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Momodou
Denmark
11717 Posts |
 Posted - 14 Dec 2006 : 15:48:33
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NATIONAL ASSEMBLY APPROVES D300 MILLION LOAN
Members of the National Assembly on Wednesday ratified the loan agreement between the Government of the Republic of The Gambia and the Islamic Development Bank amounting to ID6, 300,000 (six million, three hundred thousand Islamic Dinar) equivalent to US$8,900,000 (eight million, nine hundred thousand US Dollars) and ID1,300,000 (one million, three hundred thousand Islamic Dinars) equivalent to US$1,800,000 (one million, eight hundred thousand US Dollars) for the participation in financing the Lowland Development Project. Tabling the loan agreement before Deputies, SoS Bala Gaye told them that the objective of the loan is to ensure food self-sufficiency and poverty alleviation. SoS Gaye told Deputies that the loan would be paid in a period of 25 years with a grace period of 7 years. According to SoS Gaye, the loan would attract a service fee of 2.5% of the loan on an annual basis. He said the loan would be paid semi annually and that is 30th June and 31st December.
Fatoumatta Jahumpa Ceesay rose to second the motion for the ratification of the loan agreement without comment.
On his part, Halifa Sallah, Minority Leader and Member for Serrekunda Central said that any Agricultural Project that aims to ensure food security and food self-sufficiency is crucial to the survival of the people. But Halifa said, the fundamental question is, will this project help us to achieve food security and food self-sufficiency. Halifa argued that if one critically examines the loan agreement, one would discover that the beneficiaries would pay 8% just like the Government is paying 8%. Halifa asserted that his concerns are: What are the means of production; who are the owners of the means of production and how are the beneficiaries going to pay? Halifa pointed out that these are necessary to know because the loan would be paid within period of 30 years. Therefore, if the project is not properly implemented we would be mortgaging the future.
On his part Fabakary Tombong Jatta, Member for Serrekunda East said that any loan geared towards the productive sector, is a laudable move and should be supported. He said his only worry is the service fee which is very high. In winding up the debate, SoS Gaye said that they are asked to pay a commitment charge, in this particular loan once you pay the service fee that would be all. Regarding the 8% to be paid by the beneficiaries, SoS Gaye said that this is not cash but in labour form and kind. Regarding the project design, SoS Gaye said his line department is only involved during loan negotiation. He promised to come with the project design in the future.
Source: Foroyaa Newspaper Burning Issue
Issue NO. 111/2006, 11-12 December, 2006
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