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Business News of Monday, 8 December 2003

Source: GNA

Do Not Create Problems For Gas Project - Nduom

Ghana on Monday asked landowners along the path of the West African Gas Pipeline to desist from building structures and creating problems that would hinder the smooth take off of the project.

Dr Paa Kwesi Nduom, Minister of Energy, who said this in Accra, noted that some of them were also demanding unreasonable high sums of money as compensation for their lands, saying "this is not healthy for the project as it could stall it or make the sponsors of the project lose interest".

He was speaking at a workshop to examine the technical details and estate surveys and concepts to be employed in the construction of the pipeline.

Representatives of Customs, Excise and Preventive Service (CEPS), Ghana National Fire Service (GNFS), Chiefs, Journalists, Engineers and Energy Experts are attending the workshop.

Dr Nduom said there were clear guidelines for land acquisition in Ghana and the three other partner countries and urged all to "stay within the laws of our land and be fair to all concerned, that is landowners, participating countries and sponsors".

He said he was optimistic that the workshop, which was on land acquisition processes embarked on by the Project Managers, would be enough to allay the fears of all on the matter.

"I hope that you will raise and seek the best ways of addressing this issue tactfully in order to avoid any adverse impacts that it could have on the project execution."

Dr Nduom stressed the need for responsible action by all and in a timely manner to ensure that the project was completed according to schedule. He said the project sponsors were in the process of submitting Environmental Impact Assessment report to the various country agencies.

This would indicate a significant milestone in the project implementation schedule.

Dr Nduom said Ghana's power generation mix had shifted significantly in recent years in favour of thermal generation, which now constituted about 65 per cent of the mix.

Hydropower has dropped to about 35 per cent resulting in dependence on expensive liquid fuel for the generation of thermal power.

He said the gas pipeline project, therefore, offered Ghana a wonderful opportunity to secure a more economical and environmentally friendly fuel to run the thermal plants.

"It will also create opportunities that will enable us achieve our vision of becoming a net exporter of electricity again within the next five years."

The West African Gas Pipeline Project is a project aimed at transmitting cheaper and environmentally friendly power from Nigeria through Benin, Togo to Tema and Takoradi in Ghana.

An International Project Agreement was signed in May 2003 between the four participating countries. The 500 million dollar project would take off in 2005.

Mr Clement Oke, Engineering and Construction Manager of the West African Gas Pipeline Company (WAPCO), the implementation arm of the project, said adequate measures were being taken to ensure that onshore and offshore activities were least or were not affected during and after the project came on stream.