THE GAMBIA: BUDGET 2007

Madam Speaker,

Let me now Discuss Government's Development Strategy for 2007 as it relates to the key Sectors of the Economy

DEVELOPMENT STRATEGY FOR 2007

Poverty Reducing Expenditures

In the 2004 and 2005 financial years, actual GLF poverty reducing expenditures reached D330.26 million, and D368.85 million respectively in line with the PRSP I objectives. With the additional disbursement of HIPC interim funds of D104.5 million, the amount was augmented to D434.76 million as actual expenditure for 2004, and distributed between the three priority sectors of Health (D49.3 million), Education (D19.8 million), and Agriculture (D15.2 million) respectively. From the GLF 2004 poverty reducing expenditures, D145.35 million (93 percent) was allocated to Education, D148.96 million (88 percent) to Health and Social Welfare, D35.92 million (85 percent) to Agriculture, and D1. 88m (5 percent) million to Natural Resources and Environment. Education recorded the highest disbursement at (93 percent), followed by Health. Similarly, from the GLF 2005, D209.83 million (97 percent) was allocated to Education, D91.35 million (78.7 percent) to Health and Social Welfare, and D51.78 million (62.6 percent) to Agriculture and Natural Resources. This spending pattern has continued in 2006 to consolidate the gains recorded over the past years that Government implemented PRSPI. The focus in 2007 will not be any different, but to continue augmenting poverty reducing expenditures in the Budget.

Microfinance

PRSPII has identified Microfinance as a key strategy for poverty reduction. The Central Bank registered a substantial number of Saving and Credit Companies and Credit Associations (VISACAs), offering services to the poor and vulnerable groups in The Gambia. The Microfinance Institutions that the Central Bank registered and monitored as at December, 2005 numbered 62 Village Savings and Credit Associations (VISACAs), and Micro Savings and Credit Institutions (MISACIs). Within the Micro Savings and Credit Institutions (MISACIs), there were 53 Savings and Credit Associations (SACAs) registered. These SACAs recorded a loan portfolio of D20.7 million, and deposits of D15.1 million by the end of December 2005.
Through the Gambia Women Finance Association – GAWFA, 7 clients have benefited from loans of between D50, 000 and D150, 000, and payable within 12-18 months. At the end of December 2005, the company had total deposits/savings of D10.5 million, and a loan portfolio of D18.1 million.
National Association of Co-operative Credit Union of the Gambia (NACCUG), an umbrella organization of credit unions, registered 67 credit unions country-wide in December 2005. The organisation recorded loan portfolio of its Central Finance Facility (CFF) of D769, 388 in December 2005, and also registered total deposits of D3, 064,533. The total loan disbursement was D777, 160.
GAMSAVINGS, at the end of December 2005, recorded 2,681 savers, and total savings of D3, 509,547. Total loan of D754, 564 was disbursed, including D287, 500 of the Rural Finance and Community Initiative Project credit lines.
BAYBA Savings and Credit Company, at the end of December, 2006, registered 264 customers, and deposits of D3.2 million, and loans/over drafts of D426, 735.39.
The Rural Finance and Community Initiative (RFCIP) is the major funding agency in the area of Institutional Capacity Building and Refinancing to the VISACAs System. During December 2005, the project funded numerous trainings for the various levels within the VISACAs systems, and constructed six new VISACAs which are to be opened. The project disbursed a total of D15.81 million to GAWFA, NACCUG, GAMSAVING and GARDA for refinancing of VISACAs.
Social Development Fund (SDF) implemented the credit components of several donor-funded projects, namely Community Skills Improvement Project, Fisheries Project, and Per-Urban Project, in addition to the poverty reduction Project credit funds. At the end of December 2005, the SDF had disbursed a cumulative amount of D41.2 million to 1, 566, groups, and the loans can be classified as Poverty Reduction Programme D17.8 million, Community Skills Improvement Project D7.8 million, Fisheries Project D4.2 million, and Peri-Urban Project D11.5 million respectively. There are also plans to transform the SDF into a Fiduciary Company with more focus on micro credit, and associated capacity building activities.

Madam Speaker, I will now turn to certain key Sectors of the Economy

Social Sector

Education

The Government has identified ambitious policy objectives for the second phase of its Education Program (2004-2015), and substantial attention will be given to expanding access and to quality education, especially for girls. Completion rates are now at 62 percent, and are expected to increase to 100 percent by 2015. Efficiency gains are targeted through an increase in pupil: teacher ratios to 45:1 at lower basic, and also through the use of multigrade teaching in the rural areas, and double shift in urban areas. Girls are at parity with boys, and have even surpassed them in some lower basic schools, having reached 50.2 percent of all students in 2005.
Until recently, the main challenge was to translate the Education Policy into actionable implementation plans, and closely monitor its progress, outputs and outcomes. In this regard, Government, with assistance from the United Kingdom supported Basic Education Support for Poverty Reduction (BESPOR) Project, developed a Ten Year Strategic Plan that directly addresses the challenge of translating the education policies into the expected outcomes. Thus, key program areas that have been defined, include Basic education (which includes early childhood, and adult/non-formal education), Secondary education, Tertiary and Higher education; Technical and Vocational Education and Training, Quality Assurance, and Sector Management.
Early Childhood Development (ECD) has become part of the basic education cycle, given the importance of the early years of development for children. The Education Policy (2004 – 2015) acknowledges the importance of these early years, and, hence, linkages with other government departments, NGOS , and local authorities and local committees have been developed to promote an integrated approach to Early Childhood Development .

During the period 1999-2005, the overall Gross Enrolment Rate (GER) in lower basic education (Grades 1-6) showed modest gains, with significant gains for girls, but worrisome declines for boys. Access to upper basic ( Grades 7-9) showed the most improvement during this period, with a 25 point increase in the overall Gross Enrolment Rate, and near parity between boys and girls. At the senior secondary level, the overall Gross Enrolment Rate almost doubled, though the gap between boys and girls has not declined. To attain universal primary completion by 2015, and to maintain the enrolment rates in upper basic, additional school places in lower- and upper-basic schools will need to be created at an accelerated pace.
Private contributions, and the participation of the private sector, are significant in secondary education: Private-public partnerships are well-established in senior secondary school provision, with more than 88 percent of senior secondary schooling provided by either subsidized (41 percent) or non-subsidized (46 percent) private schools.
As part of the commitments to integrate children with special needs into the education system, the education sector has made special education an integral part of the basic education program. The Education Policy aims to increase access and opportunities for special learners to maximize their potential for self-development and employment.
Education for All, as stated in the Dakar Framework for Action, cannot be achieved through the formal education system alone. Consequently, the adult and non-formal education sector complements the efforts of formal education to achieve Education for All. Government has identified the strategies that are expected to deliver a 50percent improvement in levels of adult literacy by 2015, especially for women.
The Gambia Teacher Training College has significantly enhanced its intake of Primary Teachers' Certificate (PTC) and Higher Teachers' Certificate (HTC) teachers over the past five years, resulting in an increase of 1,024 qualified Primary Teacher's Certificate teachers, and 1,034 Higher Teacher's Certificate teachers in the system.
In view of the encouraging performance of the country in terms of the rates of participation and completion towards universalising primary education, The Gambia secured and successfully implemented a grant of USD 4 million of catalytic funding in 2005 under the Education for All/Fast Track Initiative. This fund was utilised, among other things, to help strengthen teaching and learning in schools through the provision of sufficient educational materials, and the establishment of a comprehensive structure of cluster and school-based monitoring of teaching and learning.
Based on the visible impact of the Fast Track Initiative intervention in 2005, disbursements in two tranches of USD2.5million and USD1.5 million have already been given to the Education sector in 2006 as catalytic funding for scaling up implementation of the following policy pronouncements on universal basic education: Classroom Construction and Rehabilitation, Gender Mainstreaming, Quality of Teaching and Learning, and Institutional Strengthening.

Health

The health sector continues to implement its policy objective of improving access to basic health care, as well as increasing quality health service through various programmes. One of these programmes is to manage basic health service according to the Bamako Initiative (BI), which focuses on increased access to basic health services for the poor in the rural and depressed urban areas, and improving the quality of health services.
In 2006, efforts have been made to build the capacity of the Village Health Workers, and Traditional Birth Attendants in various disciplines through training and motivation. Logistical support will continue to be provided to enhance capacities of community health workers to improve service delivery at peripheral health units at community level to ensure that services are responsive to the needs of the communities.
Significant achievements have also been registered with regard to immunisation services, with 90 percent coverage for childhood immunisation. Ensuring maternal immunization during pregnancy and delivery under save environments are the key activities that led to this achievement, and these need to be further strengthened in 2007.
In 2007, more focus will be placed on other system issues, such as the high attrition rate of nurses and mid-wives to ensure skilled supervision on mothers during pregnancy to enable the detection of potential problems and provision of basic obstetric care. Government, along with donor partners such as WHO, UNICEF, UNDP, Action Aid and Christian Children's Fund (CCF), introduced the Malaria Control Programme which aims at providing preventive and curative services, and also for conducting research on Malaria.
In 2007, Government will intensify its work on HIV/AIDS, and Tuberculosis, through sensitization programmes, and the provision of curative and preventive drugs. All hospitals in the country continue to offer primary and tertiary health services and these will improve with the completion of the Serekunda Hospital . Besides the Serekunda Hospital , the ADBII and IDB project has identified the Farafenni AFPRC General Hospital site for expansion. The new project will also continue to improve coverage, quality and the utilization of maternal and child health services in The Gambia.

Youth

The Gambia Government is totally committed to sports development, and will continue to provide the enabling environment to facilitate effective contributions to sports development by all. Since most of the issues in this country are increasingly becoming youth-related, sport can be used as an attractive tool to help young people shape their lives, as well as have gainful employment.
During the sporting year 2006, the Gambia scored some remarkable achievements in football and athletics. It is gratifying to note that the present Under20 National Football Team, who were the winners of the Under17 CAF Championship in 2005, have qualified to participate in the forthcoming Under20 CAF Championship, scheduled to take place in Congo Brazzaville in January, 2007.
The respectable performance of the Gambia 's Athletics Team at the recent Commonwealth Games held in Melbourne , Australia led to the award of scholarships to three promising young athletes in preparation for the 2008 Beijing Olympic Games.
The National Youth Council is equally concerned about the migration overseas of young people, which has led to losses of hundreds of lives. In an attempt to curb the situation, the National Youth Council has developed a series of sensitization programmes on the Radio and TV. It is hoped that the National Youth Council will collaborate with other stakeholders in order to address this problem.

Population

The overall goal of the National Population Policy is to improve the quality of life, and raise the standard of living of all Gambians. Some of the Demographic indicators are poverty- related, and it is expected that any reduction in their values is an indication that poverty has also reduced. Such indicators include: Maternal Mortality, Infant and Child Mortality, and Population Growth Rate. Studies made over the years, and especially recently, have indicated that the population growth rate has declined from 4.2 percent in 1993 to 2.8 percent in 2003; maternal mortality has declined to 135 per 1000.Overall death rate has declined from 21 to 19 per 1000.Also knowledge and use of modern contraceptives have increased from 76per cent and 6.7per cent to 90 percent and 13.4 percent respectively, resulting in a slight decline in total fertility from 6.4 children to 6.0 children per women. All these improvements in the indicators are contributions made towards improving the general quality of life of Gambians, and also implied some measure of poverty reduction.
Furthermore, the Population Programme also implemented a Local Initiative Fund (LIF). This Initiative Funded under the Participatory Health and Poverty Nutrition Project (PHPNP) has registered some tangible benefits to the Gambian communities. From 2001 to date, the Fund has supported Health centres, Day Care Centres, the provision of Milling Machines, Waiting Sheds, Seed Stores, Animal Fattening, Power Tillers, Poultry, Horticulture, Causeways and Bridges, and Passenger Boat and Engine for transportation of women to their rice fields.
In the area of nutrition, Government has registered some significant achievements. The country is experiencing a reduction in child malnutrition rates. Stunting among children under five years of age has been reduced from 23 percent to 17 percent, and underweight from 21 percent to 19 percent. According to the Human Development Report, The Gambia is on the right track towards achieving the Millennium Development Goal of halving the proportion of undernourished by 2015.

Women in Development

Government have identified participation of Women in development as one of the crucial cross-cutting issues in its development policy. Though Government and Civil Society Organisations have made many interventions on gender mainstreaming, the empowerment of women has still not reached internationally accepted standards.
Women dominate the horticultural sector, and in fisheries they represent 80 percent of the fish traders, and 99 percent of the fish processors. Women also participate in livestock rearing, tourism, and the import and export trade. Besides household work, the lack of access, control and ownership of productive resources (farm inputs, implements, land and capital), are further challenges for women economic empowerment.
However, Government has, in 2006, identified a site for a multi-purpose market complex for women, and has also established a women self-help cooperative to assist women with micro-credit for income generating activities. In a bid to adequately address the problems of women, in The Gambia, Government will present a Women's Bill to the National Assembly in 2007.

Madam Speaker,

Productive and Manufacturing Sector

Trade

The Government continues to pursue the objectives of its Mission's Statement and overall development strategy in Vision 2020, by formulating and implementing supporting policy measures that facilitate the creation of an efficient and effective economic environment for private sector- led development. To consolidate our liberal trade policy, the draft Competition Policy and Law is being finalised. Legislation of these instruments will lead to the creation of a Competition Commission to oversee their implementation, which will facilitate trade and investment.
The premise of the Integrated Framework is that fruitful integration of the Gambia into the global economy is essential for economic growth and poverty reduction. . The starting point of the Integrated Framework is the Diagnostic Trade Integration Study (DTIS) which analyzes constraints to Least Developed Countries integration into the global economy, identifies the trade-related technical assistance needs to enhance the country's prospect for increased integration into world trade, and to integrate trade issues into the country's national development strategies, including its poverty reduction strategy.

Groundnut Marketing

Groundnut is the country's principal cash and export crop, and accounts for one third of the country‘s export earnings. As the main cash crop for a significant number of rural farmers, enhancing the marketability of the product will, no doubt, improve the poverty situation in The Gambia.
However, over the years, the marketing of the groundnut product has been posing the most difficult challenge in overall economic management, despite the relentless efforts in the area by Government. The absence of a private sector operator with the necessary financial capacity to buy and sell groundnuts has been the major obstacle to groundnut marketing. The policy of Government remains that of liberalising the marketing of the groundnuts, but, at the same time, protecting the interest of farmers whose source of livelihood entirely depends on the product. Government will continue to maintain a liberal open door policy for those private sector operators who can conform to the guidelines set for the marketing of groundnuts.

Standards

The development and implementation of standards, and other technical requirements, including sanitary and phytosanitary measures, are a key priority in the facilitation of trade. The Gambia does not have an operational Standards Bureau that can act as a focal point for the development of national standards. This hampers Government's ability to control imported goods, and reduces its capacity to set and enforce standards that will enable Gambian exporters to be certain of the quality of their goods in competitive international markets. Efforts are being made to get assistance from the European Union and the Commonwealth Secretariat in this area so that the export of fish, groundnuts, and other products can be boosted.

Employment Policy and Employment promotion

The consequences of economic growth and trends in social development have brought about a need for rethinking of development strategies in the interest of poverty reduction and empowerment. Economic growth alone will not bring about reduced poverty, equity, and prevent social exclusion. Growth must be employment intensive for it to lead to sustained increases in the incomes of the people.
The challenge Government faces is, therefore, the pursuance of a growth strategy that is employment intensive and poverty reducing. As a result, the Government has now formulated the National Employment Policy, and Action Plan, as a way of redistributing the benefits of growth, reduce poverty and raise living standards. Furthermore, Government is in the process of putting in place appropriate policy strategies, and institutional mechanisms, for the implementation of the Action Plan as part of PRSPII. This is to ensure that the goals and objectives on reducing unemployment, underemployment and poverty are achieved.

Agriculture

Agriculture continues to be one of the most important sectors, employing 80 percent of the Gambia population. In this respect, Government maintains its policy objective of increasing agricultural output, improve national income and food security, and generate maximum foreign exchange earnings. Government also continues to collaborate vigorously with the donor community, private sector and Non-governmental Organisations (NGOs) to optimally achieve these objectives.
The restructuring of the Department of State for Agriculture's technical departments into The National Agricultural Development Agency (NADA) is expected to lead to the generation of improved food and income security, mobilization of financial and material resources to facilitate effective execution of sector-wide policies, and also to empower farmers for improved delivery of extension services.
Government is in the process of finalizing a well structured Agriculture and Natural Resources (ANR) Policy. The Policy will provide a roadmap to chart the direction and scope of the collective actions necessary to make the Agriculture and Fisheries sectors more responsive to prevailing challenges.
The agricultural sector performed reasonably well during the 2006/2007 cropping season. Gains were achieved in crop cultivated area, yield and production parameters. The overall cultivated area for cereals increased from 190,012 hectares in 2004/2005 to 195,662 hectares in 2006/2007, representing an increase of 3 percent. Coarse grains production continued to attract the attention of the small-scale farmers in their collective efforts for food security, and over 80 percent of cereal production has been accounted for by coarse grains production. Groundnut production registered an increase of 4 percent from 135,697 metric tones in 2004/2005 to 140,660 metric tones in 2005/2006.
The livestock sub-sector continues to perform impressively by contributing to the livelihood of the rural population, through enhancing food security, income generation, fulfilment of socio-cultural obligations, maintenance of soil fertility, and the provision of draught power for crop production.
On access to credit by small-scale farmers, the formation of micro-finance institutions country-wide has led to a cumulative savings of over D60 million by 67 co-operative unions registered across the country. Projects like the Rural Finance and Community Initiative (RFCIP), Irrigated Rice Development Project (IRRIDEP), the Africa Emergency Locust Project, Participatory Integrated Watershed Management Project (PIWAMP), NERICA Dissemination Project have all begun implementing policy objectives to improve the agricultural sector, and work towards reducing poverty.

Tourism

Government is committed to the development and promotion of The Gambia as a major tourist destination. In this regard, Government is relentless in its efforts to position The Gambia on the sub-regional, regional and world map to ensure that tourism is sustained as a major contributor to the development of the national economy.
Consequently, the widely acclaimed international publicity campaign on the CNN “Sights and Sounds of The Gambia” will be continued with the aim of bringing the Gambian destination to the doorstep of every overseas potential traveller. Government will continue to work at diversifying the Gambian tourist product from a Sun, Sand, and Beach focus to emphasis on other forms of tourism, such as, ethno and eco-tourism, sports and health tourism. This strategy will encourage investments in deep-sea-fishing, diving and surfing, health spas, nature reserves and parks development, bird watching, luxury river cruises, eco lodges, sporting clubs, conference facilities and golf courses. 2007 will also witness the opening of six new hotels, including the world-renowned Sheraton Hotel, thereby increasing our hotel bed capacity. To help fill these beds, Government will endeavour to increase air connections between Banjul and other airports, particularly those in Europe , in order to increase the number of tourist arrivals.
In 2007, Government will undertake the upgrading and transformation of the Gambia Hotel School into the Gambia Tourism and Hospitality Institute, in order to improve the quality of service delivery in the industry.
Also, the Tourism Development Master Plan, which recommends the repositioning and repackaging of the tourist product to make the Gambia more competitive will be implemented.
Government will prepare tourism regulations to regulate the activities of operators in the industry to ensure that the quality of goods and services provided always meet international standards. The hotel and restaurant classification system will be vigorously implemented to provide a standardised system in which to classify establishments for information, pricing and licensing purposes, and also to improve service delivery.
The training of staff in the formal and informal sectors will be undertaken to enhance customer service delivery, health, hygiene and safety, and the Tourism Security Unit (TSU) will be further strengthened to better tackle the b umster menace and related issues. In the area of Culture, Government will continue to promote the development of the arts and cultural heritage of the country in both its tangible and intangible forms; Government recognizes that culture is a catalyst for peace and development. As part of efforts to boost tourism, a model slave ship, which is a major project conceived to add value to cultural tourism, is being built. This model slave ship will be ready in 2007 and will be placed at Juffureh, the birthplace of the famous Kunta Kinteh. The model slave ship forms part of the heritage trail meant to simulate the journey of captured slaves from the village of Juffureh to James Island from where they were shipped to Europe and the America.

The Extractive Industry

The exploration for oil, gas and other minerals in The Gambia has now been given greater attention. The Gambia National Petroleum Company (GNPC) is vigorously engaged in promoting Gambia 's oil potentials to both national and international oil companies. As a result, many oil companies have shown keen interest in investing in the offshore acreages.
On the 8th September 2006, Gambia Government issued two oil exploration, development and production licences to a Canadian international oil company, Buried Hill Energy (BHE). The licences cover two of the six offshore Blocks (Blocks A1 and A4). BHE has already started mobilizing, and soon the Company will start detailed exploration and drilling as prescribed in the Licences.
During the course of 2007, Government will continue to promote the remaining offshore blocks, as well as the onshore areas. Already, a number of Companies have registered interest, and are preparing proposals for submission to Government for the remaining 4 offshore blocks. In 2007, Government will also be embarking on an onshore geophysical data acquisition programme. This exercise, when completed, will increase and enhance the onshore data package necessary for attracting investment in the onshore oil and gas potentials.
For the downstream side, the Gambia National Petroleum Company, as part of its business development strategy, will be actively involved in the distribution of petroleum products. The company will build service stations, initially within the Greater Banjul Area, and later expand to the Provinces.
For petroleum administration and technical skills development, Government has already started building the capacity of GNPC, Office of the Commissioner of Petroleum, and the Geology Department. Twenty five young Gambian students are currently undergoing training, at undergraduate level, in petroleum engineering and relevant fields. Two more Gambians are undergoing post graduate degree training in petroleum engineering and geophysics in The United States and Thailand respectively. There are plans to train more Gambians in geology, geophysics and petroleum related fields.
A number of bilateral agreements are being negotiated with petroleum exporting countries. These agreements are intended to help The Gambia build its capacity in the area of petroleum exploration and development, as well as in contract negotiations. Already, Government is collaborating with the Chinese Petroleum Company (CPC) through the provision of experts to help establish the petroleum sector of The Gambia.
Government has also been active in the areas of heavy mineral sand, such as ilmenite, rutile, zircon exploitation and monitoring, and the supervision of quarrying operations. Following the completion of prospecting operations, and successful mining trials in the Brufut and Sanyang mineral sand deposits, Carnegie Minerals ( Gambia ) Ltd submitted an application for a mining license to exploit the mineral sand deposit within the coastal strip of Batokunku, Sanyang and Kartong. After assessment of the Economic, Legal and Environmental aspects of the proposed mining project, Government has granted a Mining License to Carnegie Minerals ( Gambia ) Ltd in accordance with the provisions of the Mines & Quarries Act, 2005.

Energy

Government has always recognised the important role that energy, especially electricity, plays in accelerating economic growth, and consequently impacting on overall poverty reduction objectives. Energy has, in recent years, been at the forefront of Government policy.
Government has approved The National Energy Policy, and the Electricity law has been enacted. The foundation has been laid for streamlining the energy sector, and to pave the way for greater efficiency and productivity in service delivery. Competitive private sector participation in the sub-sector will now result in expansion and improved efficiency. A new power station in Brikama, funded entirely by a private company Global Electrical Group (GEG), is now operational, and adds to the existing generation capacity which will result in reduction in load shedding. A Management Contract has recently been signed with the Global Management Systems and Solutions for the management of NAWEC, and the country has begun to witness substantial improvements in electricity distribution.
The Rural Electrification Programme has already registered significant achievements with the commissioning of three power stations, and three more stations are being lined up for commissioning in the near future. Government is determined to spread access to modern energy services to the widest spectrum of The Gambian society.
The Renewable Energy Study, funded by the African Development Bank, has been successfully completed. The recommendations of the study include the provision of solar home systems for the rural communities, and wind farms. Government is committed to widening the energy basket, by focusing attention on alternatives, such as bio-fuels.

Madam Speaker, I will now discuss Government's Divestiture Programme

Divestiture Strategy

During the 2006 year, Government intended to finalise the divestiture transactions of the Gambia Groundnut Corporation (GGC) which was stalled by funding difficulties, and the Maintenance Services Agency (MSA); dispose off Government's shares in the Gambia Cotton Company (GAMCOT) and Banjul Breweries Ltd; finalise the Social Security and Housing Finance Corporation (SSHFC) Options study; and undertake the Redundancy and Compensation Framework Study. Government also planned to accomplish the remaining stages of the Transport Sector Study, Environmental Audit Study, and the Telecommunications Sector Study and Assessment of GAMTEL/GAMCEL. The procurement process for the conduct of these studies has already been initiated.
The sale of Government's Banjul Breweries shares could not be concluded due to the failure of the parties to agree on the true value of the shares. Government plans to require another evaluation of the shares, which will better reflect the true value of the shares. Similar attempt to dispose of 30 percent of the 40per cent shareholding at GAMCOT was also stalled by disagreement over the value of the shares at the initial stages of the negotiations, and the non-response on the part of DAGRIS. Government now plans to dispose of the shares publicly.
The Study of Options for the Divestiture of the Social Security and Housing Finance Corporation and Recommendations are currently being implemented. Also, the Redundancy and Compensation Framework Study was completed. Preparatory activities to validate and launch the Report for use in addressing redundancy related problems that may arise during the divestiture process are far advanced.
Based on the revised divestiture programme, Government will now focus on the divestiture transactions of GPTC, GIA, MSA, and the sector studies of GAMTEL-GAMCEL and the National Water and Electricity Company Limited ( NAWEC). To this end, Government has since commissioned technical, environmental and financial assessments of GPTC and GIA jointly, and for the sector studies of GAMTEL-GAMCEL and NAWEC, and the initial stages of the procurement of the consultancies to undertake these assessments and sector studies have been completed. The end of these sectors studies and assessments will pave the way for the transactions stages of GPTC-GIA, and provide the necessary information to help Government take a position with respect to GAMTEL and NAWEC.
Over the 2007 period, Government will also endeavour to increase awareness about private sector participation in publicly owned enterprises to bring about changes in relationship between institutions and the individual, their roles, perceptions, beliefs and attitudes, and through this build support for the divestiture programme.

Madam Speaker, Let me now discuss Infrastructural Development

Information, Communication and Technology

Information, Communications, and Technology has been steadily growing in The Gambia, and continues to be a catalyst for socio-economic development. Government has established a new ICT Directorate to implement Government's priority policies and strategies in the ICT area, and to design projects and programmes for use of modern Information and Communication Technology to boost trade, industry, health, education, agriculture and tourism.
Government has begun to cater for ICT needs at the public sector level. Soon, the African Union-India project will start, following the signing of a Memorandum of Understanding. This project will introduce Telemedicine and e- learning in the Departments of State for Health and Education.
Within the ICT sector, there is potential for Foreign Direct Investment (FDI) in line with the GIPFZA initiative to foster ICT-related employment, and also to boost teleport activities. It is within this context that Government will try to heighten the environment for convergence of technologies in order to develop e-Government, e-Business and state-of-the-art multi-media services in the near future. The multimedia services are also being encouraged to integrate broadcasting and television aspects for teletext development, and print media sophistication.

Telecommunications

The telecommunication sub sector has been one of the prime movers of growth in the Gambian economy in the recent years, registering an impressive growth of about 18 percent in 2006. Government recognizes the dynamism and competitive nature of the telecommunications industry, and has, over the years, put in place sound policies and strategies to meet the challenging needs of stakeholders. The telecommunications operators are more than ever before faced with the twin problems of dwindling international settlement rates, and the need to keep pace with the advances in technology to meet the sophisticated needs of customers.
It is in this regard that Government has embarked on a number of projects, both in the short and medium-term, to attain the International Telecommunication Union's objective of providing country-wide universal access, and the enabling environment, to promote operator competition, thus satisfying the high expectations of customers.
A 10,000 line switch, and four base transreceiver stations, were commissioned in 2005 as a pilot to reduce the waiting list of applicants for telephone services. Following its success, Government has decided this year to expand the project by about 100,000 lines nationwide. This will include broadband facilities at a cost of US$ 4.8 million.
A new billing system, the Cerillion costing US$2.2 million, will replace the old system, which is obsolete and has inadequate capacity. The new system has the capabilities to offer integrated customer relations management system, retail billing functions, as well as an interconnection management system. It is at its optimization stage, and soon customers will be able to access their bills from the system on real time basis.
Early this year, the bandwidth has been increased from 9 megabits to 45 megabits at a cost of US$ 2.1 million, and internet access and speed have greatly improved. The Internet Protocol Multi-Protocol Layered Switch (IPMPLS) project is near completion, and it will monitor traffic and enhance service quality, and hence security, over our national network. In addition, the Internet Resource Centre has been upgraded with state-of-the-art technology to control the Internet traffic and counter attempts of cyber crime.
In line with international practice, Government will invest in an international exchange at a cost of US$1.3 million to better manage its international and interconnect traffic. This will be a standalone switch, specifically designed to handle international traffic routing algorithms.