Parliament approves two loans for Health Services

Members of Parliament voted overwhelmingly to authorise government to contract two loan packs of 23.3 million dollars and 8.3 million euros to finance phase three of the Health Services Rehabilitation Project (HSRP).

The African Development Bank (ADB) is offering the 23.3 million dollars while The Nordic Development Fund is offering 8.3 million euros.

The first phase of the HSPR ended in 1997 after the Korle-Bu and the Komfo Anokye Teaching Hospitals and the Effia Nkwanta Hospital in Sekondi-Takoradi underwent rehabilitation.

The Keta, Kibi and Yendi in the Volta, Eastern and Northern Regions, in that order, benefited from the second phase, which ended in 2000.

The third phase comprised the relocation and upgrading of two district hospitals at Tarkwa and Bekwai in the Western and Ashanti Regions, respectively, and the improvement of the health care delivery services in these districts.

According to a Joint Committee of Finance and Health report, the HSRP had four components that included increasing the coverage of quality health care at the district level by 5 per cent.

It seeks to strengthen blood transfusion services; provide support to the national HIV/AIDS control programme and to strengthen project management by building the capacity of the personnel of the Ministry of Health.

The ADB sourced loan of 23.3 million dollars is to be repaid in 40 years with a 10-year grace period.

It included an interest rate of one per cent per annum from the 11th to the 20th year inclusive and a rate of three per cent per annum thereafter.

On the 8.3 million euro loan from NDF, the principal shall be repaid in equal and conservative semi-annual instalments commencing on the first payment date in 2013 and ending the last payment date in 2042.

It has a 10-year grace period.