Parliament approves loan agreement for extension works at Tema Port

Accra, July 21, GNA-- Parliament on Monday approved the Resolution for the exemption from payment of duties and taxes of about 41 billion cedis for the execution of works on the Quay Two extension at the Tema Port. The exemption of payments covers equipment, spares and other materials imported into Ghana as well as other materials purchased locally by the contractor, Interberton B.V. of Netherlands in respect of the execution of the project. The extension of Quay Two includes the installation of container cranes to provide increased capacity and decrease turnaround time and to allow private sector participation in the operations of the port to secure future long-term development at the Tema Port.

Mr Eugene Atta Agyepong, Chairman of the Finance Committee, on behalf of the Joint Committee on Finance and Roads and Transport laid the Report. In a background, he said as part of Government's port development policy of the Gateway Project, infrastructure developments within the ports were identified as being critical to the creation of an enabling environment for Ghana to become the shipping hub of the sub-region. He said the increasing size of modern containers and Ro-Ro vessels calling at the port required longer and deeper berths than what the two berths at the port could offer.

Mr Agyepong said the Port Development Studies recommended, among other things, the dredging of the two deep berths at the Tema port to provide access to larger vessels. He said the first phase had been completed, while the second phase comprising the redevelopment and extension of Quay Two, estimated at about 26,319,252.53 Euros is to be completed within a period of 23 months, including five months design period.

The objectives of the project are to increase the capacity of the Tema Port to accommodate modern generation vessels for improved port efficiency, reduce waiting time of containers and Ro-Ro vessels and to make the Tema Port competitive in the West African Sub-Region and to attract and sustain more trans-shipment cargo. Quay Two is to be extended by 200 metres to provide a total berth length of 570 metres with 11.5 metres draft at the south and 240 metres berth length with 10- metre draft at the north end. The entire quay is to be redeveloped into a container terminal with the installation of container cranes with allowable space of break-bulk cargo operations.

The Committee observed that the Ghana Ports and Harbours Authority had signed an agreement with Interbeton B.V. of Netherlands to execute the Quay extension project at Tema Port and the project was excluded from the payment of any taxes on profit arising out of the contract as well as income tax, social security and personnel who are not citizens or permanent residents of Ghana. The Committee was further informed that cabinet on August 22, 2002 was of the view that the loan agreement did not require Cabinet assent and that the Ministry of Roads and Transport memorandum to be reformulated to the Ministry of Finance and Economic Planning to deal with the tax element for consideration.

In September, 2002, Interbeton B.V. Was granted a permit by the Ministry of Finance to clear some listed items, whilst arrangements were made to obtain parliamentary approval for the tax-exempt status of the Grant Agreement and the contract agreement. The permit granted to the contractor was subsequently issued by the Commissioner of CEPs, in line with his authority and prerogative under sections 330 and 336 of Customs, Excise and Preventive Service Law, PNDC 330 and paragraph 86 of the Code of Instructions of CEPS. The Committee further noted that the Ministry of Finance did not grant any tax exemption but approved the clearance of some items by the contractor from the port only on permit.