…PHDC CEO Allays Fears Over $60 Billion Project Cost, Says Investors Will Fund Construction
The Chief Executive Officer of the Petroleum Hub Development Corporation (PHDC), Dr Tony Obeng, has given the strongest indication yet that Ghana’s long-awaited Petroleum Hub project is finally ready to take off, revealing that the initiative will create between 700,000 and 800,000 jobs for Ghanaians while guaranteeing the country’s energy security for generations.
In an exclusive interview with the Daily Graphic on Wednesday, at the end of a high-level strategic engagement with Civil Society Organizations (CSOs) in the energy sector, Dr Obeng provided detailed answers to lingering questions surrounding the multi-billion dollar project, including its cost, funding sources, and current status.
The engagement, held in Accra under the theme “Advancing Ghana’s Energy Future Through Dialogue, Accountability and Collaboration,” brought together leading CSOs for open dialogue, plenary discussions, and feedback sessions with PHDC leadership.
“We Are Good to Go” – Dr Obeng
Speaking after what he described as a fruitful interaction with the CSOs, Dr Obeng said the primary objective of the meeting was to bring transparency to the project and address any misconceptions.
“Yes, largely, the whole idea was to try and apprise the CSOs about the projects, let them know where we are, and also avail ourselves for questioning,” he explained. “If they had any area – you could hear that some said, ‘Oh, I didn’t even know about this; it’s only by your presentation that I’m now convinced about what you’re doing’ – and then also listen to them, what ideas they have, what suggestions they could give, so we can advance this project, which is very, very important for this country.”
On the current status of the Petroleum Hub, Dr Obeng was emphatic: “Realistically, we’ve done all the paperwork, most of the paperwork. We are partly ready. We have done a lot of investor engagement, some of whom we have proper agreements with. We have also reviewed some documents, restructured the hub project itself. So we are good to go.”
Three Major National Benefits
When asked what Ghanaians stand to gain from the initiative, Dr Obeng outlined three transformative benefits: energy security, industrialization, and massive employment.
“We benefit hugely from energy security,” he stated. “We will have storage opportunities so that anytime we come into situations that we find ourselves in now, due to the geopolitical tensions in the Middle East, we are secured.”
He explained that the project would also advance Ghana’s industrialization agenda significantly. “For part of the project, we will do processing. We will do manufacturing – the petrochemical plant. So that will be part of our industrialization effort.”
On the employment front, Dr Obeng revealed figures that could fundamentally alter Ghana’s unemployment landscape. “The people who have done the studies confirmed that we will be employing between 700,000 and 800,000 Ghanaians, directly and indirectly. Again, that’s a huge benefit, especially in light of the unemployment challenges that we have.”
He added that the project aligns perfectly with government’s 24-hour economy policy. “I think this fits in very well for the development of this country.”
Who Pays the $60 Billion? Setting the Record Straight
Acknowledging public anxiety about the project’s estimated cost, Dr Obeng moved swiftly to clarify a major misconception.
“Yes, we know how much it will cost, but we’ve been very careful,” he said. “Anytime you mention the figure, this estimate, people think that, ‘oh, where is government going to get $60 billion to do that?’ But the project is not government, which is going to cough out $60 billion.”
He broke down the financial structure in simple terms: “It is the value that, by the projections, we think that if you’re going to build lot one, it will cost $12 billion. So it is the investor who has to look for his $12 billion, not the Finance Minister who has to go and look for it.”
According to Dr Obeng, the role of government is facilitative rather than financial. “The Finance Minister and other sector ministers, who are actually very close to what we do, are to make sure that we have the land, and then they supervise as well. That, of course, means government will have to dole out a bit, but given the size of the project, it’s minimal compared to the total investment.”
President Mahama’s Firm Directives Unblock Stalled Processes
Dr Obeng revealed that the project had faced delays primarily due to land acquisition challenges, but disclosed that President John Dramani Mahama has intervened decisively to remove all bottlenecks.
“Where we are lacking is the completion, and I’m happy President Mahama has actually given instructions for what to be done. He has given directives,” Dr Obeng disclosed.
He recalled the President’s firm stance on the land size controversy: “You remember he said, ‘I have taken a firm decision about the size of the land’ because people were debating, ‘it’s too much, it’s too small, it’s too big.’ He said, ‘Look, hammer down, as we say, go and use 5,000 hectares. Simple, no debate.'”
Dr Obeng welcomed the directive, noting that it does not compromise the project’s scale. “We thought that, okay, it doesn’t reduce the size of the project. It doesn’t affect the size. So that was a decisive position that the President took.”
He added that the President has also given instructions for expedited land acquisition. “He has given some instructions that we should be helped to acquire the land, which process was quite slow because of the land size issue. Now that that has been resolved, he said we should be helped to acquire the land, which our ministers are working on, and we should also be helped to get some money to acquire the land. After all, you cannot acquire the land with your mouth. Even if it is executive instrument, the law requires you to assure them or pay compensation.”
CSOs React
The engagement with CSOs, which featured robust plenary discussions, saw participants commend the PHDC for the transparency initiative while offering recommendations for community engagement and environmental safeguards.
Speaking at the event, representatives of various energy sector CSOs acknowledged that the detailed presentation had addressed many of their concerns and expressed willingness to serve as advocates for the project while maintaining their oversight responsibilities.
The Petroleum Hub, when completed, is expected to position Ghana as a major petroleum refining and trading destination in West Africa, competing with established hubs in the sub-region.
By Kingsley Asiedu
