Parliament Approves Loans

Accra, Mar.11, GNA- Parliament on Thursday through separate resolutions approved two loan agreements for the education sector. With 128 votes, members approved a Development Credit Agreement between Ghana and the International Development Association (IDA) for an amount of 78 million US dollars to finance the Education Sector Project (EdSeP).

The second loan, a credit agreement between Ghana and the African Development Fund (ADF) was for 29.2 million dollars (Unit of Accounts 20 million) to finance the Senior Secondary School Development Project, was backed by a 127 votes.

The credit agreement for the Education Sector Project covers 30 years and has a 10- year moratorium. The project aims at promoting equitable access and efficient delivery of quality services in pre-tertiary education and to foster innovation and relevance in tertiary education.

Primary Gross Enrolment rate nationwide is expected to increase from 84 per cent to 100 per cent, between 2004 and 2009 under the project.

Seventy-five per cent of graduates from the Polytechnics, University for Development Studies (UDS) and the Kwame Nkrumah University of Science and Technology (KNUST) are expected to gain employment within 12 months of graduation as part of targets to be achieved at the end of the project.

For the Senior Secondary School (SSS) Development project, the overall goal is to contribute to the provision of uninterrupted quality education by increasing access and efficiency of senior secondary school in deprived areas.

The credit agreement for this project has no interest rate and has a maturity period of 40 years. Repayment is based on semi-annual instalment to commence on November 1, 2014 and end on May 1, 2044.