News:
June 6, 2011
Parliament has approved a mixed credit facility agreement between the government and the KBC Bank of Brussels, Belgium for an amount of 21,887,520.31 Euros for the construction of the Essakyir Water Supply System in the Central Region.
Mr James Klutse Avedzi, Chairman of the Finance Committee who moved for the adoption of the loan said out of the amount 20,040,603.00 Euros covered the total project cost while 1,846,917.31 Euros was the total finance cost. He said the project which was expected to be completed in 24 months would consist of the construction of a conventional water treatment plant comprising coagulation, flocculation, sedimentation, rapid gravity filtration and disinfection chlorination.
In addition, clean water reservoir with associated high lift pumps would be constructed to cover the treated water to the different sub-systems, whilst new pipelines with larger diameters would be installed for both transmission and distribution to improve water delivery to the project areas. Mr Avedzi said beneficiary communities included Ekumfi, Otuam, Mumford, Dago, Mbroboto, Ekumpoano, Muna, Aboano, Sefara, Essuehyia, Akra, Asaafa, Etwaa, Nakwa, Asokwa, Abeka, Ekumfi, Swedru and other communities at the tail end of the distribution network of Winneba, Balikrom and Kwanyako Water Treatment Plants.
He said benefits to be derived from the project include improved access to potable water for the beneficiary communities, increased water coverage, reduction in the level of non-revenue water, growth in productivity of the inhabitants leading to economic development and reduction in poverty, boosting of business opportunities and the maximisation of the social and health benefits of safe and reliable drinking water. He said the project would be connected with the Baifikrom, Winneba and Kwanyako systems.
Mr Klutse said in accordance with Article 14 of the Agreement, any duties, taxes of any kind, stamp charges, present or future, due by virtue of the credit agreement and arising therefrom, legally due in Belgium, shall be for the account of the Lender. He said the duties, taxes of any kind, stamp charges, present or future, due by virtue of the Credit Agreement and arising therefrom, legally due outside of Belgium, shall be for the account of the Borrower. Mr Klutse said the agreement further obliged the government to reimburse the Lender for any amounts charged in Ghana as taxes and duties on account of the facility.
He said the committee recommended to the house to approve by resolution, the waiver of the relevant taxes and duties amounting to 3,808,640.00 Euros on equipment and materials as well as Corporate and Expatriate Taxes (June 2011-April 2014) amounting to GH¢937,555.45.
GNA