Atuabo Residents Yearn for Free Port Project

From Edmund Mingle, Atuabo

Residents of Atuabo in the Western region have urged Parliament to expedite action on the Agreement for the establishment of the Atuabo Free Port to offer essential services to the oil industry.

According to the residents of Atuabo and surrounding communities, the project offers a lot of promise for job creation and development of the area, indicating that they are eager to host to project.

During an project assessment tour of the communities by journalists at the weekend, traditional and opinion leaders, traders, Assembly members and youths who were interviewed at random, were happy about the economic and job creation prospects from the project.

The Commercial Agreement for the 650million dollar Atuabo Freeport project is currently before Parliament, and its approval would pave the way for construction works to start for the project that is expected to create more than 2,500 jobs.

Lonrho, a British firm is promoting the project, in which the government has a 45 per cent carried interest although the government would not provide any counterpart funding.

The Report of the Parliamentary Joint Committee on Finance and Roads & Transport, on the commercial agreement among the government, Lonrho Ports Ghana Limited and Atuabo Freeport Ghana Limited in respect of the Ghana oil and gas Freeport project, was presented to Parliament before the House went on recess last month.

During the media tour of the area, the residents, who were keen on having the project, demonstrated good knowledge about the projects and its expected impact on the economy of the area.

John Quarshie, Assemblyman for Atuabo told journalists on the tour that the residents were very eager to have the project.

According to him, although the Ghana Gas project was also in the area, the establishment of the Freeport holds more promise for the residents since they would be jobs for both skilled and unskilled youths.

“We would be highly disappointed if this project does not come on,” he said.

Currently, he said the community members were mobilising themselves into groups such as traders, caterers, fishmongers and artisans to be able to take advantage of the trade and business opportunities that would fall out of the project.

He acknowledged the bureaucratic challenges that was hindering the start of the project, but expressed optimism that Parliament would approve the project for the benefit of the people of the area and Ghanaians in general.

Obaahemaa Nyanda VI, Queenmother of Asamda, an adjoining community that would host an airstrip which is part of the project, believed the Freeport “project is long overdue.”

She is happy about the company’s plans for skills training for the youth in the community to be able to secure jobs at the port, indicating that that would help in the development of the area.

“We are highly supportive of the project,” she said, adding that they were confident the project would contribute to the speedy transformation of the area.

For his part, James Annor Afful, an opinion leader, said the company has so far dealt reasonably with the community, providing adequate information about the project, and believes it would offer mutual benefit to both the company and the community.

“The Lonhro project is for the good of area and the nation,” he said, adding that a plan has been made to use the technical institutions on the region to train indigenes to be able to secure direct and indirect jobs.

Although the project is yet to begin, Josehp Nyamenle Essien, and opinion leader and former headmaster of Nsein Senior High School at Axim, is praying for contracts from the project.

He was hopeful that contracts for catering, transportation and accommodation could be outsourced to the locals for them to derive the desired benefits.

The presentation of the Agreement to Parliament followed recent approval by Cabinet for the project which is expected to make Atuabo the West African hub for the servicing of vessels, especially those operating in the oil and gas industry.

So far preparatory works, which included feasibility studies, acquisition of land, successful community engagement and Environmental Impact Assessment have been completed for a smooth take off of the project.

Although the free zone project is being fully funded by Lonrho without a sovereign guarantee or counterpart funding from Ghana, the government has a 45 percent interest equity stake in the project while Lornho and its international partners hold the remaining 55 per cent.

In addition, as one of the conditions for Cabinet’s approval, the Port’s Governing Board would be chaired by a nominee of the government, while institutions like the Volta River Authority (VRA), Ghana Ports and Harbours Authority (GPHA)and the Social Security and National Insurance Trust(SSNIT), have stakes in the project.

According to the Agreement, Ghana’s 45 per cent interest consists of 10 per cent carried interest for government and 35 per cent share to be owned by Ghanaian institutions including VRA, GPHA and SSNIT.

In addition, Lonrho would build a Naval base, forwarding bay and barracks at no cost to the government.

Services to be provided by the Freeport to the oil and gas industry include the development of logistics supply bases, offshore fabrications, rig and ship repairs, modification, maintenance and life support operations.

The Atuabo Freeport Complex, which would be operated in collaboration with the Ghana Port and Harbours Authority and other relevant agencies, would provide support services for the offshore oil and gas developments in Ghana as well as providing the infrastructure for companies wishing to offer services to their other Oil and Gas clients in the region.

It supports the government’s Medium Term National Development Policy Framework dubbed “Ghana Shared Growth and Development Agenda 2011-2013” which calls for spatial planning to encourage developments that bridge the spatial divide between the traditional economic growth points to other locations around the country and relieve the perpetual problem of congestion of the Ports in Ghana. 

The project begun August 2011 with the signing of a Memorandum of Understanding between Lonrho and the government for feasibility studies, which was funded by the former.

Lonrho currently operates in 18 African countries in the fields of infrastructure development, transport, agribusiness, hospitality industry and support services.