Govt institutes tax waiver policy.

Backpage Nov. 2, 2007
Story: Kweku Tsen & Emmanuel Adu-Gyamerah.
THE Government has instituted a tax waiver policy on equipment imported for solar systems in the country, the Minister of Energy, Mr Kofi Adda, told Parliament yesterday.
According to him, the move was intended to encourage the use of solar energy in a bid to reduce the country’s over-dependence on hydro and other sources of energy.
Mr Adda, who said this in an answer to a question from the Member of Parliament (MP) for Krachi West Mr Francis Yaw Osei-Sarfo, also added that the Government was in the process of finalising an Agreement for a five million euro credit facility from the Spanish Government to boost the use of solar energy amongst institutions and people across the country.
The MP had enquired from the minister what plans his ministry had to encourage the development and use of solar energy as an alternative source of power supply in the country.
The minister explained that the sourcing of the credit facility was intended to provide solar facilities for off-grid locations such as schools, hospitals, and remote CEPS, Immigration and Police outposts in the country.
He said in 2005-2006, the Japanese Government, through the Japanese International Co-operation Agency (JICA), also provided Technical Assistance for a Master Plan Study on Rural Electrification in the four northern regions using renewable energy resources, particularly solar energy.
“Government has initiated the process for the implementation of the initial phase of the programme, as contained in the recommendations of the study, which include the standardisation of solar systems, training of technicians for installation/maintenance of solar systems, and the establishment of Test Centres for adherence to standards,” the minister said.
Mr Adda emphasised that due to the importance the Government attached to the development of renewable energy resources, particularly solar energy, Renewable Energy Directorates had been set up at the ministry and the Energy Commission.
In another development, the MP for Kintampo South, Mr Yaw Effah-Baafi, also asked the minister whether his ministry had plans to extend the pre-paid metering system to all parts of the country.
Replying, Mr Adda said the two companies in charge of electricity — the Electricity Company of Ghana (ECG) and the Northern Electricity Department (NED) — had in place programmes to extend the use of pre-paid metering system to all parts of the country.
He said in view of the initial heavy investment required for the pre-paid metering system, the programme was being implemented in phases.
“The initial phase of the programme cover the huge load centres and the big cities where the programme was found to be economically viable,” the minister said.
Mr Adda further explained that the ECG had commenced a project since 2006, which was currently in progress, to install 196,000 prepayment metres in the Western, Central, Volta, Eastern and Greater Accra regions.
He said areas under the Rural Electrification Programme were presently not provided with pre-paid metering systems as there were considered not to be economically viable.
“In the future, as these areas expand and their load sizes grow, the pre-paid metering system will be extended to cover such areas,” Mr Adda said.
Commenting on the provision of electricity for the Bonakye community in the Nkwanta South Constituency, the minister said the community formed part of the ongoing electrification projects being executed by China International Water and Electric Corporation under a China EXIM bank credit facility.
He was responding to a question by the MP for the area, Mr Gershon Gbediame, who asked the minister when a number of communities including Bonakye would be connected to the national electricity grid.
Mr Adda said High Tension, Low Tension and Transformer Substation works were expected to be completed by the end of March 2007, following which customer service connections would commence.
He said the other communities, namely, Odomi, Okeri, Pawa, Kue, Abrewankor, Nyanbong, Kabiti and Aguofie formed part of the SHEP-4 Programme for which the ministry had carried out engineering surveys.
“They, however, do not form part of the ongoing SHEP-4 Phase-1 project. The communities would be considered in the subsequent phases of the SHEP-4 Programme in line with the implementation schedule and the availability of funding,” the minister said.