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Business News of Wednesday, 10 February 1999

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Mills launches Gateway Project

Accra (Greater Accra), 9 Feb. '99 -

Vice-President John Atta Mills today launched a seven-year Trade and Investment Gateway (GHATIG) project and called for all hands to be on deck to help achieve its target of boosting the country's socio-economic development. Prof. Mills who chairs the oversight committee on GHATIG, said the project will provide more jobs as well as enhance active and direct participation by the private sector in activities which were hitherto performed by either government or government agencies. The project, which is the first phase of a broader gateway programme, seeks to introduce a comprehensive set of reforms to attract a critical mass of export-oriented investment to kick-start export-led growth as well as facilitate trade. It is being financed with 56.5 million dollars from the Government, World Bank and local private investors. The World Bank is providing 50 million dollars, an agreement for which was signed by Mr Kwame Peprah, Minister of Finance and Mr Peter Harolds, World Bank Country director, shortly after the launch. Under the project, operations of some six front-line institutions and agencies which deal directly with investors would be improved and provided with the necessary infrastructural services. They are the Customs, Excise and Preventive Service (CEPS), Ghana Immigration Service (GIS), Ghana Civil Aviation Authority (GCAA), Ghana Ports and Harbours Authority (GPHA), Ghana Investment Promotion Centre (GIPC), Ghana Free Zones Board (GFZB) and the Environmental Protection Agency (EPA). For instance, under the GPHA component of the project, the Authority will be converted into a "landlord" Port Authority and the private sector will be invited to participate directly in port operations such as stevedoring and cargo handling, container terminals development and maintenance, and dockyards, among other things. Under the Civil Aviation component, the project will involve the institutional restructuring of the GCAA, charging it with safety regulations, pilot, carrier and facility licensing, air navigation and air traffic control. Prof Mills said commercial airport operations and development would be placed under the control of an independent airport authority. Other activities such as handling of passengers from aircraft to the terminal buildings and vice versa, the management of duty free shops, car parks, cargo village development and maintenance will also provide another attractive opportunity for direct private sector participation in the operations and activities at the airport. The gateway project therefore presents a serious but rewarding challenge to the private sector, Professor Mills said, and expressed the hope that the sector would make use of it. He said if well implemented, the project which was born out of the Vision 2020 policy programme, would make Ghana the prime trade and investment destination within the West African sub-region. Prof Mills conceded that all will not be rosy in efforts towards the achievement of the stated goals and reaffirmed government's commitment to and support for the project. "We do not pretend to be unaware of the enormity of the challenge that the programme presents, but we are determined to persevere until the envisaged goals have been accomplished." He said the project does not seek to vie with any efforts or similar initiatives being pursued by neighbouring countries, but rather complement them with the necessary support and services, especially to landlocked sister countries. Mr Dan Abodakpi, Deputy Minister of Trade and Industry, said it is a product of sustained participatory efforts to boost the economy. He said the project has ambitious targets which, he hoped, would be achieved within the stipulated period. He said as part of measures to ensure committed implementation, all key players would sign performance contracts towards success. "Failure of this project will mean a luxury which we cannot afford," Mr Abodakpi said and reiterated Vice-President Mills call for serious hands on deck. Mr Abodakpi said some 587 training programmes including workshops and seminars would be held between now and the year 2002. Mr Harolds said the World Bank has enormous confidence in the project and lauded the initiative of the project team, led by Mr Abodakpi. ''In my 18 years with the World Bank, I have never seen a project so well directed," he said adding that he was particularly impressed because it aims at increasing employment and development through "huge changes" in the sectors of the economy. "In the next five to six years, the gateway sites of the country will be enormously exciting." Mr Harolds said Ghana has great chances of becoming a base for development, trade and industry in West Africa. He urged the implementing team and the front-line institutions to remain steadfast to the challenges ahead. Mr Peprah, who chaired the ceremony, called on the various implementing agencies to complement each other's effort.