Parliament adopts report on two loan agreements

Accra (Greater Accra) 26 May '99

Parliament on Tuesday adopted a report on two loan agreements totalling 18 million dollars for the implementation of the first phase of the Natural Resource Management Project (NRMP).

The first loan agreement for 9.3 million dollars is between Ghana and the International Development Association.

The second, the Global Environment Trust Fund Grant Agreement for 8.7 million dollars is with the International Bank for Reconstruction and Development.

Giving a background to the project, the report said the government in 1994 adopted a forest and wildlife policy aimed at conserving and sustaining the development of forest and wildlife resources for maintenance of environmental quality and flow of optimum benefits to all segments of society.

The report said in order to attain the objectives of the new policy, a forestry development master plan was launched in 1996 and subsequently, the NRMP was developed to implement the master plan and aspects of the National Environmental Action Plan (NEAP).

The NRMP aims at addressing major sector issues and to increase on sustained basis the supply of forest products through project interventions.

The development objective of the NRMP is to protect, rehabilitate and manage national land, forest and wildlife resources on sustained basis and to increase the income of rural communities who own these resources.

The report said the programme would be implemented in three phases, the first covering a two-year period with the second and third taking up four years each.

Under the terms of the first agreement, the loan, which is repayable in 30 years with a ten-year grace period, carries no interest.

The loan has a two-year disbursement period, a commitment charge of 0.5 per cent and a service charge of 0.75 per cent annually on the principal amount.

The Global Environment Trust Fund Grant has a disbursement period of six years, while 2.1 million dollars should be disbursed during the phase one of the Programme, the phase two would disburse 6.6 million dollars.

In its recommendation, the Finance Committee, which presented the report, urged the Ministry of Finance to ensure timely release of the 2.6 billion cedis counterpart fund for the successful implementation of the Programme.

The Committee noted that the untimely and in some cases, non-release of counterpart funding by the government, has seriously affected the implementation of donor-funded projects in the country.

Alhaji Collins Dauda, NDC-Asutifi South seconded the motion moved by Commodore Steve Obimpeh, Chairman of the Finance Committee, for the adoption of the report saying the loan is important because it would address an issue on, which the country's very existence depends.

He said among other things, the loan would help the implementation of the programme, which includes expansion of the forest cover that has been depleted for too long.

Mr Samuel Ofosu-Ampofo, Deputy Eastern Regional Minister and Member for Fanteakwa said the programme is laudable since it seeks to involve land owners to ensure that the little left of the country's forest resources are preserved and made sustainable.

Mr J.H. Mensah, the Minority Leader wondered how much wood the country would be producing after spending the loan under the 10-year phased programme.

He said the report does not make any reference to the production of wood adding that it is of utmost importance to know the rate at which the country is attempting to replace the depleted forest.

He said he is not against the raising of funds to finance agriculture, his worry was how the country was going to produce wood to help arrest the depletion of the forest.

Dr. Kwabena Adjei, the Leader of the House, in an apparent reference to the Minority Leader's contribution, explained that the programme goes beyond the production of wood.

The programme, he said, is aimed at conserving water, ensuring environmental stability and enhancing wildlife resources for food and stability in the ecosystem.