The Chief Executive Officer (CEO) of the Petroleum Hub Development Corporation (PHDC), Dr. Tony Aubynn, has revealed that roughly $100 million will be needed to compensate affected landowners for the Petroleum Hub scheme.
The head of the Petroleum Hub Development Corporation, Dr. Tony Aubynn, has revealed that roughly $100 million will be needed to remunerate landowners impacted by the Petroleum Hub scheme.
This remuneration aspect constitutes a vital element of the land procurement procedure for the venture, which serves as a fundamental pillar of the administration’s strategy to establish Ghana as a leading petroleum and petrochemical centre in the area. Dr. Aubynn made this known during an informal chat with members of the press following a productive discussion between the Corporation and Civil Society Organisations.
He elaborated that while payment is obligatory under Ghana’s legislative framework, the full amount may not be distributed as a single instalment, given that different approaches are being examined to ease the monetary strain and guarantee long-term viability.
According to him, the individual overseeing the Energy and Green Transition portfolio, together with other government representatives, is developing a suitable mechanism to initiate the payment procedure in accordance with legal mandates.
“Given the decrease in the total acreage, we must recalculate the amounts [for remuneration], but we are estimating roughly GH¢900 million. Somewhere between GH¢800 and GH¢900 million, which converts to around $100 million,” he mentioned. “I’ve previously stated that the President himself has raised questions about why those funds haven’t been made accessible, so my minister is actively working to clear any obstacles causing the delay.
“I can’t give you an exact timeframe [for when payments will commence], but what I can confirm is that we are dedicating significant effort to this matter. My minister is diligently crafting a framework that allows for staggered remuneration payments. It isn’t necessary to hand over everything at once, but there ought to be a system that ensures the organisation fulfils its payment obligations,” Dr. Tony Aubynn further stated.
The lead executive also mentioned that President John Mahama has directed a decrease in the overall acreage for the project from 20,000 acres down to 13,000 acres, which translates to approximately 5,000 hectares. This adjustment is expected to influence both the total remuneration amount and the comprehensive land utilisation plan for the centre. The Petroleum Hub project aims to attract substantial investment into oil processing, chemical manufacturing, storage facilities, and associated infrastructure, with the payment structure viewed as an essential preliminary measure towards enabling complete project execution.
