Government to import more buses for GPRTU

Accra, Aug. 31, GNA - Cabinet has approved, for consideration of Parliament, a loan of 10 million Deutsche Marks from Germany to buy 51 Mercedes and Neoplan buses for the Ghana Private Road Transport Union (GPRTU) and the Ghana Association of Travel and Tour Agents.

Twenty of the buses will serve as tourist coaches to help boost tourism. Mr John Mahama, Minister of Communications, announced this at a post-cabinet briefing he held for journalists at the Castle, Osu, on Tuesday. "Procurement of the buses is in consonance with the government's policy of encouraging private transport operators to renew and augment their fleet and also improve the quality and safety of services to the public," he said.

Mr Mahama said Cabinet also approved the Export Credit Facility of 8.8 million Dutch Guilders from ABN-AMRO Bank N.V. of the Netherlands to finance the Volta Lake Debre shoals removal and maintenance dredging works. The water level in the Volta Lake has been falling, leading to the exposure of rocks and sand bars around Debre, 32 kilometres downstream the port of Buipe in the Northern Region.

This has affected all-season navigation to and from the north. The credit will be used to remove materials that have silted the lake passage from Debre to Buipe to allow all-season navigation. Mr Mahama said Cabinet approved modalities for implementing the policy on procurement of Made-in-Ghana goods by public sector institutions to boost local industry. This makes it mandatory for all ministries, departments and agencies to source their purchases from local industries first. The Minister said suppliers of Made-in-Ghana goods have also been given a 12.5 per cent price band, where necessary.

This means where prices quoted by suppliers of locally made goods are higher than prices of imported goods by up to 12.5 per cent, the tender should be awarded to the former. Mr Mahama said Cabinet expressed concern about the smuggling of low grade cocoa from neighbouring countries into Ghana and said COCOBOD has taken measures to protect Ghana's reputation in the cocoa industry.

One of such measures is closing the cocoa buying season earlier than scheduled. Cabinet urged COCOBOD to put on full alert its Quality Control Unit to ensure that some of the private buying agencies do not buy and store cheaper cocoa from neighbouring countries and offer them later for sale during the next buying season.

Mr Mahama said Cabinet approved for consideration of Parliament a loan of about 10 million dollars from Nordbanken International Finance of Sweden for the funding of rural electrification in the Greater Accra and Volta regions. Another loan agreement approved was 11.5 million dollars for the second phase of the Upper East land Conservation and Small holder Project.

The project will, among other things, increase agricultural production, check environmental degradation, alleviate poverty and thereby minimise the migration of the youth in the Upper East region southwards in search of non-existing jobs.

The Minister said Cabinet asked the Ministry of Education to take steps to explain in greater detail government's position on the increase of academic user fees in the universities. He said proposals submitted by the students for the funding of tertiary education were considered.

"Further consideration will be given to them for onward transmission to Parliament where necessary. Mr Mahama said cabinet also approved for Parliamentary consideration, an increase in the fuel levy by 80 cedis per litre for the years 1999 and 2000.

"The amount accruing from the levy would augment the budget for the routine and periodic maintenance of roads in the country." Mr Mahama said cabinet recommended for parliamentary ratification an agreement between the governments of Ghana and the US on the development of trade and investment relations.

The agreement seeks to provide respect for each other's sovereignty, remove a lot of trade barriers currently existing between the two countries, develop and promote co-operation between them for their mutual benefit.