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12.03.2013 General News

The 2013 Budget Statement

By Ghanaian Chronicle
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148. Mr. Speaker, the Governance structure for Private Sector Development

Strategy (PSDS) II and the trustees to manage the accompanying

fund has been set up.
149. Mr. Speaker, it is gratifying to note that the Ayensu Starch factory at

Bawjiase in the Central Region which started test production in 2011 is

currently running effectively and has produced 35,000 tonnes of

cassava starch.
150. Mr. Speaker, to promote the sustainable development of the Central

Region through partnership with the private sector and development

partners, CEDECOM completed the construction of 37 boreholes and 9

CHPS compounds. The Children's Library and Park at Kasoa and the

Sports Stadium at Agona Swedru and the rest stop at Eyisam are at

various stages of completion.
Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Tourism, Culture and Creative Arts
151. Mr. Speaker, Government engaged the Tourvest Investment Group of

South Africa and secured their interest to invest in the ecologies of

Mole and Kakum National Parks, and Shai Hills. The Ghana Tourism

Authority established the Tourism Development Fund to develop and

promote the sector. In this regard, the Tourism Levy Regulations LI

2185 was passed to operationalize the Tourism Act 817.

Energy and Petroleum
152. The on-going construction work on the 400 Mega Watts Bui Power

Project is progressing satisfactorily. Transmission lines for power

evacuation for Bui - Sawla, Bui - Kintampo and Bui - Techiman are 98

percent complete. Nine substations were upgraded to increase

transformer capacity in the New Tema, Akwatia, Achimota, Asanwinso,

Takoradi, Techiman, Kumasi, Winneba and Akosombo substations.

Work on Tumu-Han-Wa Transmission Line also commenced.

153. Mr. Speaker, the construction of a 161/34.5kV substation at Buipe to

serve a new cement factory, Buipe township and its environs has been

completed and in commercial operation.
154. Mr. Speaker, to facilitate the sector objective of increasing the

proportion of renewable energy in the national energy mix from the

current 0.01 per cent to 10 per cent by 2020, installation work for 752

off-grid solar systems for remote public institutions (GEDAP Phase II)

commenced with 50 per cent of the installations done. In addition,

255 off-grid solar PV systems have been installed for remote public

institutions on lakeside and island communities.
155. Exploratory activities by GNPC and Partners intensified resulting in six

new discoveries in 2012 which are at various stages of appraisal and

development. These are Hickory North, Almond, Beech, Pecan,

Sankofa East and Wawa. This brings to a total of 22, the number of

hydrocarbon discoveries made since June 2007.
156. Mr. Speaker, work has commenced on the laying of onshore 111Km

20-inch pipes from the site of the processing plant at Atuabo to the

Aboadze Thermal Station. The core processing units of the Gas

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Processing Plant are currently being fabricated in Canada and the

entire modular plant is expected to be delivered to Ghana in the first

quarter of 2013.
157. Draft Regulations to provide legal backing to the Local Content Policy

was developed and laid before Parliament. A Memorandum of

Understanding for the establishment of an Enterprise Development

Centre in Takoradi was signed between the Ministry of Energy, Tullow

Ghana Limited and Ministry of Trade and Industry to train SMEs in the

Oil and Gas Industry to take advantage of opportunities in the oil and

gas sector.
Tema Oil Refinery (TOR) Debt
158. Government over the years has been saddled with the debt of TOR. At

the end of December, 2008 the total debt in the books of TOR was

GHC1,678 million increasing to GHC1789 million at the end of 2009.

As part of Government's effort to find a solution to the TOR debt,

Governments in 2010 made a payment of GHC445 million to Ghana

Commercial Bank (GCB) to help reduce the debt of TOR.

159. Government again in March 2011, restructured the TOR debt by

securitising the TOR debt through the issue of medium term

government bonds. To date Government has made payment on behalf

of TOR to the tune of GHC1,137 million.
160. In our quest to find a lasting solution to the perennial financial

challenges of TOR a technical, operational and financial diagnostic

review was commissioned. The audit has been completed and the

recommendations including maintaining the timely implementation of

price adjustment arrangements are being implemented to ensure that

TOR operates efficiently on a financially sound basis well into the

future and thus bring to a close the TOR debt phenomenon. In the

process the re-capitalisation of TOR will be an important requirement

and various options are being considered for this purpose.

Environment, Science, Technology and Innovation 161. Mr. Speaker, Government procured and distributed 108,000 laptops

under the Better Ghana ICT Project with the aim of promoting skills

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

and knowledge in Information Communication Technology among

pupils and students countrywide.
162. In addition, the Government developed the National Climate Change

Policy and Strategy, built capacity for Clean Development Mechanism

Programme and conducted country assessment on achievements for

sustainable development.
Water Resources, Works and Housing
163. Mr. Speaker, under the phase II of the Atorkor-Dzita-Anyanui

Emergency Sea Defence Works, the Groyne System being constructed

to protect the 1.5km stretch of the coast is about 95 per cent

complete. Similar works were done on the 1.5km stretch of revetment

to protect the Accra-Tema rail line from the effects of sea erosion

under the Sakumono Sea Defence works.
164. Mr. Speaker under the Kpong Water Supply Expansion project,

substantial works have been completed on the booster station and

reservoir at Dodowa. Thirty-seven kilometres out of 73km

transmission pipelines were laid while work on the Water Treatment

Plant is 45 per cent completed. Overall progress of project is 37 per

cent complete.
165. Construction works to expand the Kumasi water supply from the

current production capacity of 24mgd to 30mgd is 90 percent

complete, while the Mampong water supply project to add 1.76 million

gallons a day of water to the supply is on-going.
166. Mr. Speaker, all communities under the Sustainable Rural Water and

Sanitation Project (SRWSP) were engaged in Community Led Total

Sanitation (CLTS) activities during the year. In addition, an

assessment for rehabilitation of 13 Small Town Water Supply Systems

in the Northern Region was completed. These towns are: Bole,

Bimbilla, Chereponi, Daboya, Gambaga, Walewale, Salaga, Gushiegu,

Nalerigu, Saboba, Tinga, Wulensi and Zabzugu.
Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Roads and Highways
167. Mr. Speaker, under the Trunk Road Development Projects, the

following major roads were completed during the period: Achimota-

Ofankor, Nsawam Bypass, Nkawkaw Bypass 1, Akatsi-Akanu, Akatsi-

Agbozume and Techiman-Apaaso. In addition, contracts were also

awarded for the following major trunk road projects and works are in

progress: Asikuma Junction-Hohoe, Dodo-Pepesu Nkwanta, Nkwanta-

Oti Damanko, Fufulso-Sawla, Ayamfuri-Asawinso and Agona Junction

to Elubo.
168. Under the Feeder Road Development Project, a total of 104 bridges

were launched. Out of these, 82 have been completed and opened to

traffic while the rest are at various stages of completion. Some of the

completed bridges are on the following roads; Tetegu Jn.-Tetegu,

Dodo Amafrom - Dodofe, Osuboi - Ponponse, Nsutapong -

Chakachakam, Eshiro Jn.-Eshiro - Kwesigyan, Potsin Jn.-Awobrem,

Abochie -Nyankaman, Torya Jn.-Torya, Drabonso - Dawia, Ahenkro-

Boaman-Amoako, Wenchiki-Bumbrugu, Zabzugu-Kuntumbiyilli,

Bolgatanga-Naga, Bui-Zanlerigu, Karni-Kulkarni, Kundugu-

169. Mr. Speaker, in collaboration with the Ministry of Local Government

and Rural Development, Government continued with the Urban

Transport Project with the objective of reducing congestion on our

roads. The following road works were completed during the period

under review: Expansion of the Odaw Bridge and construction of

flyover bridge, Extension of the La-Teshie road, Gulf House to GIMPA

by-pass, Dansoman main road, all in Accra. Reconstruction of the

Oforikrom-Asokwa bypass (including an Interchange at Timber

Gardens) and the Lake road in Kumasi, and over 200 No. of Traffic

signals in the major urban centres were rehabilitated to reduce

intersection bottlenecks.
170. Contracts were awarded for the following major urban road projects;

Giffard Road (from 37 to T-Junction), Burma Camp Road (from Giffard

road to Spintex road), Area-Wide traffic Control System for Accra and

works are currently on-going.
171. Government improved revenue generation into the Road Fund for the

maintenance of the road network. Toll collection commenced at New

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Offinso (Kumasi-Techiman), Kubease (Nkawkaw-Kumasi) and Sawla

(Bole-Wa). The total revenue generated in 2012 was about

GH¢235million which is GH¢26million more than the total revenue that

accrued in 2011.
172. Re-construction of Net-Mending Wharf for the canoe basin (Tema

Fishing Harbour) is about 70 per cent complete. This will support local

artisanal fishing industry at the Tema Community.
173. The construction of 4 ferries for cross ferry services on the Volta Lake

and 2 new cross ferry vessels and landing site were completed and

are currently in operation at Adawso-Ekye Amafrom and Kete Krachi.

174. In the area of Telecommunications, the total telephone subscription

for both cellular/mobile and fixed line as at December, 2012 stood at

25,903,408, yielding a tele-density of 105 percent. This is a marked

improvement from the December 2008 figure of 11,713,699

representing 52.4 percent tele-density.
175. Mr. Speaker, Government continued with its objective of improving

access and quality of education. To this end a number of interventions

were implemented. These include:
ï‚· payment of Capitation Grant of GH¢32.1million to 5,467,808

pupils in all public basic schools;
ï‚· payment of subsidy of GH¢7,518,157 for the 2012 Basic

Education Certificate Examination (BECE);
ï‚· provision of free school uniforms for 1.6 million pupils in

deprived communities;
ï‚· distribution of 28.4 million free exercise books to Basic Schools;

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

ï‚· distribution of 53,555 laptop computers under the Basic Schools

Computerization Project to over 2,000 schools;
ï‚· payment of subsidies for 697,917 and 51,487 students in Senior

High Schools and Technical Vocational Institutes respectively;

ï‚· completion of ten two-storey emergency dormitory blocks and

206 six-unit classroom blocks.
176. Mr. Speaker, in line with Government policy to reduce to the barest

minimum the incidence of schools being operated under trees and

temporary structures, a total of 1,683 schools are being constructed.

Forty-two percent of the schools have been completed and handed

over to the beneficiary schools while 20 percent are at advanced

stages of completion. The remaining 38 percent are at various stages

of completion.
177. Mr. Speaker, 209 new functional Community-Based Health Planning

Services (CHPS) zones were created in consonance with the Better

Ghana Agenda objective of enhancing access to Primary Health Care.

178. To support improvement in pre-emergency health services, 161 new

ambulances were procured. In addition 28 new ambulance stations

were opened bringing the total number of stations to 52.

179. Mr. Speaker, the Ministry completed the following projects: 5

polyclinics (phase ІІ) in the Upper West Region ( Wechau, Babile,

Lambussie, Ko and Hain), office complex for the Food and Drugs

Authority, rehabilitation and upgrading of Tamale Teaching Hospital

(phase І), Eye Centre at Komfo Anokye Teaching Hospital, water

improvement projects in selected health facilities in Brong Ahafo

Region and the installation of new MRI and CT scan equipment in

Korle-Bu, Komfo Anokye and Tamale Teaching Hospitals. In addition,

the Children's Ward, Theatre for Kidney Transplant and Neurosurgery

were also rehabilitated at the Korle-Bu Teaching Hospital.

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Public Safety
180. Mr. Speaker, internal security is critical for accelerated socio-economic

development and the attainment of sustainable development which is

contingent on the maintenance of peace, safety, security and stability.

In this regard, Government implemented measures to further reduce

crime rate especially robberies, drug trafficking/abuse, chieftaincy,

inter-ethnic and land conflicts as well as murders.

181. Mr. Speaker, Government procured a total of 1,094 vehicles of various

types, 2,200 Bullet-proof vests, and 4,400 Ballistic plates, 100 Helmets

with communication gadgets, 1,000 walkie-talkies and four speed

boats for the security services. The Police Service also introduced

Automated Fingerprint Identification System (AFIS) to enhance

investigation of cases by the Criminal Investigation Department. The

Forensic Laboratory of the Police Service has been added to the AFIS

facility to enable the Police carry out D.N.A. profiling locally.

Poverty and Social Protection Programmes
182. Mr. Speaker, consistent with the objectives of the Ghana Shared

Growth and Development Agenda (GSGDA) and the Better Ghana

Agenda, Government continued to expand access to basic services

and facilitate the provision of employment opportunities for the youth

and the vulnerable in society. Poverty-focused activities received

about one third of total Government expenditures in 2012. Key

achievements under the various programmes are as follows:

ï‚· the Livelihood Empowerment Against Poverty (LEAP), the

flagship social protection programme, received attention during

the year and provided cash grants to over 60,000 households;

ï‚· the Ghana School Feeding Programme (GSFP) is currently

covering 1,582,402 pupils in 4,545 beneficiary schools;

ï‚· the Local Enterprises and Skills Development Project (LESDEP),

provided 44,735 beneficiaries with skills training in vocational,

entrepreneurship and business development services and set-up

equipment to start their own businesses in various trades;

ï‚· under MASLOC:
Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

i. lending Operations covered 168 Districts out of the 170

districts. Recovery rate for new loans disbursed stood at

70.06 per cent; and
ii. a total of 1,000 outboard motors were distributed to

fishermen in all the fishing communities in Ghana for the

fishing industry. It is estimated that, at least 13,000 new

direct jobs and additional 20,000 indirect jobs were created;

iii. 6,450 bundles of fishing nets were distributed to help

minimize the use of unapproved fishing nets.
iv. 390 Hyundai Verna cars and 200 Hyundai Accent cars on

hire purchase were distributed to individuals and taxi drivers

across the ten regions of Ghana.
Food and Agriculture
Agriculture Estate Programme
183. Under the Accra Plains programme, Government will begin work on

11,000 hectares agriculture estate, facilitate sustainable agricultural

production and provide employment. Graduate from Agriculture

tertiary institutions will be encouraged to participate in the

184. Government through the Ministry of food and Agriculture will

coordinate the procurement and distribution of 180,000mt subsidized

fertilizer to farmers. In addition, web-based software for the smooth

implementation and management of fertilizer and seed subsidy

programme will be introduced. Furthermore, 4,127mt of seed cotton

and 9,472mt of lint will be produced.
185. Construction works will commence on the Accra Plains Irrigation

Project covering an area of 11,000ha, the Mprumen dam and the 3

dams in Koori, Zuedem and Tankasa in the Builsa District of the Upper

East Region. The Vea Scheme, Dawa dam and the 10 dams in the

Volta and Greater Accra Regions will also be rehabilitated.

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

186. Mr. Speaker, the number of Agricultural Mechanization Service Centres

(AMSECs) will be increased to cover at least 170 districts in order to

provide mechanization services to farmers who cannot afford their

own machines. One thousand tractors, 100 maize planters, 50 seed

drills, 50 boom sprayers, 10 maize/soya harvesters, 50 rice threshers,

100 shellers and 50 dryers will be procured to support the Agricultural

Mechanization Service Centres (AMSECs), individual farmers and

processors among others. It is intended to provide on season and off

season employment for holders of agriculture machinery.

187. Government will also finance the construction and mechanization of

500 boreholes on farmer fields for irrigation, animal watering and

188. COCOBOD will continue the treatment and control of the Cocoa

Swollen Shoot Virus Disease (CSSVD) which has continued to threaten

the sustainability of the industry through cutting and removal of

affected trees. An amount of GH¢9.7 million has been allocated for

this programme. Government will continue to support farmers to

replant and rehabilitate cocoa farms in key growing areas which

started in 2009/10, a project aimed at reversing the trend of low

Fisheries and AquaCulture
189. Mr. Speaker, Government will also pursue an accelerated aquaculture

development strategy to fill in the gap in fish supply. Improved

aquaculture development packages such as, feed and credit will be

rolled out to interested farmers. In addition, the Ministry will train

farmers to increase fish pond productivity from 1.5 metric tons/ha to

2.5 metric tons/ha and also increase output from the current

20,000mt to 40,000mt within the year.
190. To equip the actors in the fishing industry with skills in sustainable

fishing practices, the construction of the administration block, hostels,

laboratories and lecture halls for the Fisheries College at Anomabo will

be continued.
Trade and Industry
191. Government will continue its pursuit of the implementation of the

Private Sector Development Strategy phase II (PSDS II) to widen

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

economic opportunities for the transformation of the Ghanaian

economy and to develop a thriving private sector that creates jobs and

enhances livelihoods for all.
Tourism, Culture and Creative Arts
192. The Government recognizes the potentials of the Creative Industries

to shape and reinforce Ghana's economic growth. The creative

economy is the complex interaction between culture, economics and

technology. The emerging creative economy has become a leading

component of economic growth, employment, trade and innovation,

and social cohesion in many countries.
193. Government will facilitate the development of cultural villages and

enclaves as a critical appendages to tourism which is fast gaining

economic relevance as a source of revenue generation and

employment creation. The creative arts industry will be supported with

GH¢3 million in 2013.
Energy and Petroleum
194. Mr. Speaker, the 132MW Takoradi T3 Power Project which was

projected to be formally commissioned by the end of the first quarter

of 2013 has been duly commissioned by His Excellency, the President.

The Bui Hydroelectric Power Project would come online with the full

capacity of 400MW by end 2013.
195. The completion of the Gas Infrastructure Project for the

onshore/offshore pipeline in respect of the regulatory and metering

station and the gas plant is scheduled for completion in the third

quarter of 2013. Testing and commissioning are to be done in the

third quarter and commercial operation in the fourth quarter of 2013.

196. As part of measures to promote local content and participation in the

petroleum industry, an Enterprise Development Centre (EDC) in

Takoradi with support from the Jubilee Partners will be fully

operational in the course of the year. This will facilitate the training of

SMEs to be properly positioned to take advantage of the oil and gas

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

Environment, Science, Technology and Innovation
197. Government will procure and distribute 100,000 laptops to individuals

and educational institutions to promote the teaching, learning and use

of ICT. Government will also provide training for the youth in

assembling and repairing of ICT equipment, promote skills and

knowledge in Information Communication Technology and create jobs.

Water Resources, Works and Housing
198. Mr. Speaker, Government will construct 1,200 new bore holes,

rehabilitate 400 old bore holes, and develop 40 Limited mechanised

water facilities and 29 Small Town Systems in the Upper West, Upper

East, Northern, Brong-Ahafo, Central and Western Regions of Ghana.

199. Mr Speaker, Government will continue with the construction of 1.5 km

of the defence wall along Atorkor-Dzita-Anyanui shore line, Sakumono

and Ada Sea Defence works. In addition, the Ngyiresia Sea Defence

works to salvage the adjoining road from being totally washed away

by the sea waves will commence.
200. During the year the expansion of the Nsawam water system, the

Mampong water supply system and the Kumawu, Kwahu Ridge,

Konongo water systems will be continued.
Roads and Highways
201. Mr. Speaker, the government's overall objective under the road sector

is to achieve a preferable road condition mix in line with the GSGDA.

To achieve this objective, the underlisted projects are to be

undertaken: Nsawam-Suhum-Apedwa road, Tetteh-Quarshie-Madina

road, Madina-Pantang road, Berekum-Sampa road, Kpando-

Worawora-Dambai road (PhIII), Wenchi-Sampa road (PhII), Bomfa

Junction-Asiwa-Bekwai road, Sefwi Bekwai-Eshiem-Asankragwa road

(km 10-56), Asankragwa-Enchi road, Navrongo-Tumu road.

202. The rest are Sofoline Interchange in Kumasi, Spintex road-Polo

ground bypass, Boundary road (American house-Madina), Emergency

road rehabilitation of Spintex and East Legon roads.

203. Mr. Speaker,other major on-going projects that will achieve significant

progress in 2013 include: Buipe-Tamale road project, Eastern corridor

Theme: ―Sustaining Confidence in the Future of the Ghanaian Economy‖

roads (Asikuma Junction-Have, Nkwanta-Oti Damanko), Ayamfuri-

Asawinso road, Agona Junction-Elubo road, Giffard and Burma Camp

roads, Tarkwa-Bogoso road and Awoshie-Pokuase road and

community development project.
204. The Takoradi Port Development Project will commence to upgrade the

port to meet the demands in the emerging oil and gas industry. The

breakwater extension, dredging and reclamation, construction of bulk

ore handling facility, quay-walls and related basic marine

infrastructure in the Port of Takoradi will be continued.

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