Mr Speaker, I beg to move, that this honourable House adopts the Report of the Finance Committee on the Request for waiver of Import Duty, GETFund Levy, NHIL, Import VAT, EXIM Levy, and Special Import Levy amounting to the Ghana cedi equivalent of twenty-seven million, one hundred and sixty-one thousand, and seventy-six euros thirty-eight cents (€27,161,076.38) on materials and equipment required for the construction of the Tema, Nkoranza, and Dormaa Hospitals and the Rebuilding of the Central Medical Stores and its ancillary facilities.
Mr Speaker, in doing so, I present your Committee's Report.
1.0 Introduction
The request for waiver of Import Duty, GETFund Levy, NHIL, Import
VAT, EXIM Levy and Special Import Levy amounting to the Ghana cedi equivalent of twenty seven million, one hundred and sixty-one thousand seventy-six euros thirty-eight cents (€27,161,076.38) on materials and equipment required for the construction of the Terna, Nkoranza and the Dormaa Hospitals and the Rebuilding of the Central Medical Stores and its ancillary facilities was laid in the House on Tuesday, 27th July, 2021 by the Minister for Health, Hon. Kwaku Agyeman-Manu on behalf of the Minister responsible for Finance.
The Rt Hon Speaker referred the above agreements to the Finance Committee for consideration and report.
The Committee met with the Minister for Health, Hon. Kwaku Agyeman Manu, a Deputy Minister for Finance, Hon Mrs. Abena Osei- Asare, and officers from the Ministry of Finance, the Ministry of Health and the Ghana Revenue Authority (GRA) to consider the referrals.
2.0 Documents Referred To
The Committee referred to the following documents:
i. The 1992 Constitution;
ii. The Public Financial Management Act of 2016 (Act 921);
iii. The Standing Orders of the Parliament of Ghana; and
iv. The Commercial Contract of €140,000,000.00 between the Ministry of Health of the Republic of Ghana and E.D.C. Engineering, Deve- lopment and Construction Ltd. for the turnkey construction and equipping of the Tema, Nkoranza and the Dormaa Hospitals and the Central Medical Stores and its ancillary facilities in Ghana.
3.0 Background
The Government recognises that the health system in the country is critical for national development. The vision of the Government therefore is to see that the right to health of all Ghanaians is guaranteed through an established health sector with sustainable ability to deliver affordable, equitable and easily accessible healthcare. The thrust of the government's health policy is to bridge the gap in healthcare infrastructure as captured in the 2016 Manifesto and reiterated in the State
of the Nation address by the President. The Sustainable Development Goal 3 (SDG3) also makes a bold commitment to end the epidemic of AIDS, Malaria and other communicable diseases by 2030. The aim is to achieve universal health coverage and provide access to safe and affordable medicines and vaccines for all.
Ghana has come a long way in the development of its healthcare services. The most significant in recent times is the establishment of the National Health Insurance Scheme with its critical role of financing the delivery of quality healthcare in Ghana. The world has moved on considerably and the economic, technological, medical and social conditions have changed.
In response to this, the Government of Ghana (GOG), through the Ministry of Health (MOH) therefore strives to improve healthcare services delivery by expanding its infrastructure and improving access.
It is against this background that the Ministry of Health (MOH) is constructing a number of Secondary level hospitals over a period in the medium term. The Ministry of Health under its Capital Investment Programme of the MOH POW for 2016-2020 is currently undertaking a project which aims at upgrading
three (3) hospitals and reconstructing the Central Medical Stores and its ancillary facilities in Tema which was gutted by a fire outbreak.
In order to finance this project, Parliament at the Forty-Second and Forty-First Sittings held on Wednesday 1st April, 2021 and Tuesday 31st March, 2020 respectively approved the following agreements:
i.The Commercial Contract of €140,000,000.00 between the Ministry of Health of the Republic of Ghana and E.D.C. Engineering Deve- lopment and Construction Ltd. for the turnkey construction and equipping of the Tema, Nkoranza and the Dormaa Hospitals and the Central Medical Stores and its ancillary facilities in Ghana.
ii.The €139,339,000.00 ASHRA Facility Agreement between the Republic of Ghana acting through the Ministry of Finance and Israel Discount Bank Ltd to finance 85 per cent of the Commer- cial Contract for the construction of the Tema,
Nkoranza and the Dormaa Hospitals and the Central Medical Stores and its ancillary facilities in Ghana and the estimated ASHRA premium.
iii.The €21,000,000 Commer- cial Facility Agreement between the Republic of Ghana acting through the Ministry of Finance and Israel Discount Bank Ltd to finance 15 per cent of the Commercial Contract for the construction of the Terna, Nkoranza and the Dormaa Hospitals and the Central Medical Stores and its ancillary facilities in Ghana.
Clause 5 of the Contract Agreement makes it mandatory for the acquisition of Parliamentary exemption as a condition precedent as specified in the Employer's requirement.
In order to implement the project successfully, there is the need to waive taxes and duties applicable. It is in this regard that the request for the waiver of taxes and duties on materials and equipment for the project has been submitted to Parliament in accordance with article 174 of the 1992 Constitution of Ghana.
4.0 Request for Waiver
The Request is to seek approval for the waiver of Import Duty, GETFund Levy, NHIL, Import VAT, EXIM Levy and Special Import Levy amounting to the Ghana cedi equivalent of twenty seven million, one
hundred and sixty-one thousand seventy-six euros thirty-eight cents
(€27,161,076.38).
4.1 Details of the Assessment
The details of the assessment as undertaken by the Ghana Revenue Authority (GRA) is summarised in Table 1 below:
Table 1 Assessment of Taxes and Duties
Summary of Tax Exemption-Tema, Dormaa, Nkoranza and the Central Medical Stores
Attached as APPENDIX are the details of the various tax assessments by the Ghana Revenue Authority.
5.0 Observations
5.1 Rationale for Requesting for the Waiver
The Committee observed that in line with its vision of achieving universal health coverage and to provide
access to safe and affordable medicines and vaccines for all, Government is constructing a number of secondary level hospitals over the medium term.
It is in line with this vision that the House approved the Commercial Contract of €140,000,000.00 between the Ministry of Health of the Republic of Ghana and E.D.C. Engineering, Development and