Alexander Kofi Mensah Mould, former Chief Executive Officer of the Ghana National Petroleum Corporation (GNPC), has expressed concerns regarding the government’s partnership deal aimed at leasing the Tema Oil Refinery (TOR). Mr. Mould emphasized that if a partnership deal is pursued, it should be with a partner that can help revive the refinery.
He stated that the partner should facilitate the continuous operation of the refinery since it would incur significant losses if it does not operate continuously. Mr. Mould emphasized the need for a partner that would improve the functionality of the Tema Oil Refinery, ensuring its continuous operation for 18 months before any shutdowns, with occasional minor disruptions.
He also believes that various private institutions will participate in the efforts to revive the state-owned company. Mr. Mould pointed out that it would be challenging for the government to secure the substantial funds required for revamping the refinery.
Financial institutions would be reluctant to finance the company’s operations if the government does not demonstrate its capabilities. However, the financial institutions could finance the working capital of the company.
Mr. Mould explained that the funds needed to revamp TOR would have to come from equity holders, as the government has been unable to raise the necessary $300 million or $500 million for investment in TOR.
Meanwhile, the Ministry of Energy has clarified that TOR and its prospective partner, Torentco, have not yet signed any contract. Talks between the state agency and Torentco are ongoing, and no final resolution has been reached.
The ministry’s spokesperson, Kofi Abrefa Afena, urged those who criticized the Energy Minister, Dr. Matthew Opoku Prempeh, to verify their claims before making them public. The ministry emphasized the minister’s commitment to getting TOR back to work and highlighted the involvement of key state actors, such as the State Interests and Governance Authority (SIGA) and the Attorney General’s Department, in the government’s quest to find a credible partner for revamping the company.
TOR has faced numerous challenges over the years, including operational inefficiencies and budgetary limitations. The management of TOR has initiated a comprehensive review of alternative solutions to address these concerns. After careful consideration and thorough investigation, the management team has determined that the Torentco deal presents the most promising course of action.
Source – myjoyonline.com
