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25.11.2014 Press Statement

Dr. Mahamudu Bawumia Is Blind—Volta NDC

By NDC Volta Region
Dr. Mahamudu Bawumia Is Blind—Volta NDC
25.11.2014 LISTEN

Dr. Mahamudu Bawumia, the twice defeated Vice-Presidential candidate of the New Patriotic Party (NPP) at a fund raising programme in London recently, claimed the NPP borrowed $ 5.5 billion in eight years and the NDC has borrowed $ 27 billion in six years, yet there is nothing to show for it. This can definitely not be true.

We believe that governments all over the world borrow and Ghana is not an exception. In 2013, the public debt to GDP ratio of USA was 104.5%, and that of the UK was 90.1%, 243.2% in Japan, 78.1% of GDP in Germany according to IMF report (source: Eurostat). In Ghana, from 2004 to 2013, the highest debt to GDP ratio was more than 58% which was recorded under the NPP regime in the year 2005.

When the NPP sent Ghana into HIPC, the debt portfolio of the country reduced as a result of the debt forgiveness but soon after that, the external debt increased significantly again reaching $4 billion in 2008. This represents 100% increased between 2006 and 2008. In fact, before the NPP left office, the amount of money they had borrowed was more than the amount borrowed since Kwame Nkrumah's time to the year 2000. Dr. Bawumia seems to portray that the NDC government has borrowed too much than what the NPP has borrowed but what he has refused to tell Ghanaians is that the NPP has in a matter of eight years borrowed more than the amount borrowed from the time of the late president Nkrumah to president Rawlings combined.

It will be wrong on the part of any one to insinuate that loan proposals are part of the debt stock of the national debt. I wish to state that until disbursements are done, all loan agreements remain commitments and not part of the debt stock. It must be noted that loan disbursements could take several years and even transcends governments. In 2008, our domestic debt was $4 billion, 4.2 billion in 2009 and 5.6 billion in 2010. The increase in debt was as a result of this current governments borrowing from the domestic market to clear the huge arrears left by the previous NPP Government. An example is the payment of the TOR debt left behind by the NPP even though they burdened Ghanaians with the TOR Debt Recovery Levy.

The issues of national debts transcend governments or regimes and therefore all of us as Ghanaians must be careful not to politicize it because this has the tendency of scaring investors.

It is therefore disingenuous on the part of Dr. Buwumia in his desperate attempt to win political power to engage on a lying spree that the NDC has nothing to show for the amount of money borrowed. We believe the people of Ghana are the best to attest to the massive development going on across the country.

But if Dr. Bawumia cares to know what the money is being used for, then here are the evidence, for instance, in the area of an essential provision like water:

1. Kpong water project expansion at a cost of $273 million to supply 40 million gallons per day. This will serve the people of Adenta, Madina, Ashongman, Kwabenya, North, East and West Lagon, AshaleyBotwe, Haatso, Boi, Asofaa, Dome and many more areas in Accra.

2. Kpong in-take rehabilitation project at a cost of 16.5 million Euros.

3. Accra-Tema Metropolitan area water supply project at a cost of 56.5 million euros.

4. Teshie-Nunguadesalination water project to produce 13 million gallons of water per day.

5. Nsawam water supply project. This is to expand the Kwahu ridge water supply capacity from 1 million gallons a day to 3.5 million gallons per day, to serve an estimated population of 330,000 people.

6. The Kumasi water project works at the costs of 24 million euros. This involves the expansion of the Barekese dam from producing 24 million gallons per day to 30 million gallons per day; which has improved water supply to KNUST, KonfoAnokye Teaching Hospital, Tanoso, Asuoyeboa, Kwadaso, YaaAsantewaa Girls High School, PrempehCollege and Abuakwa.

7. Asante Mampong water supply project at a cost of $22 million. This involves the rehabilitation and expansion of the existing system to meet the increased demand for water in Mampong and its environs.

8. Essakyir water supply project also at a cost of 20 million euros.

9. AkimOda-Akwatia water supply project at a cost of $165 million.

10. Anyinam, Kibi, Oseanase, Apedwa and Kwapeng towns water supply also at an estimated cost of 8 million euros.

OTHER PROJECTS
11. The Ghana national gas processing plant to help solve the energy crisis

12. Refurbishment and expansion of the ridge hospital

13. University of Ghana teaching hospital

14. Kwame Nkrumah inter change

15. Sofo line interchange in Kumasi

16. Tetteh quashie madina road project

17. Achimota offankor road project

18. Construction of affordable housing unit by OAS construction

19. Kumasi central market

20. Kasoa interchange

VOLTA REGION

Hohoe township road is 100% complete

Kete krachi- Buya phase 1 and 2 100% complete

Metrikasa Havedzi road 13% complete

Golokwati- Wli- Hohoe road 90% complete

Asikuma junction-Kpeve road 15% complete

This and many more are what the loans are being used for, I believe Dr. Bawumia just chose to be deliberately blind to the developments in the country because of the pressure his party is putting on him to say something, he thinks Ghanaians outside are not preview to the massive development in the country .

KAFUI AGBLEZE

VOLTA REGIONAL PROPAGANDA SECRETARY

(0241221762)

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