The Petroleum Hub Development Bill, 2020, which is to allow for the establishment of a petrochemical hub in the Western Region has been passed by Parliament.
The establishment of the petrochemical hub estimated to cost around $60 billion, will see the creation of major infrastructure for petrochemical refining and processing, as well as the discharge, storage, distribution, transportation, and trading of petroleum products within the West African sub-region and some parts of the world.
The project upon completion and commencement of operations, is expected to earn Ghana $1.56 billion in export taxes in addition to the creation of some 780,000 jobs.
Government out of the estimated total cost of $60 billion, is expected to contribute $6 billion, representing 10 percent of the total investment cost, with the remaining cost covered by private investors.
The $6 billion being contributed by Government comes in the form of the provision of initial basic infrastructure such as land acquisition, payment of compensation, construction of road networks and extension to the area, social amenities such as water and electricity, among others.
According to the Deputy Minister for Energy, Joseph Cudjoe, the project will see to an increase in the presence of major international oil trading and storage companies and subsequently result in public-private partnerships and joint ventures between local and international companies.
“This will invariably result in knowledge transfer and wealth creation,” said the Deputy Minister on the floor of Parliament prior to the passing of the bill.