in respect of determining equity, proportions and so on. I do not know whether where it is intended to be placed is all right, but we appear to be giving them a responsibility to stay within certain benchmarks.
    Hon Deputy Minority Leader?
    Mr Avedzi 7:51 p.m.
    Mr Speaker, there would be a challenge in terms of implementation if we should adopt a system like this.
    For instance, if the Government says that debt to equity proportion should be 70 debt to 30 equity and a company in that industry cannot raise debt to the tune of 70 per cent but could raise equity to the tune of 50 per cent and raise debt too to 50 per cent, does it mean that that company cannot operate?
    Mr First Deputy Speaker 7:51 p.m.
    I believe that all that this proposed amendment is doing is that, in determining debt to equity, it should be fixed in accordance with government policy. That is all. It is giving
    Mr Avedzi 7:51 p.m.
    Mr Speaker, I understand your point but when we talk about debt to equity proportion, it is a fix figure and that debt would be 30 and equity would be 70 or equity would be 30 and debt would be 70.
    Mr Speaker, if any government policy says that companies should operate with debt of 70 per cent and equity of 30 per cent and a company cannot raise debt to the tune of 70 per cent then what happens to that company? Does it mean that that company cannot operate? Mr Speaker, that is my concern.
    Mr First Deputy Speaker 7:51 p.m.
    If that is government policy then it is government policy. If government finds that unworkable then it is up to government to change its policy, but if I understand the intention here correctly, then it is to not leave the Corporation on its own to negotiate deals which are contrary to government policy. So I believe that it is an appropriate insertion to make.
    Mr Adam 7:51 p.m.
    Mr Speaker, I believe it is appropriate as you have indicated. Also, in analysing you used a certain word and yesterday we discussed it at length - debt to equity ratio instead of proportion. Mr Speaker, that is generally debt to equity ratio.
    Mr First Deputy Speaker 7:51 p.m.
    What is in the proposed amendment is proportion.
    Mr Adam 7:51 p.m.
    Mr Speaker, so I would further propose that the “proportion” should be replaced with “ratio”. We discussed it at length and we agreed that it should be ratio.
    Mr First Deputy Speaker 7:51 p.m.
    Hon Chairman, the Hon Ranking Member is suggesting that we should further amend your amendment.
    Mr Gyamfi 7:51 p.m.
    Mr Speaker, I agree entirely with him because we had a discussion on it. So we could take his further amendment.
    Mr First Deputy Speaker 8:01 p.m.
    The proposed amendment is that we should insert a new subclause which would read:
    “Ensure that benchmarks for determining the debt -to-equity ratio is fixed in accordance with government policy”.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:01 p.m.
    Hon Chairman of the Committee on Constitutional, Legal, and Parliamentary Affairs?
    Mr Banda 8:01 p.m.
    Mr Speaker, I was not rising to oppose but just to draw the House's attention to the use of the word “is” in the second line instead of “are” because it is controlling “benchmarks” which is plural.
    It should read:
    “Ensure that benchmarks for determining the debt-to-equity ratio are fixed in accordance with Government policy.”
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:01 p.m.
    Hon Chairman, the next one is item numbered 80 (ii) on the original Order Paper.
    Mr Gyamfi 8:01 p.m.
    Mr Speaker, the next amendment is paragraph (h) on the Order Paper Addendum 2.
    Mr Speaker, I beg to move clause 3 -- paragraph (h), delete and insert the following:
    “ensure that, in respect of the carried interest of the State, indices are provided in the joint venture agreement for the payment of mandatory annual dividends;”
    Mr First Deputy Speaker 8:01 p.m.
    So the current paragraph (h) should be deleted. This is because I have actually marked it as --
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:01 p.m.
    Item numbered (iii) -- Hon Chairman?
    Those are the consequential amendments in relation to “Authority”. Is that right?
    Yes, Hon Member for Adentan?
    Mr Asamoa 8:01 p.m.
    Mr Speaker, permit me to step back a little to the same paragraph (h). I did not realise that the insertion was made simultaneously with the deletion.
    I have an issue with “mandatory annual dividends”. In my view, “payments” instead of “dividends” would have been more neutral because “dividends” are necessarily a consequence of profit.

    If you say it is mandatory and profit has not been made, one cannot describe any such payment as dividend. Therefore it may be better to simply say “mandatory annual payment”.

    Then it is neutral and one can fix anything one likes there and take whatever money one would want to rather than say “dividends”.
    Mr Adam 8:01 p.m.
    Mr Speaker, on the “mandatory annual payment” that my Hon Brother has suggested, during the review of the Mining Agreement by Professor Akilakpa Sawyer, it came up that mostly, the companies do not make profit and therefore no dividend is normally paid.
    Mr First Deputy Speaker 8:01 p.m.
    Hon Chairman, I would prefer the “do not declare profit”.
    Mr Adam 8:01 p.m.
    Yes, because there was request that dividends are paid sometimes in advance, and as result, in the Newmont Ghana Limited Development Agreement, they were required to pay which they did, so that in future when profits are made, they can recoup. If at a certain period they are not able to make profit, then that ends it.
    So I think this one is jeered towards that because if we say dividends would be paid when profits are made, we would have challenges in terms of some of these ventures.
    Mr First Deputy Speaker 8:01 p.m.
    Yes, Hon Member for Sekondi?
    Mr Andrew A. E. Mercer 8:01 p.m.
    Mr Speaker, the way the provision is captured, I wonder to what extent that we could mandate payment of annual dividend when it is not subject to profit.
    This is because the companies code is clear that, it is only profits that dividends are paid for. So, if the company does not make profit, how could we mandate them to pay dividends on profits that really do not exist?
    In my view, the provision rather should be amended to read:
    “ensure that, in respect of the carried interest of the State, indices are provided in the joint venture agreement for the payment of mandatory annual dividend when profits are made.”
    Mr First Deputy Speaker 8:01 p.m.
    Hon Members, it is because of the fear that we would never make profit. So, I am for Adentan's suggestion. Because “divi- dend” is a technical term, it is what is generating the confusion. Dividend is a technical term which means sharing of profits.
    If we want mandatory payments, then it could mean anything. I suggest that we consider the proposal made by the Hon Member for Adentan.
    Mr Asamoa 8:01 p.m.
    Mr Speaker, in consultation with the Hon Leader, it is proposed that we say: “mandatory payments on annual turnover”. So once they fix the benchmarks, with any turnover that comes in, they would take a percentage or a portion of that turnover.
    Mr First Deputy Speaker 8:01 p.m.
    The use of the term “turnover” connotes a certain policy direction. So let me speak to the Hon Minister or the Hon Chairman of the Committee whether “turnover” in place of “dividends” would achieve their purpose.
    Alhaji I. A. B. Fuseini 8:11 p.m.
    Mr Speaker, actually, they are trying to cure a problem that the Minister is facing at the Ministry of Lands and Natural Resources. That is carried interest is ones interest, in any concession that is carried in the sense that one does not pay for it. It is like ones sweat interest.
    The problem is that, in the mining agreements that we have signed, there have not been a proper definition of the carried interest. So it has been difficult to exact payment for that interest because it is being carried. Is it on dividends or one's share? If one has shares, it must have a value, but one does not pay for it; it is carried.
    I believe that the cure he has proposed should be indices for calculating the value of the carried interest. That is exactly what we would want to determine.
    In the Newmont Ghana Limited Agreement, they gave us 10 per cent. What is the 10 per cent of? In the Newmont Ghana Limited Agreement, they gave us 10 per cent. However, in the AngloGold Agreement, they did not give us 10 per cent but gave us carried interest but there was not determination.
    The mining concessions were operating without paying for the carried interest, but it is interest that is recognised worldwide for one's sweat and toil.

    I believe that, basically, providing indices for the calculation is what they are trying to cure, but it should not be on turnover. It should be like you presented the first time; indices for payment of the carried interest, but not on dividends.
    Mr First Deputy Speaker 8:11 p.m.
    Yes, Hon Ranking Member?
    Hon Jabanyite, I would come to you.
    Mr Mutawakilu 8:11 p.m.
    Mr Speaker, Hon Fuseini touched on carried interest. In this Agreement, we made sure that the carried interest is 10 per cent non-dilutable. So that means that it does not need much indices to determine. It is when it is dilutable that there are issues, like AngloGold.
    Initially in Ashanti Gold Fields, we had 10 per cent, but when they merged to Anglogold, the portfolio of the shares increased, and because our carried interest was not non-dilutable, our share dropped to 1.7 per cent.
    So with this in mind, in drafting this, we made sure that the carried interest is non-dilutable. In this case, indices to determine would not count much.
    Mr Jabanyite 8:11 p.m.
    Mr Speaker, I would like to go with the Hon Member for Adentan's amendment. If you look at the reasons the Hon Ranking Member has given, it goes to explain exactly why we should put it in the form here as such, so that in making a Regulation after this Act, we could do the specifics, because if we put it in here we would be tying ourselves.
    Mr First Deputy Speaker 8:11 p.m.
    So, what do we want to put in this? What do we use to calculate the indices?
    Mr Duker 8:11 p.m.
    Mr Speaker, I propose that we insert “ensure that in respect of the carried interest of the State, indices are provided in the joint venture agreement for the mandatory annual payments”.
    I so submit.
    Mr First Deputy Speaker 8:11 p.m.
    That is the original proposal you made. I think that leaves room for you to determine whichever.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:11 p.m.
    Hon Chairman, we could now go to all those consequential amendments. If they are the same thing, I could direct that the draftpersons just effect those conse- quential amendments so we do not have to move them one by one.
    So, I direct that in all places where “Authority” appears, the draftsperson should substitute that with “Corporation”. I so direct.
    In that case, I can put the question on the entire clause 3.
    Mr Mercer 8:11 p.m.
    Mr Speaker, except clause
    27.
    Mr First Deputy Speaker 8:11 p.m.
    We have not reached there. We are on clause 3. When we get to clause 27 we can look at the specifics.
    Clause 3 as variously amended ordered to form part of the Bill.
    Clause 4 -- Powers of the Authority
    Mr First Deputy Speaker 8:11 p.m.
    The first two proposed amendments are overreached by my consequential orders. So we would go to item numbered (vi).
    Mr Gyamfi 8:11 p.m.
    Mr Speaker, I beg to move, clause 4, delete and insert the following:
    “4. (1) For the purpose of achieving the object under section 2, the Corporation shall --
    (a) enter into joint venture operations;
    (b) promote the economy and efficiency of the integrated aluminium industry;
    (c) ensure that a minimum part of the equity is held by the Ghanaian private sector;
    (d) in collaboration with relevant Government Agencies, establish a mechanism to ensure the requisite transfer of skills and know-how to Ghanaians in the integrated aluminium industry value chain;
    (e) facilitate the establishment of industrial parks to promote the
    (i) manufacture of aluminium- related products; and
    (ii) provision of services in the integrated aluminium industry.
    Mr First Deputy Speaker 8:11 p.m.
    Mr Chairman, I believe the position is clear, or are you making it clearer? Very well.
    Question put and amendment agreed to.
    Clause 4 as amended ordered to stand part of the Bill.
    Clause 5 -- Governing Body of the Authority
    Mr First Deputy Speaker 8:11 p.m.
    The first two items numbered (vii) and (viii) are consequential, but there is item numbered (ix).
    Hon Chairman of the Committee?
    Mr Gyamfi 8:11 p.m.
    Mr Speaker, I beg to move, clause 5, sub-clause (1), paragraphs (c) to (g), delete and insert the following:
    “(c) a representative of the Minerals Commission;
    (d) a representative from Association of Ghana Industries;
    (e) a representative of the Ministry responsible for Mines not below the rank of a Director;
    (f) a representative of the Ministry of Finance; not below the rank of a Director; and
    (g) three other persons nominated by the President at least one of whom is a woman.”
    Mr Kyei-Mensah-Bonsu 8:11 p.m.
    Mr Speaker, by this new amendment, the representation on the Board would be reduced to nine instead of the original eleven. It is proposed that we have one representative from the integrated aluminium industry.
    Originally, we also had four other persons nominated by the President, at least one of whom is a woman. Then, it is also suggested that the number of women representation is too small, so we should rather increase the President's nomination to four and have at least two of them as women. That would take it to eleven, that is, plus the other one from the industry.

    So Mr Speaker, that is the only new further amendment that I would want to propose, otherwise, this one is good. But we still have to include one representative from the integrated aluminium industry. We should then increase the President's nomination to four, at least, two of whom should be women.
    Mr First Deputy Speaker 8:21 p.m.
    Hon Majority Leader, I have seen that clause 5(1) (g) would become, “four other persons nominated by the President, at least, two of whom are women. Then one representative -- [Pause.]
    Hon Majority Leader, I am waiting.
    Mr Kyei-Mensah-Bonsu 8:21 p.m.
    Mr Speaker, we have:
    “(c) a representative of the Minerals Commission;
    (d) a representative of the Association of Ghana Industries;”
    And we have a new paragraph (e) that would be “a representative from the integrated aluminium industry”. Then we come to paragraph (g), it would be:
    “four other persons nominated by the President at least two of whom are women.”
    That would increase the number to 11.
    Dr Afriyie 8:21 p.m.
    Mr Speaker, we are enacting a law for the future. What the Hon Majority Leader has said is a bit presumptuous. It presumes that some of the nominees cannot be women.
    There can be the case where all the nominees would be women in which case
    rose
    Mr First Deputy Speaker 8:21 p.m.
    Hon Majority Leader, your Deputy was on her feet. I will listen to her first.
    Ms Safo 8:21 p.m.
    Mr Speaker, I believe that the amendment that has been proposed by the Hon Majority Leader is what we should go by. He has increased the number to four and given the nomination. He proposed that two of the four members to be nominated by the President should be women.
    Mr Speaker, I believe that we have gone back and forth with this argument on this Floor of the House and I know your position. You are very gender sensitive. [Laughter.] Mr Speaker, I am not inviting you into the debate. Mr Speaker, whether or not --
    Mr First Deputy Speaker 8:21 p.m.
    Hon Member, you know I am opposed to property rights of spouses claim that being a wife merely qualifies you to 50 per cent of a husband's property. I am opposed to that one.
    Ms Safo 8:21 p.m.
    Mr Speaker, the argument that there is the tendency that there would be women amongst the representatives by these institutions is neither here nor there. What we have to address our minds to is the fact that these representations from paragraph (c) are all institutional.
    This is where we are creating room for an appointment by H. E. the President and we are saying that whether or not these institutional representations would have a woman, that is the prerogative of the
    President. The President, I know, would also be as friendly as you and if friendly as you are, he would be gender sensitive.
    Mr Speaker, we have to address our minds to the fact that there are certain areas of discipline that you hardly find women. We have to be honest with ourselves -- [Interruption] The Hon Deputy Minority Whip is talking about galamsey. We are not talking about that. Or you think some women do galamsey?
    Mr Speaker, there are certain spheres of discipline that you hardly find women. That is why this House is moving towards giving room or making provisions so that in such situations, we shall have equity when it comes to gender representation.
    So the four nominees, two of whom are women, is what we should go by.
    Mr First Deputy Speaker 8:21 p.m.
    This morning, I went to Kumasi for a programme and it involved heads of senior high schools. Practically all the heads of institutions that were at the Kwame Nkrumah University of Science and Technology (KNUST) this morning were women. The women are really visible these days.
    Alhaji I. A.B. Fuseini 8:21 p.m.
    Mr Speaker, we should support the amendment of the Hon Majority Leader. What it is just doing is providing a floor that in the constitution of the Board, the floor is two women. He has not provided the ceiling. The ceiling can be all of them being women. We are just providing the floor so we should support the amendment.
    Mr Anyimadu-Antwi 8:21 p.m.
    Mr Speaker, in asmuch as I agree, there is something in the pipeline. We are talking about affirmative action to bring women up. If we analyse the proposed amendment, what is said here is four nominees, at least
    Mr Ahmed Ibrahim 8:21 p.m.
    Mr Speaker, we have always maintained this as a standard amendment when Bills appear before us that at least one of the nominees should be a woman.
    Mr Speaker, when you entered here the first time, you remember when we promised that 40 per cent appointees were going to be women only to come here and realise that we had only five female Members of Parliament.
    Meanwhile, the Constitution says more than half of Ministers must be Members of Parliament. and you are five here. Mr Speaker, because of that floor, we could not fulfil our promise. So it would be better you do not provide any floor so that there would be flexibility.
    Mr First Deputy Speaker 8:21 p.m.
    Hon Majority Leader, your proposal is under attack.
    Mr Kyei-Mensah-Bonsu 8:21 p.m.
    Mr Speaker, I believe that seriously speaking, nobody who has spoken to the issue has inflicted any wound on the principle. We agreed that if the number is three, we should have a minimum of one being a woman. Now, we have upped the level to four so, two should be adequate.
    So Mr Speaker, I invite you to put the Question so we can make progress.
    Dr Afriyie 8:31 p.m.
    Mr Speaker, this is a House of record. I noticed that the Hon Deputy Majority Leader misinterpreted my proposal. I would want to set it straight.
    I believe that the President in appointing [Interruption.] I look at paragraph (g) as an omnibus action. If the representatives of the Minerals Commission, the Ministry and the other entities happen to be of one gender, then I propose that the President takes cognisance of it.
    Indeed, all the four nominees by the President could be women or vice versa so that there would be a movement towards gender parity.
    I would want to be quoted or to be on record that indeed, I want gender parity in all spheres of Ghanaian life.
    Question put and amendment agreed to.
    Mr First Deputy Speaker 8:31 p.m.
    The other proposed amendments are already affected by the consequential order. So I would put the Question on the entire clause 5. -[Pause]-
    Oh yes, item numbered (xiii) Hon Chairman?
    Mr Gyamfi 8:31 p.m.
    Mr Speaker, we are deleting the entire clause and adding a new clause. And this would be the functions of the Board, item (xv).
    Mr First Deputy Speaker 8:31 p.m.
    Clause 5 is on the Governing Body. What are you proposing to that?
    Mr First Deputy Speaker 8:31 p.m.
    ‘that the activities of the Corporation are consistent with national development objectives and relevant laws. How does that fit into — ?
    Mr Gyamfi 8:31 p.m.
    Mr Speaker, that is captured on page 5. We have some typographical errors here.
    Mr First Deputy Speaker 8:31 p.m.
    Hon Chairman, my understanding is that, this clause 5 numbered as (xiii) is supposed to be added to an elaborate provision for the functions of the Board. And therefore it does not belong here.
    Mr Gyamfi 8:31 p.m.
    Exactly so.
    Mr First Deputy Speaker 8:31 p.m.
    Therefore I could put the Question on clause 5 because this would go to the other proposed functions of the Board.
    Mr Kyei-Mensah-Bonsu 8:31 p.m.
    Mr Speaker, it is stated on page 4; functions of the Board.
    Mr First Deputy Speaker 8:31 p.m.
    Item numbered (xv); but is that part of clause 5 or not? It cannot be, it has to be a new subclause.
    Mr Kyei-Mensah-Bonsu 8:31 p.m.
    Mr Speaker, that is going to go to a new clause. So we would finish with clause 5 and then, we would create a new clause.
    Mr First Deputy Speaker 8:31 p.m.
    Exactly, I intend to end after putting the Question on clause 5 and that is why I want to be sure that this is not part of clause 5.
    Question put and amendment agreed to.
    Clause 5 as amended, ordered to stand part of the Bill.
    Mr First Deputy Speaker 8:31 p.m.
    Hon Members, I have promised to do one hour, I have done one hour, fifteen minutes. It is now twenty-five minutes to 9 o'clock.
    Hon Chairman, what would be the new clause?
    Mr Gyamfi 8:31 p.m.
    Mr Speaker, I beg to move, new clause — add the following new clause:
    “Functions of the Board
    The Board shall
    (2) Without limiting subsection (1), the Corporation may --
    (a) capitalise other contributions made by the State or the Corporation to equity which shall be additional to the carried interest required under paragraph (a) of subsection (1); and
    (b) engage in any activity to promote the development of infrastructure for the integrated aluminium industry”.
    Question put and amendment agreed to.
    The proposed new clause ordered to stand part of the Bill.
    Mr First Deputy Speaker 8:31 p.m.
    I further direct that the draftspersons would determine where that clause shall be inserted and at what number and do the tidying up.
    Hon Majority Leader, I believe I could now bring proceedings to a close.
    Mr Ahmed 8:31 p.m.
    Mr Speaker, sorry to take you back; under Functions of the Board, subclause (a): ‘To formulate policies for the effective implementation of the objects of the Corporation'.
    Should there be an ‘s'? Is it ‘object' or ‘objects'? What we have here is ‘objects' and I do not think it should be ‘object'.
    Mr First Deputy Speaker 8:31 p.m.
    If you look at the clause 2, there is only one object; Object of the Corporation. So here should be object.
    Very well, that brings us to the end of Consideration Stage of the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018 for today.
    Yes, Hon Majority Leader?
    Mr Kyei-Mensah-Bonsu 8:31 p.m.
    Mr Speaker, I should thank Hon Members for their cooperation thus far. And I believe we have stretched ourselves.
    But as we did this morning, I would appeal to the unofficial Winnowing Committee to meet at the usual place tomorrow at 8 o'clock for us to conclude the winnowing process for the Ghana Integrated Bauxite and Aluminium Authority Bill, 2018.
    Mr Speaker, today, we were able to work to clause 16 and I believe if we have tomorrow morning, we should be able to conclude in order to pave the way for the conclusion of the consideration of the Bill tomorrow.
    So, I plead with Hon Colleagues of the unofficial Standing Winnowing Committee to join me and the Leadership of the Committee on Mines and Energy to conclude business on this.
    Mr Speaker, I thank you very much.
    Mr First Deputy Speaker 8:31 p.m.
    Very well, Hon Members, it is 8.40 p.m. and I adjourn the House until Wednesday, 25th July, 2018 at 10.00 o'clock in the forenoon.
    ADJOURNMENT 8:31 p.m.
  • The House was adjourned at 8:41 p.m. till Wednesday, 25th July, 2018 at 10:00 a. m.