GHANA'S PARLIAMENT MEETS ONE LAST TIME BEFORE

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
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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
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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