At a press conference facilitated by HELP Foundation Africa on 12th February 2025, the coalition of concerned Nzema people raised concerns about the Petroleum Hub Project (PhuB) Development and made demands for the suspension of the petroleum Hub Project to address concerns relating to due process and community participation rights.
Background
The Petroleum Hub Development Project is aquiring 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 Energy Projects with claims of job creation and economic growth. However, the Phub initiative raises severe concerns over Transparency, improper land acquisition, no compensation payments, environmental degradation, and a lack of community engagement.
The Petroleum Hub Development Corporation (PHDC) announced an 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 dubious, leaving communities uncertain about the project’s viability and long-term sustainability.
The Concerns
1. Lack of Free, Prior, and Informed Consent (FPIC): The project was initiated without FPIC, violating international best practices and Ghana’s commitments under human rights frameworks. The affected communities were neither meaningfully consulted nor given the opportunity to consent voluntarily.
2. Legal and Constitutional Challenges: The compulsory acquisition of land under the Land Act, 2020 (Act 1036) raises questions about compliance with constitutional took international human rights standards. The planned Executive Instrument (EI) to formalize this acquisition undermines community rights.
3. Environmental and Livelihood Risks: The Domunli Lagoon, a biodiversity hotspot and lifeline for local communities, faces irreversible ecological damage. Coconut plantations, fishing grounds, and wildlife habitats are at risk, threatening livelihoods and natural heritage.
4. Inadequate Compensation and Livelihood Restoration: Compensation packages fall short of market value and exclude considerations for intergenerational wealth loss. Livelihood restoration plans are either non-existent or inadequate, leaving displaced communities vulnerable.
5. Credibility of Project Partners: The financial instability and questionable track records of key partners, such as Touchstone Capital and UIC Energy, raise doubts about the project’s success, increasing the risk of abandonment and community displacement without benefits.
6. Transparency Deficits: The lack of transparency in financing and project planning erodes trust and raises concerns about accountability.
Important Notice
It is important to note that we the coalition of Concerned Nzema People are not against Phub development.
The coalition welcome responsible investments that align with the needs and aspirations of our people, that will unlock the potential of our natural resources. However, the proposed Petroleum Hub project, in its current form, fails to do so.
Their Request
Considering these concerns, the coalition respectfully urge H. E Excellency the President, John Dramani Mahama to pause the Acquisition Process and investigate the Petroleum Hub project and the genuineness of its investors,
The Coalition and demand the suspension of any compulsory acquisition of the 20,000 acres of land.
Statement signed by ING. Ndede. Kojo (0244054086), Executive, Coalition of Concerned Nzema People
