Connect with us

Energy

NPA to seek cabinet approval to scrap some taxes on LPG  

Published

on

NPA, Newscenta, licence revoked, 30 OMCs, non compliance,

The Chief Executive Officer (CEO) of the National Petroleum Authority (NPA), Dr. Mustapha Abdul- Hamid, has disclosed that his outfit will seek Cabinet approval for some taxes on Liquefied Petroleum Gas (LPG) to be removed.

This, according to him, will bring down the cost of LPG considerably and will make it available and accessible to Ghanaians, especially the poor.

He stated that the NPA and the Ministry of Energy are working hard to make it easy for Ghanaians to access LPG and increase its usage to 50% by 2030.

Dr. Abdul- Hamid said this at the launch of NPA’s Liquefied Petroleum Gas (LPG) Awareness and Sensitization Campaign to increase the awareness, adoption and usage of LPG in households and other areas of the economy.

He noted that the campaign is to discourage the use of wood fuel (firewood and charcoal) and increase the LPG penetration for domestic, commercial and industrial activities from the current 37% to 50% by 2030.

Advertisement

“We understand that perhaps the majority of the Ghanaian people are poor and most people cannot afford to buy cylinders and gas. So we at NPA in collaboration with our sector ministry are trying very hard to make it easy for people to access LPG”, he said.

He added that it is also to help eradicate energy poverty by ensuring that energy sources like LPG are available, affordable and accessible to Ghanaians.

He called on investors to come and set up bottling plants in the Northern Region to support the operations of the Cylinder Recirculation Module.

He gave the assurance that he would make a case for tax exemptions for some time for investors who would be will be establishing cylinder bottling plants in the north for them to have maximum return on their investments.

He declared that investors who are prepared to put money into building a bottling facility in the Northern Region of Ghana will receive a tax break for a while in order to get the most out of their investments.

Advertisement

The Second Lady, Hajia Samira Bawumia, who launched the  Campaign urged the public, especially women to adopt LPG as it is a cleaner, safer, and healthier cooking fuel.

She said the use of firewood and charcoal for cooking also contributes to climate change through emissions of greenhouse gases and black carbon as well as deforestation through the harvesting of wood and sometimes even economic trees like shea tree, and oak tree.

She noted that Ghana, like many other Sub-Saharan African countries, relies heavily on solid biomass fuels for domestic and commercial cooking and heating.

Hajia Samira said that women and children travel long distances to collect fuel in the form of firewood in most rural communities, and indicated that this time-consuming and exhausting task did not offer much time for other productive activities.

The Deputy National Relations Officer at the Ghana Fire Service, DOIII Ackah Desmond during the launch highlighted some safety tips to help avoid the spread of fire in homes.

Advertisement

He demonstrated how important it is to avoid placing heavy objects on the cylinder regulator and ensure that cylinders are not filled to capacity.

According to him, it is crucial that LGP cylinders undergo expert testing every five years and are routinely sent for examination for burns, corrosion, and rust so that a fire prevention devices can be installed.

He added that the cylinder outside should always be protected so that it will be very impossible for any other entity to tamper with it and perhaps start a fire.

He suggested that users keep powerful portable fire extinguishers on hand in their homes and workplaces where LPG cylinders or gas might be needed.

Deputy Minister of Energy, William Owuraku Aidoo, emphasized that it is imperative to start taking steps to provide households with alternate sources

Advertisement

He noted that the use of charcoal cannot entirely be stopped but may be minimized in order to save the ecosystem adding that it calls for a concerted effort to deal with the phenomenon.

“If we fail to do anything today, what environment shall we leave our children in the future?” he wondered.

He noted that the timing of the promotional drive is significant given the current debate about climate change and its environmental and health effects.

He added that unfortunately, LPG uptake in the country is low and stands around 37% which needs to be actively promoted to increase the percentage.

In this vein, he said that the NPA’s Sensitisation and Awareness Campaign is laudable and will be anchored on the implementation of the Cylinder Circulation Module to ensure that at least 50% of Ghanaians have access to safe, clean and environmentally friendly LPG by 2030.

Advertisement

He advised the NPA to do more work to enhance consumer confidence in the use of LPG and improve investor confidence in the industry.

“No effort should be spared to maintain and protect local jobs in the LPG value chain,” he stressed.

He urged Ghanaians to opt for LPG since the continuous use of firewood and charcoal destroys the environment, aside from its effects on their health.

He touted his belief that the LPG campaign will go a long way to promote the use of LPG in the country and achieve the targeted 50% coverage in the sector by 2030.

 

Advertisement

Energy

NDC opens nominations for Presidential, Parliamentary Primaries

Published

on

NDC, Newscenta, nominations, primaries, presidential, parliamentary,

The National Democratic Congress (NDC) has opened nominations for its Presidential and Parliamentary aspirants for the 2024 General Election.

A statement issued by Mr Fifi Fiavi Kwetey, the General Secretary of the NDC said the Nomination Forms for Parliamentary aspirants would be accessible to all persons for purchase on the official website of the party; www.ghanandc.com effective 22nd February.

It said Nomination forms for Presidential aspirants could be obtained from the Office of the General Secretary at the Party’s Headquarters at Adabraka, Accra effective 0800 hours from Wednesday, February 22.

The statement said the Functional Executive Committee of the Party had, however, put on hold the opening of nominations for parliamentary primaries in some constituencies.

These constituencies are Ayawaso Central, Amasaman, Afram Plains South, Akwatia, Efutu, Gomoa Central, Amenfi East, Evalue Gwira, Assin North, Pusiga and Tarkwa Nsuaem.

Advertisement

The rest are Ayensuano, Adansi Asokwa, Offinso North, Ahafo Ano North, Sekyere Afram Plains, Ahafo Ano South West (Aduagyman), Bosome Freho, Asante Akim Central, Manso Adubia, Manhyia South, Subin and Fomena.

The statement said the Functional Executive Committee of the Party would in due course announce the date for the opening of nominations in those Constituencies.

Filing fee for its presidential primary has been fixed at GH¢500,000.

The parliamentary primary fee has also been pegged at GH¢40,000.

Furthermore, nomination forms for the presidential and parliamentary primaries are going for GH¢30,000 and GH¢5,000, respectively.

Advertisement

Both the presidential and the parliamentary primaries would be held concurrently on Saturday, May 13, 2023.

It is the final leg of internal elections to elect a flag bearer and 276 Parliamentary Candidates to lead the party into the 2024 election.

Per the timetable, nominations for aspiring parliamentary candidates would open on February 22 to 24 to make room for interested persons to pick nomination forms via the NDC website at a cost of GH¢5000 which must be paid via Mobile Money.

Although nomination for presidential candidates will also commence on February 22 to 24, interested candidates are required to pick nomination forms directly from the office of the General Secretary of the party and pay a fee of GH¢30,000 via banker’s draft.

However, female aspirants and persons with physical disabilities will be required to pay only 50 per cent of the fee charged.

Advertisement

Aspiring presidential and parliamentary candidates will be required to submit the completed forms between March 20 to 22 before vetting will commence on March 27 to 29.

There will also be a window for appeals on the outcome of the vetting process between March 30 to April 6 before the election on May 13.

Interested individuals must  be a paid up member of the NDC in good standing and must not be a dual citizen or owe allegiance to any other country aside from Ghana.

With regard to flag bearer aspirants, interested persons must be members of the NDC for at least 10 years and in good standing.

An electoral college will be constituted by the party to elect the flagbearer.

Advertisement

The college will comprise executive members of the party from the branch to the national level.

It will also include Members of the NDC parliamentary group, former MPs who are members of the party, former presidential staffers, former members of the Council of State who are members of the NDC and former Ambassadors who are members of the party.

 

Continue Reading

Energy

 Dr Addison: BoG’s intervention prevented economic standstill 

Published

on

BoG, Newscenta, financing of govt, economic standstill,

Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has defended the Central Bank’s decision to finance government expenditure last year to prevent the economy from being totally destabilized.

Economic instability

According to him, without Central Bank intervention, the economy would have come to a standstill, leading to an economic instability.

Ratings downgrade blocked access to $3bn from capital market

He explained that 2022 started with the downgrading of the economy by credit ratings agencies blocking the country’s access to the capital market where Ghana borrows at least $3 billion each year prior to 2022.

Advertisement

Revenue projections fell far below expectations

Dr Addison pointed out that in addition to losing access to the capital market, revenue projections fell far below expectations.

Govt finances in trouble

Speaking at the annual stakeholder meeting of the State Interests and Governance Authority (SIGA), the Governor said the developments put government finances in trouble as there was no money to fund expenditures.

GH¢44.5bn net claims on govt in 2022

Advertisement

BoG records show that net claims on the government increased by about GH¢44.5 billion at the end of December 2022.

GH¢7.2bn purchase of treasury bonds

Giving a breakdown, BoG noted that GH¢7.2 billion, represented its purchase of treasury bonds from banks to provide them with liquidity to enable them meet their obligation to customers.#

GH¢8.9bn on-lending facilities granted by IMF

In addition, GH¢8.9 billion is on-lending facilities granted by IMF for onward lending to government.

Advertisement

GH¢37.9bn overdrafts

In the same vein,  GH¢37.9 billion, represents overdraft extended to government, solely meant for the purpose of addressing auction shortfalls and paying customers whose bonds had matured and for which government did not have adequate resources.

GH¢9.5bn govt deposit liabilities

According to BoG, Government Deposit liabilities recorded an increase of GH¢9.5 billion in the course of 2022.

BoG stepped in to prevent economy from being standstill

Advertisement

Dr Addison stated that the Central Bank stepped in to prevent the economy from destabilizing and coming to a standstill.

Crisis would have been much earlier

He pointed out that if the BoG had not stepped in, Ghana could have gone into this crisis much earlier and investors in government bonds would not have been paid their interest.

Situation unsustainable by mid 2022

The Governor explained that the situation became unsustainable by mid 2022, leading to the government’s decision to seek support from the International Monetary Fund (IMF).

Advertisement

IMF supports BoG financing of govt

According to him, IMF agreed that financing from the Central Bank was needed until a plan is finalized.

IMF applauded BoG for stepping in

He revealed that the IMF applauded the Central Bank for stepping in on time to stabilize the macro-economic condition to avert a collapse of the economy.

“We have been discussing this plan with the IMF over the last three to six months and finally had a staff-level agreement in December,” he added.

Advertisement

Fiscal consolidation and debt restructuring

The plan, according to Dr. Addison, involves fiscal consolidation and debt restructuring.

“So when people speak as if we have been reckless, I disagree completely,” he said.

Analysts criticize BoG’s intervention

Some analysts have criticized BoG for supporting government expenditure in 2022, arguing that the central bank acted irresponsibly.

Advertisement

Critical role of BoG

He maintained that one of the critical roles of the Central Bank is to step in and stabilize the economy when there is danger ahead.

No more BoG support for govt

According to Dr. Addison, one of the key objectives of the IMF programme is to ensure that the revenue and expenditure plan for 2023 does not require Central Bank financing in order to make BoG’s interest rate policy more effective and targets achievable.

State-Owned Enterprises

Advertisement

He added that there was also a decision on aligning structural policy, hence the decision to include State-Owned Enterprises (SOEs).

Competitive and efficient SOEs

“It is important that SOEs are competitive and efficient and it is expected that we will have a policy which will state clearly what the objectives and guiding principles of state ownership will be.

Roles and responsibilities of shareholders, management of SOEs

“It must also state clearly what the roles and responsibilities of the shareholder or the management of SOEs will be.

Advertisement

Financing of SOEs and dividend payments

“The policy should also specify what the fiscal relations between the government and SOEs are, including the financing of SOEs and dividend payments,” he added.

Remuneration of board members and management of SOEs

Dr. Addison is of the view that it is important for the policy to also provide a framework for the remuneration of board members and the executive management of SOEs and also a framework for the appointment of board members, as well as executive management, based on their technical competence.

Cap on salary adjustment of SOEs

Advertisement

He pointed out that it is long overdue to place a cap on the salary adjustment of SOEs.

 

Continue Reading

Energy

Bondholders granted 3-day window to complete processes

Published

on

Bondholders, Newscenta, 3-day, administrative window, tender process,

Government has announced a window for bondholders to complete processes for tendering their bonds in response to the terms of exchange as amended pursuant to the second amendment.

A statement issued by the Ministry of Finance and signed by Ken Ofori-Atta said the window ends at 4pm on Friday, February 10, 2023.

According to the Minister, it came to the attention of government that some bondholders experienced technical challenges as they tried to complete the online tender process.

It is believed that a sudden rush by bondholders to sign up close to the deadline placed a strain on the IT infrastructure.

Ofori-Atta explained that except for the announcement date which is now Monday February 13, that the timetable of the exchange has not been affected.

Advertisement

He stated that the settlement of exchange remains the scheduled date of Tuesday February 14, 2023.

“Except as set forth in this paragraph, the terms and conditions of the exchange are not modified or amended,” he added.

It reminded bondholders who could not complete the process to visit the website of the Central Securities Depository www.csd.com.gh.dde to complete the process

Ofori-Atta thanked bondholders who have so far tendered their bonds.

Improved offer for individual bondholders

Advertisement

Under the improved offer, all individual bondholders who are below the age of 59 years (Category A) are being offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 10% coupon rate.

Improved offer for retirees

All retirees (including those retiring in 2023) (Category B) are being offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate.

Ofori-Atta said the objective of this is to ensure that individuals, especially retirees, who put their hard earned savings in the domestic market, are not left in hardship as a result of the DDEP and yet contribute to the resolution of the current crisis.

He said government was intentional in pushing the threshold of what is possible, in order to safeguard the well-being of our pensioners, preserve the savings of individuals, protect the working capital of businesses, ensure the health and stability of our financial sector and restore macroeconomic stability.

Advertisement

Significant amendments made

Significant amendments have enabled government to reach an agreement with key major domestic creditor categories including banks, insurance companies, capital market players and foreign holders of domestic debt in relation to their participation in the DDEP.

All of the institutional bondholders will be paid a 5% coupon on its 2023 bonds.

All other restructured bonds will pay 9% coupons, rather than the variable rates originally outlined.

Under the agreement, the government has removed all clauses in the Exchange Memorandum that empower the government to, at its sole discretion, vary the terms of the Exchange.

Advertisement
Continue Reading

Trending

© 2022 NewsCenta. Copyright - TrueTrust Media Consult

error: Content is protected !!
%d bloggers like this: