The Petroleum Hub Development Project, spanning 20,000 acres in the Domunli enclave within the Jomoro Municipality of the Western Region of Ghana, aims to establish infrastructure for oil refining, petrochemical plants, and storage facilities. It is part of Ghana’s broader “Agenda for Jobs,” with promises of job creation and economic growth.
However, this initiative has raised serious concerns over land acquisition, compensation, environmental degradation, and a lack of community engagement.
In June 2024, the Petroleum Hub Development Corporation (PHDC) announced a Memorandum of Understanding (MoU) with four companies, including Touchstone Capital Group Holdings Ltd. and UIC Energy Ghana Ltd., to fund the project’s first phase at $12 billion. Yet, the financial capacity and track record of these partners are questionable, leaving communities uncertain about the project’s viability and long-term sustainability.
During a press conference in Accra to address these issues, Ing. Ndede Kojo, speaking on behalf of the Coalition of Concerned Nzema People, stated that the project was initiated without Free, Prior, and Informed Consent (FPIC), violating international best practices and Ghana’s human rights commitments. The affected communities were neither meaningfully consulted nor given the opportunity to consent voluntarily.
Mr. Kojo also noted that the compulsory acquisition of land under the Land Act, 2020 (Act 1036), raises questions about compliance with constitutional and international human rights standards. The planned Executive Instrument (EI) to formalize this acquisition further undermines community rights.
He emphasized that the Domunli Lagoon, a biodiversity hotspot and a vital resource for local communities, faces irreversible ecological damage. Coconut plantations, fishing grounds, and wildlife habitats are at risk, threatening livelihoods and the area’s natural heritage.
Additionally, he argued that compensation packages fall short of market value and fail to consider intergenerational wealth loss. Livelihood restoration plans are either non-existent or inadequate, leaving displaced communities vulnerable.
Highlighting concerns about the financial instability and questionable track records of key partners such as Touchstone Capital and UIC Energy, Mr. Kojo warned that the project’s failure could lead to abandonment and displacement without benefits for affected communities.
“The lack of transparency in financing and project planning erodes trust and raises concerns about accountability. We are not against development. We welcome responsible investments that align with the needs and aspirations of our people and unlock the potential of our natural resources. However, the proposed Petroleum Hub project, in its current form, fails to do so,” Mr. Kojo emphasized.
He concluded by respectfully urging His Excellency President John Dramani Mahama to pause the acquisition process, investigate the Petroleum Hub project and the credibility of its investors, and suspend any compulsory acquisition of the 20,000 acres of land.
Mr. Kyei Baffuo Yamoah of the Help Ghana Foundation also spoke, emphasizing that for communities in the Jomoro Enclave, the land being taken is their most valuable asset, as their economic livelihood depends on it.
“The people have relied on this land for generations. In fact, if you have heard of Nzema coconut, it’s because the coconut planted on this land is the most viable product in the area,” he noted.
He further highlighted that the 20,000-acre acquisition would impact 70,000 farmers and over 240,000 people—80% of whom are women and children. Additionally, about 23 communities within the affected areas would face significant disruption.
By Madjid Diallo || GhanaNewsOnline