Ghanaian President Nana Akufo-Addo has inaugurated the construction of a 300,000 barrel-per-day oil refinery, aiming to transform the West African country into the region’s petroleum hub.
However, critics argued that the project is flawed and lacks a bankable business plan.
“The project promises to be a cornerstone of our nation’s development,” Akufo-Addo said on Monday at the project site in Jomoro, southwestern Ghana.
The refinery, which would also include petrochemical plants, is expected to be a major boost to Ghana’s economy.
The project, estimated to cost $12 billion, would be funded and constructed by a consortium of Touchstone Capital Group Holdings, UIC Energy Ghana, China Wuhan Engineering Co., and China Construction Third Engineering Bureau Co. Phase one of the project is expected to be completed by 2036, with the goal of supplying enough refined and by-products to meet the region’s demand.
West Africa consumes around 800,000 barrels of oil per day, with almost 90% being imported. The petroleum hub aims to change this by becoming a major refining and distribution center for the region.
However, not everyone is convinced by the plan. Bright Simons, a vice president at Accra-based think tank IMANI Africa, expressed concerns about the project’s viability.
“The consortium behind the project is not primed for investment, and the project has no bankable business plan,” he said. “Our position is that this is a speculative attempt to grab a landbank for cheap.”
Some residents of the proposed 20,000-acre site have also protested the plans, demanding a reduction in the project’s footprint to 5,000 acres.
A senior partner at a law firm representing affected farmer cooperatives,
Oliver Barker-Vormawor, said that his clients would not back down.
“The abrasive manner that the government is proceeding discounts valid concerns around the social and environmental impact of the project, the livelihoods at risk by the displacement of farmers, and the unsettled questions of ownership and community land rights.”
Despite these criticisms, the Ghanaian government remains committed to the project, seeing it as a key driver of economic growth and development.
As the project progresses, it remains to be seen whether the benefits will outweigh the concerns raised by critics and local residents.
Boluwatife Enome
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