Parliament adopts report on 12.3 million dollar loan

Parliament on Wednesday adopted a report for a loan agreement of 12.3 million dollars from the International Fund for Agricultural Development (IFAD) to support the implementation of the Northern Region Poverty Reduction Programme (NORPRED).

The loan, which would be used to support the programme for six years, has a repayment period of 30 years including a grace period of 10 years with an interest rate of 0.75 per cent per annum. Apart from the actual loan, the Government of Ghana is expected to contribute 5.7 million dollars of which four million dollars would be for foregone duties and taxes.

A beneficiary community's contribution mainly in-kind, is estimated at 3.3 million dollars while the beneficiary District Assembly would support through the District Assemblies Common Fund with other resources to be provided by other external donors.

In its report, the joint Committee on Finance and Local Government and Rural Development said the NORPRED programme was a follow-up to the success of the Small Holder Rehabilitation Programme (SRDP) and IFAD's commitment to assist the Northern Region as spelt out in its 1998 country strategy.

The Committee said the facility would be utilised to improve the living conditions of poor rural communities by broadening rural development services as well as enhancing community and individual self-help capacity.

It said it would be done through the building of capacity of decentralised local government structures, civil society and community-based organisations to better respond to the needs of the poor communities of the region.

It also aims at improving access of poor communities, especially women to resources and services and put into operation on-going changes and efforts to enhance the efficiency and sustainability of institutions and community service providers in the Northern Region.

In their contributions to the report, members lauded the loan facility and urged the Ministry of Local Government and Rural Development to ensure that it was utilised for the intended purpose to alleviate the problems faced by the poor and marginalised people of the Northern Region.