Accra (Greater Accra) 29 July ?99

Mr Isaac Adjei Mensah, Minister of Works and Housing, on Wednesday assured Parliament that the technical system to be used for the Keta Sea Defence Project can ''tame the Gulf of Guinea'' and stop it from causing further havoc at Keta.

''The system has been tried and tested at Srogboe, Tegbi, La, Busua and in Cape Town and all are holding, I am confident that the Gulf of Guinea can be tamed likewise.''

Mr Adjei-Mensah was responding to questions by the Minority, when the House was debating the motion for the adoption of the report of the Finance committee on the loan for the project.

The report, which was later adopted, was, "On the Export Credit Facility of 93,867,006 million US dollars between the Republic of Ghana and the Private Export Funding Corporation USA for the Turnkey Design and Construction of the Keta Sea Defence Works".

Mr Adjei -Mensah said the Salt Works component would be considered in the second phase of the project and already the government has made a trip to Spain to look for funds to finance it.

He said the original design and works have been expanded hence the increase in the contract sum from 42.8 million dollars to 93.9 million dollars.

These include land reclamation on the lagoon side, bird's habitat island and access road from Havedzi to Keta.

Mr Adjei-Mensah said it was under his administration that the Pentraxx issue was raised and he ordered that the contractor should refund the moneys paid to him.

He said so far 2.8 billion cedis were outstanding and the Attorney-Generals Department is handling the case, which has appeared in court twice.

''We will not condone any illegality and will take every legal step to ensure that the committee's recommendations are carried out.''

The Minister explained that, under modern terms the loan is considered to be concessionary.

Mr J .H Mensah, the Minority Leader said the Minority was willing to vote for the loan since they were interested in seeing that a solution was found for the Keta problem.

However, they would want an assurance from the President that an independent executing body along the lines of the Volta River Authority, to be known as Keta Sea Defence Board would be formed to handle the project.

He said the Ministry of Works and Housing cannot be trusted to handle such a big amount after having made a loss of about 3.8 billion cedis through the Pentraxx contract.

Mr J. H Mensah said the Minority would also want the Salt Works to be reinstated as an integral part of the project.

He said looking at the terms of the financing package, the Minority would have rejected it since a concessionary loan with low interest and long repayment period would have been more appropriate for this project.

''We have seen that President Rawlings has a political need to leave a major legacy for his mother's people before he leaves office.

''We are prepared to bail him. We, therefore, would want him to set up an independent advisory body to oversee the project.''

He said no independent consultants have been contracted to prove the technical viability of the project, hence the need for the advisory body.

Earlier in a report before the debate started, Mr Joseph E. Ackah, Deputy Chairman of the Finance Committee recommended that the report for the loan agreement be approved.

He said the committee had examined the agreement and had concluded that the project when completed would give relief and ensure the security of life property and investments of the people of Keta.

Seconding him, Squadron Leader Clend Sowu, NDC-Anlo said the second phase of the project would take care of the felt needs and other socio-economic needs of the people.

He said the motion is historic and unique, in view of the fuss it generated in the press and called on every member to vote for it.

When the question was put the vote was carried.

Messrs Great Lakes Dredge and Dock Company of the USA have been contracted to undertake the project, which would begin in September.