Deputy Energy Minister, Dr. Mohammed Amin Adam has intimated that, government wants the private sector in the country to take the centre stage with regard to the development of the Petroleum Hub Development Corporation.
His statement, comes on the back of government advocating for private sector companies inclusion in the project which is expected to cost US$60 billion, with funds.
Dr. Mohammed Amin Adam, posited that, government as part of making this possible, will provide some amenities for the private companies to attract them to fund the project.
Buttressing his point further, he noted funding a US$60 billion project will certainly be excessive for the government and a country like Ghana.
“The concept is a private-led concept. In other words, we want the private sector to take the centre stage as far as the development of the hub is concerned but that would mean providing some incentives to attract the private sector to make the kind of investments you need in the hub. So, government has decided to make the area a free zone area so that the taxes that are going to free zone companies will apply to the hub area.”
Highlighting on government’s direction in implementing this initiative, he stated that they will provide funding for some amenities and also make funds available for foundation projects such as acquiring the land, levelling the ground, clearing the land, extending electricity and utilities to the area, government will bear the cost.
Additionally, Dr. Amin Adam urged indigenous companies to participate in funding the projects as well, so, Ghana can have ownership in the project.
The Petroleum Hub Development Corporation bill which was currently passed in parliament, seeks to establish the Petroleum Hub Development Corporation to promote and develop a petroleum and petrochemicals hub in the country.
The project is also part of the strategic development initiatives of the government to promote socio-economic growth and is targeted at strategically positioning Ghana as a hub for the petroleum downstream industry in the West African sub-region and the world at large.
The project will be designated as a free zone area to be situated within the Bonyere Traditional Area in the Jomoro District in the Western Region.
The Petroleum Hub, will also be engaged in supplying petroleum and petrochemical products, to satisfy the demands of the domestic market and also that of the West African sub-regional market.
The project will also see to an increase in the presence of major international oil trading and storage companies, while encouraging public-private partnerships and joint ventures between local companies and international companies.
According to the Energy Ministry, the project will also result in knowledge transfer and wealth creation because it involves the establishment of major infrastructure for refining and processing petrochemicals in addition to the discharge, storage, distribution, transportation and trading of petroleum products.
The Ministry, also said that, the factors which had fuelled the initiative were the central location of the country in the West-African sub-region, political and macroeconomic stability, access to the West African sub-regional market and proximity to international shipping routes.
