C5.3m Belgian Credit Approved

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Parliament yesterday approved a 5.3 million Euro mixed credit facility between the government and the government of Belgium / ICBC Bank NV for the second phase of the Clinical Laboratory Improvement Project (CLIP).

The House also approved a 100 million dollar developing financing agreement between the government and the International Development Association (IDA) for the Sixth Poverty Reduction Support Credit (PRSC-6).

The CLIP project was designed to improve the standards of public laboratories in the country, especially the availability of diagnostic equipment and technical facilities.

The first phase of the project covered 22 district hospitals in the country and the second phase would cover the remaining 46 district hospitals left under the project.

To ensure a successful implementation of the project and in line with Article 14 of the agreement, the House by a resolution, also approved a request for a waiver of duties and taxes totalling GH¢1,292,003.00 on goods including tools centrifuge, vortex mixer and laboratory equipment procured under the projects.

The PRSC-6 agreement on the other hand, is intended to support measures that have a positive impact on poverty reduction.

The measures include actions to consolidate the nation's achievements in human resource development (education, health, water and sanitation) and to advance decentralisation aimed at improving basic health delivery.

The notions for the approval of the two agreements were moved by P.C. Appiah Ofori (NPP-Asikuma/Odobon/Brakwa) on behalf of the chairman of the Finance Committee and Kwadwo Baah-Wiredu, Minister of Finance, and seconded by P.C. Appiah Ofori, respectively.

Mr Appiah-Ofori said the terms and conditions under the CLIP project involved in soft loan of 2,668,360.00 euro from the Belgian government with a zero per cent interest rate and a repayment period of 20 years.

The terms and conditions also involved a loan of 2,715,462.20 euro commercial loan from ICBC with a fixed interest rate of 4.49 per cent and a five- year repayment period as well as a commitment fee of 0.25 per cent.

Mr Appiah Ofori said the terms and conditions under the PRSC-6 facility involve a 10-year moratorium, a loan term of 30 years and a commitment fee of one half of one per cent per annum which may be waived at the discretion of the IDA's Board of Directors.

The motions were seconded by Joseph Yieleh Chireh (NDC-Wa West) and Haruna Iddrissu (NDC0Tamale South).