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09.07.2004 Business & Finance

Parliament adopts Committee's report on $15 million agreement

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Accra, July 9, GNA - Parliament on Friday adopted the Report of the joint Committee on Finance and Mines and Energy on the credit agreement between Ghana and the Export-Import Bank of India for an amount of 15 million US dollars for the supply of electrical materials and accessories for the rural electrification programme.

The facility would be used for the procurement of offshore electrical materials for the Self-help electrification programme under the SHEP-4 project.

The report stated that SHEP-4 was to benefit 2,500 communities all over the country. It said the total cost of the SHEP-4 was "350,000,000 million US dollars and that the 15 million US dollars from the Export and Import Bank of India would be used to commence the SHEP-4 project." Moving the motion for the adoption of the report, the chairman of the Mines and Energy Committee, Mr. Albert Boadi-Mensah, said on the value for money assessment for the project, which some members insisted on, the officials of the Ministry of energy promised to make it available to the committee."

"The committee therefore recommended that the document be provided before the final approval by the House," he added.

He said the National Electrification Scheme (NES) was one of the fundamental policies the government was pursuing in order to reduce poverty and create wealth in the country.

"The NES aims at providing electricity to all communities in the country over a 30-year period," he said.

Mr. Boadi-Mensah said members of the committee have expressed concern about the outstanding work on SHEP-3 and therefore requested the Ministries of Finance and Economic Planning and the Ministry of Energy to find funds to complete SHEP-3.

Mr. Edward Salia, NDC-Jirapa, said it was important that a value for money assessment accompanying a suppliers credit be made available to Parliament in order to ensure that the proper procedure was followed at all times.

Mr Edward Doe Adjaho, NDC-Avenor, was also of the same opinion, saying it was only when documentation on value for money on contracts was made available to members so that they could hold the government responsible if creditors do not deliver on their promises. Meanwhile, Parliament is expected to go on recess after next week, when it rises, Sine die on Friday.

Mr. Felix Owusu-Adjapong, the Majority Leader, who was presenting the business statement for the week ending 16, July, informed members that the House would hold double sittings to "enable the house dispose of all outstanding business before it proceeds on recess."