Parliament adopts report on loan agreement

Accra (Greater Accra) 2nd June ?99

Parliament on Tuesday adopted a report from its Finance Committee recommending the approval of an 80.4 million-dollar loan agreement between Ghana and the Overseas Economic Co-operation Fund (OECF) of Japan.

The loan is to help co-finance the 105- kilometre Achimota-Anyinam road.

In a motion for the adoption of the report, Commodore Steve Obimpeh (rtd), Chairman of the Finance Committee, said the road is an important link between Accra and Kumasi and also to the north of the country.

The road also forms an integral part of the route corridor between Accra and neighbouring Cote d'Ivoire, he added.

Cdre Obimpeh said portions of the road between Achimota and Apedwa is heavily distressed and it is characterised by long descents and ascents, some of which have inadequate sight distances.

He said, even though periodic maintenance have been going on, there was the need to reconstruct it to rectify all the defects.

It was the expectation of the committee that the project, when completed, would accelerate the socio-economic regeneration of the Accra-Kumasi route and the country's economy in general.

The loan, which is to be repaid in 20 years with a 10-year grace period, carries a 1.8 per cent interest rate, payable semi-annually and a commitment charge of 0.1 per cent.

The report said where a part of the loan is made available to cover payments to consultants the repayment period would be 30 years after the 10-year moratorium.

The loan, in this case, attracts 0.75 per cent per annum payable semi-annually.

Members in their interventions accepted the loan agreement as a step in the right direction, but some of them, especially those from the Minority side, felt that what the country needs is a long-lasting, dual-carriage road to help decongest the Accra-Kumasi route and minimise accidents.

Mr Christian K. Asante, NDC-Bia, who seconded the motion said the loan would help the project to take off, adding that when completed, the road would facilitate travel between Accra and Kumasi.

Mr J. H. Mensah, the Minority Leader said what the country needs is a turnpike road from Accra to Kumasi, a road worthy of the traffic between the two major cities.

Dr. Richard W. Anane, NPP-Bantama, urged the Ministry of Roads and Transport to ensure that the road is reconstructed with the future in mind so that the country would not be required to seek another loan to rehabilitate the same road a few years after its completion.

Mr Sampson Kwadwo Apraku, NDC-Krachi, suggested that as a way of diverting some of the traffic on the Accra-Kumasi road to the North, the sector ministry should consider rehabilitating the eastern corridor, Hohoe-Jasikan-Nkwanta-Yendi-Saboba road.

Mr Hackman Owusu-Agyemang, the Minority Spokesman on Foreign Affairs, urged the Ministry of Roads and Transport to accept concerns expressed by the Minority in good faith.

The concerns could provide the basis for redesigning the project to give the country a safe and long-lasting road, he said.

Mr Anthony Boadi-Mensah, NPP-Obuasi, urged the government to contribute its part of the funding in good time in order not to unduly delay the project.

Major Samuel Kwame Amponsah (rtd), NDC-Wassa Mpohor East, said, though it is important to make the Accra-Kumasi road a dual carriage, "we should make do with what the loan can provide".

Winding up the debate, Mr Steve Akorli, Deputy Minister of Roads and Transport, who sought to respond to some of the concerns expressed by members, said, "dual carriage is the ideal thing, yet it is not achievable now".

He told the House that the Ministry was making provisions for the future so that when funds become available, "we can expand our road network".

He said it is too late now to take back the project designs to change them for a dual carriage road.

The Deputy Minister announced that the design for the three-lane Accra-Mile Seven carriageway, to dovetail into the Nsawam road is ready.

"The limiting factor is funds", he said.