Deputy Minister for Finance, Charles Adu Boahen
Parliament on Tuesday approved a facility agreement between the Government of Ghana and the Deutsche Bank AG and TMF Global Services (UK) Limited for an amount of €56,153,500 to finance the construction of trauma hospitals in Obuasi in the Ashanti Region and at Anyinam in the Eastern Region.
Part of the amount will be used to finance the construction of a modern accident and emergency centre at the Enyiresi Hospital in the Eastern Region and also rehabilitation of the Obuasi Health Centre.
The Facility Agreement was presented to the House on Wednesday, July 1, 2020 by the Deputy Minister for Finance, Charles Adu Boahen, on behalf of the Minister of Finance.
Pursuant to Article 103 of the 1992 Constitution and Orders 169 and 171 of the Standing Orders of the House, the agreement was referred to the Committee on Finance for consideration and report.
The projects are part of the government’s programme in line with the policy thrust of the Ministry of Health to reduce inequality in access to healthcare and increase coverage, quality and use of health services so as to achieve a healthier national population.
The government has declared its commitment to ensure the provision of health infrastructure to enhance the quality of health services delivery and also promote universal access to healthcare services in the country.
The Chairman of the committee, Dr. Mark Assibey-Yeboah, said the introduction of the National Health Insurance had enhanced financial access to health service, with increasing utilization of Out Patient Department (OPD) services nationwide.
According to him, despite the continuous increase in demand for OPD services in all regions of the country, the development of health infrastructure has not kept pace with the demand.
Terms and Conditions of the Loan
The cost of the project is €5,000,000 and requires an upfront fee of €825,000 (thus 1.50 per cent flat of facility and financed), agency fee of €178,500 (financed), legal fee of €150,000 (financed), and has a tenor of 10 years, repayment period of eight years, grace period of two years and an interest rate of 7.50 per cent per annum (fixed).
Project Description and Scope
Dr. Assibey-Yeboah said Obuasi and Anyinam would have construction of new trauma hospitals under the project, adding that there would be retooling and remodelling of Enyiresi Hospital.
According to him, the trauma hospital would have supply and installation of medical equipment and fixed furniture in the accident and emergency centres in addition to remodelling and equipping of the Mother and Child Health Department, among others.
The committee observed that at present Obuasi and Anyinam do not have any major government hospitals. The existing Obuasi Health Centre is currently ill-equipped and inadequate to meet the health needs of the burgeoning population of the catchment area.
Besides, the Enyiresi Hospital does not have a modern accident & emergency centre even though it is strategically located along the Accra-Kumasi highway.
This project is thus intended to provide the required infrastructure, medical equipment, ancillary facilities and services to ensure that the beneficiary hospitals are fully operational and befitting the status of modern hospitals with emphasis on trauma.
It would also provide the enabling environment for attracting the needed healthcare professionals to the respective facilities.
Project Execution Period
The project is expected to be completed within three years after commencement, other things being equal. There would also be an additional 365 days Defect Notification Period.
By Ernest Kofi Adu, Parliament House