PARLIAMENT HAS approved a €8.28 million Austria loan to finance the phase two of the upgrading and enhancement project of two technical institutes and four technical schools in the country.
The money is an agreement signed this year between Ghana and the Unicredit Bank Austria Ag aimed at refurbishing and retooling the technical schools’ workshops, upgrading the capacity of instructors and improving the curriculum to be a relevant provider of 21st century skills training to meet current and prospective job market.
The Finance Committee of Parliament said the country would repay the €8.28 million loan at an interest rate of 0.00 per cent with a grace period of 7.5 years and maturity period of 22 years. It will also pay a commitment fee of 0.50 per cent per annum, management fee of 0.50 per cent, insurance of 1.0 per cent and grant element of 35.64 per cent.
The House also approved a request for waiver of Import Duties, Import VAT, GETFund Levy, NHIL, EXIM Levy, Special Import Levy and Domestic VAT amounting to the Ghana Cedi equivalent of €713,263.00 made up of €64,932.00 on imports and €88,331 on local purchase on materials, equipment and services to be procured in respect of the upgrading and enhancement project.
The agreement and the waiver request were presented to the House on Wednesday, November 4, 2020 by the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu, on behalf of the Minister of Finance.
The government said technical and vocational education and training were critical in the development of every country as they held the key that could alleviate poverty, promote peace, conserve the environment, improve the quality of life for all and help achieve sustainable development.
Technical Institutes (TIs) over the years have been neglected in terms of physical infrastructure and staff capability aimed at developing manpower in the country.
The government indicated that the upgrading of the TIs would also facilitate the supply of requisite manpower for developing the industrial sectors of Ghana in the context of a technologically advanced global economy.
In view of the perennial resource shortages, the TIs have had to contend with technological education programmes and equipment that are already outdated based on current and emerging applications in the world of work. Due to this, many of the past graduates were poorly prepared for the job market notwithstanding having completed their education and training.
It is to address these challenges, that government is undertaking the upgrading and enhancement of Technical Institutes and Technical Schools Project.
This project is designed to upgrade and enhance technical and vocational training centres and to boost the supply of skilled Ghanaian mid-level technical professionals by providing adequate equipment in technical trades.
Included in the project is the training of teachers to train and educate young professionals to become active partners in the development of Ghana.
By Ernest Kofi Adu, Parliament House