Monday, August 24, 2009

Ministry completes electrification project

Page 16, July 17, 2009
Story: Emmanuel Adu-Gyamerah

THE Ministry of Energy has completed the electrification project at Mfrekrom in the Asunafo South District of the Brong Ahafo Region under the ongoing $90 million project package being executed by the China International Water & Electric Corporation.
A Deputy Minister of Energy, Mr Emmanuel Armah Kofi Buah who informed Parliament about the completion of the project, also said that installation work for high voltage, low voltage and substation works had also been completed at Anwiam, also in the district while customer service connections were ongoing under the Self-Help Project-4 Project.
The deputy minister gave the information when he appeared before Parliament on Wednesday to answer questions posed by a number of MPs relating to the operations of the ministry.
The Member of Parliament for Asunafo South, Mr George Yaw Boakye had asked the minister when electricity would be extended to Fawoman, Beposo, Kokooso, Agyeikrom, Adwuman, Asawinso, 1000 Acres, Tetekrom, Druwaakrom and Alavanyo.
He also asked the minister to know when service wires would be provided for Kamirekrom, Adomakokrom, Mfrekrom, Anwiam, Camp No. 1, Asempaneye, Denyase and Abuom.
Mr Buah stated that high voltage, low voltage and substation works had been completed at Abuom and Camp No. 1 under the SHEP-4 programme explaining that all electrification projects under the programme would be completed before the end of the year.
Answering another question posed by the MP for Amansie West, Ms Grace Addo, Mr Buah explained that although communities in the Amansie West Constituency such as Nipankerermia, Nyamebekyere, Banko, Pakyi-Keriago, Kwahu and Domi Beposo had been earmarked to benefit under the SHEP-4, they did not form part of the ongoing SHEP-4 Phase 1 and the gave assurance that they would be considered in the subsequent phases of the programme.
Other MPs who also asked the deputy minister questions include Mr Frank Boakye Agyen (Effiduase Asokore) and Mr Sammy Bavug Wusa (Damango/Daboya).
Answering these questions, Mr Buah stated that communities which had been earmarked under the various electrification programmes being implemented by the ministry would be hooked to the national grid while those who did not form part of the ongoing projects would be considered in subsequent programmes.

Govt is ready to investigate cases of dismissals — Duffuor

Govt is ready investigate dismissals-Duffuor
Story: Emmanuel Adu-Gyamerah

THE Minister of Finance and Economic Planning, Dr Kwabena Dufuor, yesterday indicated his readiness to investigate allegations of dismissals of some members of the mass cocoa spraying gangs in certain beneficiary districts in the country.
The minister gave the promise when he appeared before the House to answer a question posed by the Member of Parliament (MP) for Asunafo North, Mr Robert Sarfo-Mensah, on the status of the existing spraying gangs involved in the cocoa spraying exercise.
In his follow-up questions, the MP alleged that about 3,000 people taking part in the exercise had been dismissed.
His allegation was collaborated by the MP for Dormaa West, Mr Kwaku Agyeman-Manu, who also alleged that about 800 members of the spraying gangs in his constituency had been dismissed
Although the Minority Leader, Mr Osei Kyie-Mensah-Bonsu, and his deputy, Mr Ambrose Dery, called for an investigation to be conducted by the House since the matter involved the livelihood of the victims, the First Deputy Speaker, Mr Edward Doe Adjaho, ruled that it was enough for the Minister of Finance to go into the matter.
Answering the questions, Dr Dufuor indicated that the Disease and Pest Control Programme, otherwise known as ‘mass spraying’, ran two programmes to control both blackpod and capsid diseases.
The blackpod programme involved spraying with recommended fungicide to control severe form of blackpod disease while the capsid programme involved spraying to control capsids on cocoa.
As of the end of 2008, the programme had 5,893 spraying gangs comprising 2,771 directly involved in the blackpod control while 3,122 were engaged in the capsid control.
Dr Dufuor told the House that an additional 100 spraying gangs had been created this year, bringing the total gangs to 5,993, explaining that the status of the spraying gangs remained unchanged.
He said that the mass spraying against the blackpod started since May 18, this year with the existing gangs together with the newly-created one while the Capsid programme was scheduled to start on August 3, 2009.
He emphasised that at the beginning of every season, the District Task Force was charged with the oversight responsibility of the spraying programmes in each district to review the performances of each gang for the previous year.
Dr Dufuor explained that appropriate disciplinary actions were taken against any misconduct such as theft of chemicals, misuse of spraying machines, collection of money from farmers for work done, absenteeism and vacation of post.
He said in some cases the entire gang or some of it against whom adverse reports were made were replaced, adding that these reviews and changes were practiced in the previous administration on a regular basis.
The finance minister stated that currently 72 districts were benefiting from the exercise, and gave the assurance to the House that the Ghana Cocoa Board would continue to assist hardworking cocoa farmers so that the target of achieving 1,000 tonnes in the medium term was realised.

Parliament approves $597 million credit

Page 13, July 18, 2009
Story: Emmanuel Adu-Gyamerah

PARLIAMENT has approved a $597 million credit agreement between the Government of the Republic of Ghana and the International Monetary Fund to provide Balance of Payments (BoP) support for the period between July 2009 and July 2012.
The facility among others is being procured from the IMF to support the government’s efforts to address the economic imbalances, increase import cover and also stabilise the economy.
The facility known as the Poverty Reduction and Growth Facility has a 0.5 per cent interest rate and a 10-year term with a grace period of five years.
A report of the Finance Committee of Parliament noted that the global financial crisis had contributed to put pressure on the country’s balance of payments as private remittances had slowed down.
It added that foreign direct investment had assumed non-encouraging outlook whilst official access to global market financing had become extremely limited.
The committee chaired by Mr James Klutse Avedzi, observed in its report that reforms under the Poverty Reduction and Growth Facility (PRGF) would centre on measures to substantially raise revenue to make room for increased spending and develop needs.
The report said the assessment of the progress of the implementation of the facility would be done through the use of quantitative performance criteria with reviews of the product to be conducted twice each year.
According to the report, the Minister of Finance and Economic Planning informed the committee that although the facility covered a period of three years, the ministry was arranging with the IMF to frontload the facility so that more funds could be received this year relative to the two remaining years.
But the Minority raised some concerns with some conditions attached to the facility stressing that they would impose hardships on Ghanaians.
According to the report, as part of the measures to achieve additional fiscal savings, the government was to introduce legislation to establish a National Stabilisation Levy (NSL) comprising an additional five per cent profit tax, effective through end 2010 and applicable to companies in the banking, insurance and other financial services, communications, mining and brewing sectors. “Expected yield of this tax is GHC11 million for the remainder of 2009 and GHC22 million or more for the full year of 2010,” the report said.
The report added that under the energy sector reform, the committee observed that “government intends to retain the bi-weekly price adjustments for petroleum products which are designed to ensure cost recovery for the Tema Oil Refinery (TOR) and bulk importers and to adjust electricity pricing by end-2009 to bring the average tariff to cost recovery levels”.
The report noted that some members of the committee suggested that the populace be educated by the government on the fact that although credit facilities from the IMF and other multi-laterals helped the country to stabilise the economy, they also came with costs such as full cost recovery of the energy sector.
The House also approved a $12 million loan agreement between the SG-SSB Limited and the Government of Ghana, (acting through the parliamentary service) to be used to purchase vehicles for Members of Parliament.
According to the agreement, the interest rate applicable shall be the Bank’s base rate currently at 25.75 per cent per annum.
The facility, which is being procured for the MPs has the government of Ghana as the guarantor,

Encourage investments that lead to diversification

Page 16, July 21, 2009
Story: Emmanuel Adu-Gyamerah
THE Governor of the Bank of Ghana, Dr Paul Acquah, has charged governments in the sub-region to encourage investments that will lead to the diversification of their economies and provide safeguards to the vulnerable segments of the society.
He noted that it was only such investments that would maintain macro-economic stability in the midst of the global financial crisis.
Dr Acaquah made the suggestion in an address read on his behalf at the opening of a five-day regional forum on the global financial crisis for 35 selected parliamentarians from Ghana, Nigeria, Sierra Leone, The Gambia and Liberia, in Accra yesterday.
The forum, which is being organised by the West African Institute for Financial and Economic Management (WAIFEM), is to acquaint the legislators with the fundamental causes of the global crisis and the effects on the economies in the sub-region.
It would also build and strengthen the capacity of the participants to assess, monitor and evaluate stimulus packages in the annual budgets and deepen their understanding of monetary and fiscal options to insulate African economies from the harsh effects of the crisis.
Dr Acquah, whose address was read on his behalf by the Head of Research of the Bank of Ghana, Mr Lawrence Nketiah, noted that maintaining macro-economic stability was critical to ensure that the domestic economy remained attractive to both domestic and foreign investors.
“The challenge is how to sustain stability and mitigate falling domestic demand within the constraints posed by the increasingly scarce external inflows”, he said, explaining that that “must be done in the context of implementing policies consistent with medium-term stability and development goals”.
He called for enhanced vigilance and interaction with the domestic financial system to ensure adherence to supervisory guidelines to enhance information flow between banks and the central bank.
Dr Acquah stated that while legislators could not contain the global crisis, they could play a role in ensuring that the financial systems contained the right incentives, and were properly regulated.
He added that the legislators could play a critical role in ensuring that the effects of the crisis on economic growth and poverty in the sub-region were limited to the extent that the current crisis did not undermine the improvements that had been made over the years.
In his address, the Chairman of the Finance Committee of Parliament and Member of Parliament (MP) for Ketu North, Mr James Klutse Avedzi, said it was important for legislators within the sub-region to meet from time to time to share ideas and experiences as it pertained in their countries.
He said the selection of Ghana as the venue for the forum was appropriate since it was the only country in the West Africa Monetary Zone that failed to achieve any of the four criteria in 2008 for the introduction of the single currency, the ECO.
For his part, the Director-General of WAIFEM, Professor Akpan Ekpo,stated that the meeting would provide a regional forum for the exchange of ideas and sharing of ideas and experiences on national economic management by the legislators.

Govt contracts IDA loan for water projects

Page 17, July 21, 2009
Story: Emmanuel Adu-Gyamerah

THE government has contracted a $15 million loan facility from the International Development Association (IDA) for the construction of 11 new small towns water systems.
In addition, 22 ongoing small towns water supply systems are to be completed with part of the loan facility.
The Small Towns Water Supply and Sanitation Project (STWSSP) is currently being implemented in six regions; namely Upper East, Upper West, Brong Ahafo, Ashanti, Central and Western.
The other four regions were not included because at the time of the inception of the project, they were already benefiting from similar projects sponsored by the Danish International Development Agency (DANIDA).
Parliament last Friday ratified the loan agreement for the construction of the 11 new projects and the completion of the ongoing 22. They are being implemented by the Community Water and Sanitation Agency (CWSA) under STWSSP.
A report of the Finance Committee of Parliament chaired by the Member of Parliament (MP) for Ketu North, Mr James Klutse Avedzi indicated that in the past decade, small towns in the country had received attention as a result of the creation of the CWSA and subsequent implementation of a series of water and sanitation programmes.
The STWSSP is the second phase of Adaptable Programme Loan (APL) that emphasised decentralised rural water supply and sanitation delivery.
The first phase of the APL, which ended in December, 2004, successfully provided potable water to over 750,000 rural population.
According to the report, the implementation of the STWSSP was part of government’s efforts in providing access to potable water supply and improved sanitation in small towns and also a contribution to the attainment of the Millennium Development Goals’ (MDG) target of 78 per cent coverage in the water sector by 2015.
The $15 million credit facility would, therefore, help to support the completion of 22 ongoing small towns water supply and several sanitation facilities with $6 million and to provide 11 additional small towns water systems with $9 million.
The report said that the finance committee was informed by a technical team from the Ministry of Water Resources, Works and Housing that 40 small towns water systems had already been completed under the project while 22 were ongoing with the additional 11 to be implemented under the loan facility.
Meanwhile, the House also gave its approval for another IDA loan of $10 million to support the implementation of the second National Resources and Environmental Governance (NREG) development policy operation.
The NREG is a multi-donor sector budget support programme aimed at preventing the degradation of the country’s natural resources including the forestry, biodiversity and the mining sectors as well as the environmental protection agencies.
The programme will enhance Ghana’s growth potential by improving upon the policy development for natural resource extraction and in addition, promote environmental protection activities and efforts towards minimising the export of illegally acquired natural resources, especially wood.

PURC DARES ECG,NED Over debt recovery methods

Frontpage, July 30, 2009
Story: Emmanuel Adu-Gyamerah

THE Public Utilities Regulatory Commission (PURC) has challenged the Electricity Company of Ghana (ECG) and the Northern Electricity Department (NED) of the Volta River Authority over methods being adopted by the energy companies to recover debts from customers.
The issue has put the PURC and the energy providers on a collision course over the payment of accumulated bills by consumers of electricity in the country as the ECG, through its Public Affairs boss, says it is preparing an appropriate response to a statement issued by the PURC over the issue.
The imminent showdown might be the only solution following a press release by the PURC informing the general public and all consumers of electricity that the two companies cannot recover the cost of service should they fail to bill them for a period of 12 months.
The PURC is an independent body set up to regulate and oversee the provision of the highest quality of electricity and water services to consumers.
In the release issued in Accra yesterday, the PURC indicated that it had noted with concern the practice where the ECG and the NED delayed in demanding payment for services rendered to customers of electricity.
However, Ms Gloria Duah-Sakyi, Head of the Public Affairs Department of the ECG, told the Daily Graphic that “we have received a copy of the release of the PURC. We are studying the contents and will come out in due course with our response”.
The press release of the PURC, signed by its Executive Secretary, explained that ECG/NED waited for several months before presenting consumers with a huge bill, normally termed “the Final Bill”, which arises when a consumer’s meter was changed from credit to the Pre-Payment Metering System.
The PURC, therefore, informed the general public and all consumers of electricity that the two companies could not recover the cost of service should they fail to bill them for a period of 12 months.
It explained further that under the Electricity Supply and Distribution (Technical and Operational) Rules (L.I. 1816), “where a supplier (ECG/NED) fails to bill a customer for a period of 12 months, the supplier cannot recover the cost of the service”.
The cost of the service could only be recovered only when it is established that the delay in the billing occurred without negligence on the part of the supplier or due to the customer’s actions.
“The PURC is appealing to customers of the ECG/NED to take note of these regulations, insist on their rights and report violations to the commission,” the release said.
Clause 9 of L.I. 1816 states thus: Where a supplier’s right to claim the cost of service to the consumer is not vitiated by failure on the part of the supplier to bill the consumer for a period of 12 months, the supplier shall recover the accrued cost of service by (a) giving the customer the option to pay the shortfall by an instalment payment plan and (b) not charging interest on the amount.

Committee lauds gender budgetting initiative

Page 11, July 28, 2009

Article: Emmanuel Adu-Gyamerah
THE Parliamentary Committee on Gender and Children has resolved to scrutinise future budgets of the country to ensure that the government’s policy of mainstreaming gender issues within national policies and programmes was given effect through the budgetary process.
The committee noted that it was through such actions that gender issues could be allocated adequate funding for effective programmes to be embarked upon for the achievement of the objectives of such gender issue.
Members of the committee gave their support to gender budgeting at the end of a three-day workshop at Koforidua during which gender activists briefed them about the need for budgets to address gender issues in the national budgets.
The workshop was organised and sponsored by the Parliamentary Centre, a Canadian non-governmental organisation under its Parliamentary Committee Support Project II.
The resolve of members of the committee was informed by the fact that national budgets encompass all issues of national priority and concern and there is no separate budget statement devoted to gender and women issues.
Again, the strategic and policy orientations under-pining budgets do not reflect interests and concerns based on gender and the best way of meeting the aspirations and needs of the majority of men, women, boys and girls was to engender budgets.
Gender Responsive Budgeting (GRB), therefore focuses on the differences between women, men, girls and boys as well as the differences between the poor, rural, urban and the young and the old as well.
According to gender experts, a number of studies have come with empirical evidence that women in Ghana are poorer and more vulnerable than their male counterparts.
Women have less access to paid employment, income-generating activities, healthcare and education among other social and economic opportunities.
Although attempts have been made to develop responsive policy measures in the national strategic agenda such as the Vision 2020 and the GPRS I and II, not much have been done to address these inequalities.
Gender experts have, therefore challenged the Parliamentary Gender Committee to use its oversight responsibility to come out with a league table as to which of the ministries is responsive to gender issues.
Speaking at the workshop on the role of the Ministry of Women and Children on Gender Budgeting, the Acting Director of the Department of Women, Mrs Francesca Pobee-Hayford stated that the 2009-2011 budget guidelines/circulars clearly indicated that all ministries should start gathering sex disaggregated data as part of preparation towards their budgets.
She identified the lack of critical mass of technical people with the knowledge and skills to support the initiative, lack of ownership of the initiative and non-availability of sex disaggregated data among others as challenges confronting the programme.
For his part, Mr Fusheini Adams of the Parliamentary Centre called on both Parliament and the Ministry of Finance and Economic Planning effectively play their respective roles to ensure that ministries, departments and agencies (MDA) do proper planning and spending so that the scarce national resources were used to reduce poverty.
He stated that there was the need for more resources to be spent to where they were needed to address gender issues.
Mrs Gifty Ohene-Konadu, Member of Parliament (MP) for Asante Akim South and Ranking Member of the committee in her remarks noted that programmes should be designed to popularised the GRB concept.
The Chairman of the committee and MP for Juaboso, Mr Sampson Ahi thanked the Parliamentary Centre for their assistance and said that members of the committee had been sensitised during the workshop to enable them play their oversight role in ensuring that future budgets were gender responsive.
He gave assurance that efforts would be made to bring ministers, particularly the Minister of Finance on board to ensure that the country’s budgets responds to gender concerns.