The Parliamentary Committee on Mines and Energy has highlighted the need for more sustainable funding avenues to materialize the strategic establishment of the Petroleum Hub Development Corporation (PHDC).

Currently, the PHDC, which is intended to position the nation as a leader in the petroleum and petrochemical products and services value chain in the sub-region, relies on funding from Parliament-approved funds, internally generated funds, grants, loans, and historical support from the Ghana National Petroleum Corporation (GNPC).

As part of its 2023 operational plan, the GNPC allocated US$3 million to support the PHDC. However, the Committee on Mines and Energy expressed concerns over the inadequacy of this funding in light of the challenges faced by the PHDC.

In response, the committee recommended that the Ministry of Finance explore more sustainable funding sources that align with the PHDC's strategic importance.

Notably, GNPC's projected expenditure for 2023 is US$1.4 billion, while the total revenue is estimated at US$1.2 billion, leaving a funding gap of US$172.82 million. GNPC intends to cover this gap through cash reserves, debt collection, and term loans.

Given this context, the committee argued that the PHDC, which aims to foster a competitive and sustainable environment for investments in the midstream and downstream petroleum industry, requires strong financial grounding to achieve its strategic goals.

The ambitious mega-project, expected to be completed by 2030, encompasses four oil refineries, two oil jetties, crude oil storage tanks, and two petrochemical plants. Located in the Western Region's Jomoro municipality, the petroleum hub aims to be a comprehensive integrated complex adding value to Africa's upstream and downstream oil and gas value chain.

Upon completion, the project will span over 20,000 acres, hosting an array of onshore, offshore, and auxiliary assets, with the intention of revolutionizing the continent's petrochemical industry.

Enacted through a parliamentary Act, the PHDC also aims to generate around 780,000 jobs during and after the development phase. It foresees a positive economic impact, projecting an export tax of approximately US$1.56 billion by 2030 and an increase of about 70 percent in the gross domestic product.