Adnan Adams Mohammed
The multi-billion dollar Petroleum Hub project to be sited in Nzema area in the Western region is faced with a stiff standoff by the host community.
The host community, through the Coalition of Concerned Nzema People, has raised neglect concerns and is thereby making major demands before allocating the lands needed for the project.
The coalition insists that their stance is not anti-development. They acknowledge the economic and social value of the land, which has historically provided substantial benefits through coconut plantations, cash crops, and other resources. The land also holds significant mineral deposits, including gold, clinker, and crude oil.
The statement signed by representatives of the Coalition last week, on Tuesday, June 25, 2024, indicated that they are determined to protect their land and ensure that any development project benefits their community equitably and sustainably. 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 has therefore outlined specific conditions that must be met before any land is allocated for the Petroleum Hub or similar projects including: Generational Compensation; and the land will neither be sold nor compulsorily acquired by the government.
“It can only be leased with provisions for generational compensation”, the coalition insisted while listing other demands.
One relates to Equity Interest whereby the community demands at least 25% of the investment value as equity, ensuring that the landowners benefit directly from the project.
Another is Phased Land Acquisition: To prevent land grabs without actual development, the coalition proposes starting with just 5,000 acres in the first phase. Further land allocation would depend on the successful completion of this initial phase.
Yet another concerns amenities. Given the risks associated with such a large project, the coalition demands the provision of essential amenities, including roads, hospitals, and training facilities, to help the local population take advantage of the opportunities provided by the Hub.
The coalition also calls for a 30% job quota for the core affected communities to prevent local residents from being disadvantaged due to rising living costs associated with the project.
They also demand a quota in senior leadership positions to ensure continuous local representation in the decision-making processes.
Furthermore, highlighting the environmental beauty of the region, the coalition insists on concrete measures to protect rivers, streams, the sea, plantations, and forests from potential oil spills and other environmental hazards.
The coalition praised the efforts of their leaders but firmly stated that no land would be allocated for the Petroleum Hub until these demands are integrated into any agreements.
The first phase of the project being done under the auspices of the Petroleum Hub Development Corporation (PHDC), aims at creating numerous jobs and providing a significant boost to local employment and the national economy, is set to begin as soon as it secures US$12 billion in requisite funding.
The Corporation which is a private led initiative aims to increase Ghana’s Gross Domestic Product by 70 percent by 2036. This is expected to generate substantial tax revenue while supporting the country’s vision of self-sufficiency and industrialization.
PHDC officially signed a US$12 billion agreement with TCP-UIC Consortium last week. The Consortium comprises of Touchstone Capital Group Holdings Ltd., UIC Energy Ghana Ltd., China Wuhan Engineering Co. Ltd., and China Construction Third Engineering Bureau Co. Ltd.
“This project is a testament to our commitment to industrializing Ghana and creating sustainable jobs for our people”, the Minister of Energy Dr. Matthew Opoku Prempeh said during the signing ceremony.
The CEO of PHDC, Charles Owusu, expressed optimism about the collaboration with TCP-UIC Consortium, highlighting their expertise and crucial role in the project’s success.
The ‘Petroleum Hub’ covering over 20,000 acres of land in the Jomoro Municipal Area in the Western Region, is a US$60 billion investment in total and is aimed at revolutionizing Ghana’s energy sector and boosting its economy.
The key infrastructure includes three refineries, five petrochemical plants, 10 million cubic metre storage facilities, jetties and port infrastructure.
The first phase of the project, a cornerstone of Ghana’s industrialization strategy, will focus on establishing critical infrastructure, including the first refinery. With a capacity of 300,000 barrels per day (bpd), this refinery will significantly enhance Ghana’s ability to process crude oil domestically.
It will also include a petrochemical plant which will convert petroleum byproducts into valuable chemicals used in various industries, ranging from plastics to fertilizers.
Also there will be construction of storage tanks with a capacity of 3 million cubic meters to ensure a steady supply and efficient distribution of petroleum products.
There are also plans to develop an oil jetty and port infrastructure to facilitate seamless import and export activities.
Ancillary Infrastructure: Including pipelines, power plants, and a cutting-edge laboratory for product testing are also planned.
The hub’s strategic location is poised to make Ghana a pivotal player in the West African petroleum market. The hub will leverage Ghana’s stable political climate, strategic geographic position, and attractive investment incentives to draw further investments and foster economic growth.
The Petroleum Hub Project is to be developed in three phases over the next 12 years.
