Parliament ratifies two loan agreements

Accra (Greater Accra), 22nd July 99 ?

Parliament, by two votes of 123 to nil and 123 to nil, ratified two separate loan agreements between the government and two financial institutions in the Netherlands for the rehabilitation and expansion of the Accra-Tema and Winneba water supply systems.

The first, an amount of 31,255,724 Dutch guilders, is between the government and ABN-AMRO Bank to finance the Accra-Tema water supply project.

The second is for an amount of 9,950,000 Dutch guilders, between the government and the ING Bank of Netherlands to finance the Winneba water supply project.

However, before the resolutions were taken, the Minority drew attention to the fact that they had asked for certain documents and clarification from the Ghana Water and Sewerage Corporation (GWSC), on whose behalf the loans are being contracted.

These include how the loan will impact on the evaluation of the corporation when it is privatised, the impact of the loan on future terms and how the corporation intends to pay for the loan.

Mr Albert Kan-Dapaah, NPP-Afigya-Sekyere West, noted that the materials which had been provided did not provide satisfactory answers to the issues raised and said they be considered by the House at another time.

The Minority argued further that the corporation had difficulty in the past years in servicing its loans and had accumulated loans up to about 170.9 billion cedis as of last year.

Mr Kwadwo Baah-Wiredu, NPP-Asante Akyem North explained that the Minority is concerned about water supply in Accra and Tema, as well as Winneba, and would therefore vote for the loans. However, it is important that the corporation is brought to book as far as their finances are concerned, he added.

Dr Kwabena Adjei, Majority Leader, explained that the government is aware that GWSC is accumulating loans and Parliament would, through the appropriate committee, ensure that the corporation handles its finances efficiently.

"The issues are very important, and we will find means of resolving it in the immediate future rather than hold the people of Accra and Winneba to ransom," Dr Adjei added.

After some discussion, both sides agreed to ratify the loan, after which the Minister of Works and Housing will be invited to explain related issues to the House before Parliament rises next week.

The loan for the Accra project is to be used for the rehabilitation and expansion of the Adam Clark Water Treatment Plant at Weija and for improving the distribution of water to western Accra.

The total cost of the project is estimated at 48.3 million Dutch guilders. The Dutch government is providing a grant of 16,930,005 guilders. It is expected to be completed within 24 months from the "effective date of contract".

The Winneba project also has an additional grant of 5,362,000, bringing the total cost of the project to 15,320,000 guilders. It is expected to be completed within 36 months from the effective date of contract.

A memorandum accompanying the loan agreement said the existing water supply system which serves the Winneba township is in a deplorable state and thus requires immediate action.

The rehabilitation aims at providing good drinking water to improve living conditions in the Winneba and surrounding villages, with particular reference to the new Winneba University College.

GRi?/