The Coalition of Concerned Nzema People has issued a strong statement, urging the President of Ghana and the Petroleum Hub Development Corporation (PHDC) to reconsider their approach to the proposed $60 billion Petroleum Hub project in the Jomoro Municipality.

The Coalition’s concerns center on the compulsory acquisition of 20,000 acres of land in the region and the perceived disregard for the rights and interests of the local communities. The government’s ambitious plan to establish a private sector-owned Petroleum Hub is seen as a potential game-changer for Ghana’s economy.

The project, led by the PHDC, aims to attract significant foreign investment, create thousands of jobs, and position Ghana as a key player in the global petroleum industry. However, the project has been met with growing resistance from local stakeholders, who feel sidelined in the decision-making process.

“The President’s utter disregard and disinterest in understanding the genuine concerns of the people, rather rubbishing the hundreds of signatures and dismissing the petition is rather concerning.”
Coalition of Concerned Nzema People

On August 15, 2024, the Coalition of Concerned Nzema People presented a petition to President Nana Addo Dankwa Akufo-Addo, demanding a halt to the project until their concerns are adequately addressed.

The petition reflected the widespread discontent among local communities, particularly regarding land ownership and the potential environmental impact of the project.

The Coalition called for the cancellation of the registration of the 20,000-acre land in the name of Awulae Annor Adjaye III, a prominent traditional leader, and instead, reregister the land in the names of the original stools, families, and individual landowners.

The Coalition argued that the current registration process has sidelined the rightful owners of the land, and they seek to rectify this through legal means.

The Coalition further demanded an immediate halt to the signing of the Executive Instrument (EI) that would formalize the compulsory acquisition of the land. They insist that no further steps should be taken until all concerns, particularly those related to land ownership and compensation, are fully addressed.

The Coalition also called for the postponement of the sod-cutting ceremony scheduled for August 19, 2024. They argue that proceeding with this ceremony without addressing their concerns would be premature and could lead to further tensions between the government and the local communities.

Criticism of the Government’s Approach

According to the Coalition, the President dismissed their petition, claiming that all legal processes for the compulsory acquisition of the land have been followed, including extensive stakeholder consultations.

However, the Coalition disputed this claim, stating that the consultation process has been inadequate and that the local communities have not given their free, prior, and informed consent.

“Using the power of the state to perpetuate land grab of community lands without informed consent and adequate generational compensation is an abuse of the UN guidelines on business and human rights and infringes on communities’ right to a healthy environment and land rights.”
Coalition of Concerned Nzema People

The Coalition further asserted that the government’s use of state power to forcibly acquire land without proper compensation and consent is tantamount to a land grab, which could have long-term negative consequences for the affected communities.

In their petition, the Coalition appealed to President Akufo-Addo, who is also a human rights lawyer, to reconsider his stance on the project. They emphasized the importance of re-engaging with the local communities to find a solution that respects their rights and addresses their concerns.

The Coalition warned that ignoring these issues and proceeding with the project without adequate safeguards could lead to unrest and undermine the long-term success of the Petroleum Hub.

The controversy surrounding the project dates back to 2020 when an initial Joint Venture arrangement failed. Since then, the PHDC has been working to secure new partnerships and financing for the project.

On June 19, 2024, the PHDC announced the signing of a Memorandum of Understanding (MoU) with a consortium of four companies: Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd. The MoU, valued at $12 billion, was hailed as a significant step forward for the project.

Despite the fanfare surrounding the MoU, the details of the agreement have not been made available to stakeholders, raising concerns about transparency and the true intentions behind the project.

The President and the PHDC have scheduled a sod-cutting ceremony for August 19, 2024, to formally launch the project, with plans to clear the land in September and commence construction in April 2025.