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in Extractives/Energy

Concerns Intensify Over $12 Billion Petroleum Hub Project in Jomoro

Maynard Championby Maynard Champion
June 25, 2024
Reading Time: 4 mins read
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Concerns Intensify Over $12 Billion Petroleum Hub Project in Jomoro

The Coalition of Concerned Nzema People has expressed significant concerns about the recent Memorandum of Understanding (MoU) signed for the $12 billion Petroleum Hub project in Jomoro.

This ambitious project, which plans to span 20,000 acres, has sparked anxiety among the local community, including leaders such as Awulaemɔ, Tumivolɛ, Chiefs, the Member of Parliament, the Municipal Chief Executive, and the leadership of the Petroleum Hub Development Corporation (PHDC). These leaders have been vocal since 2021 about their apprehensions regarding the extensive land acquisition required for the project.

The coalition has clarified that their stance is not anti-development. They recognize the economic and social potential of the land, which has historically been a source of substantial benefits through coconut plantations, cash crops, and other natural resources. Additionally, the land contains significant mineral deposits, including gold, clinker, and crude oil. However, they argue that the land and its owners often become an afterthought in large-scale development projects, emphasizing that the land should be the most critical and costly consideration.

The coalition’s concerns are rooted in a desire to ensure that the local community benefits directly and sustainably from any development on their land. They propose that the land should not be sold or compulsorily acquired by the government but rather leased with provisions for generational compensation. This approach would ensure long-term benefits for future generations and prevent the loss of valuable community assets.

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Coalition Demands A Minimum of 25% Equity Interest

Moreover, the coalition demands a minimum of 25% equity interest in the project. This would ensure that local landowners receive a direct share of the profits and have a vested interest in the project’s success. By having a significant stake in the project, the community would be more likely to support and actively participate in its development, fostering a sense of ownership and accountability.

To prevent speculative land grabs, the coalition proposes a phased land acquisition strategy. The initial phase would involve the allocation of 5,000 acres, with further land being allocated based on the successful development of this initial phase. This approach would ensure that land is used efficiently and that development progresses in a controlled and sustainable manner.

Recognizing the potential risks associated with such a large project, the coalition also calls for the establishment of essential amenities. These would include roads, hospitals, and training facilities, which would help the local population take advantage of the opportunities provided by the Petroleum Hub. By improving infrastructure and access to services, the project could significantly enhance the quality of life for local residents and support broader community development.

Job creation is another critical concern for the coalition. They demand a 30% job quota for residents of the core affected communities to ensure that local people benefit directly from the employment opportunities created by the project. This measure would help mitigate the potential negative impacts of rising living costs associated with the project and ensure that the benefits of development are equitably distributed.

Quota for Local Representation

In addition to job opportunities, the coalition insists on a quota for local representation in senior leadership positions within the project. This would ensure continuous local involvement in decision-making processes and help align the project’s goals with the community’s needs and aspirations.

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Environmental protection is a significant concern for the coalition, given the region’s natural beauty and ecological importance. They insist on concrete measures to protect local rivers, streams, the sea, plantations, and forests from potential oil spills and other environmental hazards. By prioritizing environmental safeguards, the project can help preserve the region’s natural resources and ensure sustainable development.

The coalition has praised the efforts of their leaders in advocating for these conditions. However, they have made it clear that no land will be allocated for the Petroleum Hub unless their demands are integrated into the project’s agreements. The coalition’s statement, signed by its representatives on June 25, 2024, underscores their determination to protect their land and ensure that any development project benefits their community equitably and sustainably.

While the $12 billion Petroleum Hub project holds significant promise for economic development, it must address the coalition’s comprehensive demands to proceed. By addressing these concerns, the project can move forward in a way that benefits both the local community and the broader economy.

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READ ALSO: BoG Rebuts Claims of $8bn Loss Through Remittances

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Tags: Equity InterestJomoroPetroleum Hub Development Corporation (PHDC)petroleum hub project
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