shift. What we are saying is that, if we have GH¢100 million for example, coming in, we could consider using GH¢100 million on an annual basis for our major capital projects. On the other hand, Mr Speaker, and what many other countries have done, is to look at the GH¢100 million in terms of resource flows for the future and borrow to pay for major projects that can help finance other projects in addition to the repayment of the facility.
Mr Speaker, it is also in this context that I wish to express gratitude to this House for the approval of the Ghana Infrastructure Fund because it concretises and tells the market that when we say that we are borrowing, we have a definite source approved by law that is saying that we are going to use 25 per cent of the amount that is flowing into the ABFA for debt service.
Mr Speaker, deriving out of this and also deriving out of the principle that we are asking this House to approve, in terms of the use of the essence of the Stabilisation Fund, we are telling the markets that we can establish a Sinking Fund. Mr Speaker, this is a very important point, which I wish to stress because I wish this House to give the idea of a Sinking Fund, a ringing endorsement.
Mr Speaker, the Sinking Fund is in our Financial Administration Act and similar to the Contingency Fund, which I know the Hon Minority Leader is very passionate about. We are saying that concurrently, we should use a moving average to make sure that instead of putting a definite cap on the Stabilisation Fund, we should allocate percentage amounts to the Contingency Fund,
percentage amounts to the excess for debt management and continue to grow the Stabilidation Fund along the same line. The idea of a Sinking Fund, which we would want to use for the debt management, is that when we floated the 2017 bulk, is this: In the year 2007, we did not have a repayment mechanism enshrined in our budget, as a result of which by last year, we had to begin refinancing that 2017 bulk.
Mr Speaker, what we are saying is that, we are going to use the excess Stabilisation Fund to assume we are going to be repaying our sovereign bonds on an annual basis, so that we can create a Fund.
Mr Speaker, we do not have to wait another six, seven or eight years to begin refinancing. There are countries which are doing this -- Botswana, Trinidad and Tobago and Gabon are doing it, while Nigeria and Angola have started. Many of these countries, especially those in sub- Saharan Africa started after our Petroleum Revenue Management Act and our initiatives -- Mr Speaker, this is the way forward for the country -- [Hear! Hear!] -- These are the principles and policies that are embodied in this budget, which we are debating and which I am seeking a ringing endorsement for.
Mr Speaker, our public debt will begin to be different because currently, as we speak, even when Volta River Authority is servicing its debt, the debt is still treated as a public debt and it is one of the reasons that our debt ratio is high. Mr Speaker, by re-fencing through the on-lending facility, we shall move to a regime that is called a contingent liability regime.
Mr Speaker, I have been clearly informed by Hon Members on both sides who understand the principles of what I am saying. Let us make bold to make this major paradigm shift through the approval of the principles which I have just
illustrated. When we do these, it is our expectation that the Ghana Infrastructure Fund, through the funds that would be flowing to it, would be able to borrow on its own, prove its method and be rated. [Interruption.] That rating would also go alongside that of the sovereign --
Mr Speaker, but more importantly, just as in the past, even when the State borrowed, we saw the Volta River Authority (VRA), the Ghana GRID Company Limited (GRIDCo) and others of this world pay for loan facilities. Mr Speaker, we are saying that going forward, through this principle, the projects would be able to pay for themselves. And we are going to extend this principle.
Mr Speaker, the point was made about recoveries and it is very important. It is not only commercial projects that should be paying for some of the facilities. Even when you take social infrastructure and you go to our hospitals and you go to educational institutions and others which have benefited from loans, Mr Speaker, we all pay hospital fees.
We face a situation where none of these fees are used to even maintain the facilities for which we all pay fees. Rather, sometimes, these fees are regarded as internally generated funds (IGFs) and they are used by the hospitals, and then come back to the House or to Cabinet and seek new loans to maintain those facilities.
Even if we cannot recover 100 per cent of the facilities that go into these equipment and facilities, I believe that a contribution of even 30 per cent would help relieve the taxpayer. This is because after all, whether the patient is rich or poor, when they go to the hospital or to these facilities, they do pay the fees; they are not exempted. It is not in all cases.
Mr Speaker, this is the path which middle income countries are following and this is the lesson. I am glad therefore, to inform the House that both the African Development Bank and the World Bank have agreed to help us to fashion out these policies, so that they can be entrenched as part of our economic management.
Mr Speaker, let me state that one of the marks of economic management is to face challenges, adopt policies and move the nation forward. We did face a lot of challenges, Mr Speaker. But in presenting the Budget, I also mentioned the successes that we achieved. I did mention however, that we also faced further setbacks, particularly the continued disruption of gas supply, the decline in gold and cocoa prices. But Mr Speaker, the future prospects which we painted of the nation, as bright, is real.
Mr Speaker, as I mentioned, whereas we do not say that the Gas Processing Plant is the absolute solution to our problems, it is a major change. The tying in and the inauguration that has occurred is a major shift for us.
Mr Speaker, I would also state that we have initialled the Eni-VITOL or Sankofa Field and we would be bringing elements of this to this House. In doing this, we worked with the World Bank to adopt the partial risk guarantee that was used for the West African Gas Pipeline. We mentioned in the budget and we shall bring it to this House.
Mr Speaker, when these projects come on stream, we are going to have more than triple of the capacity of the Jubilee Gas Field. As we speak, the second Floating Production, Storage and Offloading (FPSO) vessel is under construction for the tenth field. Therefore, within the three year period of our consolidation, whether