Parliament approves loans totalling $300m

Mr. Edward Doe Adjaho,Speaker of Parliament.A tall list of loans and other credit facilities running into US$300 million were approved by Parliament yesterday, to finance a number of projects across the country.

The projects include the design and construction of the Tamale International Airport Phase 2 (US$80 million), Accra Urban Transport Project (US$83million), and the development of the Kumasi International Airport (72.7 million euros).

Others are the Ghana Revenue Authority IT Training Institute and accompanying measures (3.5 million euros), construction of three regional and 22 district offices for the Ghana Audit Service (13 million euros), the construction of a new bridge across the Volta River on the Eastern Corridor at Volivo (11 billion Japanese Yen, equivalent to US$104.7 million), among others.

The facilities are between the government and a number of financial and other institutions, and were approved by the Legislature in pursuant to the provisions of Article 181 of the Constitution and Section 55 and 56 of the Public Financial Management Act, 2016 (Act 921).

According to the law, 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.

The facility for the Tamale International Airport Phase 2 project is in two parts. The first is a Buyer Credit Agreement between the government and Banco Santander S.A and its affiliate for an amount of US$56 million, while the second is a commercial loan agreement between the government and Banco Santander for an amount of US$24 million.

The development of the Kumasi International Airport also comprises a commercial loan agreement for an amount of 7.7 million euros and a buyer credit agreement for an amount of 65 million euros between the government and Banco Santander S.A.

The US$83 million facility for the Accra Urban Transport Project is also a loan agreement between the government and the African Development Fund

The House further approved a request for waiver of import duties, import VAT, NHIL, ECOWAS levy, EDAIF, inspection fees, withholding taxes and other related taxes amounting to US$922,371, being the offshore component and GH¢733,419.36 being the local component relating to project materials and equipment to be procured under the agreement between the government and Saudi Fund for Development for the rehabilitation and expansion of the Bolgatanga Regional Hospital.

As at press time (around 5pm), there were still a number of loans on the Order Paper to be approved.

They include a US$60 million finance agreement for the Ghana Energy Development and Access Project, US$45.5 million for the development of the University of Environment and Sustainable Development, 7.8 million  for the establishment of an Environmental Monitoring Laboratory at the University of Mines and Technology, among others.

In another development, the Children’s (Amendment) Bill, 2016 was taken through the Consideration Stage.

 

By Yaw Kyei

 

 

 

 

 

 

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