Parliament approves €40m loan to support urban management project
Parliament on Tuesday approved a loan agreement between the government and Agence Francaise de Development of France for an amount of €40 million to support the Ghana Urban Management Pilot Project (GUMPP).
Mr James Klutse, Chairman of the Finance Committee, moved the motion for the adoption of the facility and seconded by Dr Anthony Osei Akoto, NPP Member for Old Tafo.
The terms and conditions of the Agreement include; €500,000 as grant amount, loan amount €40 million, interest rate of 1 per cent per annum, grace period of 10 years, repayment period of 20 years and maturity period of 30 years.
Mr Klutse said the loan is meant to support GUMPP to be elaborated, managed and implemented by each selected Metropolitan Assembly.
He said the core objectives of the project was to improve the living conditions of the population of the selected cities while reinforcing the capacities for the service delivery and accountability by designing a strategic, realistic and practical urban management project for each city.
He said activities to be carried out under the facility include the construction of markets, roads, landfills sites and abattoirs, adding, GUMPP will improve urban planning, street naming, property valuation and revenue mobilization in cities, improve the living conditions of the population of the selected cities and to introduce computer based mapping and GIS in the cities.
On taxes and duties, Mr Kluste noted that clause 2.2 of the Agreement requires the Borrower to apply all amounts borrowed under the facility exclusively towards the financing of the project, excluding all taxes and duties.
He said the borrower is also required to reimburse to the Lender all expenses, taxes and duties borne by the Borrower and which as the case may be would have been paid by the Lender, other than levies, taxes and duties payable in France.
Source: GNA