THE government has secured a loan of $9 million from the Dutch Government for the rehabilitation, improvement and expansion of the Sekondi-Takoradi water supply system.

President John Agyekum Kufuor announced this at a durbar of the chiefs and people of Shama on Sunday at the start of a four-day tour of the Western Region.

He said when completed, the project will greatly improve water supply to the Sekondi-Takoradi metropolis and the surrounding communities.

President Kufuor said the government also plans to improve and expand the Shama Health Post, built by the Busia government over 30 years ago, into a polyclinic to cater for Shama and the surrounding communities, which rely on the Efia-Nkwanta Hospital, located 25 kilometres from Shama.

He assured the people that in spite of the economic difficulties facing the country, the government is working hard to provide them with basic infrastructure, such as potable water, motorable roads, health and educational facilities, to help improve their standard of living, especially those in the rural communities.

President Kufuor said the government has also allocated $6 million (about ?42 billion) for the cultivation of cassava in all the 10 regions for the production of industrial starch for export under the President’s Special Initiative.

"I wish to assure you that all the 10 regions will get industrial starch companies to generate foreign exchange for the country," the President said.

The government, Mr Kufuor said, has also voted ?700 billion under the Emergency Social Relief Programme to assist farmers and fishermen in certain selected communities to help fight poverty which is becoming endemic in these areas.

President Kufour explained to the enthusiastic crowd that Ghana has had to adopt the HIPC initiative "to enable the economy to have breathing space, if we are to survive as a nation".

"I can assure the nation that by the end of the year, most of the creditor nations would have cancelled our external debt of $6 billion," the President said.

The President further assured the people that the government is working hard to drastically reduce the inflation rate before the end of the year "so that people can confidently borrow from the banks to operate their businesses".

Nana Kwaku Binnah III, Omanhene and President of the Shama Traditional Council, expressed the people's gratitude to the government for rehabilitating the electricity supply system at Shama, Yabiw and other communities.

He, however, appealed to the government to complete the rehabilitation work on the Shama Water Reservoir and the sea defence wall, which have been abandoned for several years.

The President had earlier inspected the Aboadze Thermal Plant, where he was taken round by the Chief Executive of VRA, Dr Charles Wereko-Brobby, and the General Manager of the plant, Mr William Sam-Appiah. He unveiled a plague marking his first visit to the plant.

He also attended a non-denominational church service at the Takoradi Polytechnic.