Kufuor
commissions $230m petroleum project
US
is considering eliminating export subsidies
Ghana
to see increased US investment
“IMF
programme for Ghana is not broken”
Ghana,
US to sign a contract on water sector
Aluworks
regains loss as GSE moves up
Kufuor commissions $230m petroleum project
Tema
(Greater Accra) 14 November 2002 - President John Agyekum Kufuor on Wednesday
commissioned the Residual Fluid Catalytic Cracking Unit (RFCC) at Tema Oil
Refinery (TOR), which was constructed at the cost of $230m.
The RFCC,
which is the phase two of TOR's modernisation programme would enable the
refinery convert the low cost residue fuel oil into additional quality of high
value Liquefied Petroleum Gas (LPG) and gasoline, sufficient to meet domestic
demand and a surplus for export.
The 14,000
Barrel Per Straight day RFCC was constructed by the S.K. Engineering and
Construction, while Samsung Corporation, both from South Korea, financed the
project. The completion of the RFCC means 7,800 barrels of gasoline and 3,500
barrels of LPG and other useful petroleum by-products could be produced daily.
President
Kufuor charged the relevant authorities to adopt radical strategies to work out
a comprehensive programme for the resolution of the ¢3.4 trillion debt of TOR to
ensure full cost recovery in order not to destabilise the economy and society.
The debt, he
pointed out, is so massive that it would sap the resilience of management
unless something radical was done about it, saying the full cost recovery and provision
for the repayment of the debt must be our ultimate aim.
President
Kufuor noted that looking at events, this would not be possible immediately
because the heavy provisions that must be made towards the amortisation of the
debt in the short term, would distort any realistic pricing.
The
realisation of this problem, however, needs the support and understanding of
Ghanaians, who are regarded as the owners of the plant and consumers of the
petroleum products.
With the
improved efficiency at the plant, President Kufuor urged the management to
seize the opportunity to resolve the company's financial problems once and for
all and endeavour to break away from the cycle of crisis management and become
a modern, efficient and profitable company.
This is because,
the improved plant has the potential to infuse the economy with renewed vigour
to be able to serve the country and the refinery needs of neighbouring
countries to earn foreign exchange for Ghana.
The
President was critical about the corrupt practices at the refinery,
particularly at the procurement level where senior staff have tend themselves
into private contractors to the company leading to conflict of interest
situations.
He called
for a stop to all the negative practices to give the refinery a chance to be
profitable especially, "when there is blatant stealing of large quantities
of fuel through the use of false gauges at filling stations where monitoring is
minimal, making workers to resort to industrial action at the least opportunity.
Having
invested so much money in the project, President Kufuor warned that, "the
state is entitled to demand an economically efficient management of the plant
and said the entire staff have the responsibility to maintain the highest
standards so that we do not fall back into the cycle of expensive
rehabilitation as has become the norm in several sectors of the economy."
Albert
Kan-Dapaah, Minister of Energy said the RFCC increases the technical efficiency
of TOR and explained that the refinery could obtain more high valued products
such as premium gasoline and LPG from the same stock of 45,000 barrels a day.
He
emphasised that since production of these essential products would exceed
national demand, the proceeds from the surplus that is exported would be used
to repay the loan that was contracted to finance the construction of the RFCC,
adding that TOR would henceforth, be a net exporter of LPG and gasoline in
future.
Kan-Dapaah
noted that even though the project is commendable, planning from the beginning
and engineering preparations left much to be desired. The financing
arrangement, which demanded that payment, started even before the project was
commissioned, placed an unbearable burden on the cash flow of the refinery.
He pointed
out that the management of the project, therefore, required careful handling
and commended Samsung, SK Engineering and TOR for their patience, understanding
and forbearance over the last couple of months.
Kan-Dapaah
said a lot more work, such as improving upon the reliability of utilities to
the plant complex, especially steam, power and compressed air, need to be done
to enhance the efficiency of the RFCC. "We also need to fast-track the
installation of the single Buoy Mooring on Build, Operate and Transfer (BOT)
basis to improve upon crude oil supply to the refinery by December 2003."
He said
scientific studies have revealed that leaded gasoline is the greatest single
source of human exposure to lead, adding that the health impacts of lead are
serious and could affect the mental and physical development of children.
It could
also cause elevated blood pressure, cardio vascular conditions as well as
neurological and kidney ailments among adults. He said it is encouraging to
note that the RFCC could permit the processing unleaded gasoline in the country
and plans are advanced for the introduction of unleaded gasoline in the
country.
Woo Taik
Chung, President and Chief Executive Officer of Samsung Corporation, noted that
an efficient energy sector is not only a pre-requisite to industrialisation,
economic growth and development of any country. He disclosed that the TOR
modernisation project had been on the drawing board since the 1970s, adding,
"with the encouragement and support of the TOR, the government, my company
and SK Engineering had the courage to get on with the project."
"I can
see today that our decision to form a development partnership with TOR has been
vindicated. It was worth taking the risks and facing the difficulties that we
have encountered for the past several years".
TOR began
life in 1963 as Ghanaian Italian Petroleum Company (GHAIP), which was a simple
hydro-skimming plant designed and built to process 28,000 barrels per special
day, equivalent to 1,250,000 tonnes of crude oil per annum.
GHAIP, which
was a joint venture enterprise between the Italian Oil Company and the
Government of Ghana, produced gasoline, gas-oil (diesel), kerosene, LPG and
industrial fuel. The government of Ghana took over full ownership in April 1977
and changed the name to TOR.
The first
phase of the modernisation programme, which was started in February 1996 was
the revamping of the crude distillation unit from its original capacity of
28,000 to 45,000 barrels per special day by a consortium consisting of SK
Engineering Construction and Samsung Corporation, and was commissioned in March
1998 at the cost of $65m. Present at the function were the Korean Ambassador Mr
Chung and Mr W.H. Moon Chief Executive of S.K. Engineering Company.
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US is considering eliminating export subsidies
Accra
(Greater Accra) 14 November 2002 - The United States of America is considering
the elimination of export subsidies on agricultural products following
complaints by African countries of unfair competition on the international
market.
In an
interview with the Ghana News Agency (GNA) in Accra after a breakfast meeting
with members of the American Chamber of Commerce and Editors in Accra on
Wednesday, Donald Evans, Secretary of Commerce, said the US has already laid an
aggressive plan to lead the way towards the elimination of export subsidies.
He said the plan
for the process, which will run for five years, also seeks to reduce high
tariffs on exports from Africa.
Evans is
leading an 11-member delegation of US firms on a two-day business development
mission in Ghana. "America has suggested that all around the world,
developed countries must continue to bring tariffs down over the five year
period," he added.
Secretary
Evans said the complaints from Africa require necessary changes that have been
brought to the realisation of the World Trade Organisation (WTO) to institute
measures to eliminate domestic subsidies and to reduce tariffs. He said the US
expects the WTO to work to encourage other countries to agree to the
suggestion.
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Ghana to see increased US investment
Accra
(Greater Accra) 14 November 2002 - Ghana will benefit from increased investment
inflows from the United States once the current healthy and friendly business
climate is maintained, US Secretary of Commerce, Don Evans said on Wednesday.
Speaking at
a press conference shortly after he toured the Princess Marie Louise Hospital,
he said Ghana could sustain and improve on the gains already made by further
strengthening democratic and civic institutions and overhauling policies to
deepen the liberalisation process.
"We
will do business in countries that show signs of good governance and rule of
law. Already, your country has chalked a lot of success in these areas and the
fruit of a free market economy is there for everybody to see," he said.
Evans said
the US was committed to maintaining a healthy trading relationship with Ghana
and would do everything possible, especially in areas of technical assistance
in policy formulation and reforms, to ensure that the alliance was mutually
rewarding.
Last year,
the US and Ghana exchanged goods valued at 400 million dollars, with each
country exporting 200 million dollars worth of merchandise. Evans said the African
Growth and Opportunity Act (AGOA) offered African countries the chance to build
and improve their economies and urged Ghanaian entrepreneurs to take advantage
of it.
He pledged
the commitment of the US government to eliminate both domestic and export
subsidies within the next five years to ensure a level playing field in the
American market so as to promote competition.
Evans, who
is on a three-leg African tour, arrived in Ghana from Morocco. He is
accompanied by an 11-member US company trade mission, which is in the country
to explore business and investment opportunities in information technology,
transportation, environmental technologies and security and safety equipment
sectors.
While in the
country Evans would witness an 80-million dollar agreement between Lemna
International Incorporated, a trade mission participant, and Ghana Water
Company to expand and rehabilitate drinking water systems at Sunyani and 16
other towns and villages.
He would
also introduce the members of the trade delegation to President John Agyekum
Kufuor. As part of the tour, Walt Braithwaite, President, Boeing-Africa,
donated a computer and accessories to the hospital.
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“IMF programme for Ghana is not broken”
Accra
(Greater Accra) 14 November 2002-The International Monetary Fund (IMF)
programme for Ghana is not broken, the Minister of Finance and Economic
Planning Mr Yaw Osafo-Maafo, said here today.
He said the
Ministry has had some disagreements on certain issues but the programme is not
broken, but it is on-going. The Minister was answering questions from Senior
Journalists at a press briefing here today.
He said
crude oil was the achiles heels of the economy, saying that anytime there was
instability or tension in the Middle East, it affected the nation's oil
situation.
He said the
petrol situation should be looked at realistically, adding "we cannot
continue with the subsidy on petrol. We
can do it for a while but certainly not for long."
Mr
Osafo-Maafo said lottery in every country was a source of revenue for
government. He said after privatising lotteries the nation was not gaining good
revenue.
"We
want to have a situation where lottery is the exclusive preserve of
government," he said. According to him, monies from lotteries should not
be put into private pockets, but rather lottery revenues should be coming to
government.
Asked why
state institutions like Ghana Commercial Bank (GCB) were to be divested when
they were making profits, the Minister said the dividends paid to government by
some of these financial institutions like GCB and the State Insurance
Corporation (SIC) were "very little as compared to the assets they
have."
The Minister
said "GCB is making profits but the return on assets is little as compared
to the Standard Bank." He said there was the need to inject more
efficiency into these state institutions and organisations.
According to
Mr Osafo-Maafo, the SIC lost 58 billion cedis through guarantees, that was why
the company brought little dividend to government.
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Ghana, US to sign a contract on water sector
Accra
(Greater Accra) 14 November 2002- Ghana and the United States of America (USA)
would on Wednesday sign a 77- million dollar agreement for improvement in the
water sector.
Mr Donald L.
Evans, Secretary of the United States of Commerce, who disclosed this when he led
a trade delegation to call on President John Agyekum Kufuor at the Castle, Osu,
did not give details.
He said the
democratic and economic performance of the government was a model for other
developing countries to emulate and urged the government to continue with the
good works.
Mr Evans
said the US was prepared to expand its trade and investment programme in Ghana
and about 10 US Companies had pledged to invest in the energy, high technology
and water purification sector.
President
Kufuor said Ghana needed the partnership and cash inflows from its partners for
development and with the US being in the centre stage for such a development,
there would be regular consultations between the two countries.
He said
under the African Growth and Opportunities Act (AGOA), Ghana would enefit from
free quota and tariffs on its exports to the US and this would e a boost for
the country's economy. "Ghana is prepared to undertake serious business
with the US for our mutual enefit" He added.
Mr Joseph
Henry Mensah, Senior Minister appealed to the US for assistance n the packaging
and marketing of made in Ghana goods on the US markets under AGOA.
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Aluworks regains loss as GSE moves up
Accra
(Greater Accra) 14 November 2002- Aluworks Limited (ALW) on Wednesday regained
100 cedis it lost on Monday to lift the market index up from 1,348.86 points to
1,351.39 points at mid-week trading.
Two other equities,
Enterprise Insurance Company (EIC) and Fanmilk Limited (FML) also registered
significant gains to give the All-Share Index 2.53 points gain.
The stock
index lost 1.51 points on Monday. The change in the year to date stood at 41.37
per cent with the market capitalisation finishing higher at 4,962.43 billion
cedis from 4,957.48 billion cedis. Total shares traded went up to 139,700 from
76,100 shares.
There were
four price changes - all positive. ALW gained 100 cedis at 3,700 cedis while
EIC and FML gained 74 cedis cedis and 15 cedis to end trading at 4,600 and
1,770 cedis respectively. Guinness Ghana Limited (GGL) gained one cedi at 1,011
cedis.
The
following are the last prices of listed equities in cedis:
ABL
380
AGC 18,807
ALW 3,700 +100
BAT 1,001
CFAO 67
EIC
4,600 +74
FML
1,770 +15
GBL 500
GCB 3,510
GGL 1,011 +1
HFC 955
MGL 254
MLC 270
MOGL
19,721
PAF 750
PBC 390
PZ 2,000
SCB
28,000
SPPC 387
SSB 3,958
SWL 285
UNIL
4,650
CMLT 460
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