President launches Kumasi roads and urban development projects

President John Agyekum kufuor on Wednesday
launched the Kumasi roads and urban development projects at a ceremony
in Kumasi.
The projects, which are being funded by the Agence Franciase de Developpment (AFD) of the French Government at the cost of 25.5 million
Euros is made up of five components.

They are, the Sokoban Wood Village Access Road and Resettlement Enclave, the 3.2 kilometre Oforikrom-Asokwa By-pass, the Asafo to Ahinsan section of the Lake road, Lake Road interchange and landscaping of the banks of river Aboabo.


The projects are designed to provide the missing link of the ring road between Oforikrom and Anloga. It will also require the relocation of wood workers at Anloga, improve traffic flow on the lake road, remove the bottlenecks at major intersection between the lake road and the ring road as well as enhancing the environment.


The President used the occasion to cut the sod for the commencement of construction works on the Sokoban Wood Village Complex to resettle the Anloga wood workers.
The 100 billion cedis project will involve the construction of access roads from the Bulk Oil Storage Transport road to Sokoban village with walkways and a bridge over river Aboabo and landscaping.


Thirty five 24mx40m sheds for saw millers, 33 18mx36m sheds for carpenters, offices, sanitation facilities, canteens, police health posts as well as commercial buildings will be constructed.


Speaking at the ceremony, President Kufuor said Kumasi had over the past two decades witnessed a phenomenal growth in terms of population, size, social and economic activities, which had not been matched by commensurate infrastructural development, resulting in various forms of inconvenience, including unprecedented levels of traffic congestion.


He said to address the problem, the government with assistance from the AFD, undertook a major transportation planning and traffic management study in 2003 as part of the Road Sector Development Programme.

The President said as a result of the studies a number of strategies had been adopted to manage and improve traffic flow in the city in the short to medium and long terms.


These include the development of the arterial road networks, interchange development programme, traffic management and road safety improvement as well as public transport service improvements.


President Kufuor mentioned the dualisation of the Abuakwa-Komfo Anokye Teaching Hospital road, the dualisation of the Ahwiaa-Suame road and the upgrading of the Anloga junction, Sofoline and Suame Roundabout into interchanges, as some of the other road projects which would be implemented soon.


He said the government would pay fair compensation to owners whose properties would be affected to ensure that construction proceeded expeditiously.
The President charged the Department of Urban Roads to ensure the completion of the project not only within time and cost but also to specification.


He commended the French government for its continuous assistance to improve the road network and other infrastructure in the country. Mr Magnus Opare Asamoah, Deputy Minister for Transportation said the Kumasi Metropolitan Assembly (KMA) would own the Sokoban Wood Village and appoint a private firm to manage it in an efficient manner.


He said a further amount of 500,000 Euros had been allocated for the management of the resettlement of the Anloga Wood workers to the Village. Mr. Patrick Mollie, Secretary General of AFD, said one of the major challenges facing the Ghana government was how to improve urban infrastructure and services to the people.'


He said the Sokoban Wood Village project, which was expected to be completed by the end of 2007, would enhance productivity among the wood
workers.


He pledged the continuous assistance of the AFD to the government
to promote development in the Kumasi metropolis.
Mr Emmanuel Asamoah Owusu-Ansah, Ashanti Regional Minister, said the development of urban roads in Kumasi was very dear to the hearts of the residents.

He gave the assurance that, he would not allow anyone to unduly delay
the project and appealed to property owners to contact appropriate government agencies to resolve all issues relating to the project.

Mr Owusu-Ansah also charged the contractors and workers to ensure that
the project did not suffer undue delays.
GNA

"GNAT is committed to welfare of teachers"

The Ghana National Association of Teachers (GNAT) on Wednesday reiterated its commitment to ensure that teachers are well motivated to enable them to give off their best.

Mr Nathaniel Apronti, the Eastern Regional Secretary of GNAT, said this at a send-off ceremony for 20 retired teachers in the Birim South District at Akyem Oda.
He assured teachers that the association had negotiated good conditions of service for them and pleaded with members to exercise restraint.


Mr Apronti said what the association presented to the government was a completely new salary structure that took into consideration the prevailing cost of living in the country.


He said under the new proposals the association was demanding that all teachers' allowances should be pegged at a percentage of one's salary instead of the present situation where allowances were fixed.


Mr Apronti therefore called for co-operation from all teachers to enable the association to achieve its set goals and objectives.
Mr Kofi Appiahene Osei-Akoto, the District GNAT Chairman, expressed worry about the attitude of some parents and a section of the society who make unhealthy remarks about teachers.


He said such attitudes make children to lose confidence in their teachers adding that effective teaching and learning depended to a large extent on the confidence and respect that both parents and children had for the teacher.


Mrs Stella K. Nanor, the district Director of Education, appealed to teachers to help improve upon teaching and learning at all times to be able to produce quality graduates.

Mr Kwabena Bediako, the immediate past District Secretary of GNAT, was presented with a 24-inch colour television for his dedicated service.
The retired teachers were also presented with gifts.
GNA

Annan calls for tolerance

UN Secretary-General, Busumuru Kofi Annan on Wednesday called for the building of tolerant communities by affirming the notion of diversity.

In a statement issued in Accra by the UN Information Centre to mark International Day of Tolerance which falls on Thursday, Busumuru Annan said: “On this International Day of Tolerance, let us therefore reaffirm the notion that diversity - in thought, in belief, and in action - is a precious gift, not a threat, and let us seek to build more tolerant communities steeped in this essential ideal.”


Busumuru Annan noted that recent years had witnessed a sharp rise in intolerance, extremism and violence across our world, saying this disturbing trend was fuelled, in part, by a growing tendency to articulate differences in terms of identity rather than in terms of opinions or interests.


“As a result, individuals and entire communities are being targeted for brutality and violence, simply because of their ethnic, religious, national or other identity.

“Such threats, whether large-scale genocide; to the indignities of day-to-day bigotry, should trouble all of us. We must each strive to uphold the principles of tolerance, pluralism, mutual respect and peaceful coexistence. We must always be ready to correct stereotypes and distorted images, and to speak up for victims of discrimination.”


Busumuru Annan said combating intolerance was in part a matter of legal protection.
“The right to freedom of religion - and to freedom from discrimination based on religion - has long been enshrined in international law, and incorporated into the domestic law of many countries.


“But the law is only a starting point. Any strategy to build understanding must depend heavily on education – about different religions, traditions and cultures – so that myths and distortions can be seen for what they are.


“We must also create opportunities for young people, offering them a credible alternative to the siren song of hate and extremism. And we must work to prevent the media from being used to spread hatred, or inflict humiliation, while safeguarding freedom of expression.”


Busumuru Annan said in all of this, there was a crucial need for leadership by public figures and institutions. He said the United Nations in addition to its wide-ranging, long-standing work to promote and protect human rights, had launched an “Alliance of Civilizations”, aimed at bridging divides, and at overcoming prejudices and polarizations that potentially threatened world peace.
GNA

GDP rises to 6.2 per cent

Ghana's Gross Domestic Product (GDP) is pegged at 6.2 per cent this year, the Ghana Statistical Service (GSS) said on Tuesday.
Professor N. N. Nsowah-Nuamah, Acting Government Statistician, told the GNA that the rise from the 5.8 per cent was largely driven by the agriculture and the construction sectors.

He mentioned improvements in the cocoa sector, increases in construction of roads and bridges and demand for electricity as accounting for the rise.
"Even though we are experiencing power rationing and we thought that would affect industries, their demand for electricity rather went up leading to increase in production activities," he said.

Delivering a lecture on: "The Ghana Statistical Service and Ghana's Development Agenda"; Prof. Nsowah-Nuamah underscored the importance of statistics to national development saying it was fundamental to good governance and effective policy making.
Prof. Nsowah-Nuamah said; "GSS does not express opinion on public issues; our food is the raw data and we comment and interpret them as such".


He announced that because of GSS' long standing expertise and experience in data gathering with internationally accepted methodologies, some countries within the West Africa Sub-Region had expressed interest to study Ghana's example.


Besides, he said, the GSS would from next year launch its Information Dissemination Centre, which would be fully networked for the public to access.
The lecture formed part of the Service's week celebrations under the theme "Up-scaling Statistical Service Role in Statistical Planning for Dynamic Development".
GNA

Veep worried over adverse effect of high fuel prices on economy

The Vice President, Alhaji Aliu Mahama on Tuesday observed that the recent price hikes of crude oil is threatening the macro-economic gains, which the country had recorded within the past three years.

"These gains include a phenomenal lowering of inflation from over 50 per cent in 2001 to almost a single digit by the end of 2005. This feat and associated benefits were quickly undermined by the steep rise in crude prices on the world market at the beginning of this year," he said.


Alhaji Mahama was speaking at the end of a two-day Regional Workshop on Financing of Bio-Fuels and Jatropha Plantation projects in Accra, on the theme: "Financing Bio-Fuels and Jatropha Plantation Projects With Special Emphasis On Clean Development Mechanisms."

He said Ghana was determined to develop renewable energy as an alternative source to crude oil, adding that: " The focus is on bio-fuel, solar, wind and hydro energy."

He said such a project in West Africa would promote further cooperation between the Economic Community of West African States (ECOWAS) to reduce the stress on the fragile economies of the Sub-Region and free funds for investments in infrastructure and social services.

The Vice President said the creation of a Bio-Fuel Fund for Africa would be the first step to help the continent to develop the quest to reduce the use of fossil energy in favour of cleaner sources of energy.


The workshop was organised by the United Nations Conference on Trade and Development (UNCTAD) and the ECOWAS Bank for Investment and Development (EBID) with collaboration and support of the Common Fund for Commodities.


The workshop was aimed among other things at consolidating strategies and adopting a regional approach for the promotion and development of bio-fuels in Africa.

Professor Dominic Fobih, Minister of Mines, Lands and Forestry said the Indian government had committed 250 million dollars towards the development of bio-fuel in Africa.


He said the over 200 participants at the workshop had helped to streamline the successful initiatives in the development of bio-diesel to replace fossil fuel.
Mr Olle Ostensson, UNCTAD Chief Director of Commodities Branch, acknowledged Ghana's leading role in encouraging Jatropha plantation.

Bio-diesel is obtained from the conversion of natural oils such as vegetable oils and animal fats. Jatropha oil has been found to produce very high quality bio-diesel.


Mr Ostensson said by 2030 over million people in Africa would live without electricity, hence the need for the continent to explore alternative sources of energy at the backdrop of climatic changes, which has the potential of undermining industrial output.


Mr Christian Adovelance, President of the Bank of ECOWAS said in a speech read on his behalf that the increase of fuel prices from 40 dollars to 70 dollars within the past two years had affected industrial output and led to high budgetary commitments from governments in the Sub-Region.
GNA

AGI calls for Tax Holiday for Start-Ups Companies

The Association of Ghana Industries (AGI) has asked government to grant all domestic manufacturing start-ups a five-year tax holiday while it takes steps to impose a minimum duty of 20 per cent on imported finished products which could be manufactured locally.

Similarly, the association is calling for a special tax to be put on all advertisements of imported finished goods.

These recommendations are part of AGI's proposals for consideration into the 2007 Budget to be presented on Thursday November 16. Briefing members of the Parliamentary Select Committees on Trade, Industry and Tourism and Finance,
on the proposals, Mr Tony Oteng-Gyasi President of AGI said the time had come for government to adopt deliberate policies to encourage domestic manufacturing firms to contribute to the growth of the economy.

This, he said, was necessary to ensure that domestic companies did not only reduce their cost of doing business but also improved their productivity to stand the competition in the global environment.

"Any measure that will encourage manufacturing companies to increase their contribution to the national economy is welcomed," he said. Mr. Oteng-Gyasi said AGI was seeking the withdrawal of duty on all imported raw materials because imposition of taxes at the production stage turned to increase the cost of manufacturing and make the goods uncompetitive to imported ones.


He said the association held the view that shifting the tax from production to consumption would drastically reduce the cost of business and make the companies to become competitive.

Other concerns of the AGI are the delay in the payment of duty drawback, which it said, should be fast tracked, abolishing of the national Reconstruction Levy and other charges that it said, were impacting negatively on their cash flow.
Mr. Oteng-Gyasi also drew attention to high GCNet charges and called on government to abolish the ad valorem charges and fixed a minimum and maximum levels
of fees that could be paid by the importers.

He urged the Parliamentarians to study the Association's proposals and bring their concerns raised to bear on the debate on the budget on the floor of the House.
GNA

Bold budget expected

On Thursday, Kwadwo Baah-Wiredu will read the national budget statement on how taxpayers' funds, loans and grants will be spent next year and the government's plans to raise money to sponsor its programmes for the year.

Beyond the usual budgetary contents, the special thematic areas for the 2007 budget are a comprehensive public sector salary structure, immediate and long-term solutions to Ghana's energy crisis, and a refreshingly bold diversification of the government's sources of funding its expenditure. Public spending is expected to exceed the ¢45 trillion projected for 2007 in this year's budget. It is expected to hit ¢50 trillion (from ¢42 trillion in 2006), making it one of the biggest inflation-indexed increases ever in the country's history.

Top on the agenda is how Government aims to fill the massive funding gap in the country's development agenda. This year, for example, the various governmental sectors said they needed over ¢80 trillion to implement their ordinary programmes. In the final analyses, the system could raise just about half of that amount, with only about ¢27 trillion of that from total revenue (taxes and other domestic funds), and the rest from bilateral and multilateral loans and grants.

But, in an exclusive interview with The Statesman yesterday the Minister of Finance and Economic Planning disclosed a significant historic dimension to Government's funds mobilisation exercise beyond the traditional sources such as the IMF, World Bank, and bilateral arrangements.

He says that a huge chunk of what is required to undertake government projects, particularly social infrastructure, can be expected to be sourced from the international money market, exploiting Ghana's attractive sovereign credit rating of B+.

This, some analysts believe, can easily add about $1 billion a year to the development kitty, depending on how boldly President John Agyekum Kufuor and his finance minister are prepared to act.

But the signs are good. In mid-October, the African Development Bank, in collaboration with Standard Chartered Bank, made the first ever Eurobond issue with the cedi. They expected to raise $20-$30 million in the two-day issue. They ended up selling $45million of the two-year fixed rate Eurobond, after the issue was encouragingly oversubscribed.

"We had to cut it off when the book size reached $45 million," said Ade Adebajo, director, debt capital markets-Africa at Standard Chartered. "It is the capital market that is best equipped to provide the long-term capital that is needed for our infrastructure needs as well as the needs of the private sector," Deputy Finance Minister Anthony Osei Akoto remarks. On the local front, Government of Ghana Bonds were this year traded for the first time on the Ghana Stock Exchange, another commitment made in the 2006 budget to deepen the local capital market included a commitment to use the Accra bourse as the preferred mechanism for the divestiture of state enterprises; and supporting the Securities and Exchange Commission to develop and strengthen regulation of the over-the-counter market. The process is ongoing to list the State Insurance Company and Ghana Oil Company on the bourse.

Also speaking to The Statesman yesterday, Osei Akoto says the budget will make provisions for dealing with the country's energy crisis. Newmont, AngloGold Ashanti and Goldfields are among the leading companies projecting significant reductions in profits this year due to the current load-shedding in electricity. But, checks made by The Statesman indicate that small and medium size enterprises are taking even greater financial hits, especially in the manufacturing sector.

The Deputy Minister says "We need to deal with the short-term problems to assure improvements in power supply." He also hinted that Government's recent gesture to absorb the latest tariff increases will not be sustained. "We cannot continue to absorb tariff adjustments."

His boss added that for the medium to long term, the Bui Dam project will be on stream. Also, the budget will signal a bold attempt by Government in the search and application of alternative sources of energy, Mr. Baah-Wiredu says. He further disclosed that in line with calls, including the latest from the Okyenhene, for a greater level of decentralised empowerment, Government is to undertake a radical decentralisation of public departments, which is expected to streamline financial administration and enhance overall efficiency in governance.

In line with this, the Local Government Council is organising this week a three-day strategic communication workshop for Chief Directors and Directors of Ministries, Departments and Agencies to discuss their integration into the Metropolitan, Municipal and District Assemblies.

The MDAs are to be classified under 11 decentralised departments. This should substitute the current system of deconcentration into one of devolution, with functions previously performed by branches, divisions or units of the departments to be transferred to the assemblies, the capacity of which are to be enhanced.

Government is expected to learn lessons from the implementation of the Public Procurement Act, 2004, which has been fraught with problems. Though welcomed as an excellent law against corruption, it has led to untold delays in the award of public contracts. Some have described the law as "cumbersome", but the majority view is on the lack of capacity to see it work smoothly.

Ironically, the decision to read the budget in November of the preceding budget year is supposed to help the MDAs undertake their annual

programmes within the budget year. But, delays in the new procurement process are having their toll.