Dr. K.K Sarpong, GNPC Boss
Parliament has approved $356.43 million for the operations of the Ghana National Petroleum Corporation (GNPC) in 2018 which is far below the projected expenditure of $986.13 million for the year.
The funding gap of $629.70 million is, however, expected be financed through a loan of $564.81 million and cash balance of $64.89 million brought forward from 2017.
Presenting the Mines and Energy Committee report on the 2018 programme of activities of the GNPC before approval yesterday, the chairman of the committee, Emmanuel Kwasi Gyamfi, said as part of the corporation’s commitment to deal with the liquidity challenges of state institutions in the power sub-sector, it would secure an additional $60 million loan facility under the existing pre-export financing arrangement of $100 million with Lukoil International Trading and Shipping Company which parliament previously approved in 2017 to pay some of the trade creditors of the Bulk Oil Storage and Transportation Company Ltd (BOST).
According to the Mines and Energy Committee, the GNPC has been given $20 million for the construction of its new head office in Accra, adding that the total cost is yet to be determined and presented to parliament.
“In line with the GNPC’s decision to move its operational office to Sekondi-Takoradi, the committee was notified that an amount of $10 million has been given to the Corporation towards its operational office in Takoradi,” the chairman of the committee said.
The GNPC has also been allocated additional GHC13.4 million to continue the refurbishment work of its head office (Petroleum House) in Tema.
According to the chairman of the committee, the Corporation has allocated an amount of $15 million for the RAT project in 2018 which is expected to offer an electronic storage centre for GNPC’s geoscience, engineering and production data, a core and tapes facility, as well chemical and research facilities.
GNPC is also expected to invest $24.78 million to help revive the Prestea Sankofa Gold Ltd, which is a subsidiary of the Corporation before it’s finally ceded to a foreign interest.
For its corporate social responsibility, the Corporation will commit $7.2 million to scholarships, educational infrastructure and capacity building while $5.5 million is to go for sports development and GNPC Special Community Initiative.
The minority National Democratic Congress (NDC) members led by the ranking member of Finance Committee, Ato Forson said that some of the expenditures are not important and fall outside the core mandate of GNPC.
Investment into the Prestea Sankofa Gold Ltd should be questioned, the amount for the new office also has to be questioned and the construction of the operational office at Sekondi Takoradi also has to be interrogated, he said.
The Minister of Energy, Boakye Agyarko, justified the amount being spent on the new GNPC head office, saying that the previous government had earmarked $76 million for the construction of the new head office but the current NPP administration has been able to negotiate to significantly reduce the cost to $20 million.
By Thomas Fosu Jnr