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Business News of Wednesday, 25 November 2020

Source: Business 24

Petroleum hub project includes industrial parks to boost value-addition

The Petroleum Hub Development Corporation, whose law was passed by Parliament in October, is expected to facilitate the establishment of industrial parks aimed at promoting the manufacture of downstream petrochemical and chemical products.

The corporation, which will oversee and coordinate the development of a petroleum hub in Ghana, will also establish a mechanism to ensure the transfer of skills and knowledge to Ghanaians engaged in activities in the petroleum sector.

Ghana is expected to rake in US$1.56bn in export tax revenue by 2030 from the development of the hub, which will add value to the country’s petroleum resources.

The development of the hub will include the construction of key infrastructure such as jetties, storage tanks, refineries, an LNG facility, power plants, and infrastructure for offshore activities.

The hub will drive the growth of various industries, including petrochemicals, and create 780,000 direct and indirect jobs.

Other anticipated benefits are tax receipts from downstream value chain operations and the provision of basic social amenities, such as schools, health facilities and leisure parks.

Government is expected to contribute US$6bn of the total investment target of US$60 billion, with private capital providing the remainder.

The government will also provide the initial basic infrastructure, including land, road and railway networks, water, and electricity.

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