GWCL will also acquire, or possibly develop, digital maps of the regions and demographic data for this project in addition to all relevant hardware, software and training requirements.
It is noted that rapid advancement in technology continues to exert its strong effect on CIS planning processes in both hardware and software. Building and maintaining a GIS and Hydraulic Network model is an investment which encom- passes gathering and maintaining quality data, creating manageable workflows, providing hardware and software and user training and technical support.
The effective management and control of this investment is therefore an essential part of improving accountability, financial efficiency, risk management and relationships with users.
In order to successfully implement this project, the Government of Ghana has entered into an Export Credit Agreement with UniCredit Bank Austria AG for an amount of eight million euros (€8,000,000) to procure this technology, among others for the GWCL to execute a nationwide
water network management project. The agreement was approved by Parliament on Monday, 18th December, 2017.
Point 3 of C.2.2 of the Contract Agreement for Supply, Work and Services provides that the contract price does not include any taxes, duties, customs or similar imposts levied in the country of the client. In order to successfully implement this project, there is the need to waive taxes and duties applicable.
It is in this regard that the request for the waiver of tax and duties has been submitted to Parliament in accordance with article 174 of the 1992 Constitution of Ghana.
The Request
The request before Parliament is for the waiver of Import Duties, Import VAT/ GETFund levy. Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy, amounting to Ghana cedi equivalent of eight hundred and two thousand, two hundred and sixty-two euros (€802,262.00)
Assessment of Duties, Taxes and Levies
A breakdown of the tax assessment undertaken by the Ghana Revenue Authority (GRA) is provided in Table 1 below:
Attached as APPENDIX is the details of tax assessment.
Observations
Rationale for the project The Committee was informed that the
project would support GWCL to: develop a plan for systematic measurement and reduction of non- revenue water within the service area;
develop an area map for flow control and the effective management of Districts to the walk and cycle level;
locate the strategic assets, conditions of the assets, develop applications and remotely manage these assets;
increase revenue collection; and
ensure sustainable potable water sendees delivery.
Update on the project The Committee was made aware that
the project was at the early stages of implementation. Procurement activities are being undertaken.
Benefits of the project
The Committee noted that when completed, the project would enable GWCL to properly plan and maintain its systems, improve revenue collection, reduce non- revenue water, and improve public relation support of the company.
Conclusion
Considering the benefits to be derived from the project, the Committee is of the view that the request is in the right direction.
The Committee therefore recommends to the House to adopt its Report and to approve the request for the waiver of Import Duties, Import VAT/ GETFund levy, Import NHIL, ECOWAS Levy, EXIM Levy, Special Import Levy amounting to the Ghana cedi equivalent of eight hundred and two thousand, two hundred and sixty-two euros (€802,262.00) on project materials and equipment to be imported for the implementation of the “Services for the Enhancement of Nationwide Water Network Management” Project by the Ghana Water Company Limited (GWCL) in accordance with article 174(2) of the Constitution, the Public Financial Management Act of 2016 (Act 921) and the Standing Orders of Parliament.
Respectfully submitted.