The Chief Executive Officer of the Petroleum Hub Development Corporation, Dr. Tony Aubynn, has disclosed that about $100 million will be required to compensate landowners affected by the planned Petroleum Hub project.
The compensation forms a crucial component of the land acquisition process for the project, which government hopes will position Ghana as a major regional centre for petroleum refining and petrochemical development.
Dr. Aubynn revealed the figures during a sideline interview with journalists following a strategic engagement between the Corporation and Civil Society Organizations.
According to him, although compensation payments are required under Ghana’s legal framework, government may not settle the entire amount at once, as alternative payment arrangements are being explored to ease the financial burden.
He noted that the Minister for Energy and Green Transition, working with other government stakeholders, is currently developing a framework to initiate the compensation process in compliance with the law.
“Because of the reduction in the size of the land, we have to recompute the figures for compensation, but we are looking at around GH¢800 million to GH¢900 million, which in dollar terms is roughly $100 million,” he said.
Dr. Aubynn added that the issue has also attracted the attention of President John Dramani Mahama, who has questioned why the funds for compensation have not yet been mobilised.
“I can’t tell you off the top of my head when compensation will be done, but I can say we are working very hard on it. My minister is working to fashion a model that can begin the payments. You do not necessarily have to pay everything at once, but there should be a model that commits the entity to pay compensation,” he explained.
The CEO further revealed that the President has directed a reduction in the total land allocation for the project—from 20,000 acres to 13,000 acres, equivalent to about 5,000 hectares. The adjustment is expected to reduce the compensation cost and reshape the land development strategy for the hub.
The Petroleum Hub project is intended to attract large-scale investment into refining, petrochemicals, storage facilities and related infrastructure, with the compensation arrangement regarded as a critical step toward unlocking full implementation.
By: Christian Kpesese
