After a heated debate on the Finance Committee’s report on a loan facility for the establishment of the University of Environment and Sustainable Development’s satellite campus at Bunso in the East Akim Municipality of Eastern Region, Parliament has deferred the approval of a US$90 million loan facility from the Export and Import (EXIM) Bank of Korea.
The First Deputy Speaker of Parliament and MP for Bekwai, Joseph Osei-Owusu, who presided over the sitting pointed out that the motion on the committee’s report is supposed to be moved by not less than 50 percent of members present.
“The number of members present is less than 50 percent. 138 members constitute 20 percent but members present in the chamber now is 137, which is less than 50 percent. We therefore cannot move this motion”, he disclosed.
The motion on the committee’s report was deferred due to less number of members to form a quorum.
Finance Committee’s report on the US$90 million Korea facility loan
The purpose of the project is to establish a University of Environment and Sustainable Development campus at Bonus in the Eastern Region with the view of improving equitable access to tertiary education in the region. The aim is to establish a centre of excellence in agro-entrepreneurship, engineering and technology training and research, especially, in Ghana and Africa. The University will focus firstly on satisfying the human resource demand from Ghana’s local and national industries.
In the report, the total cost of the project is estimated at US$107,563,054 of which US$90,000,000 is to be borne by the Korean Government under the Economic Development Corporation Fund (EDCF) facility and the Government of Ghana is expected to bear US$17,563,054.
Under the Terms and Conditions of the credit, Interest Rate is 0.1 percent and the Maturity Period is forty years while the grace period is ten years. Repayment of the loan facility will be done in equal semi-annual installments after the grace period.
Interest payment on the loan is to be paid every six months in arrears on outstanding balances of the loan. Service Charge consists of 0.1 percent of the amount of each disbursement or the amount of the letter of commitment.
Grant element is made up of 66.78 percent whilst Overdue Charge covers two percent per annum over the interest rate.
Source: GhanaJustice/S.Ayisi
