The Parliament of Sierra Leone has on Tuesday 17th November 2020 debated and approved a petroleum agreement geared towards the rehabilitation and refurbishment of the Kissy Storage Tanks.
The following agreement was approved by Parliament:
1. Concession Agreement between the Government of Sierra Leone Represented by the Ministry of Trade and Industry and Ministry of Finance and All Petroleum Products SL for the Rehabilitation and Refurbishment of the Kissy Storage Tanks Project
Presenting the agreement for ratification, the Minister of Trade and Industry, Dr. Edward Hinga Sandy said the agreement is to ensure development on the infrastructure by rehabilitating the storage facilities of the Kissy petroleum project and to expand the facilities to contain seven hundred thousand metric tons for purposes of reserving petroleum products. He said it would boost revenue mobilization for the government and create job opportunities for the people of Sierra Leone.
The Chairperson of the Parliamentary Trade Committee, Hon. Veronica Kadie Sesay said the trade agreement is timely and important for the development of the trade sector. She referred to “maintenance culture” as a major challenge in Sierra Leone. She called for proper monitoring and evaluation of the project so as to meet its intended purpose including job creation to enhance the livelihood of the people of Sierra Leone.
Submitting, Hon. Dr. Kandeh Kolleh Yumkella said Parliament should be involved in the initial process of scrutiny of any agreement before the executive in order to ascertain the relevance of such agreements to the nation. He said the petroleum industry is the lifeline for the development of any nation and called for the agreement to be checked and properly monitored during implementation. Based on research, he said the company had no track record in petroleum business and decried the huge tax concessions in favor of the company. He said as NGC, they would not support the agreement considering the huge tax concessions in the project.
The Chief Whip of Parliament, Hon. Dickson Rogers said the company has invested a lot of money in the rehabilitation process and he is of the firm belief that the company has the capacity to deliver. He said it high time we stopped using politics in development and acknowledged that there is no perfect agreement in the world, but underscored that the “minister and the government are perfect” by entering into this agreement for the development of the country.
On his Part, Hon. Osman Charles Abdulai supported the agreement and described it as “a laudable venture” aimed at expanding the storage facilities through rehabilitation. He called on the minister to take into consideration the safety of the environment and provision of storage facilities in the provinces.
Hon. Abdul Karim Kamara said the issue of tax waiver is seriously affecting the revenue base of the country. He said 25% tax waiver in the agreement for the company would undermine revenue mobilization and called on the House to reduce the tax concession.
Hon. Musa Fofanah of C4C welcomed the initiative of government to rehabilitate the petroleum storage facilities and called on the minister to focus on the National Medium Term Development Plan relating to cluster eight dealing with communications and consultations.
Hon. Abdul Latiff Sesay commended the minister of trade for putting the documents together. He supported the rehabilitation project but decried the high tax waiver that had been given to the company.
Hon. PC Bai Kurr Kanagbaro Sanka III observed by giving tax waivers to the company is just to make the company richer and recommended for the reduction of the tax waivers and effective monitoring of the project.
Rounding, Hon. Chernor R.M. Bah, Leader of the Opposition said the agreement is very important and relevant for the development of the country. He shared the views expressed by the leader of NGC relating to huge tax waivers that have been given to the company. He called on Parliament to review any agreement at the initiation stage before the executive can decide otherwise. He commended the minister for the agreement and supported the rehabilitation of the petroleum project.
Concluding, the Leader of Government Business, Hon. Mathew Sahr Nyuma advised MPs to avoid being subjective on debate on political grounds but rather to indulge in debate for the benefits of the people of Sierra Leone. He thanked MPs who contributed to the motion and added that the agreement would hugely benefit the government and the people of Sierra Leone.
He also said that “petroleum products are political products and no government will want see a shortage of fuel”. Allaying the fears of MPs with regards to the termination clause in the agreement, he said fuel shortages have the potential to halt the smooth functions of the State.
Source: Department of Public Relations, Parliament of Sierra Leone
19/11/2020. ISSUE NO: 7954