2009 BUDGET (3)

For the implementation of the above activities, an amount of GH ¢202,629,307 has been allocated. Out of this, GoG is GH ¢60,541,825, IGF is GH ¢3,210,940, Donor is GH ¢138,876,542

Cocoa Industry
Government will give all the required support to the cocoa sub-sector to ensure that it achieves its maximum potential to enable the sub-sector enhance its significant contribution to the growth of GDP, foreign exchange earnings, employment generation and poverty reduction in the country

Performance in 2008
During the early stages of the 2007/2008 Crop Season, the producer price paid per tonne was GH¢950.00, about 70.97 per cent of the net fob. It was subsequently increased in February, 2008 to GH¢1,200.00, representing about 74.62 per cent of the net fob price.
The Ghana Cocoa Board (COCOBOD) purchased 680,780.00 metric tonnes of cocoa in the 2007/2008 Main Crop Season, paid GH¢21,214,468.62 to cocoa farmers as the first tranche of bonus and intensified its Diseases and Pests Control Programme (CODAPEC).
The COCOBOD continued its Hi-Tech programme by encouraging the use of fertilizer application and improved planting materials in the 2007/2008 Crop Season. Domestic Processing
The current installed domestic processing capacity is around 313,000 mt. It is in line with the target of processing 50 per cent of cocoa beans locally by the year 2010/2011 as a medium term policy of the previous government.

Financing Arrangements
for Cocoa Purchases
In the 2007/08 Crop Season, the COCOBOD secured a pre-export trade finance facility of US$900.0 million from external and local financial institutions to support cocoa purchases.

Rehabilitation and Tarring of Cocoa Roads
The COCOBOD has embarked on the tarring of selected roads in the remote cocoa growing areas to improve efficiency of cocoa evacuation. Consequently, contracts have been awarded for the tarring of over 600 km of cocoa roads

Special Housing Scheme
The Cocoa Farmers Housing Scheme seeks to provide affordable houses for cocoa farmers. The department of Rural Housing (DRH), the Implementing Agency, has completed the construction of 10 unit houses in the Western Region. The programme has been extended to the Central, Ashanti and the Brong Ahafo Regions.

Warehousing Complex
In the 2007/2008 crop year, a 50,000 mt capacity Warehouse Complex (Dzata Bu) was inaugrated in Tema. Conveyor belts have been installed at the warehouse complex to facilitate easy loading of cocoa.

Cocoa Scholarship Scheme
The scholarship scheme which offers financial aid to children and wards of our cocoa farmers was given tremendous support during the 2007/2008 Crop Season. An amount of GH¢ 2,000,000.00 was used to support the scheme. Currently there are about 7,500 wards under the Scheme.

Cocoa Certification/Child Labour Issues
The COCOBOD intensified its sensitization programme on the elimination of the worst forms of child labour in cocoa production and also provided monetary support to the National Programme for the Elimination of Child Labour in Cocoa (NPECLC) in the cocoa sector to enforce the child labour provisions in various legislations and also to respond to international concerns about child labour abuses on cocoa farms in West Africa, as reflected in the Harkin-Engel Protocol.
The cocoa labour survey and the preparation of the Cocoa Certification Report which is a requirement under the Harkin-Engel Protocol was completed. The International Cocoa Verification Board (ICVB) has accepted the 2008 Ghana Certification Report (GCR).
The COCOBOD has established a Stabilisation Fund of GH¢29.30 per ton to provide guaranteed stable incomes for cocoa farmers in the event of a drastic fall in the world market prices of cocoa beginning from the 2008/2009 Crop Season.

Shea-nut Industry
The COCOBOD assisted shea-nut farmers with wellington boots, hand gloves and anti snake-serum in order to promote the growth and development of the shea-nut industry in the country and to increase the incomes of shea-nut farmers. COCOBOD also provided funding for three licensed buying companies to purchase shea-nut from farmers.

Outlook for 2009
The COCOBOD will continue to pay the farmer a guaranteed price of not less than 70 per cent of the net fob price. COCOBOD will pay the remaining tranche of bonus of GH¢21,214,468.62 for the 2007/2008 Main Crop Season at the end of June 2009. The COCOBOD will also continue the control of the swollen shoot virus disease and improve the efficiency in the implementation of the programme.
Government will commit itself to the domestic processing of cocoa to provide more incentive packages for local production.
Additional incentives will be given to companies engaged in the tertiary processing of cocoa to produce chocolate and confectionery. This will help to achieve the 60 per cent target for local processing of cocoa and increase foreign exchange earnings from the export of cocoa products, as targeted by the NDC.
For 2008/09 crop year, COCOBOD has raised funds to the tune of US$ 1 billion to support the purchase of cocoa for the Crop Season. COCOBOD will also create an enabling field for local banks to participate actively in loan syndication for cocoa purchases.
In addition, the COCOBOD will make available the necessary funding for rehabilitation and tarring of roads in the major cocoa growing areas. About 100 houses will also be completed under the Special Housing Scheme for Cocoa Farmers. Furthermore COCOBOD will construct 100,000 metric tons capacity warehouse in Takoradi.

Coffee Production
The COCOBOD will continue to provide resources for scientific/agronomic research and extension in coffee production with the view to making the industry viable. COCOBOD will pursue activities towards increasing production levels of the crop.
Some of these are the identification of existing farmers and their farms, organising farmers’ fora as well as radio programmes in coffee growing districts to disseminate information on good agronomic practices to the farmers, conducting a survey of coffee propagation structures with a view to rehabilitating these facilities and establishing coffee seed gardens to supply elite planting materials to farmers.

Ministry of Lands and Natural Resources
The Ministry seeks to ensure sustainable growth and accelerated wealth creation within an environment consistent with sound land use and administration, sustainable forest and wildlife management.

Performance in 2008
Lands Sub-Sector
The Lands Commission Bill was passed with new institutional arrangements for land administration. This established a commission with four functional divisions namely survey and mapping, land registration, land valuation and state and vested lands management. An organization, management and operations study to define the capacities and appropriate skill mix for the new agency is ongoing.
A total of 28 Customary Land Secretariats were established in 2008 with regional distribution as follows: four in Greater Accra, two in Eastern, one in Volta, two in Western, two in Central, three in Brong Ahafo, three in Northern, two in Upper West, three in Upper East and six in Ashanti. This brings the total number to 38.
The Ministry concluded the inventory of state acquired/occupied lands and began finalizing policy proposals and implementation of lands already inventorised. Government decided that portions of lands acquired for the Accra Training College, Madina Social Welfare, West Africa Secondary School, Odorgonno Secondary School and the Ghana Atomic Energy Commission be given back to the original owners.
Government also directed that the encroachments on sites acquired for the Abeka Sports Complex, Ofankor Police Depot and Training School, Ofankor residential area and others be regularized by the Lands Commission.
A contract was awarded for the procurement of equipment for the establishment of the five permanent geodetic reference stations in Accra, Kumasi, Takoradi, Tamale and Bolgatanga. The Ministry also applied to the National Communications Authority for licenses for the frequencies needed to operate the radios on the equipment.
The Survey Department produced three Sectional Maps. Out of these three, two were approved for use whilst one is undergoing checks for approval.
The department also produced a total of 2,884 individual plans made up of 1,241 cadastral plans and 1,643 parcel plans. In addition, a total of 26 applications for composite plans were received, out of which 19 were completed for settlement of disputes.
The Survey Department embarked on the production of Orthophoto maps of selected areas for land use planning throughout Ghana. Pre-marking of photoblocks were successfully completed. On customary boundary demarcation, the first phase for Ejisu was completed and the second phase is ongoing. Work in the Wassa Amenfi Traditional Council also started.
To speed up land titling, the Land Title Registry (LTR) has embarked on systematic titling in Kumasi and Accra. Maps covering North Labone and Ringway Estates in Accra involving 1,400 parcels were produced.
The registry also re-surveyed two sectional maps using Digital Plane Tabling (DPT). The Land Administration Project has procured 16 additional DPT to encourage its use by professional surveyors in the country. In addition, two satellite offices of LTR are operational in Accra.
The Land Valuation Board (LVB) continued the supervision of private sector participation in inventory of state acquired and occupied lands in 10 pilot districts in Brong Ahafo, Eastern and Ashanti Regions.
The others were Yilo Krobo, Manya Krobo, Suhum-Kraboa-Coaltar and Birim South in the Eastern Region. The others were Amansie East, Atwima-Nwabiagya and Sekyere West in the Ashanti Region and Sunyani, Techiman and Wenchi in the Brong Ahafo Region.
The LVB assisted 12 Metropolitan/Municipal/District Assemblies to revalue properties in their jurisdiction for revenue generation purposes. These assemblies were Accra Metropolitan, Twifu – Hemang Lower Denkyira District, Sekyere East District, Techiman Municipal, Assin South District, Ga West Municipal, Amansie East District, Sunyani Municipal, New Juaben Municipal, Cape Coast Municipal, West Akim District and Tema Municipal District. The revaluation of properties also started in three district assemblies namely Dangme East, Manya Krobo and Kpando.
A consultant completed a study on the development of a computerized mass appraisal system to develop a national database for land valuation.

Forestry and Wildlife Sub-Sector
The Forestry Services Division (FSD) harvested a total of 21,849 plantation trees with a volume of 5,466.73m3 from off forest reserve areas while 184,813 trees with a volume of 62,752.81m3 were harvested from on reserve areas during the year.
In addition, a total of 1,116,069 seedlings of various species were raised by FSD and private nurseries during the period which exceeded the target of 1,021,680 by 10 per cent.
To increase the nation°os forest cover by 10,000 hectares annually, FSD surveyed and demarcated 1,440 hectares under the Community Forest Management Project (CFMP) and 178 hectares under FSD model plantation programme.
The division also prepared 195 hectares under the Modified Taungya System, 152 hectares under the FSD model plantation programme and 891 hectares under the CFMP. About 789,050 seedlings were delivered under the modified taungya system and 104,434 seedlings of various species were raised in FSD nurseries during the period under review.
Under the HIPC Plantation Programme 1,127 hectares were surveyed and demarcated during the period. In addition, 1,405 hectares were prepared and 752,000 seedlings were delivered for planting. The programme still maintained the 12,100 workers engaged previously to continue with this year’s target.
The HIPC Plantation Programme has also accomplished the establishment of 26,600 hectares of plantation forest. It has facilitated the establishment of 15,000 hectares of plantations in off-reserve forests under its CFMP, whilst 3,000 hectares under its Urban Component were planted. The programme also supplied 4,000,000 seedlings to the Greening Ghana Programme.

Wildlife Division (WD)
The Division constructed 16km of Asibey Loop and 10 km of Grugbani road, and rehabilitated 30 km of Grugbani-Stup Hill-Lovi as Mole access roads.
The Accra Zoo took delivery of five camels donated by the Libyan Government. This has improved the number of exhibits in the Mini Zoo at Achimota Forest. In addition, Wildlife Division inaugurated Community Resource and Environmental Management Areas (CREMA) at Mognori near Mole National Park and trained Community Collaborative Unit staff.
Under the Institutional Capacity Development Training Plan, 150 Wildlife guards in Bia and Digya National Parks were trained. Revised syllabus for training of Wildlife Rangers was prepared.
The Voluntary Partnership Agreement (VPA) was signed between the Government of Ghana and the European Union. A Memorandum on Climate Change was submitted to Cabinet.
Ghana’s Readiness Project Idea Note (R-PIN) among other country proposals for reducing emissions from deforestation and degradation (REDD) under the World Bank Forest Carbon Partnership Facility (FCPF), was reviewed.

Outlook for 2009
Lands Sub-Sector
The Ministry will complete the drafting of a new Lands Bill that will consolidate and update all the laws dealing with land ownership and tenures, land administration, surveying and mapping and land use planning.
The new Lands Commission Act 2008 (Act 767) will be implemented to create a new institutional framework for land administration. The construction of a new head office building for the new Lands Commission will begin. Computerization of the business processes of the new Lands Commission will also start. Intelligent scanning will be undertaken of the land registry records in Accra to enable the records to be sorted according to regions for the newly established land registries.
The central records of the new Lands Commission will be re- organised to ensure efficient land administration service delivery.
The establishment of a new Geodetic Reference Network for the entire country will be completed. The allodial boundaries of ten customary land authorities will also be demarcated and surveyed, and the titles registered in the Land Registries. Besides, systematic land titling to register 10,000 properties in Accra and Kumasi will be undertaken using the private sector.
In addition, a gender strategy for land administration will be completed and implemented.
The Valuation Services Division of the Lands Commission, in collaboration with selected district assemblies will carry out the revaluation of properties in order to update values of the properties as well as to bring on board the Valuation List new developed properties.
The assemblies are East Akim Municipal, Adenta Municipal, Atiwa District, Nkoranza District, Ho Municipal, Sunyani Municipal, Fanteakwa District, Birim South District, Birim North District, West Akim District, Sefwi Wiawso District, Kwahu West Municipal and Ashiaman Municipal.
To improve the cost effectiveness of rating valuation services, 12 district assemblies will have their valuation processes computerised. In addition, the Valuation Services Division will also organize sensitization seminars and workshops on improving property rate revenue generation for selected district assemblies’ staff in 9 districts.
337.
The Land Title Registration Division will continue with the registration of all transactions relating to land in declared districts, developing, keeping and providing readily accurate information on interests in land to the public. The Division will also provide security of tenure to land.
The Ministry and Office of the Administrator of Stool Land will develop guidelines for the utilization of royalties by District Assemblies to ensure that communities benefit directly from revenue generated from their areas.

Forestry and Wildlife Sub-Sector
A distance of 18,000 km of both internal and external forest reserve boundaries will be maintained during the year. FSD will continue with its routine inspection of both internal and external boundaries. Also, patrol duties will be undertaken in off-reserve and other forest reserves.
To promote the increase of the national forest cover by 20,000 ha annually, the following mainstream activities will be undertaken.
About 1,000,000 seedlings of various species will be raised in FSD nurseries. Private and community tree seedling producers will also raise about 25,600,000 seedlings of various species.
In addition, 20,000 ha will be surveyed and demarcated, and prepared for planting. An estimated 26,600,000 seedlings of various species will be delivered for planting.
Additional 22,000,000 pegs will be cut to plant both on and off reserve areas. Companies that have been allocated degraded forest reserve areas, and contrary to the terms of the allocation failed to develop plantations will have the areas taken back. About 12,600 jobs will be created and an estimated 160,000 mt of food crops will be produced from the plantation areas.
67 field staff of the Wildlife Division (WD) will be trained by the Mobile Training Unit in weapon handling and
wildlife laws for effective enforcement. In furtherance of this, the 6,750 sq km of land under the units will be covered in day and night patrol duties, to arrest and prosecute poachers.
The trans-boundary collaboration between Kyabobo nand adjoining FAZAO National Park in Togo will continue. Socio-economic studies in and around Ankasa to explore the possibility of establishing more CREMAs around Ankasa Conservation Areas will also be carried out.
The Timber Industries Development Division (TIDD) will disseminate results of the study on the removal of pungent smell in Dahoma. It will also review and publish prices of wood export. About 1,200 copies of monthly export statistics report will be produced and disseminated.
In collaboration with Ministry of Trade and Industry (MOTI), TIDD will submit proposals for participation in creating a furniture city in the Tema Multi Purpose Industrial Park and also create public awareness of new species for building and construction.

Mines Sub-Sector
The Ministry will continue to explore, exploit and manage the country’s mineral resources on sustainable and environmentally friendly ways. To control negative impact on communities bordering mining locations, the Ministry will continuously monitor all mining operations as well as exploration companies to ensure compliance with the requisite mining agreements.
The Ministry will encourage the diversification of the mineral base to reduce over-dependence on few precious minerals. In this connection, the result of the airborne geophysical survey and the geological maps will be packaged for investors and mapping for base metals and other metals will be carried out
The Ministry will work to improve the relationship between mining companies and mining communities. Among the activities to be pursued include organising regular meetings with mining NGOs and civil society organizations, radio discussions on FM stations to disseminate information to ensure successful implementation of alternative livelihood projects in mining communities.
Government will continue to address social issues in mining communities including equitable distribution of mining revenues.
The Ministry will draft guidelines on the use of mineral royalties by District and Municipal Assemblies and undertake surveys to establish baseline data on social conflicts in mining communities.
For the implementation of the above activities, an amount of GH ¢80,034,267 has been allocated. Out of this, GoG is GH ¢14,097,316 IGF is GH ¢37,518,900 Donor is GH ¢18,418,052 and HIPC is GH ¢10,000,000

Ministry of Trade and Industry
The Ministry aims at developing a vibrant technology driven, competitive industrial sector that significantly contributes to economic growth and employment creation, particularly involving mass mobilization of rural communities and other vulnerable groups including women.

Performance in 2008
A number of legal, regulatory and institutional reform programmes were completed by the Ministry. These included a study on Effective Rate of Protection (ERP), establishment of Trade Tariff Advisory Board, installation of equipment for the electronic tracking of trucks for Transit Trade, offered credit to 100 MSME through the BDS funds and drafted the Competition Bill for submission to Cabinet.
The Ministry also developed and operationalised the Technical Barriers to Trade/Sanitary and Phyto Sanitary (TBT/SPS) website, a draft Consumer Protection Policy and designed Model Markets for Municipal and District Assemblies.
Under the Gateway Project the following construction works are nearing completion. These are the construction of Flyover Bridge and Access Road within Tema Port and the Tema Multi-Purpose Industrial Park (TMPIP), the installation of permanent power supply and distribution, construction of roads and side drains, water supply and distribution, power supply and distribution, and the construction of a security fence wall at the Tema multi-purpose industrial park.
As a result of efforts by Ghana Export Promotion Council (GEPC) to improve market access, orders worth over US$20.0 million were received for medicinal plants and seeds.
The market access programmes undertaken included Rand Show, Johannesburg – South Africa, SIDIM Fair in Montreal, Canada, Vita Foods International 2008, Geneva –Switzerland, African Fair 2008, Tokyo – Japan, Joint Agric Show held in Tehran -Iran during the Ghana-Iran Permanent Joint Commission for Cooperation meeting and the Royal Agriculture Show 2008, - United Kingdom.
GEPC has also established four mango nursery centres located at Ho and Nkonya-Kwamekrom in the Volta Region, Kpalo-Salaga in the Northern Region and Ada-Afiadenyingba in Greater Accra Region, involving a total of 120,000 grafted seedlings of export variety exotic mangoes.
Under the Cassava Starch PSI, 65 acres of high-cassava-starch-content planting material for multiplication were cultivated near Kasoa in Central Region. This is to enable the PSI to increase the output of raw material for starch production
To make available trained workforce for the garment industry, 2,000 sewing machine operators were trained. Apart from this, officers participated in Apparel Shows in the USA which resulted in securing orders to the tune of US$2.5m for the production of sportswear, ladies’ and Men’s wear, and overall uniforms.
The Ministry under the District Industrialization Programme provided financial support to the following companies; Dormaa Hatchery Project, N&C Foods, Northern Star Tomato Company, Pwalugu, Volta Star Textile Company, Juapong.
The National Board for Small Scale Industries (NBSSI) organized Business Improvement Programmes for 5,600 enterprises and provided Advisory and Extension Services to 10,500 entrepreneurs to enhance their efficiency.
Additionally, 80 micro and small enterprises were supported to improve product packaging and quality. Training seminars were organized for over 1,000 students aimed at enhancing their capability to start their own business.
Through the GRATIS Foundation over 300 rural women were trained in various employable skills, including in batik and tie and dye production and marketing.
Furthermore, 74 final year apprentices graduated and took the Craft Certificate Examination (CCE) of the Ghana Education Service (GES). Sixty-four (64) new technical apprentices were also placed on a three-year apprenticeship training programme in metal machining, welding and fabrication, foundry and woodwork.
The Ghana Standards Board (GSB) intensified its inspection activities at the Ports including critically examining over 120,000 imported high risk goods. Additionally, 1,337 health and export certificates were issued to exporters to enhance export competitiveness. About 837 export consignments, factories, fishing vessels and manufacturing establishments were inspected.
The Ministry successfully hosted the UNCTAD XII Conference to bring to the fore trade and development issues confronting the world.

Outlook for 2009
The Ministry will monitor and improve the quality of trade and industry data in collaboration with the Ghana Statistical Service (GSS). The Ministry expects to issue the Quarterly Trade Statistics Bulletin to promote decision making.
The Ministry will develop an Industrial Sector Policy to complement the Trade Sector Support Programme currently being implemented under the Ghana Trade Policy.
The Ministry is engaged in several parallel international trade negotiations. Consequently, the Ministry will require improved capacity, institutional strengthening and appropriate negotiation skills. This has necessitated the design of a capacity building programme. The Ministry will also re- establish the Inter-institutional Committees to ensure effective coordination with other stakeholders.
The Ministry will establish a Trade and Tariffs Advisory Board to promote a transparent tariff regime to ensure a level playing field for all economic operators. This will be a front runner to the establishment of the Ghana International Trade Commission.
In this regard, the Ministry will facilitate the establishment of shea nuts processing factories in the three Northern Regions with the capacity to produce 50,000 metric tons of shea butter per annum.
The Ministry will facilitate an integrated development of a viable petro-chemical industry in order to take full advantage of the exploitation of crude oil to produce fertilizer, PVC granules and other related products. The production of caustic soda, based on local salt production will be promoted.
The Ministry will undertake feasibility studies to ascertain the establishment of basic industries to support Ghana’s developmental efforts. In this regard, the focus will be on the development of such industries as iron and steel, brick and tile, as well as, clinker and cement production to create jobs
and wealth, especially at the districts. The Ministry will also assess the feasibility of reviving the textiles industry based on an integrated approach to revamp the textile and garment industry.
The Ministry will facilitate the use of appropriate incentive schemes to enhance credit delivery to MSMEs using EDIF, EXIM Guarantee and Development Banks, especially the National Investment Bank (NIB).
The Ministry will pursue efforts to enhance global and regional competitiveness of products from the country.
In this regard, an industrial support centre to coordinate assistance to firms to become internationally competitive will be established in consultation with PEF, AGI and GNCCI.
In order to reduce the volume of sugar importation and other allied products, the Ministry will support the setting up of an integrated sugar manufacturing project to produce sugar and ethanol in the Savelugu-Nanton District of the Northern Region. A by-product of this venture will be electricity.
The Ministry will establish a web-based product gallery to showcase made-in-Ghana goods. Additionally, the National Friday Wear Programme will be expanded to the districts to enhance patronage and create demand for made-in-Ghana garments and textiles to create jobs and wealth.
The Ministry will develop a National Export strategy to provide a strategic direction and road map for refocusing national efforts to achieve a quantum leap in exports.
In addition, CEPS Procedures will be simplified and the Remote Controlled Entry System for Customs Declaration strengthened as a means to facilitate Trade in Ghana.
The Destination Inspection Scheme will be reviewed with stakeholder participation to agree on the way forward in the area of customs inspection and valuation. In addition, CEPS procedures will be simplified and the electronic entry system for Customs Declaration, GCNet, strengthened. Preparation will also commence for the formulation of the second phase of the Gateway Programme to sustain the gains made under the first phase which ends in December 2009.
To boost Ghana’s Trade relations with the French-speaking countries, particularly in the West African Sub-region, the Ministry will support the training of 360 officers in the Public and Private Sectors in Business French over the next three years.
The Ministry will commence reforms aimed at overhauling Ghana’s quality infrastructure regarding Standards, Quality Assurance, Accreditation and Metrology (SQAM). This is to ensure consumer safety as well as meet international best practice, and clarify the role of standards setting and enforcing institutions.
The Ministry, in collaboration with the Ghana Institute of Quality will continue to organize workshops on Quality Management Systems to enable SMEs appreciate and install quality management system at the firm level. This is a strategic objective to enhance their competitiveness in both local and export markets.
The Ghana Standards Board (GSB) will be supported to offer technical support services to exporters in order for them to overcome technical barriers to trade (TBT) as well as to help them meet Sanitary and Phyto-Sanitary (SPS) requirements.
The Ministry will also set up an effective National Alert System to inform exporters about issues regarding sub-standard goods and changes in requirements regarding export products.
The National Board for Small Scale Industry (NBSSI) is being reconstituted and strengthened to provide technical and financial support for MSEs. In addition, the Ministry will support the decentralized Business Assistance Centres (BACs) in the districts to deliver quality integrated services to target MSEs. About 30,000 MSEs will be equipped with business improvement skills to enhance their production and marketing capabilities.
The Central Regional Development Commission (CEDECOM) will be strengthened to enable it expand its programmes and projects that contribute to job creation and poverty reduction in the Central Region.
The Ministry will strengthen the Ghana Export Promotion Council (GEPC) to provide world class export support services to exporters through market access facilitation, product development, trade information delivery, capacity building and coordination of national export agenda. In addition, Export Trade Houses will be established to address the supply response of Small and Medium Enterprises (SMEs) in the export sector.
The Ministry will support the GRATIS Foundation to train 200 technical apprentices in metal machining, welding and fabrication, wood work and foundry.
GRATIS will also be equipped to design and prototype 4 new products namely: oil expeller, mechanical drier, hammer mill and mechanical cassava harvester.
For the implementation of the above activities, an amount of GH¢72,296,148 has been allocated. Out of this, GoG is GH¢9,740,064 IGF is GH¢11,844,500 and Donor is GH¢50,711,584

Ministry of Tourism
Tourism has economic potential far beyond its current performance. It is estimated that with the strong support by Government, tourism can become a lead foreign exchange earner and an economic engine for wealth creation, employment generation and poverty reduction within a short time.
The Ministry therefore seeks to use tourism as a tool for poverty reduction. In this regard the Ministry will decentralize tourism development and focus on community-based tourism.
To achieve this objective, Government will facilitate the improvement in standards of tourism attractions to promote patronage, develop efficient marketing strategies and enhance quality services of the hospitality industry.

Performance in 2008
The Ministry participated in six international conferences overseas and organized one international Seminar in Accra. These included the High Level Diaspora led investment as sources of financing for enhanced growth and development in Africa,(Cape Town South Africa), the first US Africa Tourism & Sports Seminar – “Making Africa the World’s next premiere travel destination (New York), Diasporan International Conference (Sydney, Australia).
The Ministry also hosted the UNWTO Regional seminar-workshop on “Tourism and Handcrafts: Two key sectors to contribute to poverty reduction and Economic Development in Africa” in Accra, Ghana. It also organized four Annual Events namely; National Chocolate Day, Para-Gliding, Emancipation/Joseph Project and World Tourism Day Celebrations.
Other activities undertaken include: the printing of 30,000 promotional brochures which were distributed to target groups, 2,186 accommodation and catering establishments in both formal and informal sectors inspected and issued with operational licenses as part of ensuring standards and quality service delivery, completed the construction of new building for Ghana Tourist Board Head Office and held on 8th National Tourism Awards for industry practitioners to promote competition and excellence in service delivery.
The Ministry organized training for 106 members of staff in various professional and industry related courses to improve service delivery. It also organised training for 5,386 hospitality service providers to enhance service delivery during CAN 2008.
The Hotel, Catering and Training Institute (HOTCATT), a training wing of the Ministry, offered pre-industry training for 239 school leavers in the following industry related skills: front desk office operations, housekeeping, food and beverage production, tour guiding and ground handling skills.
The Ghana Tourist Board (GTB) collaborated with FAO, CEDECOM and Ghana Maritime Academy to train 164 food service providers, Trade Association Executives and 29 Life-guards/pool attendants on aquatic life saving.
Work was started on two Tourist Receptive Facilities at Akwamufie and Saltpond in addition to the 21 located at various districts country-wide to open-up these sites for increased patronage.
GTB organized three meetings to facilitate the Public-Private Partnership Forum and prepared a draft Tourism Policy.
In addition, a draft Tourism Bill was prepared to restructure the tourism administration, including the establishment of the National Tourism Authority to regulate the tourism industry. It also completed the establishment of a Diasporan Unit.
The Old Accra Redevelopment Agency (OARA) was established and made operational with the following activities undertaken; tree planting around Ababio Square, rehabilitation and commissioning of Brazil House for tourist visitation as well as the acquisition of Land for relocation of residents from Sodom and Gomora to Adjen Kotoku. Work on the 4km link road to Adjen Kotoku and the 1st phase of 259 Room five- Star Ambassador Hotel was started.
The aerial photographs and Ortho-photo maps of Ghana’s coastline covering an area of 4,716 kilometer square (from Half Assini to Aflao) was produced to facilitate investment in the tourism sector as well as the creation of the proposed Area Coastal Management Authority.

Outlook for 2009
The Ministry will participate in three international conferences and four International and domestic fairs and exhibitions. It will also organize four major events namely: National Chocolate Day, Regatta, Carnival, Emancipation/Panafest celebrations. In addition Ghana will host UNWTO International Celebration of the World Tourism Day, which will give Ghana the opportunity to showcase its tourism potentials.
The Ministry will also produce and distribute tourism promotional materials in and outside the country through Ghana’s Missions abroad. Other measures will include repackaging and marketing Ghana’s major festivals will as well as launching Ghana’s Tourism Brand.
The Ministry will develop and upgrade an official tourism website to enhance global access to Ghana’s tourism.
The Ministry in collaboration with the Technical and Vocational Education Training (TVET) Secretariat will establish national hospitality standards, accreditation and certification for hospitality training institutions.
For the implementation of the above activities, an amount of GH ¢3,757,185 has been allocated. Out of this, GoG is GH¢3,372,185 and IGF is GH ¢385,000

Ministry of Energy
The Ministry is to develop and sustain an efficient and financially viable energy sector that provides secure, safe and reliable supply of energy to meet Ghana’s developmental needs in a competitive manner.

Performance in 2008
As part of measures to address the power crises in 2006/2007 which lasted over a year, Government supported the expansion of power generating capacity. These are 126MW Emergency Power Plants currently on standby after the power crisis and 80MW Power Plant by consortium of mining companies.
A number of power projects were also initiated as medium term strategies and fully funded by Government and VRA which created substantial financial burden on the national budget. These were 126 MW Tema Thermal Power Project (TT1PP); 49.5 MW Tema Thermal 2 Power Plant (TT2PP); engineering, procurement and construction of Gas Turbine Generators and balance of plant for the 230 MW Kpone Thermal Project in progress.
Additionally, as part of measures to resolve the power crises the Ministry on behalf of the Government of Ghana signed a power purchase agreement and a lease agreement with Balkan Energy Ghana Limited to refurbish, commission and commercially operate the 125 MW Osagyefo Power Barge.
The contract was signed in 2007 and Balkan was to complete the project in 90 working days and further expand the plant by additional 60 MW subsequently. Balkan Energy has not met the deadline for operating the plant as works on the power plant, transmission lines and substations to evacuate power from the power plant are still ongoing.
Work started on the Bui Hydro Project in 2007. Activities undertaken included clearing works on the dam site, topographic surveys, geological and hydro-geological investigations, relocation and resettlement to Jama in the Brong Ahafo Region of three communities living at dam site. River closure was achieved in December 2008 paving the way for works on the river beds to commence.

Rural Electrification
The rural Electrification in 31 communities in West Akim District was completed and commissioned. Material supply for the extension of power supply to 16 communities in Upper Denkyira district is almost completed.
Furthermore, 380 communities were connected to the national grid.
Additionally, 200 communities were connected to the national grid under SHEP-4. Under the extension of power supplies to 5+ communities per district initiative work commenced in communities with Low Voltage (LV) poles. A total of 11 communities in the Greater Accra and Volta Regions were completed.

Regional Capital Street Lighting Project
The regional capitals street lighting projects for Koforidua, Tamale, Cape Coast and Sekondi were completed.

Power Distribution Upgrade Project
The ECG undertook a number of projects to improve the reliability and quality of power supply as well as reduce system losses. These included the construction of 33 kV primary substations in Ofankor, Accra, Amanfrom,Kumasi and the commissioning of Abuakwa, Kumasi substation.
Under the ECG distribution system improvement project, preliminary activities on switching stations and substations were carried out in the following regions; Greater Accra (Dodowa, Tokuse), Eastern (Akuse Junction), Western (Bogoso, Bawdie), Ashanti (Ejisu, Kuntenasi), Volta (Jasikan) and Central (Dunkwa, Winneba, Swedru, Kasoa).
The Ministry in collaboration with Energy Commission and Energy Foundation procured and distributed 6 million compact florescent lamps (CFLs) as a load reduction measure to reduce the impact of power shortage in 2007.

Petroleum Sub-Sector
The offshore pipeline of the West African Gas Pipeline (WAGP) Project from Itoki in Nigeria to Takoradi was completed. The gas pipeline from the Regulation and Metering (R&M) Station to VRA plant at Aboadze, the Gas conditioning facility, gas turbine works were also completed. Free flow (non-compressed) gas, which is in the pipeline at Takoradi is yet to be delivered to the power plant at Aboadze.

Secondary Gas Distribution Network Development
The cabinet approved six Legislative Instruments (LI) for regulating the Secondary Gas Market. Out of these, two were approved by Parliament. The remaining four are being reviewed at the Attorney General’s Department before submission to Parliament.
Exploration and Development of Hydro Carbon Resources
The appraisal programme on the Jubilee fields being managed by Messrs KOSMOS Energy and Tullow Oil Ghana Limited was completed. These companies and other Jubilee partners are currently preparing the Development Plans.

Outlook for 2009
The Energy Sector outlook for this year is to rollout a programme for the Government’s Energy For Growth Agenda.

Power Sub-Sector
The key elements of the Government’s Energy For Growth Agenda for the Power Sector are (i) increase power generation capacity to 5,000 megawatts in the medium term, (ii) add capacity at the transmission and distribution levels, (iii) open up the sub sector to independent power producers and private sector participants, (iv) increase access to electricity in all households, (v) pursue regional cooperation projects, (vi) implement power sector reforms, (vii) strengthen the regulatory institutions and (viii) reduce the cost of electricity production to achieve lower tariffs.

Power Generating Capacity Expansion
The VRA’s 126 megawatts (MW) Tema Thermal 1 Power Plant (TT1PP) will be completed and commissioned in the first quarter of 2009. The 49.5 megawatt Tema Thermal 2 Power Plant (TT2PP) will be completed and commissioned by mid 2009.
The completion of the ongoing 230MW Kpone Thermal 1 Power Plant (KT1PP) at Tema and the Bui Hydro Power Project will be pursued. Additionally, the independent power producer initiatives will be supported to enhance private sector investments in power generation. The expansion of the Takoradi International Company (TICO) power plant at Aboadze into a combine cycle plant will be intiated.
The refurbishment of the 125 megawatts Osagyefo Power Barge (OPB) Project will be completed this year. The development of infrastructure for supply of natural gas from the Jubilee Field will be accelerated this year to ensure that gas from the field is utilised for the operation of OPB. The completion of these projects will add substantially to the country°os power generating capacity and move us towards our vision of achieving 5,000 megawatts in the medium term.

Fuel for Power
The Ministry will continue to pursue efforts to get sustainable natural gas supply from the West African Gas Pipeline Project (WAGPP) for generation and other industrial uses. The Ministry will ensure that the technical and operational difficulties regarding the delivery and the use of compressed gas are resolved. The use of natural gas will enable Government to achieve lower power generation cost and therefore lower electricity tariffs.

Transmission projects
A number of ongoing critical projects will be continued this year to improve the operation of the transmission system to deliver reliable, safe, and efficient services. These projects include Obuasi-Kumasi 161 kV transmission line, Substation Upgrade Project and SCADA modernisation project. Also to be pursued is the 330 kV Aboadze-Tema coastal transmission line project. A third Bulk Supply Point Project and a second Bulk Supply Point Project in Kumasi will be intiated.

Power Distribution System and
Capacity Expansion
The Electricity Company of Ghana (ECG) and Northern Electricity Department (NED) will continue the implementation of projects which are aimed at significantly improving their operations. These include prepayment metering expansion programme, upgrade of medium voltage network including the construction of additional primary substations, construction of call centres to enhance customer service operations and upgrade of the Low Voltage networks.
The Ministry will increase the pace of the expansion of access of electricity under the National Electrification Scheme (NES).
It will also continue the implementation of the following ongoing electrification projects: Grid extension to 130 communities; Extension of national electricity grid to 200 communities under the in the Self Help Electrification Programme (SHEP 4) Extension of electricity to 600 communities throughout the country also under the 5-Plus Communities per District Programme. Complete the extension of the national electricity grid to 16 communities in the Upper Denkyira District

Increasing ElectricityAccess
Through National Electrification Scheme
The Ministry will increase the pace of the expansion of access of electricity under the National
Electrification Scheme (NES). It will also continue the implementation of the following ongoing electrification projects:
• Grid extension to 130 communities;
• Extension of national electricity grid to 200 communities under the in the Self Help Electrification Programme (SHEP 4)
• Extension of electricity to 600 communities throughout the country also under the 5-Plus Communities per District Programme.
• Complete the extension of the national electricity grid to 16 communities in the Upper Denkyira District 426.
The Ministry will commence the following electrification projects. The extension of electricity to 106 communities in the Brong Ahafo and Ashanti Regions, the extension of national electricity grid to 80 communities in the Ashanti & Eastern Regions and the Rural Electrification Project for Western, Central, Ashanti region and other identified communities in Ghana.
The Ministry will commence the Regional Capitals Street Lighting Projects with focus on Kumasi, Accra, Sunyani, Tema, Takoradi, Ho, Wa and Bolgatanga.

Renewable Energy
Madam Speaker, renewable energy resources, including small hydro, solar and wind energy will feature in the evolution of a balance energy portfolio that reflects advances in technology and Ghana’s natural resource endowment.
The following renewable energy projects will be pursued; Construction and operation of Tsatsadu mini hydro power plant; Training of technicians for solar PV installation and maintenance Solar Electrification projects in schools, security outposts, health centres and other public institutions;
Development of three mini grid systems and one grid connected system; Rehabilitation of solar grid system at the Ministry.
Electricity Access Through Intensification
Under the Ghana Energy Development Access Project (GEDAP), materials and equipments for the implementation of the project started arriving for work to commence this year.
Under the GEDAP electricity supply is to be extended to 880 rural communities within the next two years. The Ministry also will intensify the electrification in412 rural and peri-urban towns in 38 districts in the Eastern, Western, Ashanti, Volta, Central and Greater Accra Regions with connections to about 55,000 new customers. Similar intensification programmes will be under taken in the Northern, Upper East, Upper West and Brong Ahafo Regions to cover 151 towns and villages with connections of about 20,000 new customers.
Energy Sector Regulations for
Power Sector Reforms
The Energy Commission will facilitate the preparation of the following regulations to govern the operations of the Energy Sector as provided under the Energy Commission Act 541. This will include National Electricity Grid Code; Natural Gas Occupational Health and Safety Regulations; Energy Efficiency Standards and Labeling (Refrigerator, Refrigerator- Freezer and Freezer) Regulations, LI 1947; and Renewable Energy Law.
The Ministry will support the capacity development efforts of the regulatory institutions namely the Public Utilities Regulatory Commission (PURC) and the Energy Commission (EC) to enhance their regulatory oversight of the energy sector.
Energy Efficiency and Conservation
The Ministry will also implement measures to improve energy conservation in electricity consumption through energy management and efficiency projects in public institutions and also public education on energy conservation. The Ministry will implement projects to improve energy utilization in large electricity consuming public sector institutions.

IPP Policy Framework Review
In the wake of the power crisis of 2007, a number of IPPs entered into the electricity supply market. Some of these signed PPAs with the Ministry of Energy (MoE) and others with ECG. The Ministry of Energy had no mandate to sign a Power Purchase Agreement (PPA) since it does not have the mandate/license to distribute electricity. Some of the IPPs do not have the license to operate as generating entities in the electricity market. In the case where the PPA was signed
between ECG and the IPP, PURC has the legal mandate to review the agreed upon tariff. ECG is lawfully permitted to off-take power from an IPP only at a price level that PURC agrees (Act 538 Article 17 Clause 2). In the light of the above, a review of all signed IPP contracts and PPAs to ensure compliance with all the laws governing the electricity market is critical.

Restoration of the
Finances of the Power Utilities
The Power Sector is facing financial challenges. . In lieu of re-imbursement of subsidies for electricity supply to VALCO and other residential consumers, GoG had been making significant budgetary allocations to cover the capital investment programs of VRA and ECG. An immense proportion (76 per cent) of the Sovereign Bond proceeds was earmarked under the GoG 2008
Supplementary Budget to cover capital expenditures for VRA, GRIDCO, ECG and Bui Power Authority (BPA). In addition, GoG has been providing direct payments to cover VRA working capital requirements for crude oil purchases for the thermal plants. That notwithstanding, the GoG budgetary transfers have not been adequate to cover revenue shortfalls and/or re-capitalize the three power utilities.
Clearly, the current state of affairs is unsustainable and should not be allowed to continue. To arrest this situation, the Ministry of Energy shall develop and implement comprehensive remedial measures, especially re-capitalization, that will ensure the long term financial viability of VRA, GRIDCO and ECG.
At the insistence of Power Sector creditors, the Ministry of Finance and Economic Planning (MoFEP) agreed, in May 2008, to conduct a Power Sector Financial Restructuring and Recovery Study, the findings of which was to inform the development of a Comprehensive Financial Recovery Plan for the three power utilities. The Ministry of Energy shall launch a study to inform decisions on re-capitalization of the three power utilities.
Looking forward, the Plan will, among others, seek to improve upon the financial operating ratios, reduce short term indebtedness and reduce arrears of each of the power utilities to suppliers and creditors. Moreover, the Plan will clearly mark out VRA’s core and non-core assets, effect full transfer of national transmission grid assets from VRA to GRIDCO, and “ring-fence” assets and liabilities associated with GoG sponsored gas-turbine power projects (Tema Thermal Power Project and Kpone Thermal Power Project). Petroleum Sub Sector
For the petroleum sub-sector, efforts will focus on (i) intensifying Tano Gas development and the exploration of the Voltaian Basin, (ii) Expansion of Tema Oil Refinery (iii) enhancement of local content in the development and exploitation of Ghana°os oil and gas resources.
Hydrocarbon Development and Extension of Ghana's Continental Shelf
438.
Currently more than ten international oil companies are prospecting for oil and gas in our sedimentary basins. Government will intensify its efforts to attract more companies. The Voltaian Basin which covers forty per cent of the land mass of Ghana is largely unexplored and Government will intensify efforts to promote the exploration and development of the basin.
439.
The Ministry will ensure that Ghana benefits, to the greatest extent possible, from discovery and production of oil and gas.
We will also ensure that local content provisions in Petroleum Law and Agreement are applied. To improve the human capacity in the petroleum sector, the Ministry will initiate the establishment of a Centre of Excellence for petroleum related studies and training.
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The Ministry in collaboration with the Ministry of Lands and natural Resources, will also ensure the submission of the report on extension of Ghana's Continental Shelf beyond 200 nautical miles to the United Nations as part of efforts to secure the oil and gas deposits further offshore of Ghana.