Mr Speaker, thank you for the opportunity to contribute to the Motion.
Mr Speaker, in doing so, I would like to draw the Committee's attention to page 4, item 4.3 -- “Service fee is US$88,000 per distribution center per month when fully deployed”
This is not factual nor accurate. The Service Agreement before us, that is the Ministry of Health and Fly Zipline Ghana Limited, and if I may refer you to page 39 -- Monthly base service fee is US$145,000.00 per month per distribution center---
Mr Speaker, again I refer you to the page 33 of the same Agreement, we have phase 1, 2, 3 and fully operational. If you look at phase one, it is for five per cent of the work and then if during night time deliveries, you are paid US$11,000.00 per month, per distribution center and then when you come to 25 per cent, you add on US$27,000.00 on top of the 11 per cent.
In phase 3, when they reach 50 per cent, you pay US$59,000.00 on top of the US$27,000.00. Then when it gets to 75 per cent, you pay US$88,000.00 on top of that.
Mr Speaker, that is why on the service level Agreement, they have given us an example of how they did the calculation, so that amount of US$88,000.00 is not accurate and the Committee must withdraw the Report immediately and bring a new one.
The second point is that we were told that each distribution centre is going to cost Zipline US$1million and then they are going to charge us US$145,000.00 per month, so that translates to about US$1.7 million per month, and they are going to
implement it per distribution centre and it would be for four years.
At the end of the four years, the equipment and the distribution centre will still not belong to the nation but to Zipline.
Mr Speaker, the US$145,000 per month would translate to about US$1.7 million per distribution centre. And so if you are to do the mathematics, it means the investor is investing US$1 million and Ghana as a State will pay the investor about US$7 million per distribution centre.
This translates to a return of 643 per cent. So the investor is making 643 per cent profit, yet the equipment does not belong to us.
Mr Speaker, what even strikes me is that, this is only for one. So for the four distribution centres, the investor is making profit of approximately 2,000 per cent. I believe this is ridiculous.
Mr Speaker, I call for this Agreement to be withdrawn immediately. I say this because if you are to look at the Agreement again, the drone would carry a maximum weight of nine litres or two gallons.
Luckily for us, in the Service Agreement, they provided us the specification of the drone. I did some basic online work using the calculations. With those specifications, each drone costs US$1,300.
Mr Speaker, how many drones are they saying we would deploy per distribution centre? US$1,300 per drone, and the person is charging us US$1 million for that
distribution centre. No, I believe there is something fundamentally wrong with the Agreement, and it should be withdrawn. They should go back, do some more work and bring it for approval.
Mr Speaker, the next point is the fact that this Agreement in question is a multi- year commitment on the State. The Public Financial Management Act requires the Hon Minister responsible for Finance to agree, sign and give them a commence- ment certificate.
I would not have asked this question if the memorandum before Parliament was jointly signed by the Ministry of Finance and the Ministry of Health. In this case, it was only signed by the Minister responsible for Health.
We demand that the Minister for Finance, just as we did to the Ameri Agreement, submits to this Honourable House, that he agrees that this Agreement goes through; and that he is in the known and there is the possibility of a future contingency loan that the State may end up in.
Mr Speaker, with these few words, I call on this Honourable House to strongly reject this Agreement and ask the Committee to go back and do further work. Clearly, the Committee's Report is misleading.
The Committee is misleading this Honourable House for us to believe that the Service Agreement is US$88,000. Indeed, it is not US$88,000 but US$145,000 per month per distribution centre. Even that US$145,000 includes the exemption of the customs duties and also a discount, so we should be aware of that.