US embassy cable - 04ACCRA2044

C O N F I D E N T I A L SECTION 01 OF 02 ACCRA 002044 
 
SIPDIS 
 
STATE PASS OPIC -- CONAL DUFFY 
 
E.O. 12958: DECL: 10/15/2009 
TAGS: EFIN, EAIR, ENRG, EINV, EIND, PREL, GH, OPIC 
SUBJECT: GHANA'S PARLIAMENT MEETS ONE LAST TIME BEFORE 
ELECTIONS; U.S. INTERESTS IN PLAY 
 
 
Classified By: Economic Chief Chris Landberg for Reasons 1.5 (B and D) 
 
Summary 
------- 
1. (C) Ghana's Parliament convened October 5 for a final, 
abbreviated session prior to the December elections. 
Parliament's agenda includes a number of bills and agreements 
important to the U.S.  This includes the Ghana-OPIC 
Agreement, the Ghana-Kaiser Aluminum Agreement on the Sale of 
Valco, the West Africa Gas Pipeline (WAGP) Bill, and the 
Civil Aviation Bill.  Emboffs met with GoG and Parliament 
leaders to gauge their priorities, review the four above 
items and discuss the state of Trafficking In Persons (TIP) 
legislation.  End Summary. 
 
Parliament's Final 2004 Session 
------------------------------- 
2. (C) Parliament convened October 5 for a shortened session 
prior to the December 7 Presidential and Parliamentary 
elections.  The agenda for this session is jam packed with 
important laws and agreements, many related to the economy. 
Of the close to 20 pending bills, the GoG's top priorities 
are the Long-Term Savings Plan and Venture Capital Trust Fund 
Bills.  President Kufuor has hailed these during his campaign 
as proof of the GoG's commitment to private sector 
development. 
 
Legislation/Agreements Affecting U.S. Interests 
--------------------------------------------- -- 
3. (C) In order to focus Parliament's attention on items of 
U.S. interest, Emboffs met in early October with Minister of 
Parliament Owusu-Agyapong, Minority (NDC) Chief Whip Doe 
Adjaho, Finance Committee Chair Atta Agyepong, Trade and 
Industry Committee Chair Asante-Frempong, Roads and Transport 
Committee Chair Sarfoh, and Finance Committee minority leader 
Moses Asaga. 
 
4. (C) Four economic bills and agreements that require 
Parliamentary action are of major U.S. interest:  the OPIC 
agreement, the Valco agreement, and the WAGP and civil 
aviation bills.  In all four cases, there could be negative 
repercussions if Parliament does not approve them this 
session.  Paul Asimenu, head of the Finance Ministry's Legal 
Department, assured Econoffs September 30 that they were all 
GoG priorities.  Finance is coordinating with the Attorney 
General's office to push them through this session. 
 
Ghana-OPIC Investment Incentives Agreement 
------------------------------------------ 
5. (C) The GoG and OPIC signed the agreement in 1999, but the 
GoG never ratified it.  Finance responded to Embassy pressure 
and submitted it to Parliament in July 2004, but Parliament 
recessed without acting on it.  Econoffs have emphasized that 
the agreement will allow OPIC to operate in Ghana's private 
sector without GoG approval of every project, which often 
delays projects by months.  At stake now is OPIC's USD 75 
million insurance for WAGP.  The Finance and Trade and 
Industry Committee Chairs conducted a joint committee hearing 
to speed up review.  Post understands the agreement and 
Committee report were laid before the broader House on 
October 15, will be debated October 19, and should pass by 
October 26. 
 
Civil Aviation Bill 
------------------- 
6. (C) Econoffs emphasized that this law is critical for 
Ghana to stand any chance of retaining Category I status 
during the upcoming FAA civair safety reassessment, 
tentatively set for November.  The GoG realizes the 
importance of this bill and has pushed Parliament to act on 
it.  Roads and Transport Chair Sarfoh told Econoffs on 
October 8 that the Committee met out of session to review the 
draft bill and prepare its report.  The bill and Committee 
report were presented to the House October 15, will be 
debated October 19, and should pass by October 26. 
 
West Africa Gas Pipeline Enabling Legislation 
--------------------------------------------- 
7. (C) The WAGP law is a precondition for Final Investment 
Decision, set for late November.  While a GoG priority, it is 
unclear from Post's meetings that Parliamentary leaders 
realize how important it is to pass the bill during this 
session. 
 
Valco Purchase Agreement 
------------------------ 
8. (C) Following sustained pressure from Kaiser and Emboffs, 
the GoG presented the agreement to Parliament on October 12. 
The agreement sets the terms for the GoG's purchase of Valco 
for USD 18 million.  Finance Committee contacts assured post 
that it will go before the House October 19 and hope for 
approval around October 26.  (Note:  According to Moses 
Asaga, the opposition NDC will use the vote to embarrass the 
NPP; however, Owusu-Agyapong assured EconChief that this is a 
priority, and he is determined to push it through.  End Note) 
 
Trafficking in Persons Legislation 
---------------------------------- 
9. (C) During the October 5 meeting with Minister of 
Parliament Owusu-Agyapong, PolChief raised TIP legislation, 
which has been pending for almost three years.  PolChief 
acknowledged that the draft law is still with government, but 
that it was important for Parliamentary leaders to understand 
the importance of passing a new law as soon as possible. 
Owusu-Agyapong said he would look into the status of the 
legislation, but was not optimistic it could make progress in 
this Parliamentary session. 
 
Minister of Parliament's Doubts about Session 
--------------------------------------------- 
10. (C) Minister of Parliament Owusu-Agyapong told PolChief 
and EconChief that he has had trouble ensuring adequate 
representation at the session.  Enough Members of Parliament 
(MPs) have shown to form a quorum, but they are campaigning 
and see the session as an inconvenience.  Owusu-Agyapong has 
had to promise to limit the session to 21 days (ending 
November 2) and allow early afternoon departures.  MPs who 
lost their primary races -- including 13 Committee Chairs 
from the ruling party NPP -- have even less incentive to show 
up.  MPs are also agitating about poor salaries and work 
conditions, further distracting them from the agenda.  The 
result is that the NPP has an uphill fight to make this 
session productive. 
 
Comment 
------- 
11. (C) The GoG has a slight majority in Parliament, so it 
has the power to pass whatever laws and agreements it 
considers a priority.  However, this is an unusual session, 
and it remains to be seen whether the GoG will be able to 
push through even its top priorities.  Post's efforts at 
least raised the profile of the items of most importance to 
the bilateral relationship.  End Comment 
LANIER