GRi Business,
Economics & Finance 10 – 01 - 2003
400,000
fixed telephone lines in three years
400,000
fixed telephone lines in three years
Accra (Greater
Accra) 10 January 2003- Four hundred thousand (400,000) new fixed telephone
lines would be provided across the country in the next three years under a new
five-year Management Service Agreement (MSA) between Ghana Telecom (GT) and
Telecom Norway (Telenor).
Hon. Felix Owusu Adjapong, Minister of Communication and Technology
announced this in
"Within the
same period, the staff level of GT would increase from the current 3,900 to
6,000 meaning 2,100 new jobs would be created under the agreement," he
said.
He said after three
months of deliberation between GT and the ministry on one side and Telenor on the other, a mutually satisfactory MSA was officially
signed last week, under which Telenor would play the
role of management consultants and financiers of a business plan for GT.
The new MSA, he
said, enjoins Telenor to provide 400,000 fixed lines
within a maximum of three years, adding that they are also to improve quality
of service and reduce customer inconvenience.
Mr. Adjapong said government would also expect GT under Telenor to champion fair competition in the cellular phone
market with the view to providing affordable quality service.
"We as
government have satisfied ourselves that this is the best deal we can get for
this country and we pledge to offer our support to the new management in
everyway possible for the ultimate benefit of our people," he said.
He cautioned the
new management to take note that they are solely responsible for the
realisation of the goals of the new MSA, adding that it was important for them
to allow the recent history of GT to inform their decisions and operations.
The Minister said
that Telenor would be expected to treat
Adjapong said government would closely monitor the
activities of Telenor on annual basis to ensure that
they were on track throughout the period, adding that they would be expected to
provide annual operational and financial reports to keep the government and the
people informed.
He said in due
course, government would fully acquire 100 percent shares of GT when the
defunct management, Telekom
"When the time
comes, shares would be floated for all interested Ghanaians to acquire shares
in GT and Telenor would also be allowed to acquire
shares if they so wish,” adding that "GT is a limited liability company
and government would ensure that it remained so at all cost."
Oystein Bjorge, Vice
President of Telenor assured the Minister that Telenor would make lay their
expertise and funds to meet their capacity improvement obligation within the
given period.
He said Telenor plans to increase the staff capacity of GT, adding
however that there was no guarantee of job security for any of the current
employees as job security would be based strictly on one's performance.
"Increase in
capacity and volume means increase in labour strength but only those who would
perform would maintain their jobs - non-performance would not be countenanced
at all," he said.
Nana Antwi Boasiako, Chairman of the
GT board of directors assured the investors of the board’s non-interference in
the day-to-day operations and of its support for the achievement of the new MSA
goals.
"We would
ensure that corporate governance procedures are firmly in place and in the
ultimate customer satisfaction is ensured," he said.
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Sources at the GSE
and the Ministry of Finance in
They are Coca Cola,
32 percent, Juapong Textiles Limited, 49 percent, Benso Oil Palm Plantation, 40 percent, Barclays Bank
The rest are the
Tema Steel Works Company, 40 percent, Ghana Oil Palm Plantation, 20 percent, Twifo Oil Palm Plantation, 40 per cent and the Ghana
Textile Printing Limited, 16 percent.
"These are all
very viable companies that we have and getting them on the Exchange will be a
great idea. Discussions are underway to ensure that the entire process for
listing is fast-tracked and indeed brought to reality," a source at the
Ministry of Finance noted.
"What I know
for sure is that some of the known names may not pop up immediately for
listing, even though they are interested." The aim of divesting and
consequent listing is to enable government's privatisation objectives and the
promotion of private enterprise.
Also expected on
the Exchange this year is the Cocoa Processing Company (CPC) that is offering
215 million shares representing 25 percent of it holdings at 1,000 cedis each.
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The mediation forms
part of government's attempt to reach a new agreement on a Power Contract after
the old one, which had regulated the sale of power to VALCO expired in 1997.
A statement signed
by Mr Albert Kan-Dapaah, Minister of Energy and
Chairman of the Ghana Mediation Team, said efforts since the expiration to
conclude the negotiation for a new Power Contract had so far not been possible.
"
It said the
continuous subsidisation of VALCO's operations in the
country that had in recent years, impacted negatively on the commercial
viability of the Volta River Authority (VRA), adding that the situation was no
longer tenable.
However, the
statement said, VALCO had failed to see the new realities and had insisted that
power be sold to it at rates at which is exclusively being produced from hydro
sources.
"After 35
years in Ghana, VALCO continues to insist that it should be treated in a unique
category and be allowed to pay rates for power that are far below the cost of
providing that power in Ghana," it said.
VALCO is currently
paying 1.1 US cents/kWh and has resisted efforts to make it pay a more
realistic price reflecting the current costs of producing power in
The statement said
the current level of the
"
VALCO employs about
950 workers. It was forced twice last year to reduce its workforce in March and
October, because of low prices of aluminium in the world market coupled with reduction
in operation capacity.
The company
currently operates with only two pot lines. Kan-Daapah,
Minister of Energy, led the Government's mediation team to the Washington
Talks. Other members included Nana Akufo-Addo,
Attorney General and Minister for Justice, Dr Charles Wereko-Brobby,
Chief Executive of the VRA, Ambassador Alan Kyerematen, and
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Currency Buying Selling
U.S. Dollar 8,297.36 cedis 8,489.45 cedis
Pound
Swiss Franc 5,993.55 6,130.09
Canadian Dollar 5,320.22
5,442.04
Danish Kroner 1,175.69 1,202.40
Japanese Yen
69.80 71.39
South African
Euro 8,735.92 8,935.68
CFA Franc 13.32
13.62
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Jamasi (Ashanti Region) 10 January 2003- Mr Daniel
Ohene Owusu, a deputy Chief Manager of the Bank of
Ghana has said that the government recognised the immense contribution of rural
banks in providing financial intermediation in rural communities.
''It is in
recognition of this role that rural banks are entrusted with the disbursement
of various credit schemes for farmers.'' Owusu was speaking at the 14th annual
general meeting of the Sekyere Rural Bank.
He said to support
agriculture and other micro-productive activities in the rural areas, the Small Scale Input and Marketing Project of the
International Fund for Agricultural Development had been introduced for
farmers.
Owusu appealed to
the boards of directors of rural banks to be abreast with the strength and
weaknesses of their banks. ''It is in this and other contexts that BOG has been advocating the inclusion of persons with knowledge
and experience in banking, finance, accounting, law, economics and management
on the boards.''
Kwame Dapaa-Siakwan, chairman of the board of directors, said the
bank made a profit of 1.115 billion cedis as against 403.4 million cedis the
previous year. Dapaa-Siakwan said in line with the
bank's policy donated 55.5 million cedis to various communities in which it
operates.
Ten million cedis
went to Jamasi for street lights and the construction
of a structure for the Jamasi health centre while Tabre and Dawu received 5 million
cedis for boreholes and 5 million cedis went to Boanim,
Amenase and Dome for school projects.
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