Parliament approves 3 loan agreements

Page 31, July 9, 2008
Story: Emmanuel Adu-Gyamerah

PARLIAMENT has approved three loan agreements totalling $127 million between the government and the International Development Agency (IDA) for the implementation of a number of development programmes in the country.
The first, an $80 million loan, is for the implementation of Ghana’s component of the West Africa Transport and Transit Facilitation Project.
Under the project, Ghana is to rehabilitate the 103-kilometre Buipe-Tamale road, construct four rest stops along the Tema-Paga road corridor, procure Information Communication Technology equipment to fully equip two transit checkpoints and rest stops.
A Satellite Transit Truck Village will also be constructed along the Tema Port.
The four rest stops would be constructed for transit trucks at the Customs, Excise and Preventive Service (CEPS) intervening stations at Savelugu, Sakam, Kintampo and another one to be sited between Kumasi and Nsawam.
The second agreement, which is a $25 million loan to finance the Agricultural Development Policy Operation, would be used for the implementation of the Food and Agriculture Sector Development Policy (FASDEP).
The policy seeks to address the existing challenges in the sector and to ensure food security, emergency preparedness and the application of science and technology in food development, among others.
This is to ensure food safety and good agricultural practices in line with international standards and to achieve projected growth targets.
The third loan of $22 million will provide additional assistance in support of the Community-based Rural Development Project (CBRDP), which is aimed at strengthening the capacity of rural communities to enhance their quality of life by improving their productive assets and rural infrastructure and to access key support services from private and public sources.
According to the report of the Finance Committee of Parliament, which deliberated on the loan, the project, which is currently ongoing, had been rated satisfactory since its commencement in 2004.
The report said, however, that persistent rains during August and September, 2007 caused massive flooding in the three northern regions as a result of which the World Bank and the government reviewed the impact of the floods and discussed how ongoing and planned projects might be adopted to accelerate help to the affected areas.
The Deputy Minister of Finance and Economic Planning, Professor George Yaw Gyan-Baffour, moved the motion for the approval of the three loan agreements and he was seconded by the Chairman of the Finance Committee, Nii Adu Daku Mante.
While Members of Parliament from the Majority side, who contributed to the debate on the loans, commended the government for its efforts to improve the lots of the people, those from the Minority side asked the government to use the loans for the purpose for which they were intended.